Table of ContentsFiling Bankruptcy in Missouri: Can I keep my house? Missouri was pivotal for launching the settlement of the western United States. The Lewis and Clark expedition began near present day St. Louis, and Missouri was the eastern starting point for the Pony Express, the Oregon Trail, the California Trail, and for many years, the Santa Fe Trail. The 91-acre Jefferson National Expansion Memorial in St. Louis was created to memorialize the movement west, and the Gateway Arch is its best known attraction. The Gateway Arch is the world’s tallest arch at 630 feet high — and the tallest manmade monument in the western hemisphere. In 2016, Missouri had a per capita personal income (PCPI) of $42,926, which ranked it as the 36th highest PCPI in the country and placed it at 87% of the national average of $49,246. The 2016 PCPI increased 1.3% from the previous year, less than the national average of 1.6% increase. Missouri’s current-dollar GDP was $300.9 billion in 2016, which ranked it at 22nd in the United States. Its real GDP grew 1.1% from 2015 to 2016, less than the national change of 1.5%. Missouri’s largest industry is finance, insurance, real estate, rental, and leasing, according to the Bureau of Economic Analysis of the U.S. Department of Commerce. The second-largest industry is professional and business services. More people file bankruptcies in Missouri than in most of the country. Missouri ranked 14th in the nation in the spring of 2017 for number of bankruptcy filings, with 352 people out of 100,000 filing personal bankruptcy yearly. Of course, the ranking and the number of bankruptcies change somewhat from year to year due to changes in regional economies. In this post, we’ll discuss some basics you need to know if you are planning to file for Chapter 7 bankruptcy, what sort of exemptions you can take in Missouri, and where the bankruptcy courts are located. Filing Bankruptcy in Missouri: Can I keep my house? Missouri is an opt-out state, which means you cannot choose between federal exemptions that are part of the U.S. Bankruptcy Code and state exemptions. If you file bankruptcy in Missouri, you must use the Missouri exemptions. Bear in mind that if you and your spouse are filing a joint bankruptcy, you can essentially double your exemptions, as each of you can claim the statutory exemption amounts in most cases. You will want to discuss exemptions in-depth with your Missouri bankruptcy lawyer in order to thoroughly understand all your options. Let’s take a look at some of the commonly used exemptions. Missouri Bankruptcy Exemptions The top 5 exemptions under Missouri state law. Type of exemptionMissouri law Homestead$15,000 in equity in principal place of residence, $5,000 for mobile home. Married couples who own their property as a tenancy in entirety can exempt the full value of the home, as long as they don't have joint debts Personal property$3,000 in household furnishings and goods, $3,000 in tools of the trade, $1,500 in firearms, $1,500 wedding ring and $500 in other jewelry, plus a $600 wildcard exemption Vehicle$3,000 Wages75%, or 30 times federal minimum wage Pension/retirementERISA and government employee benefits, plus retirement exemptions allowed per federal law Homestead Missouri exemptions allow you up to $15,000 in equity in the house or other real estate where you live. You may take up to $5,000 in a mobile home. Unlike other types of property, if you and your spouse are filing jointly, you may not double the homestead exemption. Mo. Rev. Stat. § § 513.430.1(6), 513.475 However, if a married couple owns real estate as a tenancy by the entirety, the property is owned by a single marital entity rather than two individuals. Property held as tenants by the entirety is completely exempt as long as the couple do not have joint debts. Mo. Rev. Stat. § § 513.475, 513.427 Example: If you bought a $300,000 house in which you have $15,000 in equity, it will not be sold, because your equity is under the exemption amount. However, if the equity in the property is $60,000, the trustee could sell the house to pay your debts, since the exemption is quite a bit less than your equity. If you own the house with your spouse as tenants by the entirety and do not have joint debts, the house is completely exempt, and the equity you have in it is irrelevant regarding exemptions. Personal Property There are a number of personal property exemptions in Missouri. They include: Household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments up to a value of $3,000. Mo. Rev. Stat. § 513.430.1(1) A wedding ring not over $1,500 in value and other jewelry valued at up to $500 total. Mo. Rev. Stat. § 513.430.1(2) Any implements or professional books or tools of the trade with a value up to $3,000 total. Mo. Rev. Stat. § 513.430.1(4) Professionally prescribed health aids. Mo. Rev. Stat. § 513.430.1(9) Firearms, firearm accessories, and ammunition up to $1,500 total value. Mo. Rev. Stat. 513.430.1(12) Burial grounds, not to exceed one acre in area or $100 in value. Mo. Rev. Stat. § 214.190 Motor Vehicle Any motor vehicles, not to exceed $3,000 in value total, are exempt. Mo. Rev. Stat. § 513.430.1(5) Example: You bought a $20,000 car, but have only paid $3,000 on it. Your car is safe from the bankruptcy trustee because you have not exceeded the $3,000 equity exemption. If you owed more than $3,000, the bankruptcy trustee could take your car. Wages Your wages are exempt up to 75%, or 30 times the federal minimum hourly wage. Mo. Rev. Stat. § 525.030 Pensions and Retirement ERISA-qualified benefits needed for support are exempt. Mo. Rev. Stat. § § 87.090, 87.365, 87.485 Government employee benefits, as named in various statutes, also are exempt. Benefits and awards The following benefits and awards are exempt in a Chapter 7 bankruptcy in Missouri. Veterans benefits. Mo. Rev. Stat. § 513.430.1(10)(b) Workers’ compensation. Mo. Rev. Stat. § 287.260 Unemployment compensation. Mo. Rev. Stat. § § 288,380, 513.430 Social Security benefits and public assistance. Mo. Rev. Stat. § 513.430.1(10)(a) Disability or illness benefits. Mo. Rev. Stat. § 377.090 Fraternal benefit society benefits to $5,000, bought over six months before filing. 513.430(10)(c) Wrongful death awards. Mo. Rev. Stat. § 513.430.1(11) Up to $750 per month in support, alimony, or maintenance. Mo. Rev. Stat. § 513.430.1(10)(d) Up to $150,000 of life insurance dividends, loan or cash surrender value, and interest, if purchased more than six months prior to filing bankruptcy. Mo. Rev. Stat. § 513.430.1(8) Disability or illness benefits. Mo. Rev. Stat. § 513.430.1(10)(c) Unmatured life insurance policy and up to $15,000 of any matured life insurance proceeds for burial expenses for designated family members. Mo. Rev. Stat. § 513.430.1(7) Wildcard Missouri is one of a few states with a wildcard exemption. Theirs exempts property of any kind valued up to $600 total if it’s not already included in a personal property exemption. Mo. Rev. Stat. § 513.430.1(3) Additional property up to $1,250 for the head of family plus another $350 in property for each dependent child also is exempt. Mo. Rev. Stat. § 513.440. FacebookPinTweetEmail National Bankruptcy Forum Help us match you with a local attorney Free Bankruptcy Evaluation "*" indicates required fields First Name* Last Name* Phone* Email* Δ Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Save my name, email, and website in this browser for the next time I comment. Δ
Table of ContentsFiling Bankruptcy in Missouri: Can I keep my house? Missouri was pivotal for launching the settlement of the western United States. The Lewis and Clark expedition began near present day St. Louis, and Missouri was the eastern starting point for the Pony Express, the Oregon Trail, the California Trail, and for many years, the Santa Fe Trail. The 91-acre Jefferson National Expansion Memorial in St. Louis was created to memorialize the movement west, and the Gateway Arch is its best known attraction. The Gateway Arch is the world’s tallest arch at 630 feet high — and the tallest manmade monument in the western hemisphere. In 2016, Missouri had a per capita personal income (PCPI) of $42,926, which ranked it as the 36th highest PCPI in the country and placed it at 87% of the national average of $49,246. The 2016 PCPI increased 1.3% from the previous year, less than the national average of 1.6% increase. Missouri’s current-dollar GDP was $300.9 billion in 2016, which ranked it at 22nd in the United States. Its real GDP grew 1.1% from 2015 to 2016, less than the national change of 1.5%. Missouri’s largest industry is finance, insurance, real estate, rental, and leasing, according to the Bureau of Economic Analysis of the U.S. Department of Commerce. The second-largest industry is professional and business services. More people file bankruptcies in Missouri than in most of the country. Missouri ranked 14th in the nation in the spring of 2017 for number of bankruptcy filings, with 352 people out of 100,000 filing personal bankruptcy yearly. Of course, the ranking and the number of bankruptcies change somewhat from year to year due to changes in regional economies. In this post, we’ll discuss some basics you need to know if you are planning to file for Chapter 7 bankruptcy, what sort of exemptions you can take in Missouri, and where the bankruptcy courts are located. Filing Bankruptcy in Missouri: Can I keep my house? Missouri is an opt-out state, which means you cannot choose between federal exemptions that are part of the U.S. Bankruptcy Code and state exemptions. If you file bankruptcy in Missouri, you must use the Missouri exemptions. Bear in mind that if you and your spouse are filing a joint bankruptcy, you can essentially double your exemptions, as each of you can claim the statutory exemption amounts in most cases. You will want to discuss exemptions in-depth with your Missouri bankruptcy lawyer in order to thoroughly understand all your options. Let’s take a look at some of the commonly used exemptions. Missouri Bankruptcy Exemptions The top 5 exemptions under Missouri state law. Type of exemptionMissouri law Homestead$15,000 in equity in principal place of residence, $5,000 for mobile home. Married couples who own their property as a tenancy in entirety can exempt the full value of the home, as long as they don't have joint debts Personal property$3,000 in household furnishings and goods, $3,000 in tools of the trade, $1,500 in firearms, $1,500 wedding ring and $500 in other jewelry, plus a $600 wildcard exemption Vehicle$3,000 Wages75%, or 30 times federal minimum wage Pension/retirementERISA and government employee benefits, plus retirement exemptions allowed per federal law Homestead Missouri exemptions allow you up to $15,000 in equity in the house or other real estate where you live. You may take up to $5,000 in a mobile home. Unlike other types of property, if you and your spouse are filing jointly, you may not double the homestead exemption. Mo. Rev. Stat. § § 513.430.1(6), 513.475 However, if a married couple owns real estate as a tenancy by the entirety, the property is owned by a single marital entity rather than two individuals. Property held as tenants by the entirety is completely exempt as long as the couple do not have joint debts. Mo. Rev. Stat. § § 513.475, 513.427 Example: If you bought a $300,000 house in which you have $15,000 in equity, it will not be sold, because your equity is under the exemption amount. However, if the equity in the property is $60,000, the trustee could sell the house to pay your debts, since the exemption is quite a bit less than your equity. If you own the house with your spouse as tenants by the entirety and do not have joint debts, the house is completely exempt, and the equity you have in it is irrelevant regarding exemptions. Personal Property There are a number of personal property exemptions in Missouri. They include: Household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments up to a value of $3,000. Mo. Rev. Stat. § 513.430.1(1) A wedding ring not over $1,500 in value and other jewelry valued at up to $500 total. Mo. Rev. Stat. § 513.430.1(2) Any implements or professional books or tools of the trade with a value up to $3,000 total. Mo. Rev. Stat. § 513.430.1(4) Professionally prescribed health aids. Mo. Rev. Stat. § 513.430.1(9) Firearms, firearm accessories, and ammunition up to $1,500 total value. Mo. Rev. Stat. 513.430.1(12) Burial grounds, not to exceed one acre in area or $100 in value. Mo. Rev. Stat. § 214.190 Motor Vehicle Any motor vehicles, not to exceed $3,000 in value total, are exempt. Mo. Rev. Stat. § 513.430.1(5) Example: You bought a $20,000 car, but have only paid $3,000 on it. Your car is safe from the bankruptcy trustee because you have not exceeded the $3,000 equity exemption. If you owed more than $3,000, the bankruptcy trustee could take your car. Wages Your wages are exempt up to 75%, or 30 times the federal minimum hourly wage. Mo. Rev. Stat. § 525.030 Pensions and Retirement ERISA-qualified benefits needed for support are exempt. Mo. Rev. Stat. § § 87.090, 87.365, 87.485 Government employee benefits, as named in various statutes, also are exempt. Benefits and awards The following benefits and awards are exempt in a Chapter 7 bankruptcy in Missouri. Veterans benefits. Mo. Rev. Stat. § 513.430.1(10)(b) Workers’ compensation. Mo. Rev. Stat. § 287.260 Unemployment compensation. Mo. Rev. Stat. § § 288,380, 513.430 Social Security benefits and public assistance. Mo. Rev. Stat. § 513.430.1(10)(a) Disability or illness benefits. Mo. Rev. Stat. § 377.090 Fraternal benefit society benefits to $5,000, bought over six months before filing. 513.430(10)(c) Wrongful death awards. Mo. Rev. Stat. § 513.430.1(11) Up to $750 per month in support, alimony, or maintenance. Mo. Rev. Stat. § 513.430.1(10)(d) Up to $150,000 of life insurance dividends, loan or cash surrender value, and interest, if purchased more than six months prior to filing bankruptcy. Mo. Rev. Stat. § 513.430.1(8) Disability or illness benefits. Mo. Rev. Stat. § 513.430.1(10)(c) Unmatured life insurance policy and up to $15,000 of any matured life insurance proceeds for burial expenses for designated family members. Mo. Rev. Stat. § 513.430.1(7) Wildcard Missouri is one of a few states with a wildcard exemption. Theirs exempts property of any kind valued up to $600 total if it’s not already included in a personal property exemption. Mo. Rev. Stat. § 513.430.1(3) Additional property up to $1,250 for the head of family plus another $350 in property for each dependent child also is exempt. Mo. Rev. Stat. § 513.440.