Louisiana enacts Act limiting seizure of consumer stimulus payments

State Issues Covid-19 Louisiana Consumer Finance CARES Act

On June 4, the Louisiana governor signed Act No. 44, which exempts from seizure any consumer stimulus payments directly received by the debtor pursuant to federal law enacted to provide Covid-19 relief, with the exception of seizure for spousal or child support payments. This exemption does not apply to unemployment compensation received by the debtor. The act limits the circumstances in which government payments, grants, or loans received as a result of an “extraordinary emergency event” (which includes, among other things, a public health emergency affecting Louisiana) by a natural or judicial person who is a U.S. citizen domiciled in Louisiana may be seized, sold, attached, or restrained. The act became effective on June 4, 2020.