Filing for bankruptcy is a serious financial step, and understanding what you can keep is one of the most important parts of the process. One of the biggest questions we hear from clients is, “Will I lose my home or car if I file bankruptcy in Missouri?
The good news is that many people who file bankruptcy in Missouri don’t lose any property at all. That’s because Missouri bankruptcy exemptions protect certain assets, like your home, vehicle, retirement accounts, and household goods, from being sold by the bankruptcy trustee.
These exemptions allow you to get the fresh start you need without starting from zero. And as of 2025, Missouri’s exemption laws remain some of the most protective in the region.
Before you decide whether to file Chapter 7 or Chapter 13 bankruptcy, it’s important to understand how exemptions work and how much property you can keep under Missouri law.
What are Bankruptcy Exemptions?
When you file for bankruptcy, all of your property becomes part of what’s called the bankruptcy estate. Essentially, everything you own could be used to repay your creditors. Bankruptcy exemptions are the legal rules that allow you to protect specific items from the estate.
The purpose of exemptions is to help you rebuild after bankruptcy. Without them, debtors would have no way to maintain housing, transportation, or basic household items.
If the equity you have in an asset (its value minus any loan or lien) is less than or equal to the exemption amount, you get to keep it. If the equity is higher, the trustee may have the right to sell the asset—but in reality, that rarely happens in Missouri cases because the exemption limits cover most property people own.
Does Missouri Allow You To Use The Federal Bankruptcy Exemptions?
Each state has the choice to let its residents use either the federal bankruptcy exemptions or the state exemptions. Some states give filers the option to choose between the two systems. Missouri is not one of those states.
If you file for bankruptcy in Missouri, you must use Missouri exemptions. Federal bankruptcy exemptions are not available to residents who file in this state.
Fortunately, the Missouri bankruptcy exemption laws are generous enough that most filers are able to protect most of what they own. These exemptions cover a wide range of property, so you can rebuild without losing your essentials.
There are, however, a few federal nonbankruptcy exemptions that might still apply in very specific situations. For example, suppose you’re a veteran, a civil service employee, or you receive Social Security or military retirement benefits. In that case, those federal laws protect your assets regardless of which state you live in.
But for nearly all Missouri residents, the state exemption system is what determines exactly what you can keep in a Chapter 7 or Chapter 13 bankruptcy.
Missouri Bankruptcy Exemptions (Updated for 2025)
Missouri law provides a wide range of bankruptcy exemptions that protect your most important property from being taken or sold. These exemptions apply automatically when you file bankruptcy — you don’t have to file separate paperwork to “claim” them, though your attorney will list each one on your Schedule C form.
For most people in Missouri, these exemptions are enough to keep all their property. In fact, the majority of Chapter 7 bankruptcy cases filed in the state are “no-asset cases,” meaning the trustee doesn’t sell anything because everything is protected under Missouri law.
Below is a summary of the 2025 Missouri bankruptcy exemption amounts:
| Exemption Type | Amount (2025) | Details/Notes |
| Homestead | $15,000 equity in real property or $5,000 in a mobile home | Applies to your home or primary residence. Missouri generally does not allow doubling, but tenancy by the entirety may protect a marital home from one spouse’s creditors. |
| Motor Vehicle | $3,000 equity | Protects equity in one or more vehicles (combined total). |
| Household Goods & Personal Property | $3,000 total | Covers furniture, appliances, books, musical instruments, and clothing |
| Jewelry | $1,500 wedding ring + $500 other jewelry | Total combined value protected |
| Tools of the Trade | $3,000 | Protects professional tools, books, or equipment used for work |
| Wildcard | $600 | Can apply to any property not covered by another exemption |
| Head-of-Familly Add-On | $1,250 + $350 per dependent child (under 21 or disabled) | Additional protection for primary household earners |
| Firearms & Ammunition | $1,500 ($3,000 if owned jointly) | Covers firearms, accessories, and ammunition |
| Life Insurance (Cash Value) | Up to $150,000 | Applies if the policy was purchased more than 1 year before filing. |
| Life Insurance Proceeds (Burial) | Up to $15,000 | For the burial expenses of a spouse, child, or parent |
| Retirement Accounts (401(k), IRA, etc.) | Fully exempt | Applies to tax-qualified plans under federal laws |
| Pensions (public employees) | Fully exempt | Includes teachers, firefighters, police, state, and city employees |
| Workers’ Compensation & Unemployment | Fully Exempt | No dollar limit. |
| Veterans’ Benefits & Social Security | Fully Exempt | Protected under federal law. |
| Alimony & Child Support | $750 per month | Protects the income necessary for support |
| Wrongful Death Recovery | Reasonably necessary for support | Trustee determines what is “reasonable” |
| College Savings (529/ABLE Accounts) | Protected if the account was opened at least 1 year before filing | Contributions made within 1 year before filing may not be exempt |
| Wages | 75% of earned wages or 30x the federal minimum wage (whichever is higher) | Head-of-family filers may protect up to 90% of wages |
The Homestead Exemption
Missouri’s homestead exemption protects up to $15,000 in equity in your home or other real property.
If you live in a mobile home that isn’t attached to land, you can protect up to $5,000 of equity.
“Equity” means the property’s market value minus what you still owe on it.
For example, if your home is worth $180,000 and your mortgage balance is $168,000, you have $12,000 in equity — and all of it would be protected under Missouri’s homestead exemption.
Unlike some states, Missouri generally does not allow doubling this exemption for married couples filing jointly. However, tenancy by the entirety can offer additional protection for a jointly owned home if only one spouse files and the debts are in that spouse’s name alone.
Motor Vehicle Exemptions
You can protect up to $3,000 in equity for one vehicle. So, if your car is worth $9,000 and you owe $7,000, your $2,000 in equity is fully protected.
For married couples, the vehicle exemption may be doubled ($6,000) only if both spouses own the vehicle together.
You can read more about Missouri Auto Repossession Laws here.
Household Goods Exemptions
Certain household goods may be exempt up to $3,000 or $6,000 for married filers in Missouri.
This exemption covers many of the essential items you use every day, including:
- Furniture and appliances
- Clothing
- Books or musical instruments
- Kitchenware and linens
- Family heirlooms or decor (within value limits)
The purpose of this exemption is to ensure that you don’t lose the basic necessities of living. Most families find that their everyday household items fall well below the $3,000 limit in resale value, which means they are completely protected.
Jewelry Exemption
Your wedding or engagement ring is protected up to $1,500 in value, and you can exempt an additional $500 or other jewelry.
These limits apply to the fair market (resale) value, not the purchase price.
Retirement Account Exemptions
Most retirement account plans are fully exempt in Missouri, including:
- 401(k)s, 403(b)s, IRAs, Roth IRAs, and SEP plans
- Government and public employee pensions
- Teachers, firefighters, police, state and municipal employee pensions
ERISA-qualified and tax-qualified plans (e.g., 401(k), 403(b), IRA/Roth IRA) are generally protected, subject to support-necessity limits, QDROs, and fraudulent-transfer limits.
Firearms and Ammunition
Under Missouri law, you may exempt up to $1,500 in firearms, ammunition, and accessories, or $3,000 if owned jointly with your spouse.
This is a relatively new exemption and ensures that personal protection and hobby firearms remain secure during the bankruptcy process.
Wildcard Exemption
Missouri’s wildcard exemption lets you protect up to $600 in any property you choose, or $1,200 for married couples filing jointly.
You can apply the wildcard exemption to assets that aren’t covered by another exemption, such as:
- A small bank account balance
- Jewelry exceeding the standard limit
- Electronics
- Collectibles
- Cash on hand
This flexibility helps filers protect miscellaneous property that doesn’t fit neatly into other categories.
Head of Household Exemption
If an individual filer provides a bulk of the income for a household, he/she may exempt any asset up to $1,250 in addition to the wildcard exemption. A head of the household exemption also allows an individual in Missouri to exempt an additional $350 for each child of the filer that resides in the household and is under the age of 21 or disabled.
Tools Of The Trade Exemption
Missouri protects up to $3,000 worth of tools, books, equipment, or professional instruments that you need for your work.
This exemption applies to everyone, from mechanics and contractors to hair stylists, photographers, or small business owners. The goal is to ensure that filing for bankruptcy doesn’t prevent you from continuing to earn a living.
Wage Exemption
Your earned but unpaid wages are protected up to 75% of your gross weekly pay or 30 times the federal minimum hourly wage, whichever is greater.
Wrongful Death Recovery Exemption
If you receive money from a wrongful death settlement, you may exempt any amount that’s considered reasonably necessary for your support or the support of your dependents.
Workers’ Compensation & Unemployment Exemptions
These benefits are fully exempt. You can keep all the money you receive from:
- Workers’ compensation claims
- Unemployment benefits
- Veterans’ disability or retirement pay
- Social Security income
Veterans’ Benefits & Social Security Benefits
Like workers’ compensation and unemployment benefits, you will be able to exempt the full amount of your veteran’s benefits or social security benefits.
Alimony & Child Support Exemptions
If you’re receiving alimony or child support, you can exempt up to $750 per month in alimony and child support payments.
Insurance Exemptions
You can protect up to $150,000 in cash value, dividends, or loan value from a life insurance policy that’s been in place for at least one year before filing for bankruptcy.
In addition, you can exempt up to $15,000 in life insurance proceeds that are designated for burial expenses for a spouse, parent, or child.
College Savings and ABLE Accounts
Missouri protects college savings (529) plans and ABLE accounts, provided the funds were deposited more than one year before filing. Contributions made within the past 12 months may not be fully exempt.
Other Exemptions
There could be other exemptions you may qualify for. A bankruptcy attorney can sit down with you and examine your property to help you figure out what is and is not exempt in the State of Missouri.
Additional exemptions may apply to items such as:
- Family Bibles, school books, and personal photographs
- Medical devices and health aids
- Proceeds from the sale of exempt property
- Property held in trust
- Certain life insurance polices (with dependents as beneficiaries)
Chapter 7 Vs. Chapter 13 Bankruptcy Exemptions
Whether you file Chapter 7 or Chapter 13 bankruptcy in Missouri, the same exemption laws apply. What changes is how nonexempt property is handled (the property that isn’t protected by Missouri’s exemptions).
Here’s how exemptions work in each type of bankruptcy.
Chapter 7 Bankruptcy: Liquidation and Exemptions
Chapter 7 bankruptcy, often called “liquidation bankruptcy,” allows you to eliminate most unsecured debts like credit cards, medical bills, and personal loans.
In exchange, the bankruptcy trustee has the authority to sell nonexempt assets and use the proceeds to repay creditors.
However, most Missouri filers don’t lose any property because their assets fall within the exemption limits. These are known as “no-asset cases,” meaning everything you own is protected.
If you do not have property that isn’t fully covered, such as a second car or valuable collectibles, your trustee might sell it. Or you might have the option to “buy it back” by paying the nonexempt value.
Chapter 13 Bankruptcy: Repayment and Protection
Chapter 13 bankruptcy, on the other hand, allows you to keep all of your property, whether exempt or nonexempt.
Instead of liquidation, you’ll repay creditors over a 3-5 year plan based on your income, expenses, and the value of your nonexempt assets.
The caveat is that you’ll have to pay the value of your nonexempt property or your disposable income (whichever is greater).
Why Exemptions Matter in Both Chapters
Exemptions play a critical role in both Chapter 7 and Chapter 13 cases.
In Chapter 7, they determine what property you keep and what could be sold.
In Chapter 13, they help determine how much you’ll pay creditors through your repayment plan.
Whether your goal is to wipe out debt quickly or create a manageable payment plan, understanding Missouri’s exemption limits ensures your property is protected and your case is structured for success.
Eligibility For Missouri Bankruptcy Exemptions
Just because you live in Missouri doesn’t automatically mean you can use Missouri’s bankruptcy exemptions. Federal law sets residency requirements that determine which state’s exemptions apply in your case. These rules prevent people from moving to another state just to take advantage of more generous exemption laws.
The 180-Day Rule for Filing in Missouri
To file bankruptcy in Missouri, you must have lived in the state for at least 180 days before your filing date. This determines where you can legally file your bankruptcy case, not which exemptions you’ll use.
So, even if you moved to Missouri five months ago, you could still file for bankruptcy. However, you might not qualify to use Missouri’s exemptions yet.
The 730-Day Rule for Using Missouri Exemptions
To use Missouri’s bankruptcy exemptions, you must have lived in the state for at least 730 consecutive days (two full years) before filing.
If you haven’t lived in Missouri for two years, the court will look back further to determine which state’s exemptions apply. In most cases, you’ll use the exemptions from the state where you lived the majority of the 180 days before that two-year period.
This rule can be complex, especially if you’ve moved between multiple states in recent years. A bankruptcy attorney can help confirm which exemption system applies in your case.
Objections To Exemptions in Missouri Bankruptcy Cases
When you file for bankruptcy in Missouri, you’ll need to list all of your exemptions on a form called Schedule C.
However, simply listing an item as exempt doesn’t automatically mean you get to keep it.
The bankruptcy trustee assigned to your case will carefully review your exemptions to make sure everything complies with Missouri law. If the trustee believes you’ve claimed something that isn’t exempt, or that you’ve overvalued an exemption, they can file an objection with the court.
How the Exemption Objection Process Works
Here’s what typically happens if your trustee questions an exemption claim:
- Initial Review: The trustee reviews your Schedule C during the early phase of your case.
- Informal Discussion: If the trustee has concerns, they may reach out to your attorney first to resolve the issue informally.
- Formal Objection: If the issue can’t be resolved, the trustee files a formal objection with the bankruptcy court.
- Hearing and Decision: A bankruptcy judge reviews the objection and decides whether the property is exempt or must be turned over to the trustee.
These objections are relatively common and often arise from simple misunderstandings or mistakes in valuation.
Common Reasons for Exemption Objections
A Missouri bankruptcy trustee may object to your exemptions if:
- You claimed property that isn’t covered by Missouri’s exemption laws
- You used the wrong exemption amount (for example, a federal instead of state limit)
- You undervalued or overvalued an asset
- You recently transferred ownership of the property to someone else before filing
- You did not disclose all assets accurately
Even small errors can create issues, which is why accuracy is essential when completing your bankruptcy paperwork.
What Happens to Nonexempt Property in a Missouri Bankruptcy?
Most people who file for bankruptcy in Missouri are able to keep all of their property because it falls within the state’s exemption limits. However, if you own assets that aren’t covered, those items are considered nonexempt property.
How your nonexempt property is handled depends on whether you file Chapter 7 or Chapter 13 bankruptcy.
Nonexempt Property in Chapter 7 Bankruptcy
In a Chapter 7 bankruptcy, the trustee’s job is to collect and sell nonexempt property to repay your creditors.
That doesn’t mean you’ll automatically lose something just because it’s nonexempt. Trustees often choose not to sell property unless it has significant resale value after deducting costs like storage, advertising, and auction fees.
Nonexempt Property in Chapter 13 Bankruptcy
If you file Chapter 13 bankruptcy, you won’t lose your nonexempt property. Instead, you’ll pay creditors through a 3-5 year repayment plan.
That means you can keep items like a second vehicle, valuable jewelry, or nonexempt savings, as long as you repay creditors the equivalent value through your plan.
Choosing the Right Chapter for You
If you own nonexempt property that you don’t want to lose, Chapter 13 may be the better option. But if all your assets are exempt, Chapter 7 may provide a quicker, more affordable path to a clean slate.
A Missouri bankruptcy lawyer can help you determine which chapter best fits your financial situation and ensure that you protect as much property as possible under Missouri’s exemption laws.
Consult With A Missouri Bankruptcy Lawyer
Filing for bankruptcy doesn’t mean losing everything you’ve worked for — it’s a legal tool designed to help you eliminate debt, protect your property, and rebuild your financial life.
Understanding how Missouri bankruptcy exemptions work is the key to making the most of your fresh start. From protecting your home and car to safeguarding your retirement accounts, these laws ensure that you have the essentials you need to move forward.
Still, every case is different. The property you own, how long you’ve lived in Missouri, and the type of bankruptcy you file all affect which exemptions apply and how much protection you’ll receive.
At A Bankruptcy Law Firm, LLC, we make the process clear, straightforward, and affordable. We’ll review your assets, identify every exemption available to you, and build a strategy that gives you maximum protection. Whether you’re considering Chapter 7 or Chapter 13 bankruptcy, our attorneys will guide you through every step — from your first consultation to your debt discharge.
You don’t have to face this alone. Call (800) 7-BENSON or fill out our online contact form to schedule your free bankruptcy consultation with Attorney Mike Benson today.
We’re here to help Missouri residents find relief, regain control, and take the first step toward a brighter financial future.
Important Disclaimer: The information discussed above and throughout this website should not be relied upon to make any decisions without first speaking to a bankruptcy attorney. There are many intricate rules of law governing bankruptcy with many exceptions to the general rules that could change the advice given by an attorney based on the differing facts in each person’s special set of circumstances. THEREFORE, it is important to discuss any information contained in this website with one of our attorneys before taking any action or refraining from taking any action.
