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Each state, including Missouri, has a set of bankruptcy exemptions that help determine what property a filer will be allowed to keep in chapter 7 bankruptcy. Some states allow debtors to use the federal bankruptcy exemptions, but Missouri requires that the state exemptions be used.

Missouri Homestead Exemption

Under the Missouri exemption system, homeowners in chapter 7 bankruptcy may exempt up to $15,000 of their home or other property covered by the homestead exemption. In the case of a mobile home, the exemption is limited to $5,000. While some states allow married couples to double their exemption for jointly-owned property if they are filing for bankruptcy together, Missouri does not, although if a married couple owns property together as tenants by the entirety, the entire value of the home is exempt to the extent that the couple's debts are not joint.

Motor Vehicle Exemption

Missouri's motor vehicle exemption allows individuals filing for bankruptcy to protect up to $3,000 in motor vehicle equity. If the equity in the automobile is less than Missouri's car exemption, the bankruptcy trustee is likely to abandon the vehicle. However, if the equity is significantly more than the exemption amount, the trustee may seek to either sell the car to repay unsecured creditors or require the individual to purchase the equity from the Bankruptcy Estate. The repayment terms to the Trustee are often times negotiable.

Other Exemptions

Not including the homestead exemption, married couples filing a joint bankruptcy in Missouri may double the exemption amount for other property they own jointly, including motor vehicles. Other common Missouri bankruptcy exemptions include:

• Up to $1,5000 of value of wedding ring
• Up to $150,000 of life insurance dividends, loan or cash surrender value, if purchased more than six months before filing for bankruptcy
• Up to $3,000 of value in furniture, clothing, books, appliances, and musical instruments

If you are considering filing for chapter 7 bankruptcy in Creve Coeur, Missouri, obtain comprehensive legal counsel from the experienced bankruptcy attorneys at The Law Office of James B. Day, LLC Contact our office online or call 314-786-1218 to schedule your free, no-risk initial case evaluation today.