Which assets are exempt under Missouri bankruptcy law?

As the economy continues to struggle, individuals who have been unemployed may be searching for a way to get out from their increasing debts. Some choose to file bankruptcy as a way to obtain a fresh start or save their home from foreclosure. Once a petitioner files for bankruptcy protection, the court issues an “automatic stay” forcing creditors to stop any harassing phone calls or collection efforts. Property exemptions allow a homeowner to protect the equity in their house and the mortgage holder is prohibited from taking any adverse actions while the bankruptcy proceeding is underway.

Missouri Exemptions Allowed in Bankruptcy

The rules governing bankruptcy are a combination of both state and federal laws. Missouri bankruptcy exemptions allow petitioners to keep certain assets while discharging their unsecured debts. The amount of allowable exemptions may vary depending on whether you are filing as an individual or a married couple and if you have dependents. The Missouri bankruptcy exemptions are listed in the table below:

Bankruptcy Exemptions in Missouri

Amount of Asset Protection

Homestead or Real Property

Up to $15,000 in equity & one exemption per family

Mobile Home

Up to $5,000 in equity & one exemption per family

Motor Vehicle (Auto or Truck)

Up to $3,000

Household Goods and Furnishings

$3,000 total for all items

Jewelry

Wedding Ring up to $1,500 & $500 for other jewelry

Alimony or Child Support

$750 per month

Wildcard Exemption

$1,250 of any property or $600 if not head of family and $350 for each unmarried dependent under the age of 18 or considered disabled

Pensions

Firefighters, Teachers, State and local government employees, highway and transportation employees and all ERISA benefits

Public Benefits

Unemployment, Veteran’s, Social Security & Workers’ Compensation payments

Tools of the Trade

Up to $3,000 for tool and books

Wages

75% of earned unpaid wages and 90% for head of household

Insurance

All unmatured life insurance if the policy is owned by the petitioner (credit life not qualified)

Burial Plot

Up to $100 for up to one acre

Health Aids

All if they were prescribed by a doctor

Wrongful Death Compensation

If the petitioner was dependent upon person that died

Crime Victim Benefits

All compensation benefits paid to crime victims

When to Hire a Missouri Bankruptcy Attorney

Choosing to file for bankruptcy is never an easy decision and one that should be made by obtaining professional advice. Individuals that file a Missouri bankruptcy petition may not be aware that they can choose to use either state or federal exemptions. The homestead exemption under federal law is much more generous allowing petitioners to protect up to $125,000 in home equity. These laws can be complicated and it’s best to consult with an experienced bankruptcy attorney for guidance.