Bankruptcy Exemptions in Missouri

Chapter 7 bankruptcy provides federal protection for those who are financially unable to pay their bills and seek protection from creditors. Under chapter 7, the filer liquidates many of their assets to pay creditors what they can; while the rest of their consumer debt is generally erased, except for child and spousal support, tax liens, and in most cases, student loans.

Several types of personal property are exempt from liquidation under Chapter 7 laws. While there are federal laws concerning exemptions, many states have their own laws. Missouri is such a state, and those state exemptions apply, making federal laws unavailable. However, in most cases married couples filing jointly under Chapter 7 can double their exemptions, except when specifically excluded under Missouri law.

How to Keep Your Car

State and federal exemptions differ in this area:

• Federal exemption – $3,225
• Missouri state exemption – up to $3,000

While a consumer may find that their vehicle is exempt under Missouri laws, if they still owe money on the car and it is secured by the vehicle, it can still be repossessed if the owner defaults.

How to Keep Your Home

• Federal homestead exemption - $20,200
• Missouri state exemption - $15,000 for single or joint property owners
  • Mobile homes are also exempt, up to $5,000

If a creditor holds a lien on an exempt property, however, they can still foreclose on the property if the homeowner fails to make payments.

Missouri allows exemptions for other forms of personal property:

• Household goods and furnishings, appliances, books, clothing, animals, musical instruments, and crops, up to $3,000 total
• Wedding rings – up to $1,500
• Other jewelry – up to $500
• Health needs – all those that have been prescribed by a professional healthcare provider
• Wrongful death awards for persons upon whom the debtor depended – all
• Tools of the trade (including implements and books) – up to $3,000

Missouri also allows a wildcard exemption:

• Up to $1,250 for head of families, with an additional $350 for each child
• Up to $600 for non-head of household

Filing Schedule C of a Bankruptcy Petition

Schedule C is a form that is a required part of a chapter 7 bankruptcy when any personal property exemption is claimed. No exemptions will be granted without the details required on this form:

• Type of property
• State statute allowing that exemption
• The value of the property exemption
• The current value of the property (the assessed, not the market, value)

Always Get Qualified Legal Advice

While there are many companies and advisors who offer self-help chapter 7 bankruptcy forms, the detail required to complete this legal process can be daunting. A skilled bankruptcy attorney can guide filers through the process, ensuring that all legal requirements are met and no exemptions are denied.