Bankruptcy Exemptions in Missouri

Bankruptcy exemption laws protect certain types of property from being seized by creditors during the bankruptcy process. These laws vary from state to state, so it’s important to know what property is exempt in Missouri before filing for bankruptcy. When you file for bankruptcy, one of the first things that you’ll need to do is determine which assets are exempt from being liquidated. This process can be complicated, and it’s important to have an experienced lawyer on your side who can help you navigate it.

How Bankruptcy Exemptions work in Missouri

The property you can exempt depends on a few factors such as: the type of bankruptcy you are filing, whether you are using the federal or state exemption list, and what property you own.

If you are filing for Chapter 7 bankruptcy, you may be able to exempt (keep) certain property that is necessary for your life and work. These exempt items may include your home, your car, personal belongings such as clothing and furniture, and tools of your trade. 

If you are filing for Chapter 13 bankruptcy, you will need to repay some or all of your debts over time. The amount you will have to repay will be based on your income, expenses, and the value of your nonexempt property. Any property that is not exempt will be used to repay your creditors. 

Generally speaking, you are allowed to keep more property if you file for Chapter 13 bankruptcy than if you file for Chapter 7 bankruptcy. This is because in Chapter 13 bankruptcy, the focus is on repayment, rather than on liquidation of assets.

What are the most common bankruptcy exemptions in Missouri?

It is important to note that you can only claim an exemption for property that you actually own. So, if you are renting a home or leasing a car, you would not be able to exempt those items.

Also, keep in mind that you can only exempt a certain amount of value for each type of property. For example, you may be able to exempt up to $15,000 worth of equity in your home. But if your home is worth more than $15,000, the trustee assigned to your case may sell it and use the proceeds to repay your creditors.

Finally, it is important to remember that you can only claim exemptions for property that is considered “necessary for your life and work.” So, if you have luxury items that are not essential to your survival or your ability to earn a living, you will likely not be able to exempt them.

Missouri offers a number of different exemptions that can help you keep your assets during bankruptcy proceedings, including:

1. Homestead exemption- protects your home up to a value of $15,000
2. Motor vehicle exemption – protects your car up to a value of $3,000
3. Personal property exemption- protects your personal belongings up to a value of $600
4. Wildcard exemption – protects any additional property up to a value of $1,000
5. Retirement account exemption – protects your retirement savings from creditors
6. Public benefits exemption – protects certain types of government benefits from seizure during bankruptcy proceedings
7. Spousal maintenance exemption – protects payments made for child support or alimony from creditors
8. Tools of trade exemption – protects your tools and equipment necessary for your job from seizure during bankruptcy proceedings
9. Personal injury exemption – protects any compensation you receive from a personal injury lawsuit from creditors.

These are just some of the most common exemptions available in Missouri – for a complete list of all exemptions available in your state, be sure to check with your local bankruptcy court.

If you have any questions about whether a particular piece of property is exempt from bankruptcy in Missouri, you can speak to our bankruptcy attorney at Westbrook Law Group. 

What are the differences between federal and state bankruptcy exemptions in Missouri?

One of the biggest decisions you’ll make when filing for bankruptcy is whether to use the federal or state exemption system. Each state has its own set of exemptions that determine what property you’re allowed to keep when you file for bankruptcy. Missouri is no different.

While both the federal and state exemption systems have their pros and cons, the following are factors to consider:

1. The amount of money you’re allowed to exempt from creditors
2. The types of property that are exempt from creditors
3. The process for claiming exemptions

Before you decide which exemption system to use, it’s important that you understand these differences and how they may impact your case. If you have any questions, be sure to speak with an experienced Missouri bankruptcy attorney who can help guide you through the process.

How to choose the best exemption for you in Missouri

If you are considering bankruptcy in Missouri, one of the most important decisions you will make is choosing which exemptions to use. Missouri offers both state and federal exemptions, and each has its own rules and regulations. It is important to carefully consider all of your options before making a decision, as this will have a significant impact on your financial future.

There are a few factors you should take into account when choosing which exemptions to use in Missouri:

1. Value of your property
2. Type of debt you have
3. Financial goals