When it comes to bankruptcy there is no magic formula an individual can use to determine if they should go for it or not. When looking into bankruptcy, the individual may consider it for the following reasons: they cannot pay minimum amounts on the bills owed, cannot budget themselves out of debt and have been there for five years, have foreclosure notices on their mortgage or loans, or they had a financial setback that was severe.
When it comes to bankruptcy in Missouri there are individuals out there who believe bankruptcy will free them from all of their debts, but this is not necessarily true. As a matter of fact, bankruptcy will not free you from the following debts: child support, alimony, recent back taxes, most student loans, large purchases over $550 for luxury goods within 90 days, debts that were fraudulent, or $825 worth of cash advances made within seventy days of filing.
If an individual is filing for bankruptcy in Missouri, they will have to follow the exemptions that are found in the state of Missouri law. Individuals should keep in mind that if one state has a certain exemption this does not mean the same exemption will be available in the state of Missouri. When an individual is filing for bankruptcy in the state of Missouri and wants to know what their exemptions would be they need to pay attention to only the exemptions offered in the state of Missouri.
When filing for bankruptcy in Missouri, an individual will be allowed to keep the following: their homestead up to a $15,000 value, this includes the house and the land; a motor vehicle that is valued no more that $3,000, household goods, appliances, clothing, books, furniture, crops, animals, musical instruments no more than $3,000; Jewelry valued no more than $500 and a wedding ring valued no more than $1,500; settlements of wrongful deaths, personal injuries, monetary damage, unemployment compensation, Social Security benefits, Veterans' benefits, workers compensation, child support, or alimony no more than $750 per month; and firefighters pensions.
Remember that a bankruptcy will not wipe out everything such as mortgage and tax liens. When it comes to filing bankruptcy the individual should know that they will always have other options available to them, but sometimes bankruptcy is the right choice. Make sure to consult with a qualified bankruptcy lawyer who will be able to help you through the filing process.