Missouri Bankruptcy Laws
The bankruptcy process is protected by federal and state laws. These laws are not the same in every state and can be rather complex. So before you make a decision on bankruptcy, make sure you have all the facts about how the laws in your state will apply to you. Talk to a local bankruptcy lawyer to find answers. When you fill out the free form below, you can get a free case evaluation with an attorney in your area.
Before filing for bankruptcy in Missouri, take some time to learn about Missouri bankruptcy law and how it affects you.
Missouri Bankruptcy Exemptions
Under Missouri bankruptcy law, you can keep the following items when you file for bankruptcy:
- Up to $15,000 in equity value for your home
- Up to $500 for your jewelry, with up to $1,500 for your wedding ring
- Up to $3,000 for your vehicle
- Up to $3,000 for household goods, including crops and animals
- Public benefits
- Public compensation
- Payment for injury cases or wrongful death settlements, sometimes with a dependency clause
- Up to $3,000 for tools of the trade
- Up to $750 per month for alimony or child support
- ERISA qualified pensions
- Pensions for firefighters, highway and transportation employees, police department employees, teachers, state employees, and local government employees
- Up to 75 percent of earned but unpaid wages, or 90 percent for those serving as the head of the household
- Unmatured life insurance contracts, except for credit life insurance contracts
- “Wild card” asset, up to $600 in value
- Cash amount of $1,250 for head of the household and $350 for unmarried dependents who are under the age of 18 or are disabled and living at home
- Up to $5,000 for a mobile home that is a primary residence and not attached to other real estate
- An acre or $100 in value for a burial plot
- Any professionally prescribed health aids
In addition, if a property is held by both the husband and wife, but only one is filing bankruptcy, it may be exempt. Some exceptions to this rule apply, such as the fact that it is not applicable to your tax liability.
Missouri Chapter 7 Bankruptcy Law
When most people think of bankruptcy, they think of Chapter 7 bankruptcy. This form of bankruptcy is designed to allow most debts to be removed completely once the debtor has sold non-exempt assets. Not everyone qualifies for Chapter 7, because you must pass the means test to file this form of bankruptcy.
Missouri Chapter 13 Bankruptcy Law
Chapter 13 is the form of bankruptcy offered to those who cannot file Chapter 7. Under Chapter 13, the bankruptcy trustee helps the debtor create a repayment plan. The debtor then repays the debts in a more manageable way after selling assets to pay off a large chunk of it, all while receiving court protection.
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