Most people want to know whether they can keep valuable property before filing for bankruptcy—especially a home. If you qualify to use the Missouri homestead exemption, you can protect some or all of the equity in your house. In this article, we explain:
For more bankruptcy information, 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.
In Missouri, you'll use Missouri's state exemptions—the federal bankruptcy exemptions aren't available (some states allow residents to choose between the two sets). However, you can supplement Missouri's state exemptions with the federal nonbankruptcy exemptions.
To help you make an informed choice, we've listed the homestead exemption amount below. We've also included links to the federal and state exemption lists that apply in your case, so you'll have an easier time deciding whether bankruptcy will work for you.
If you're married, remember that spouses can double some exemption amounts, but not all. Find out about other filing considerations for spouses.
|
Missouri Homestead Exemption |
|
|
Homestead exemption amount |
$15,000 |
|
Can spouses who file a joint bankruptcy double the exemption? |
Yes |
|
Homestead exemption law |
Mo. Rev. Stat. § 513.475 |
|
Other information |
Amounts are subject to change. |
|
Where to find other exemptions. |
Missouri Bankruptcy Exemptions |
In Missouri, the homestead exemption applies to real property, including your home, condominium, or co-op. You must own and occupy the property in order to protect it. The homestead exemption also applies to a manufactured home that you have converted to real property by permanently affixing it to the land.
Property held as a tenancy by the entirety. This ownership interest exists when property is owned by a married couple as a single marital entity, not as individuals. Wyoming is one of about 25 states where a married couple can own property as tenants by the entirety. If one spouse files for bankruptcy—not both—the bankruptcy trustee might be prevented from using the property equity to pay off debts. Your property equity could be fully protected. However, be warned that this is a tricky area of law. Talk with a local bankruptcy attorney before filing to ensure that you don't lose valuable property. Is this really a risk? Absolutely, because you don't have an automatic right to dismiss a Chapter 7 case if you make a mistake.
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 lived in multiple states 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.
Learn more about this requirement, the current amount of the federal cap, and other important exceptions to homestead exemptions.
In Missouri, the homestead exemption is automatic—you don't have to file a homestead declaration with the recorder's office to claim the homestead exemption in bankruptcy. Instead, when filing for bankruptcy, you'll list your homestead exemption on Schedule C: The Property You Claim as Exempt when completing your bankruptcy forms. You can find out about other requirements you'll need to meet in Your Home in Chapter 7 or Your Home in Chapter 13.
You'll find Missouri's homestead exemption in the Mo. Rev. Stat. § 513.475 on the Missouri Revisor of Statutes website. Still, the best way to protect your assets is by consulting with a local bankruptcy lawyer.
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 explaining how bankruptcy works. And don't forget that our bankruptcy homepage is the best place to start if you have other questions!
|
Our Editor's Picks for You |
|
|
More Like This |
Filing for Bankruptcy in Missouri |
|
What to Consider Before Filing Bankruptcy |
What Not to Do Before Bankruptcy |
|
Helpful Bankruptcy Sites |
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 April 23, 2022