Secure Your Future: Protecting Your Home in Bankruptcy
Curious about the twists and turns of navigating Missouri Homestead Exemption? You are considering bankruptcy, but there’s a catch—can I file bankruptcy without my spouse knowing? Understanding the ins and outs of this legal terrain is crucial.
Missouri Homestead Exemption can be a game-changer, impacting your financial stability and plans. Delving into this topic reveals a maze of laws, rights, and potential pitfalls. Whether you’re facing financial hardship or simply want to safeguard your assets, grasping the nuances of homesteading is essential.
Quick Summary
Below is an overview of the key points of this blog article.
- The Missouri Homestead Exemption allows homeowners filing for bankruptcy to protect their home equity from creditors, aiding in Chapter 7 and Chapter 13 cases. This exemption, capped at $15,000, covers the main house, its buildings, and the land, with limits on total protection and rules for co-owners.
- When applying for the Missouri Homestead Exemption, bring your birth certificate or Missouri driver’s license for age proof. Also, bring disability paperwork if disabled, eye doctor paperwork for blindness, and a copy of the trust agreement if a trust beneficiary.
- When applying for the Missouri Homestead Exemption, you may need these documents: birth certificate or Missouri driver’s license for age, disability paperwork from a state or federal agency for disability, eye doctor paperwork for blindness, and a copy of the trust agreement if you’re a trust beneficiary.
- To claim the Missouri Homestead Exemption in bankruptcy, you must have lived in Missouri for over 180 days. However, to use Missouri’s exemptions, you need to have been a resident for at least 730 days before filing. If not, you’d use the exemptions from your previous state of residence.
- If a spouse qualified for the Homestead Exemption but passed away, their surviving spouse may still receive the benefit if they become the full owner of the home within nine months, live in it as their main residence, and remain unmarried.
- If you move, you can still qualify for the Homestead Exemption. Just make sure you own your main home and have lived in Missouri for a year before December 31, also meet one of the age, disability, or blindness criteria by that date.
- Filing for bankruptcy without your spouse knowing can complicate matters later. If you file jointly before divorcing, it can save money and speed up the divorce process by avoiding debt disputes in court. However, both spouses will still be responsible for joint debts even after divorce.
What is Missouri Homestead Exemption?
If you own a home and file for bankruptcy, you can qualify for a homestead exemption. This protects your home equity from creditors if you file for Chapter 7 bankruptcy, helps reduce your payments in a Chapter 13 bankruptcy, and allows you to keep your house.
Missouri homestead law allows for a $15,000 exemption. This exemption applies to your dwelling house, any corresponding buildings, and the land they sit on. Some states offer similar protections for other types of property, not just real estate.
The law specifies that the total exemption amount of $15,000 cannot be exceeded under any circumstances. For instance, if two people co-own a property (like spouses), they can only claim up to $15,000 in homestead protection combined.
Additionally, if one co-owner claims homestead protection, another co-owner cannot sell the property.
How Can I Qualify for the Missouri Homestead Exemption?
To be eligible for the Homestead Exemption, statements 1, 2, and 3 must be correct.
- You own your main home completely or have a life estate in it, or you are named in a trust that owns your main home.
- You have lived in Missouri as your main and permanent home for a whole year before December 31 of the tax year.
- By December 31 of the tax year, you must be one of these:
- You are at least 65 years old.
- You have been declared totally and permanently disabled by a state or federal agency with the authority to do so.
- You are legally blind, as certified by a licensed eye doctor.
What Documents Do I Need as Proof of Eligibility When Applying?
Here are some common documents used to show you qualify because of your age, disability, or blindness:
- If you’re applying because of your age, you’ll need to show your birth certificate or Missouri driver’s license.
- If you’re applying because of a disability, you’ll need paperwork from the state or federal agency that says you’re disabled. If you believe you’re totally and permanently disabled but haven’t been officially classified by an agency, you can apply to the state’s Vocational Rehabilitation agency.
- If you’re applying because of blindness, you’ll need paperwork from a licensed eye doctor.
- If you’re the beneficiary of a trust, you’ll also need to provide a copy of the trust agreement.
When Can I Claim the Missouri Homestead Exemption in Bankruptcy?
You can file for bankruptcy in Missouri if you’ve lived there for over 180 days. However, to use Missouri’s bankruptcy protections, you need to have been a resident for at least 730 days before filing. If not, you’d use the exemptions from the state you previously lived in.
If you’ve lived in more than one state in the two years before filing for bankruptcy, you’d use the exemptions from the state where you lived for most of the 180 days before those two years.
Can My Surviving Spouse Receive the Homestead Exemption Benefit?
The husband or wife of someone who qualified or could have qualified for the Homestead Exemption may get the benefit if the person who died was eligible for the exemption when they died and if the surviving spouse meets all of these conditions:
- Becomes the full owner or gets a life estate in the home, or is named in a trust that owns the home, within nine months after the spouse dies
- Lives in the home as the main and permanent residence
- Stays unmarried
Can I Qualify for the Homestead Exemption If I Move?
Yes, you can qualify for the new residence if you still meet these requirements:
- You own your main home completely or have a life estate in it, or you are named in a trust that owns your main home.
- You have lived in Missouri as your main and legal home for a whole year before December 31 of the tax year.
- By December 31 of the tax year, you must be one of these:
- You are at least 65 years old.
- A state or federal agency has declared you totally and permanently disabled.
- A licensed eye doctor has certified you as legally blind.
Can I File Bankruptcy Without My Spouse Knowing?
Sometimes, when couples are having a tough time or thinking about getting a divorce, they might consider filing for bankruptcy without telling their spouse. But this isn’t usually a good idea.
If you file for bankruptcy together before getting divorced, it can help you avoid having to argue about debts in court later, which can save you money on lawyers and make the divorce faster.
Even if you get divorced, the court can’t change the terms of your debts with creditors, so both you and your spouse will still be responsible for paying them off. Filing for bankruptcy together before divorcing can also help you protect more of your assets.
However, the best way to figure out what to do in your situation is to talk to a bankruptcy lawyer in Missouri before you make any decisions.
Empower Your Financial Future
Understanding the Missouri Homestead Exemption is crucial for anyone facing financial challenges. At Roach Bankruptcy Center, LLC, we guide individuals through the complexities of bankruptcy law, including how the homestead exemption can protect your home and assets.
Our legal team is dedicated to providing compassionate and knowledgeable legal assistance, ensuring you make informed decisions about your financial future. If you’re navigating the waters of bankruptcy or need guidance on protecting your home, contact us today for a free initial consultation and support tailored to your needs.
Our trusted legal team can also assist you with Automatic Stay, Emergency Bankruptcy, and Student Loan Debt. Let us help you find peace of mind and a fresh financial start.
