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Montana Bankruptcy Laws
Very few Montana residents choose Chapter 13 bankruptcy, a mere 15%. The rest can plan to take advantage of the exemptions allowed under state laws to protect certain types of property, as federal exemptions are not allowed. Those state exemptions include:
Homestead |
Up to $250,000 |
Personal Property |
Health aids, burial plot; motor vehicle up to $2,400; clothing, household goods, furnishings and miscellaneous items up to $600 per item and $4,500 total |
Wages |
Either 30 times the federal hourly minimum wage or a minimum of 75% of wages earned but not paid, whichever is greater |
Pensions |
Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000/person; public employees; police and firefighters; teachers; university system employees; ERISA-qualified benefits; Roth IRA and IRA contributions made before judgment is filed |
Public Benefits |
Social Security; veterans’ benefits; local public assistance; worker’s comp; silicosis benefits; unemployment; aid to aged and disabled; vocational rehabilitation to the blind; subsidized adoption payments; crime victims’ compensation |
Tools of the trade |
Up to $3,000; arms, uniforms, and accoutrements needed for government functions |
Insurance |
Disability or illness benefits; medical or hospital benefits; some forms of life insurance policies or benefits; fraternal society benefits; group life insurance; hail insurance benefits |
A debtor is required to attend approved credit counseling classes prior to filing their bankruptcy petition. Once filed, however, the process may only take two to three months to complete the required steps:
- Working with the bankruptcy trustee to ensure all information is received, all qualifications are met, and all of their requests are satisfied
- Attendance at a 341 meeting called by the trustee at which the client answers questions about their assets, property, and financial circumstances under oath. Creditors may attend and ask questions, as well, however they are not required to do so and may still protest any debt discharges that are planned. The trustee also reviews Chapter 13 plans for viability.
- The client must attend a debt education class before any debts can be discharged
- When the petition is granted, any eligible debts are discharged. For the Chapter 13 client, no debts can be discharged until their repayment plan is complete.
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