- Louisiana Collection Law
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At the present time Louisiana law favors the creditor as opposed to the
debtor havens of some other states. The disadvantage of Louisiana is that
court costs are on a "pay as you go" system and may be considerable
depending upon the actions necessary to take a lawsuit to judgment and
execution upon assets. Therefore, it is rather difficult to project court
costs for any given claim. Collection matters are filed in city courts
when available to take advantage of lower costs and shorter delays for trials.
When a judgment is final garnishment of wages and bank accounts are the
preferred methods of execution upon assets.
The challenge for the creditor client is to obtain as much information possible
on a customer in the event the account goes into arrears and to use
maximum measures to obtain voluntary payment. Court action and the
attendant costs should be reserved for the debtor who refuses/fails to pay
when assets are available or when there is a disputed debt and the creditor
has a good legal position.
