Exemptions determine what property you get to keep when you file bankruptcy. Understanding them is critical -- they can mean the difference between keeping and losing your home, car, and savings.
Bankruptcy exemptions are laws that protect certain property from being taken to pay your creditors. In Chapter 7, non-exempt property can be sold by the trustee. In Chapter 13, the value of non-exempt property affects how much you must pay through your plan.
Missouri requires you to use state exemptions -- you cannot choose the federal exemption system.
Protects up to $15,000 of equity in your primary residence. Equity is your home's current market value minus what you owe on the mortgage.
RSMo 513.475
Protects up to $3,000 of equity in one motor vehicle. If you owe more than the car is worth (you are "underwater"), there is no equity to protect and the exemption is not needed.
RSMo 513.430(1)
| Property | Amount |
|---|---|
| Household goods, furnishings, appliances | $3,000 |
| Tools of trade, books, equipment | $3,000 |
| Retirement accounts (IRA, 401k, pension) | Unlimited |
| Social Security benefits | Unlimited |
| Unemployment benefits | Unlimited |
| Workers' compensation | Unlimited |
| Public assistance benefits | Unlimited |
Missouri's homestead exemption protects up to $15,000 of equity in your primary residence. Equity is the difference between your home's value and what you owe on the mortgage.
Missouri's motor vehicle exemption is $3,000. If your car equity is below that amount, you can keep it in Chapter 7. In Chapter 13, you keep your car regardless. Learn about Chapter 13.
Yes. Retirement accounts including IRAs, 401(k)s, and pensions are fully exempt. Social Security benefits are also fully protected under federal law (42 U.S.C. 407).