Like all states, Missouri has a set of exemptions you can use to protect some property when filing for bankruptcy, such as a home, car, and retirement account. In this article, you'll learn:
If you have more questions, read Filing for Bankruptcy in Missouri. Not only will you find answers, but it includes helpful checklists and a link to an interactive bankruptcy quiz. Or, try the start-to-finish "Filing for Bankruptcy" guide.
You can protect property covered by an exemption regardless of whether you file for Chapter 7 or 13. But each chapter treats nonexempt property—things not covered by an exemption—differently.
The different approaches ensure that creditors receive the same amount regardless of the chapter filed.
You can file for bankruptcy in Missouri after living there for more than 180 days. However, you must live in Missouri much longer before using Missouri exemptions—at least 730 days before filing, to be exact. Otherwise, you'd use the previous state's exemptions.
But, suppose you weren't living in any particular state during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two-year period that immediately preceded your filing. (11 U.S.C. § 522(b)(3)(A).)
Learn more about filing for bankruptcy after moving to a new state and who can and can't file for bankruptcy.
We've put together a list of some common Missouri bankruptcy to help you determine whether you can protect property important to you. Although the federal bankruptcy exemptions aren't available in Missouri, keep in mind that spouses who share an ownership interest in property can double many exemptions (but not the homestead exemption).
Also, all filers are entitled to:
The homestead exemption protects equity in your home. In Missouri, you can exempt up to $15,000 of equity in the real estate in which you live or will live, or up to $5,000 of equity in a mobile home in which you live. Joint owners may not double the exemption. (Mo. Rev. Stat. §§ 513.430.1(6), 513.475.)
If you and your spouse own property as a tenancy by the entirety, you might have more protection, but only if one spouse files. Be sure to discuss this with a bankruptcy lawyer. (Mo. Rev. Stat. § § 513.475, 513.427.)
Learn more about Missouri's homestead exemption in bankruptcy and protecting your home in bankruptcy.
You won't lose your transportation if you file for bankruptcy. In Missouri, you can protect up to $3,000 of equity in a car using the motor vehicle exemption. (Mo. Rev. Stat. § 513.430.1(5).)
Example. Jolene owns a 2008 Toyota Camry worth $12,000. She owes the dealer $10,000, leaving $2,000 of equity. She can file for bankruptcy in Missouri and use the $3,000 motor vehicle exemption to protect her vehicle fully.
Learn more about the motor vehicle exemption and protecting cars in bankruptcy.
A wildcard exemption protects any property of your choosing. In Missouri, you can select nonexempt property you'd like to keep up to $600 in value. If you are the head of your family, an additional $1,250 of value in any property, plus another $350 for each of your children. (Mo. Rev. Stat. §§ 513.430.1(3), 513.440.)
Personal Property
Retirement and Insurance Benefits
Public Benefits
Missouri's exemption amounts adjust periodically. To ensure that you have the most recent figures, be sure to consult with a bankruptcy lawyer or check for any updates at the website of the Missouri General Assembly.
You can file for bankruptcy in Missouri after living there for more than 180 days. However, you must live in Missouri much longer before using Missouri exemptions—at least 730 days before filing, to be exact. Otherwise, you'd use the previous state's exemptions.
But suppose you weren't living in any particular state during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two-year period that immediately preceded your filing. (11 U.S.C. § 522(b)(3)(A).)
Also, to claim the total value of the Missouri homestead exemption, you must have purchased and owned the property for at least 1,215 days before the bankruptcy filing. If you can't meet this requirement, your homestead exemption is limited by federal law to $189,050 (valid for bankruptcy cases filed between April 1, 2022, and April 1, 2025).
Learn more about filing for bankruptcy after moving to a new state and who can and can't file for bankruptcy.
If you don't exempt your property carefully, you could lose it. Answers to these questions might help you steer clear of common issues.
Do I automatically get to keep my exempt property? Generally, no. Here's the procedure you'll need to follow: You'll select the exemption set that best protects your property, list the exempt assets and applicable exemption laws on Schedule C: The Property You Claim as Exempt, and file it with your other required paperwork.
Will someone check my exemptions? The bankruptcy trustee—the court-appointed official tasked with managing your case—will review Schedule C to ensure that you have the right to protect the claimed property. A trustee who disagrees with your exemptions will file an objection with the court. The judge will decide whether you can keep the property.
Example. Jeff owns a rare, classic car worth $15,000, but the state vehicle exemption won't adequately protect it. Believing that the car qualifies as art—at least in his mind—Jeff exempts it using his state's unlimited artwork exemption. The trustee reviews Schedule C, disagrees with Jeff's characterization, and files an objection with the court. After consideration, the judge will likely side with the trustee, determining that the vehicle doesn't qualify as a piece of art.
What if I make a mistake? Most trustees won't file an objection unless it's clear that the debtor is trying to pull something over on the court. At least not without trying to resolve the issue first. If there's a minor exemption problem, the trustee will likely call you to work out the matter informally.
It's worth noting that it's not a good idea to finesse exemptions. Not only do you have an obligation to supply correct information on your bankruptcy forms, purposefully making inaccurate statements could be considered fraudulent. Bankruptcy fraud is punishable by up to $250,000, 20 years in prison, or both.
Did you know Nolo has been making the law easy for over fifty years? It's true—and we want to make sure you find what you need. Below you'll find more articles that explain what bankruptcy is and how bankruptcy works. And don't forget that our bankruptcy homepage is the best place to start if you have other questions!
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We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated March 15, 2022
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