The bankruptcy attorneys at Checkett, Pauly, Bay & Morgan, LLC, are seeing more bankruptcies due to COVID-19. Missouri has exemptions when you file for Chapter 7 bankruptcy, which may allow you to keep some of your property. Today’s blog from Checkett, Pauly, Bay & Morgan, LLC, explains Missouri’s exemptions for Chapter 7 bankruptcy.
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$15,000 in Equity in Your Home
Equity is the difference between what your home is currently worth and what you owe on your mortgage. For example, if your home is worth $250,000 and you owe $150,000, your equity is $100,000. You may have to give up your home in this case because the equity is more than $15,000. If you have less than $15,000 equity in your home, you may get to keep your principal residence.
$3,000 for a Vehicle
Missouri allows a $3,000 exemption for a vehicle. If your car is worth less than $3,000, you get to keep it under Chapter 7 bankruptcy rules. Equity also comes into play here. If your car is worth $20,000 and you’ve paid only $3,000 on it, the property is exempt from bankruptcy.
$3,000 for Personal Property
Personal property includes furniture, clothing, books, appliances, tools, and more. Think of how much everything in your house is worth. You get to keep $3,000 of it. Depending on how much you owe in debts, creditors may or may not bring up the issue of personal property during a Chapter 7 bankruptcy proceeding. The attorneys at Checkett, Pauly, Bay & Morgan can help you navigate this exemption.
$150,000 in Life Insurance Benefits
If you purchase life insurance more than six months before you file for Chapter 7 bankruptcy, you get to keep up to $150,000 in life insurance benefits.
$1,500 for a Wedding Ring and $500 in Jewelry
You get to keep your wedding ring if it’s worth less than $1,500, and up to $500 in other jewelry. Creditors may decide to sell jewelry worth more than that amount to pay down debts.
Public Pensions
In general, pensions from public benefits are completely exempt from Chapter 7 bankruptcy. Veterans’ benefits, unemployment, Social Security, public assistance, and workers’ compensation are all exempt.
Chapter 7 Bankruptcy Exemptions at Checkett, Pauly, Bay & Morgan
We recognize that bankruptcy is a hard choice to make. The experienced bankruptcy attorneys at Checkett, Pauly, Bay & Morgan can discuss your options based on your unique set of circumstances, including exemptions under Missouri law. Contact Checkett, Pauly, Bay & Morgan, LLC, or call (417) 358-4049 for more information. The first consultation is free.