Debt relief in Louisiana: collection rules, time limits and your options
Updated November 9, 2026
Louisiana at a glance (checked November 2026)
| Louisiana | |
|---|---|
| Time limit to sue on credit cards and open accounts | 3 years |
| Promissory notes | 5 years |
| Wage garnishment for consumer debt | Up to 25% of take-home pay; nothing if you take home $217.50 a week or less |
| State debt collection law | Collection Agency Regulation Act |
| Who licenses debt collectors | Office of Financial Institutions |
| Where to complain | Louisiana Attorney General's Consumer Protection Section, and the CFPB |
Debt collection rules in Louisiana
Collection agencies that collect consumer debts in Louisiana need a license from the Office of Financial Institutions under the Collection Agency Regulation Act (La. R.S. 9:3576.1 and following). Original creditors collecting their own debts generally don't.
The federal Fair Debt Collection Practices Act sets most of the rules for how collectors behave. A third-party collector can't call before 8 a.m. or after 9 p.m., threaten arrest or a lawsuit it doesn't plan to file, or misstate what you owe. It must send you a validation notice, and if you dispute the debt in writing within 30 days, it has to stop until it verifies the debt. The Attorney General's Consumer Protection Section takes complaints about collectors.
How long creditors have to sue
Louisiana law calls the time limit "prescription."
- 3 years for credit cards and other open accounts, counted from the last charge, payment or similar activity on the account (Civil Code article 3494).
- 5 years for promissory notes (article 3498).
- 10 years for most other contracts (article 3499).
A payment or another acknowledgment of the debt can interrupt prescription and start the clock over, so check how old a debt is before you pay on it. Once prescription has run, a collector can still ask you to pay but can't sue you or threaten to.
What can be garnished in Louisiana
Louisiana protects 75% of your take-home pay, and never less than $217.50 a week, which is 30 times the federal minimum wage (La. R.S. 13:3881). So a creditor with a judgment can take at most 25% of your take-home pay, and nothing at all if you take home $217.50 a week or less.
Child support and alimony follow separate rules. Social Security and other federal benefits stay protected from ordinary creditors, even after they're deposited in your bank account.
Ways out of debt in Louisiana
- Nonprofit credit counseling can combine your card payments into one debt management plan with lower rates. Look for an agency accredited by the NFCC or FCAA.
- Paying only the minimum can keep you in debt for decades. Our minimum payment calculator shows how long it would take and what it would cost.
- Debt settlement companies can't charge you a fee until they've actually settled a debt, under federal rules. Forgiven amounts can count as taxable income.
- Bankruptcy: Louisiana makes you use its own exemption list rather than the federal one, including a homestead exemption for the home you live in. A bankruptcy attorney can tell you what you would keep.
Where to get help or complain
- Louisiana Attorney General, Consumer Protection Section takes consumer complaints online or at 1-800-351-4889.
- Office of Financial Institutions, collection agencies licenses collection agencies.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
- Louisiana Law Help has free legal information and helps you apply for legal aid.
General information about Louisiana law, not legal advice. Checked November 2026.