The law in the United States on debtor and creditor relations is more than a little curious. Our country has no debtor prisons; you cannot go to jail for failing to pay your bills. In fact, probably in keeping with our nation's philosophy of individual rights, debtors can retain a certain amount of real and personal property free of any claims from a trustee in bankruptcy or of general creditors outside of bankruptcy. The Missouri exemptions listed below work both in state court as well as federal bankruptcy court. The idea is to allow debtors their "fresh start" and begin all over with enough assets to provide a modest existence. At the same time, debtors must remember that all assets come in to the bankruptcy estate and are subject to the jurisdiction of the court and the trustee. In the initial bankruptcy pleadings, the debtor claims certain exemptions, subject to objection by the trustee and all creditors. The bankruptcy judge then determines whether the property is exempt. For this reason, if an asset is not listed in the bankruptcy schedules, it is not exempt and remains forever subject to the claims of the trustee and creditors. Exemptions are personal to living breathing human beings, they are not allowed to corporations or general partners with respect to partnership property. Exemption rights are determined by the debtor's place of residence on the date the bankruptcy is filed. Missouri's exemptions are not as generous as some states, for example, Kansas' unlimited homestead. The law of exemptions and how they apply in any particular case gets to be very complicated and subject to disagreements with the trustee and trials before the bankruptcy judge. This article is current through the statutory amendment which went into effect August 28, 2004. That said, what follows is a very general outline of Missouri's exemptions.
| ASSET | EXEMPTION DESCRIPTION | MISSOURI STATUTES |
| Joint Assets | Property held in tenancy by the entirety between husband and wife may be exempt against debts owed by only one spouse. Exemption not available for tax liability. | See article in: CP-LAW.COM "Missouri's Unlimited Bankruptcy Exemption" |
| Homestead | Real property equity to $15,000. One exemption per family | 513.475 |
| Insurance | Unmatured life insurance if policy owned by the debtor in bankruptcy, not credit life. | 513.430(7) |
| Support | Alimony or child support to $750 per month | 513.430(10)(d) |
| Pensions | ERISA-qualified benefits Firefighters Highway & transportation employees Police department employees State employees Teachers Local governmental employees | 513.430(10)(f) Chapter 87 104.250 Chapter 86 104.540 169.090 70.695 |
| Personal Property | Appliances, household goods, furnishings, clothing, books, crops, animals & musical instruments to $3,000 Jewelry to $500; Wedding rings $1,500 Motor vehicle to $3000 Wrongful death settlements for person upon whom debtor was dependent | 513.430(1) 513.430(2) 513.430(5) 513.430(11) |
| Public benefits | Social security Unemployment compensation Veterans' benefits Workers compensation | 42 U.S.C. § 1407 288.380(10)(l), 38 U.S.C. § 3101 287.260 |
| Tools of Trade | Implements, books & tools of trade to $3000 | 513.430(4) |
| Wages | Minimum 75% of earned but unpaid wages 90% for head of household. Does not apply to failure to pay child support. | 525.030 |
| WILD CARD | Any asset you choose to $600 | 513.430(3) |
| Head of Household | $1250 and $350 for each unmarried dependent under age 18 or disabled | 513.440 |
