Montana Bankruptcy Exemptions
Repossession of Montana bankruptcy exemption property
The automatic stay prevents attachment of all property owned by the estate. In addition, the Montana bankruptcy exemption list provides amounts and categories for real and personal property that may be retained in Chapter 7 even though all unsecured debts are wiped out through discharge. Be aware, even though a particular asset may be exempt, that a secured creditor may nevertheless receive permission from the court to repossess exempt property so long as the underlying debt remains in arrears.
Preventing repossession of exempt property
If possible, the easiest means of preventing repossession requires full payment of all past due amounts. So long a note remains current, creditors may not declare a note in default merely because a borrower files. If payments are not possible, debtors retain an absolute right to convert Chapter 7 bankruptcy to Chapter 13, and roll all past due payments into the plan. Once converted, the law provides a legal fiction, and assumes all payments are current.