Missouri Bankruptcy Exemptions
Let’s say you are thinking about filing for a Missouri bankruptcy, and you are wondering about the fate of your home, vehicle and other property. It is natural to worry when you are in the position to consider a Chapter 7 or Chapter 13 bankruptcy on top of the anxiety you may already be feeling from financial troubles. You don’t want to lose your home. You don’t want to lose your vehicle.
There is hope – keep reading.
Standard Bankruptcy Exemptions in Missouri
The state of Missouri offers certain exemptions so that you can keep your property after filing for bankruptcy. When property is “exempt,” this means that the bankruptcy trustee cannot take or sell the property to pay creditors. The biggest exemption is for home equity, but most people are able to keep much more property, as well. For married couples filing jointly, some exemption amounts may double (those that may are marked with an “*” below). The list of Missouri exemptions includes:
- $15,000 in home equity
- $3,000 in vehicle equity*
- $3,000 in personal property (clothing, household goods, furniture and more)
- $3,000 for tools of the trade*
- $500 for jewelry, plus $1,500 for a wedding or engagement ring*
- All tax-exempt retirement accounts and pensions
- $750 monthly for child support or alimony
- Life insurance benefits, disability and illness benefits
- $600 in cash any in value toward any other asset*
The Head of Household Exemption
Missouri also offers an additional exemption called the “Head of Household Exemption.” If you are the head of household, the amount of the exemption is $1,250 plus $350 for each minor child. If you are not a head of household, it may not be used. This can protect any property of your choosing, or supplement any exemptions you already applied towards your property. For instance, if your vehicle was worth $3,600, you could claim the regular vehicle exemption of $3,000 and then claim an additional $600 with the Head of Household. No matter what your financial condition may be, our team of Kansas City bankruptcy attorneys can help you maximize the property you keep during the bankruptcy process.
The Necessity of Help
Too often, people wrongfully think of bankruptcy as losing everything down to the shirts on their backs – on the contrary, bankruptcy is designed to give you a fresh start in life. Our Kansas City bankruptcy attorneys understand that bad things happen to good people, and we are dedicated to helping families throughout Missouri.
A bankruptcy can be a highly complicated and nuanced affair. It is therefore essential to have an experienced Kansas City bankruptcy lawyer on your side as you enter the bankruptcy process. Contact our bankruptcy law firm to start your life anew, free from the harassment of creditors and on a path to financial stability.