What can be seized during a bankruptcy?

What can be seized during a bankruptcy?

Bankruptcy exemptions determine if you can keep your house, automobile, pension and retirement funds, personal belongings, etc. If the property is exempt, you can keep it during and after bankruptcy. If the property is nonexempt, the trustee is entitled to sell it to pay your unsecured creditors.

What do you have to do to file bankruptcy in Missouri?

It requires a debtor to file a plan to pay debts (or parts of debts) from current income. Most people filing bankruptcy will want to file under either chapter 7 or chapter 13. Either type of case may be filed individually or by a married couple filing jointly. (see Missouri Bankruptcy Law’s Chapter 7 or 13?)

What happens in a Chapter 7 bankruptcy in Missouri?

The basic idea in a chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for your giving up property, except for “exempt” property which the law allows you to keep. (see bankruptcy – Missouri exemptions) In most cases, all of your property will be exempt.

Which is better Chapter 7 or Chapter 13 in Missouri?

There are several situations where a Chapter 13 is preferable to a Chapter 7. A Chapter 13 bankruptcy is the only choice if you are behind on your mortgage or business payments and you want to keep your property, either in Missouri or another state, at the end of the bankruptcy process.

Can You Lose Your Home in a Missouri bankruptcy?

In most cases you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. (see Missouri bankruptcy exemptions) Even if your property is not fully exempt, you will be able to keep it, if you pay its non-exempt value to creditors in chapter 13.

Can a debtor in Missouri use a Federal Bankruptcy Exemption?

Missouri Requires Debtors to Use State Exemptions. Missouri is an “opt out” state, meaning that in Missouri, you can only exempt property using the Missouri exemptions, not the federal bankruptcy exemptions.

What should I know before filing for bankruptcy in Missouri?

As of Nov. 10, 2010, the median income for a single-person home in Missouri was $38,697. The median income for a four-person home in Missouri was $68,705. Before you file for Missouri Chapter 7 bankruptcy, you should consider the fact that certain debts will remain after your bankruptcy filing.

Can a married couple file bankruptcy in Missouri?

Married Couples Can Double Missouri Exemptions. Married couples filing a joint bankruptcy in Missouri can double most exemption amounts. For example, if jointly-filing spouses own a car together, they can double the motor vehicle exemption to protect the car’s value.

What are the disadvantages of Missouri Chapter 7 bankruptcy?

Disadvantages to a Missouri Chapter 7 filing: You lose your non-exempt property which is sold by the trustee. If you want to keep a secured asset, such as a car or home, and it is not completely covered by your Missouri bankruptcy exemptions then Chapter 7 is not an option.