Many people in St. Louis and around Missouri are reliant upon their vehicle to get to work, school, or to run necessary errands. When contacting a St. Louis bankruptcy attorney they worry that if they file for bankruptcy, they will lose their vehicle and be unable to run these necessary errands. Fortunately, Missouri does allow for a vehicle exemption, meaning a person can protect some equity in their vehicle This potentially allows a person to file bankruptcy and still keep their car.
St. Louis Bankruptcy Attorney on Missouri’s Vehicle Exemption
In Missouri, if you file bankruptcy, you will be allowed to exempt up to $3,000 equity in your vehicle (this amount is doubled if you are married). For most clients who seek out a St. Louis bankruptcy attorney seeking Chapter 7 protection, this is more than enough equity to keep you in your car. If you have more equity than that, you may be able to apply the Wildcard exemption of $1,250 (double for a married couple) that may keep you in your car.
For example, a married couple may have a vehicle worth $15,000 but owe the bank $13,000 on it. Because the equity in the vehicle is only $2,000, the exemption would mean a person would keep their car. If, however, a person had a car worth $20,000 but only owed $5,000 on it, the would be sold by the bankruptcy trustee. The person would then be able to recover the amount of the exemption in cash with the rest going to creditors. A St. Louis bankruptcy attorney can discuss the value of your car and help determine whether your exemption will be enough to keep it.
At The Westbrook Law Group, we understand how hard it is to be in debt. We take great pride in helping people get a fresh start, helping people live without the stress of creditor harassment. To learn how we can help you start anew, call us today for a free consultation.