Especially when someone is going through financial struggles, they want to make sure they can keep any assets they already have. Many people avoid filing for Chapter 7 bankruptcy because they fear that a bankruptcy trustee will seize all of their assets and liquidate them to pay of your debts. However, the Missouri bankruptcy laws take into account how important some of your assets are, and includes certain provisions to help you protect them.
Missouri Asset Protections
When you file for Chapter 7 bankruptcy in Missouri, your assets will be protected in two different ways. First, as soon as you file, an automatic stay goes into effect immediately. This automatic stay halts all proceedings against you, such as repossession of your car or foreclosure on your house. Additionally, the automatic stay will stop lawsuits against you by creditors, levies, wage garnishments, and more. Therefore, your paycheck and bank accounts will be protected from judgments and garnishments, as well as your property such as your car and home.
Second, though a bankruptcy trustee may have to liquidate some of your property to help pay your creditors, Missouri bankruptcy laws provide numerous exemptions to allow you to protect certain assets and personal property. Some examples of exemptions include the following:
- $15,000 worth of equity in your home
- $3,000 worth of equity in your car
- $750 per month in child support or alimony
- Monthly unemployment checks, worker’s compensation, disability, veteran’s benefits, Social Security, and more
- Certain life insurance benefits
- $3,000 in personal property items
- $2,000 in certain kinds of jewelry
- A certain amount of “wild card” assets, depending on your family’s situation
An experienced Missouri bankruptcy lawyer can help you identify all of the possible exemptions that may apply to you and how to best use these exemptions to protect your valued assets.
Contact a Missouri bankruptcy attorney for a free consultation
In short, you should not be afraid of losing all of your valued assets when you file for bankruptcy. The attorneys at the Law Office of Kenneth P. Carp are highly experienced in Missouri bankruptcy law and dedicated to helping clients hold on to as many assets and personal property items as possible. If you are considering bankruptcy, call us today at 636-947-3600 for help.