Do I Have to Use Missouri’s Own Exemptions?
Not necessarily true for every filer. Missouri allows filers to choose between the state’s own bankruptcy exemptions and the federal bankruptcy exemption system, a choice not every state actually provides. A St Louis bankruptcy lawyer evaluating a case compares both systems carefully, since the federal exemptions often protect considerably more home equity than Missouri’s own state exemption.
This choice genuinely and considerably matters, since picking the wrong exemption system can mean losing property that would have otherwise remained fully protected under the alternative option.
How Much Home Equity Can I Actually Protect?
Missouri’s own homestead exemption protects only up to $15,000 in home equity, a figure considerably lower than many other states actually provide their residents. An attorney can confirm choosing the federal exemption system instead often makes more sense for homeowners with meaningful equity built up in their property.
- Missouri’s own homestead exemption protects up to $15,000 in equity
- Filers can choose between Missouri and federal exemption systems
- Missouri requires 730 days of residency to use its own exemptions
- Chapter 7 and Chapter 13 offer genuinely different paths forward
What Is the Difference Between Chapter 7 and Chapter 13?
Chapter 7 bankruptcy generally eliminates most unsecured debts relatively quickly and efficiently, though any non-exempt property may actually be sold by a trustee to pay creditors. Chapter 13 bankruptcy instead reorganizes debt into a three to five year repayment plan, allowing a filer to keep non-exempt property by paying its value through the plan over time.
Why Does the Residency Requirement Actually Matter?
Missouri requires a filer to have resided in the state for at least 730 days before using Missouri’s own bankruptcy exemptions, a rule designed to prevent someone from moving to Missouri solely to take advantage of its exemption laws. A St Louis bankruptcy lawyer can confirm someone who has moved more recently may actually need to use exemptions from their previous state of residence instead.
Does Married Filing Actually Double the Exemption Amount?
In many cases, yes and this genuinely surprises some filers. When both spouses own the property jointly and file bankruptcy together, Missouri generally allows the exemption amount to actually be doubled, meaningfully increasing the total protection available to the household. This distinction matters considerably and genuinely for married couples deciding whether to file jointly.
Can I Actually Keep My Car in Bankruptcy?
Generally, yes, within specific limits. Missouri’s own vehicle exemption protects up to $3,000 in equity per vehicle, considerably less than the federal exemption of roughly $5,025, making the federal option often more attractive for someone with a newer or more valuable car. Any equity exceeding the chosen exemption amount could potentially be sold by a trustee in a Chapter 7 proceeding.
Why Is Credit Counseling a Genuine Prerequisite?
Missouri filers must complete an approved credit counseling course within 180 days before actually and formally filing bankruptcy, a federal requirement that applies regardless of which chapter a filer ultimately chooses. Skipping this required step can genuinely delay or even entirely prevent a bankruptcy filing from actually moving forward.
Does Filing Bankruptcy Actually Stop Foreclosure?
Yes, at least temporarily and genuinely. Filing bankruptcy triggers an automatic stay that immediately halts most collection actions, including a pending foreclosure, giving a homeowner genuine breathing room to explore their actual options. Chapter 13 specifically allows a homeowner to catch up on missed mortgage payments over time through a court approved repayment plan.
What Happens to Property That Is Not Actually Exempt?
In a Chapter 7 case, a trustee can sell non-exempt property and distribute the proceeds to creditors, though the vast majority of Missouri cases are actually no-asset cases where every piece of property remains fully protected. In a Chapter 13 case, a filer can generally keep non-exempt property by paying its value through the repayment plan instead.
Who Can Help With a Bankruptcy Filing in St Louis?
Pioletti Pioletti & Nichols represents clients throughout the St Louis area, working to identify the exemption strategy that genuinely protects the most property in each specific bankruptcy case.