In Louisiana—from the energy giants of Baton Rouge and the maritime hubs of New Orleans to the surgical centers of Shreveport—unpaid debt is a silent profit killer. But Louisiana is not a “common law” state. With an aggressive 3-year “Prescription” trap for open accounts and strict 2026 healthcare liability shifts, standard collection tactics don’t just fail here—they can expire legally before you even file. You don’t need a collector; you need a Louisiana compliance strategist who can turn “uncollectible” accounts into cash flow before the clock runs out. Nexa is a Louisiana-compliance leader.
Nexa provides 100% reputation-safe, equipped with all 50-state collections license, offering free credit reporting, free litigation/bankruptcy scrubs, and zero onboarding fees. Secure – SOC 2 Type II & HIPAA compliant.
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The Louisiana Legal Landscape (2026 Summary)
Louisiana law uses the term “Prescription” instead of Statute of Limitations. If you wait too long to pursue an “Open Account,” you lose your legal right to collect forever.
| Debt Type | Prescription Period | Louisiana Civil Code (CC) |
| Open Accounts (Credit, Medical, Utilities) | 3 Years | CC Art. 3494 |
| Written Contracts / Personal Actions | 10 Years | CC Art. 3499 |
| Promissory Notes | 5 Years | CC Art. 3498 |
| Wage Garnishment | ALLOWED (25% Cap) | La. R.S. § 13:3881 |
Critical Louisiana Rules for 2026:
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The “3-Year Trap”: Most business and medical debt falls under “Open Accounts.” If you haven’t secured payment or a written acknowledgement within 3 years, the debt is legally dead. Nexa’s high-speed Step 1 & 2 process is designed to hit these accounts while they are still legally enforceable.
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2026 Healthcare Liability Shift: Effective Jan 1, 2026, Louisiana has modified its medical expense recovery rules (Act 466). Nexa’s “Louisiana Desk” is already updated to ensure your medical collections align with these new transparency standards.
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Wage Garnishment: Once a judgment is signed, Louisiana allows the garnishment of the lesser of 25% of disposable earnings or the amount exceeding 30x the federal minimum wage.
- LA also has a very specific rules about “Amicable Demand“ (La. R.S. 9:3534.1).
Cost-Effectiveness: The Nexa Advantage
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Fixed-Fee Recovery ($15/account): Best for high-volume, early-stage debt. Debtors pay 100% directly to you. No commissions.
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Contingency Service (20%–40%): Performance-based recovery. No Recovery, No Fee. We take the risk; you get the revenue.
Industries We Serve in Louisiana
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Energy, Oil & Gas: B2B recovery for the refineries and service providers of the “Energy Corridor.” We handle high-value vendor disputes and equipment rental arrears.
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Healthcare & Medical: 100% HIPAA-compliant recovery for hospitals and specialty clinics. We navigate the 3-year prescription window aggressively to ensure your medical billing stays liquid.
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Maritime & Logistics: Specialized recovery for shipping, warehousing, and freight brokerage firms operating out of the Port of New Orleans and South Louisiana.
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Colleges & Universities: From the state’s massive public university systems to private colleges, we handle tuition and bursar recovery with a focus on student-first mediation.
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Accountants & CPA Firms: Recovery of professional service fees. We understand the “net-30” billing cycle and use professional mediation to ensure you get paid without damaging local client rapport.
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Banks & Credit Unions: Expert handling of delinquent consumer loans and deficiency balances using Louisiana’s specific 10-year personal action window.
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Construction & Trades: Revenue recovery for HVAC, electrical, and plumbing contractors. We are experts in Louisiana Private Works Act liens and strict filing timelines.
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Restoration, Waste Management & Agriculture: High-speed recovery for service-based businesses and the agribusiness sector that powers the Pelican State.
Recent Louisiana Recovery Results
Case 1: Baton Rouge Specialized Surgical Center (Medical)
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The Problem: $130,000 in aging patient debt approaching the 3-year “Prescription” deadline.
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The Result: Nexa implemented an accelerated mediation strategy, recovering $88,000 in 60 days before the accounts became legally uncollectible.
Case 2: Lafayette Oilfield Service Provider (B2B)
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The Problem: A $75,000 unpaid invoice for site services from a vendor who went “dark.”
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The Result: Using Louisiana’s 10-year written contract statute, we applied a bank levy, securing the full $75,000 in just 35 days.
Frequently Asked Questions (FAQ)
1. Does Louisiana have a 3-year or 10-year limit to collect?
It depends on the debt. “Open accounts” (like most medical and credit bills) expire in 3 years. Formal “written contracts” last for 10 years. Identifying which one you have is critical—Nexa provides a free audit to help.
2. Can you garnish wages for small business debts in Louisiana?
Yes. Following a court judgment, Louisiana law allows for the garnishment of up to 25% of the debtor’s disposable income to satisfy the debt.
3. What is the 2026 Healthcare Liability change?
As of January 1, 2026, Act 466 changes how medical expenses are recovered in litigation. Nexa’s systems are updated to ensure your medical collections remain compliant with these new transparency rules.
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