The Montana bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Montana. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Montana you may also use certain federal exemptions in addition to your Montana exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
Homestead | Homestead: 320 acres if farm, 1 acre outside municipality, 1/4 acre in municipality $100,000/200,000 Must record homestead declaration before filing for bankruptcy | 70-32-104, 70-32-201, 70-32-216 70-32-105 |
Insurance | Annuity contract proceeds to $350 per month Disability or illness proceeds, avails or benefits Fraternal benefits society benefits Group life insurance or proceeds Hail insurance benefits Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary’s creditors Medical, surgical or hospital care benefits Unmatured life insurance contracts to $4000 | 33-15-514 25-13-608(1)(d), 33-15-513 33-7-522 33-15-512 80-2-245 33-20-120 25-13-608(1)(e) 25-13-609(4) |
Miscellaneous | Alimony, child support Property of business partnership | 25-13-608(1)(f) 35-10-502 |
Pensions | ERISA-qualified benefits deposited over 1 year before filing bankruptcy in excess of 15% of debtor’s annual income Firefighters Game wardens Highway patrol officers Judges Police officers Public employees Sheriffs Teachers University system employees | 31-2-106 19-11-612(1), 19-13-1004 19-8-805(2) 19-6-705(2) 19-5-704 19-9-1006, 19-10-504(1) 19-3-105(1) 19-7-502(2) 19-4-706(2) 19-21-212 |
Personal Property | Appliances, household furnishings, goods, animals with feed, crops, musical instruments, books, firearms, sporting goods, clothing & jewelry to $600 per item, $4500 total Burial plot Cooperative association shares to $500 value Health aids (professionally prescribed) Motor vehicle to $2500 Proceeds for damaged or lost exempt property for 6 months after received | 25-13-609(1)
25-13-608(1)(g) 35-15-404 25-13-608(1)(a) 25-13-609(2) 25-13-610 |
Public benefits | Aid to aged, disabled, AFDC Crime victims’ compensation Local public assistance Silicosis benefits Social security Subsidized adoption benefits Unemployment compensation Veterans’ benefits Vocational rehabilitation to the blind Workers’ compensation | 53-2-606 53-9-129 25-13-608(1)(b) 39-73-110 25-13-608(1)(b) 53-2-607 31-2-106(2), 39-51-3105 25-13-608(1)(1) 53-2-607 39-71-743 |
Tools of trade | Implements, books & tools of trade to $3000 Uniforms, arms, accoutrements needed to carry out government functions | 25-13-609(3) 25-13-613(b) |
Wages | Minimum 75% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtors | 25-13-614 |
WILD CARD | NONE |
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For more information on filing bankruptcy in Montana explore Montana Bankruptcy Law.
