If you find yourself drowning in debt, it may be time to file for bankruptcy in Montana. The state of Montana has bankruptcy laws that are much like those of other states in the country, but there are some differences that you should know about, especially when it comes to the different exemptions you are allowed. You have basically two choices by which you can file for personal bankruptcy: Chapter 7 and Chapter 13. Please note that Chapter 13 bankruptcy still requires you to pay back most of your debt; it should lower it though and allow you to work with your creditors in order to pay off your debt within three to five years.
Bankruptcy Laws
When you started thinking about declaring bankruptcy in Montana, you may have looked at a few of the laws and rules and became overwhelmed with all the information. Those law books can be pretty intimidating, but the good news is that a qualified bankruptcy lawyer has studied these laws for years and can do the work for you. Basically, what you need to know is what you will lose by filing for bankruptcy and what you will gain. The good news is that you may lose very little by filing for bankruptcy. The state has many different exemptions that will allow you to keep most of your possessions
Exemptions in Montana
When you file for Chapter 7 bankruptcy in Montana, you have a chance to wipe away all of your old debt. Your possessions may be subject to be taken by your creditors as a form of liquidation however. The good news is that you will find that most of your property will be exempt. The following are a few examples of what's exempt in Montana. First of all is your Homestead. This has to be declared before you file for bankruptcy though.
Next is Insurance. Many different types of insurance are exempt such as: annuity proceeds up to $350 a month, disability or illness proceeds, fraternal society benefits, group life insurance, etc. You will find that most of your personal property is exempt as well. This includes: appliances, furnishings, animals, feed, crops, household goods, firearms, books, sporting goods, and jewelry up to $600 per item and $4,000 in total. Other exemptions include: public benefits, alimony, child support, wages, tools of your trade, business partnership property, and various forms of pensions as well.
