Senate bill boosts debt collection exemptions
Print
Email
Save
Share
Del.icio.us
Digg
Facebook
Reddit
- Page 1 of 2
- SINGLE PAGE VIEW
Legislation to better protect homes from debt collectors passed a Senate panel Tuesday.
Sen. Julie Quinn, chairwoman of the Committee on Judiciary A and sponsor of the bill, said musical instruments, artwork and other items are exempt from seizure for the collection of debts but homes are not fully protected.
“This does not mean you’re off the hook for paying your creditor, whatsoever,” said Quinn, R-Metairie.
“What this means is, you can’t be kicked out of your house.”
Senate Bill 139 would increase the amount of the exemption of arrears from $25,000 to $250,000 to better protect the home from seizure by debt collectors.
It’s called a homestead exemption but should not be confused with the popular property tax break.
The measure moved to the Senate floor on a 3-2 vote.
Gretna attorney Bill Cherbonnier Jr., state chairman of the National Association of Consumer Bankruptcy Attorneys, said people in Louisiana are being threatened by “debt scavengers,” who buy creditors’ list of debtors and scare them into paying by threatening foreclosure on their homes.
In 1973, the year before the homestead exemption was mandated in the state constitution, the median price of houses sold in the South was $30,900, Cherbonnier said
The homestead exemption from creditors was then written to be for half, $15,000. The exemption amount was changed in 1999 to $25,000.
Last year, the median price of houses sold in the region was $215,900, he said. But the state law has not kept up, he said.
David Boneno with the Louisiana Bankers Association, which he said represents about 160 banks, opposed SB139.
“The concern is this bill will make it more difficult for us to make loans and be able to know what kind of collateral you potentially have to collect when loans go bad,” he said.
- NEXT PAGE »
- 1
- 2
 | ||||
| Most Popular | Most Emailed | Hot Topics | ||
