The Missouri Homestead Exemption

If you're considering filing for bankruptcy in Missouri, the Missouri homestead exemption will help you protect the equity in your home. This article explains the amount of the Missouri homestead exemption and how to apply it in your bankruptcy case when you want to keep your house. You'll find detailed information about Missouri bankruptcies in Filing for Bankruptcy in Missouri.

How Much Is the Homestead Exemption in a Missouri Bankruptcy?

You'll use Missouri's state homestead exemption. Although some states allow residents to choose between state and federal bankruptcy exemptions, the federal exemptions aren't available in Missouri. To help you make an informed choice, we've listed the homestead exemption amount below and have included links to exemption lists that apply in your case.

Protecting Property With the Missouri Homestead Exemption

In Missouri, the homestead exemption applies to real property, including your home, condominium, or co-op. You must own and occupy the property to protect it. The homestead exemption also applies to a manufactured home 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. If one spouse files for bankruptcy, the trustee might be prevented from using the property equity to pay off debts. However, this is a tricky area of law, so talk with a local bankruptcy attorney to ensure you don't lose valuable property.

Other Requirements for Keeping a Home in Bankruptcy

If you can't protect all of your home equity, you might not be able to keep your home. Typically, the Chapter 7 trustee appointed to your case would sell the house, return the exemption amount to you, pay off the mortgage, and pay creditors with the amount remaining after deducting the trustee's fee.

In Chapter 13, the trustee doesn't sell property, so you could keep it. However, that doesn't mean Chapter 13 filers get a break regarding how much equity they can retain. Instead, you'd need to pay creditors the value of the nonexempt equity through the Chapter 13 plan.

But that isn't all. Keeping your home requires being current on the mortgage when filing for Chapter 7. Otherwise, you could lose it to the lender through foreclosure, possibly even during the Chapter 7 case. If you're behind on payments when filing for Chapter 13, you have an option not available in Chapter 7. You can catch up on the payments over time through the plan.

Learn about other requirements you must meet in Your Home in Chapter 7 and Your Home in Chapter 13. Also, find out why filing for Chapter 13 is better than Chapter 7 when you're behind on payments and don't want to lose your house.

Claiming the Homestead Exemption

When completing your bankruptcy forms, you'll do the following:

• disclose your home on Schedule A/B: Property
• list your home and the homestead exemption law on Schedule C: The Property You Claim as Exempt, and
• if filing for Chapter 7, explain whether you plan to keep or surrender the home on Statement of Intention for Individuals Filing Under Chapter 7.

Because your home is likely your most valuable asset, consider consulting with a bankruptcy lawyer to ensure you can protect it in bankruptcy.

Where to Find the Homestead Exemption Statute

Missouri's exemption amounts adjust periodically but aren't updated on a preset schedule or in this article in real-time. You'll find Missouri's statutes online on the Missouri General Assembly website. The best way to verify exemption availability and amounts is by consulting a local bankruptcy lawyer.

When You Can Use Bankruptcy Exemptions

You can file for bankruptcy in Missouri after living there for over 180 days. However, you must live in Missouri for at least 730 days before filing to use the current state's exemptions. Otherwise, you'd use the previous state's exemptions.

If you lived in multiple states during the two years before filing for bankruptcy, you'd use the exemptions of the state you lived in for the majority of the 180 days before the two years immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).)

Learn more about filing for bankruptcy after moving to a new state and other essential exceptions to homestead exemptions. Also, spouses can double some exemption amounts if both parties own the property, but not all of them. Learn about other filing considerations for spouses.

Need More Bankruptcy Help?

Did you know Nolo has made the law accessible for over fifty years? It's true, and we wholeheartedly encourage research and learning. You can find many more helpful bankruptcy articles on Nolo's bankruptcy homepage. Information needed to complete the official downloadable bankruptcy forms is on the Department of Justice U.S. Trustee Program website.

However, online articles and resources can't address all bankruptcy issues and aren't written with the facts of your particular case in mind. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.