 |
|
Montana Bankruptcy Exemptions
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, the equity is covered by your exemptions, and you elect to keep making payments on the loan you generally can 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 assets. 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
|
|
For more information on filing bankruptcy in Montana explore Montana Bankruptcy Law.
| |
|
|
