Missouri Bankruptcy Law
Missouri bankruptcy laws that are similar to most other states. A person may file for MO bankruptcy if their business has failed or simply can’t repay the amount of debt they have piled up. A corporation may also choose to file for Missouri bankruptcy if their business is failing to turn a profit or similar situation. Within the state of Missouri, only qualified individuals can file for MO bankruptcy, and they fall in the following categories:
• the median income of the individual must fall below the state average, which is around $39,500
• if the individual has a family, the median income increases with heads/household
Missouri Bankruptcy : Personal and Corporate
Both individuals and corporations can file for Missouri bankruptcy. Families or individuals either file for Chapter 7 or Chapter 13, while corporations and business file for Chapter 11. In Missouri, there are a number of exemptions that may apply to an individual or corporation, and they are explained below.
MO Bankruptcy Chapter 7
This type of bankruptcy is often referred to as straight or liquidation. In this type of case, the debtor will often leave with a clean slate. However, creditors can still take valuable assets before a debtor is freed from their debt. These items will often be sold at a “bankruptcy sale,” but certain exemptions exist within the state of Missouri. You may be entitled to the following exemptions:
• Homestead up to $15,000
• Motor Vehicle up to $3,000
• Some appliances
• Wrongful Death Settlements and/or Personal Injury payments
• Unemployment Compensation
• Veterans’ Benefits
• Disability Benefits
• Certain Pensions
• Unmatured life insurance
MO Bankruptcy Chapter 11
This type of Bankruptcy is often used by businesses or corporations. A company may choose to file for MO bankruptcy if their production is down or they simply can’t repay the debt without a change in logistics or company policy. No personal assets are in danger within Chapter 11, but the value of company stock is always in danger
MO Bankruptcy Chapter 13
Within the state of Missouri, a person who chooses to file for Chapter 13 bankruptcy will now almost always have to pass a means test and attend debt counseling courses. The state now requires a minimum of five years of repayment as well. The individual may be ordered to repay the percentage of debt for a longer time period too.
If you file for Chapter 7, your tax returns may be considered a valuable asset and be turned over to a creditor. If you file under Chapter 13, your federal tax returns will almost always be protected but may be introduced into the repayment plan.
Filing for Missouri Bankruptcy
If you are already having trouble with expenses, you can choose to file for Missouri bankruptcy through a filing service or you can choose to use “Pro Se.” However, it is always beneficial in having a lawyer help you through the filing process, help you reach a settlement, and advise you when with your creditors. A lawyer will provide you with strategies in filing for Chapter 7 or Chapter 13, and the can often help you obtain as many personal assets as possible.