Before filing for Chapter 13 bankruptcy, it is critical to know and understand the properties that may be exempted. Filing for Chapter 13 bankruptcy under the bankruptcy code entails committing to repaying your debts over three to five years through a repayment plan. This allows a debtor to keep their property, such as a house or a car. If this is your first time to do bankruptcy filing and you are unsure whether it is a good idea, speaking with a skilled bankruptcy attorney can help.
If you are looking for a qualified bankruptcy attorney in Missouri, choose Jeppson Law Office without a second thought. Since 2011, our legal team has been dedicated to defending the rights of all Missouri debtors. Joseph Chaddick Jeppson established a solid reputation in the state through diligence and consistency, allowing him to become a member of various associations. If you need help with Chapter 13 exemptions and require legal advice, schedule a free consultation now!
Why Do I Need a Missouri Bankruptcy Attorney?
Understanding Chapter 13 bankruptcy exemptions in Gladstone, MO, is not easy. Bankruptcy law, including its procedures, is complex if handling it by yourself. To avoid mistakes and confusion, you need a Chapter 13 bankruptcy attorney to help you with your bankruptcy case. Consider the following characteristics before hiring one:
- Board Certified Bankruptcy Attorney – You are entitled to a higher level of assurance that your bankruptcy lawyer can handle bankruptcy matters of any complexity. To become board-certified, a bankruptcy lawyer must meet several requirements. Because they are one-of-a-kind, you deserve them.
- Flat Rate Service – Debtors who file bankruptcy are likely to have their finances negatively impacted. Investing in a bankruptcy lawyer should be worthwhile. Aside from selecting a competent one, choose one who charges flat rate services to avoid worrying about the service fee more than your financial situation.
- Respectful – It is normal for the average person to be perplexed by the technicalities of every bankruptcy procedure. It is also acceptable to feel awkward when discussing your debt problems. Select a Kansas City bankruptcy attorney who seeks to understand your situation and does not pass negative judgment.
For more than a decade, Joseph Chaddick Jeppson has been recognized by the American Board of Certification as a board-certified lawyer in bankruptcy. Our legal team respects each debtor’s situation, and we charge a flat rate for our services to reduce your burden. Jeppson Law Office is committed to giving back to the community and will go to any length to assist you with your bankruptcy case. If you need assistance with Chapter 13 bankruptcy exemption, schedule an initial consultation with our Missouri bankruptcy lawyer today!
Repayment Plan in Chapter 13 Bankruptcy
In Chapter 13 bankruptcy, debtors make a repayment plan for some of their debts. The bankruptcy trustee will get the payment to pay your creditors. The funds you will pay monthly will depend on several factors, including your expenses, income, and the amount of debt that you owe.
Priority debts, however, should be paid in full through the Chapter 13 plan. These debts include child support, alimony, mortgage payment, and income tax. You would also have to pay for the properties you intend to keep, such as your car and house.
On the other hand, your remaining non-priority debts are not required to be settled in full. This includes medical bills, credit cards, personal loans, and others. The amount you will pay depends on your nonexempt assets and disposable income.
What are Exemptions in Chapter 13 Bankruptcy in Missouri?
If you are filing for Chapter 13 bankruptcy in Missouri, you cannot use federal exemptions. Debtors are only allowed to use state exemptions accessible to debtors. This does not require eligibility aside from assigning the property exemption to the personal property you intend to keep in your bankruptcy case.
Below is a list of the most frequent Chapter 13 bankruptcy exemptions in Missouri:
- Homestead exemption–up to $5,000 for a mobile home and up to $15,000 for real property
- Up to $3,000 for motor vehicles
- Health savings accounts
- Pensions, Roth individual retirement accounts (IRAs), and IRAs
- Veterans, Social Security, and public assistance benefits
- Up to $3,000 for books, tools, and implements
Are You Allowed To Use Federal Exemptions in Missouri?
The short answer is no. Only 17 states have the lawful authority to choose between state and federal exemptions. In general, the state defines exempt assets. Federal exemptions are unavailable in Missouri, so a Missouri resident must rely solely on state exemptions.
Exemptions in Chapter 7 Bankruptcy versus Chapter 13 Bankruptcy
You may be curious to know if your Missouri bankruptcy exemptions will be affected by the type of bankruptcy you file. Whether you file for Chapter 13 or Chapter 7, the bankruptcy exemptions remain the same.
Nonexempt properties may be sold in Chapter 7 bankruptcy, and the profits generated are appropriately distributed to your creditors by the United States trustee to discharge your debts. On the other hand, Chapter 13 bankruptcy allows you to keep your nonexempt assets. The condition is that you pay the sale price of your nonexempt properties. Whether you file for Chapter 7 or Chapter 13, these two methods assure your creditor that they will receive the exact amount of money.
Eligibility for Missouri Exemptions in Chapter 13 Bankruptcy
One of the most common misconceptions is that you can use Missouri bankruptcy exemptions automatically if you live in the state. The truth is that the length of your stay is a contributing factor.
To use the state’s exemptions, you must have resided in Missouri for at least 180 days before filing your bankruptcy petition. To be eligible for Missouri exemptions, you must have resided in the state for at least 730 days before filing. If you have not lived in Missouri for 730 days, you can only use your hometown’s state exemptions.
Call our Trusted Missouri Bankruptcy Attorney Now!
Identifying how and what properties you can be exempt from in Chapter 13 bankruptcy can be tricky. You must meet several requirements before filing your bankruptcy petition with the bankruptcy court. Debtors are highly encouraged to seek prudent legal advice from the best bankruptcy attorney in Missouri during times of confusion.
At Jeppson Law Office, we make ourselves approachable so that you do not feel uneasy expressing your financial difficulties. We help you get out of debt, so you can achieve the financial freedom you’ve been looking for. With our experience and competence, we can guarantee you excellent legal assistance. Aside from bankruptcy exemptions, we can also help you with the bankruptcy means test, meeting of creditors, emergency bankruptcy, rebuilding credit after bankruptcy, stopping foreclosure, stopping garnishment, stopping repossession, and the automatic stay. Book an initial consultation now!