Filing for bankruptcy is a big decision, and one of the first questions many Louisiana homeowners ask is, “What will happen to my home?” At Hester Law Firm, we provide legal assistance to the Baton Rouge community and help clients understand how bankruptcy could impact their most valuable assets—especially their home.

Understanding Bankruptcy Options

In Louisiana, individuals typically file under Chapter 7 or Chapter 13 bankruptcy:

• Chapter 7 involves the liquidation of non-exempt assets to pay creditors. However, most people who file under Chapter 7 can keep their homes—if they’re current on their mortgage and their home equity is exempt.
• Chapter 13 allows you to reorganize your debt into a repayment plan over 3–5 years, which can help you catch up on missed mortgage payments and keep your home.

Louisiana’s Homestead Exemption

Louisiana offers a generous homestead exemption of up to $35,000 in home equity. This means that if your home equity is less than $35,000, it is protected from creditors in bankruptcy. The exemption applies to your principal residence, not investment properties or second homes.

Are You at Risk of Losing Your Home?

You are more likely to keep your home if:

• You are current on your mortgage payments.
• You have little or no equity above the homestead exemption.
• You can continue making payments under a Chapter 13 plan.

However, if you're significantly behind on payments and unable to make future payments, you could risk foreclosure—even in bankruptcy.

Let Hester Law Firm Help You Navigate the Process

Every bankruptcy case is unique, and the outcome depends on several factors, including your income, assets, and debts. At Hester Law Firm, we offer personalized legal guidance to Baton Rouge residents considering bankruptcy. Our goal is to protect what matters most—your home and your future.