When Facing Tough Times

Bankruptcy property exemptions in Missouri

On Behalf of | Jan 13, 2021 | Firm News, Jan 13, 2021 |

If you fall behind on your debt, catching up can become difficult as late fees and interest rates rise. In this troubling situation, you may be eligible for bankruptcy relief. 

Missouri allows you to retain certain exempt assets when you file for bankruptcy instead of selling them to repay debt. 

Homestead and personal property exemptions

If you live in a mobile home, you can keep up to $5,000 in equity. You can keep up to $15,000 in any other type of residence that serves as your primary home. 

You can also retain: 

  • Work equipment and tools worth up to $3,000 
  • Up to $3,000 in motor vehicle equity 
  • Instruments, animals, appliances, crops, books, clothing and furniture worth up to $3,000 total 
  • Burial plots worth up to $100 or spanning 1 acre 
  • Medical devices 
  • Wedding rings worth up to $1,500 
  • Jewelry worth up to $500 

In addition, you can apply a $600 wildcard exemption to the property of your choice. 

Wages and benefits

If you receive spousal support or alimony, you can keep up to $750 a month in these payments. You may keep up to $150,000 in life insurance benefits if the policy predates your bankruptcy filing by at least six months. Illness and disability benefits, health savings accounts, workers’ compensation benefits, qualifying pensions and retirement accounts, unemployment compensation, Social Security benefits, veterans’ benefits, and wrongful death awards are also exempt from Missouri bankruptcy. 

If you and your spouse file for bankruptcy together, you can double all the Missouri exemptions except for the homestead exemption.