Louisiana Credit Card Debt: Statute of Limitations & Laws (2026)

Louisiana’s 3-year prescription under La. Civ. Code art. 3494

Louisiana Civil Code Article 3494 lists actions subject to a 3-year liberative prescription. Subsection (4) covers “an action on an open account.” Louisiana courts have consistently applied this 3-year window to credit card debts, including in debt-buyer cases, because credit card accounts are open accounts under Louisiana law regardless of the cardholder agreement’s written form.

The 3-year prescription period begins on the date of last payment or last written acknowledgment of the debt. Under La. Civ. Code art. 3464, prescription can be interrupted by:

• Acknowledgment of the debt in writing
• Filing of a lawsuit by the creditor within the prescription period
• A partial payment in some cases, although Louisiana courts have been narrower than common-law states on this point

If prescription is interrupted, the 3-year clock starts over from the date of interruption. If prescription accrues (the 3 years run out without interruption), the debt is prescribed and unenforceable in court.

A prescribed Louisiana credit card debt is not automatically extinguished. The debtor must raise prescription as an exception in the answer or by a peremptory exception filed before the answer. Failure to raise it can waive the defense. Louisiana procedure under La. C.C.P. art. 928 permits peremptory exceptions to be filed at any stage, but waiting until trial is risky.

Wage garnishment under La. R.S. 13:3881

Louisiana Revised Statutes 13:3881 lists exempt property and adopts the federal wage garnishment cap of 25% of disposable earnings, with the 30× federal minimum wage floor ($217.50/week in 2026).

Louisiana procedure for wage seizure runs through the writ of fieri facias under La. C.C.P. art. 2411 and following:

1. Creditor obtains a money judgment in Louisiana state court
2. Creditor files a petition for garnishment after judgment becomes definitive (typically 30 days after entry)
3. Court issues the writ of fieri facias and a garnishment interrogatory to the employer
4. Employer must answer the interrogatory within 15 days, stating disposable earnings
5. Garnishment continues each pay period until the judgment is paid, capped at 25%

Louisiana garnishment is continuous, capturing wages until the judgment is satisfied without need for renewal.

Specific Louisiana wage exemptions under La. R.S. 13:3881:

• 75% of disposable weekly earnings (matches the federal cap)
• 100% of Social Security, SSDI, SSI, and federal benefits
• 100% of unemployment compensation
• 100% of workers’ compensation
• Pension and retirement benefits from public employee retirement systems

Louisiana community property and credit card debt

Louisiana is one of nine community-property states (with Arizona, California, Idaho, Nevada, New Mexico, Texas, Washington, and Wisconsin). The community-property rules in La. Civ. Code art. 2334 to art. 2369 substantially affect credit card debt enforcement.

The basic rules:

• Debts incurred by either spouse during the marriage are presumed community obligations under La. Civ. Code art. 2360
• Community obligations are enforceable against community property, including wages of either spouse held in community
• Separate-property debts (incurred before marriage, after legal separation of matrimonial regime, or for separate benefit) attach only to that spouse’s separate property and a fractional interest in community

This means a Louisiana credit card opened by one spouse during marriage for household use can sometimes be enforced against the non-debtor spouse’s wages if those wages are community property. A divorced or separated spouse remains liable for community debts incurred before the regime separation, in proportion to the community.

In practice, creditors generally pursue the original cardholder’s wages first. The community-property overlay matters more after death (the surviving spouse may face creditor claims against community estate) and in divorce proceedings where debt allocation is contested.

Louisiana homestead and exemptions

La. R.S. 20:1 sets the Louisiana homestead exemption at $35,000 of equity per filer for a primary residence on up to 5 acres in a city or 200 acres outside city limits. The exemption is not doubled for joint married filers; the spouses share the $35,000.

Louisiana is an opt-out state for bankruptcy exemptions under La. R.S. 13:3881, so the state amounts apply in Chapter 7 bankruptcy.

Other key Louisiana exemptions:

• Motor vehicle: $7,500 (La. R.S. 13:3881(A)(7))
• Personal property aggregate: $7,500 (La. R.S. 13:3881(A)(4))
• Tools of trade: $7,500
• Retirement accounts: 100% exempt under La. R.S. 13:3881(D)
• Wedding and engagement rings: $5,000
• Health aids and prescribed medical equipment: 100% exempt

Louisiana garnishment math and community-property considerations

The pillar payoff calculator compares paths for a Louisiana debtor facing a credit card judgment.

Scenario 1: $12,000 balance, single LA filer, $900/week disposable

Garnishment caps at the lesser of 25% of $900 = $225/week, or $900 - $217.50 = $682.50/week. The cap is $225/week, or $11,700/year. The original $12,000 grows with post-judgment interest at 7.5% under La. R.S. 9:3500, so total collection is roughly $13,000 over 13 to 14 months. Settling at 40% costs $4,800 paid in 90 days. Settlement saves approximately $8,200 vs full garnishment.

Scenario 2: $12,000 balance, LA married couple, both wages held in community

If the card was opened during marriage and used for household purposes, it is a community obligation. The creditor can garnish either spouse’s wages because both are community property. Combined wage exposure is higher than in non-community states. Settlement becomes more attractive because the household risk doubles.

Scenario 3: $12,000 balance, LA homeowner, $200,000 home with $160,000 mortgage

Home equity is $40,000. The first $35,000 is protected under La. R.S. 20:1. Remaining $5,000 of equity is reachable by judgment lien. Most Louisiana creditors do not pursue forced sale of small judgments because the sheriff’s sale costs exceed recoverable equity. Many file a judgment lien and wait for refinance or sale.

Louisiana vs Southeast neighbors

Louisiana shares the 3-year SOL with Mississippi but adds the community-property complication that increases spousal exposure. Mississippi’s higher homestead ($75,000 vs $35,000) and non-community-property status make MS the stronger Southeast jurisdiction for joint-filing debtors. Texas combines community property with a full ban on private credit card wage garnishment, making it the strongest community-property state for working debtors.

Asserting prescription as an exception under Louisiana procedure

Louisiana’s civil-law procedure for raising prescription differs from common-law states. The peremptory exception of prescription can be filed under La. C.C.P. art. 927:

1. File a Peremptory Exception of Prescription before or with the answer. The exception is a separate pleading from the answer and can be filed even after a default judgment if newly discovered. Louisiana courts have allowed the exception at any stage of trial, including on appeal, but timing is risky.

2. Plead the date of last payment. The exception must specifically state the date prescription began running (the date of last payment or written acknowledgment). The burden is on the debtor to establish the prescription dates.

3. Hearing on the exception. Louisiana courts typically rule on prescription exceptions before reaching the merits. If the court sustains the exception, the suit is dismissed with prejudice.

Filing the Louisiana Claim of Exemption

When a garnishment interrogatory is served on a Louisiana employer, the debtor has 15 days from notice to file objections. The procedure:

1. File a Rule to Show Cause with the issuing court. The Rule asks the court to determine exemption status before garnishment proceeds.

2. List the applicable exemptions:

• Federal benefits (Social Security, SSDI, SSI, VA, federal retirement)
• 30× federal minimum wage floor for low-wage workers
• Pension and retirement benefits (100% exempt under La. R.S. 13:3881)
• Workers’ compensation and unemployment
• Motor vehicle up to $7,500
• $7,500 personal property aggregate

3. Serve the creditor’s attorney. Louisiana requires service by certified mail or sheriff. The court schedules the rule hearing typically within 14 to 30 days.

4. Recover wrongfully garnished wages. Wages withheld between the writ and the hearing are returned if the exemption is sustained.

Louisiana bank seizure procedure

Louisiana creditors can serve a writ of fieri facias on a bank holding the debtor’s account. The bank freezes the account up to the judgment amount and notifies the debtor and the court. Automatic and claimed exemptions:

• 31 CFR Part 212 2-month lookback on direct-deposited Social Security, SSDI, SSI, VA, federal retirement, and federal student aid: automatic
• Tracing exemption for funds derived from exempt sources (workers’ comp, unemployment, etc.): claimed within 15 days

Louisiana does not have a cash exemption analogous to Mississippi’s $50,000 aggregate or Tennessee’s $10,000 wildcard. Bank balances above the federal-benefit protection are largely exposed in Louisiana.

The Louisiana Unfair Trade Practices Act overlay

Louisiana Revised Statutes 51:1401 to 51:1430, the Louisiana Unfair Trade Practices and Consumer Protection Act (LUTPA), gives consumers a private right of action against debt collectors who use unfair or deceptive practices. Key Louisiana provisions:

• Actual damages and attorney’s fees
• Treble damages for knowing violations
• Public injunctive relief
• Threatening wage garnishment that exceeds the federal 25% cap is per se a violation
• Continuing collection on a prescribed debt without proper disclosure is per se a violation

The Louisiana Office of the Attorney General Consumer Protection Section handles complaints. Louisiana has been active in suing predatory debt collectors and debt buyers.

When Chapter 7 bankruptcy makes sense in Louisiana

Louisiana’s 10-year judgment enforcement window under La. Civ. Code art. 3501 (renewable) is longer than Mississippi’s 7 years but shorter than Alabama’s 20 years. Combined with the community-property exposure for married filers, Chapter 7 makes sense more often in Louisiana than in non-community-property states with similar SOL profiles.

The Chapter 7 means test uses the Louisiana state median income. The U.S. Trustee Program publishes current figures. For 2026 a single filer earning under approximately $52,000 generally qualifies. Filing triggers the automatic stay under 11 U.S.C. § 362 and most credit card debt is dischargeable.

For Louisiana married couples, joint Chapter 7 filing can discharge both community and separate debts in a single proceeding, which is often the cleanest path when community-property liability is in play.

Authoritative Louisiana sources

• La. Civ. Code art. 3494, 3-year prescription on open accounts
• La. R.S. 13:3881, property exempt from seizure
• La. R.S. 20:1, homestead exemption
• La. Civ. Code art. 2334 to 2369, community property regime
• Louisiana Office of the Attorney General consumer complaints
• Louisiana State Bar Association lawyer referral
• Southeast Louisiana Legal Services

Sibling state pages

• Mississippi credit card debt laws
• Alabama credit card debt laws
• Arkansas credit card debt laws
• Tennessee credit card debt laws
• Florida credit card debt laws

Related tools

• Credit card payoff calculator for settlement vs garnishment modeling
• Debt management plan calculator
• Can credit card debt garnish your wages?

Frequently asked questions

What is the statute of limitations on credit card debt in Louisiana?

Three years from the date of last payment or written acknowledgment, under Louisiana Civil Code Article 3494 which sets a 3-year liberative prescription for actions on open accounts. Louisiana’s civil-law system uses ‘prescription’ rather than ‘statute of limitations,’ but the practical effect is the same. After 3 years, the credit card debt is prescribed and unenforceable in court if you raise prescription as a defense in your answer.

Can credit card companies garnish wages in Louisiana?

Yes, after a court judgment, capped at 25% of disposable earnings under federal law 15 U.S.C. § 1673 and Louisiana Revised Statutes 13:3881. The 30× federal minimum wage floor ($217.50/week) protects low-wage workers. Louisiana procedure allows wage seizure (‘garnishment under writ of fieri facias’) after the creditor wins a judgment. The employer becomes the garnishee and must withhold and remit each pay period.

Is my spouse liable for my credit card debt under Louisiana community property?

Possibly. Louisiana is one of nine community-property states. Under La. Civ. Code art. 2360 and art. 2361, debts incurred during the marriage by one spouse for the benefit of the community can be enforced against community property, including the non-debtor spouse’s wages held in community. Separate-property credit card debt (incurred before marriage or after a matrimonial regime separation) attaches only to that spouse’s separate property and one-half of community wages. Consult a Louisiana attorney for specific facts.

What is Louisiana’s homestead exemption for credit card debt?

Thirty-five thousand dollars of equity in a primary residence under Louisiana Revised Statutes 20:1, applied per filer. The exemption applies to a primary residence on up to 5 acres in a city or up to 200 acres outside city limits. Joint owners married to each other can claim the exemption as a couple but cannot double it. Louisiana is an opt-out state for bankruptcy exemptions, so the homestead applies in Chapter 7 bankruptcy as well.

How long can a Louisiana credit card judgment be enforced?

Ten years from the date of entry under La. Civ. Code art. 3501. The judgment can be renewed for an additional 10 years by filing for revival of the judgment before the prescription period runs. Post-judgment interest accrues at the Louisiana judicial interest rate, currently 7.5% per year for 2026, set annually by the State Treasurer under La. R.S. 9:3500.