Missouri Bankruptcy Exemptions

Educational reference to property exemptions available in a Missouri bankruptcy case under Chapter 513 of the Revised Statutes of Missouri (RSMo). Missouri has elected to opt out of the federal exemption scheme; filers domiciled in Missouri must use Missouri state exemptions on Schedule C.

Federal opt-out

11 U.S.C. § 522(b)(2) permits states to limit their residents to state-law exemptions. Missouri has done so by statute at RSMo § 513.427. Federal § 522(d) exemptions are therefore unavailable to filers whose domicile under 11 U.S.C. § 522(b)(3)(A) is Missouri.

Domicile for exemption-selection purposes is governed by the 730-day rule in § 522(b)(3)(A): the debtor must apply the exemptions of the state where the debtor was domiciled for the 730 days preceding filing.

Principal Missouri exemptions

Homestead — RSMo § 513.475

$15,000 in equity in real estate or a mobile home used as the debtor's principal residence. Married couples filing jointly may double this amount only if both spouses hold title; a single homestead is the rule under In re Smith, 254 B.R. 751 (Bankr. W.D. Mo. 2000) and similar Missouri authority. Federal law caps homestead claims at the 11 U.S.C. § 522(p) amount (currently $189,050) for property acquired during the 1,215 days preceding filing.

Motor vehicle — RSMo § 513.430.1(5)

Up to $3,000 of equity in one motor vehicle.

Wildcard exemption — RSMo § 513.430.1(3) and § 513.440

$600 of any property under § 513.430.1(3), plus an additional $1,250 head-of-household amount under RSMo § 513.440, plus $350 per dependent child. The wildcard may be applied to any property, including cash, that is otherwise non-exempt.

Tools of the trade — RSMo § 513.430.1(4)

Up to $3,000 in books, tools, or implements of the debtor's trade or profession, or the trade or profession of a dependent.

Household goods — RSMo § 513.430.1(1)

Up to $3,000 aggregate value of household furnishings, household goods, wearing apparel, appliances, books, animals, crops, and musical instruments held primarily for personal, family, or household use.

Wages — RSMo § 525.030

Missouri tracks the federal Consumer Credit Protection Act limit: 75% of disposable earnings, or 30 times the federal minimum wage per week, is exempt from garnishment. The exemption increases to 90% of disposable earnings for a head of household.

Retirement and public benefits — RSMo § 513.430.1(10)

ERISA-qualified retirement accounts are excluded from the estate under Patterson v. Shumate, 504 U.S. 753 (1992). IRAs and Roth IRAs are exempt up to the cap in 11 U.S.C. § 522(n) (currently $1,512,350). Social Security, unemployment compensation, workers' compensation, public assistance benefits, and veterans' benefits are protected by federal anti-attachment statutes and Missouri-specific provisions in § 513.430.1(10).

Insurance proceeds — RSMo § 513.430.1(8) and § 377.090

Proceeds from a life insurance policy, including the cash value of a fraternal benefit society policy, are protected from creditors of the insured up to the limits in § 377.090.

Where exemptions are claimed in the case

Exemptions are claimed on Schedule C (Official Form 106C). The trustee or any creditor has 30 days after the conclusion of the § 341 meeting of creditors to object under Fed. R. Bankr. P. 4003(b). If no objection is filed, the claimed exemptions are deemed allowed under Taylor v. Freeland & Kronz, 503 U.S. 638 (1992).

Statutory amounts are periodically adjusted by the Missouri General Assembly. Always verify current dollar limits against the official Missouri Revisor of Statutes site at revisor.mo.gov before filing. Federal cap amounts under 11 U.S.C. § 522 adjust every three years per 11 U.S.C. § 104.

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