Missouri Bankruptcy Exemptions
Compare homestead allowances under Missouri bankruptcy exemptions to the Federal Code
Only the State of Missouri bankruptcy exemptions are available to residents. As an opt-out state, Missouri residents are not permitted to choose Section 522 of Title 11 for a more favorable list of exemptions. On average, the state allowances are substantially lower than the federal amounts, but the state law does include several items that are not available under the Code (most notably, several types of state employee pensions and retirement accounts).
Why is the State of Missouri homestead exemption so low?
The Missouri statutes allows up to $8,000 in equity value to remain exempt if filing Chapter 7. Compared to the federal exemption ($18,000), and compared to average state homestead allowances (approximately $20,000), the State of Missouri may seem antiquated. The amount of the homestead value is determined by the state legislature. As elected officials, all legislators in recent years have become more reliant upon campaign contributions to the point of total dependency for reelection. As a result, the pressures exerted by the most fortunate business and individuals who contribute generously to elected officials, the indisputable preference toward campaign contributors is undeniable. Debtors in bankruptcy, being economically challenged, have no apparent voice because of financial hardship and are left to fend for themselves without representation.