Montana Bankruptcy Law
Montana bankruptcy laws that closely reflect the provisions and procedures of other states’ bankruptcy laws. Additionally, many of the MT bankruptcy laws aren’t intended to prohibit a person or corporation from filing MT bankruptcy. Instead, Montana bankruptcy law strives to help a person through a tough economic point in their life and carry them back into a good economic standing.
Before filing for Montana bankruptcy, a resident of Montana must take a credit counseling course before filing for MT bankruptcy, and they must also show evidence of taking a debtor education course before reaching a settlement.
Montana Bankruptcy : Personal and Corporate
Individuals, individual families, and corporations can file for Montana bankruptcy. A family or individual with a large amount of debt will often opt for Chapter 7 or Chapter 13 within bankruptcy law. A corporation faced with a large business debt and/or lack of resources or production may file for Chapter 11 within the state of Montana. There are a number of exemptions for all chapters of MT bankruptcy.
MT Bankruptcy Chapter 7
Within the state of Montana, there is not limit of debt required for filing MT bankruptcy. However, if the amount of debt is big enough, a person may not be able to file for Chapter 7 bankruptcy. Filing for Montana bankruptcy will also greatly affect your credit, and the action usually appears on a credit report for 10 years within the state of Montana.
Chapter 7 bankruptcy is often referred to as liquidation, and the person is often left with a clean slate after all assets have been collected by creditors. Some exemptions for handing over assets include:
• Homestead worth up to $250,000
• 75 percent of a person’s annual earnings
• Automobile worth up to $2,500
• Some personal property like appliances, jewelry, firearms, musical instruments, etc
MT Bankruptcy Chapter 11
If a business or corporation is facing bankruptcy, the company will file a Chapter 11. The type of bankruptcy gives the company time to reorganize their expenses, employees, and any other type of measure that my decrease their owed debt. Assets are not available to creditors within Chapter 11, but the value of company shares may be in danger in such a process.
MT Bankruptcy Chapter 13
In the state of Montana, you may file for Chapter 13 bankruptcy if you have steady income. You will be required to make payments for a three to five year period. During this time period, creditors cannot hassle you for repayment because a judge establishes a final settlement agreement. Since foreclosure is sometimes a form of collection, Chapter 13 allows a family to keep their home through the bankruptcy process.
Taxes
Your federal income tax may be considered an asset if you file a Chapter 7. However, if you file a Chapter 13, you may be able to keep your income tax and use it towards living expenses and/or repayment. Normally, other owed taxes cannot be waived within a Montana bankruptcy.
Filing for Montana Bankruptcy
It’s always a good idea to hire a Montana bankruptcy lawyer before filing. The attorney will be able to help you with all the documents and fees associated with the filing process, and they will be able to advise you while talking with your creditors as well. If you cannot afford an attorney, you can go through a filing service, but you should attempt to hire a lawyer as much as possible.
