Can I File Bankruptcy in Missouri?
Bankruptcy is a serious step that can have long-lasting negative financial ramifications. However, if you have no other way out, bankruptcy can help you get on with a debt-free life. While anyone can file bankruptcy in Missouri, if you want to get a bankruptcy discharge you must qualify under both Missouri and federal laws.
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Bankruptcy law limits the frequency with which you can obtain a bankruptcy discharge. If you previously received a Chapter 13 bankruptcy discharge, you must wait two years from the filing date to receive another Chapter 13 discharge, or six years for a Chapter 7 discharge. If you filed Chapter 7, you have to wait eight years to receive another Chapter 7 discharge, or four years for a Chapter 13 discharge. This law is federal and applies to all states, including Missouri.
State of Residency
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To file for bankruptcy in Missouri, you must be a resident of the state of Missouri. Determining your state of residence is important in a bankruptcy case since most states use their own bankruptcy exemptions. A bankruptcy exemption tells you what property you can keep in a Chapter 7 bankruptcy case. According to the U.S. Bankruptcy Code, you must use the bankruptcy exemptions of the state in which you resided for the previous 730 days. If you have lived in more than one state during those 730 days, you are considered a resident of the state in which you resided for the 180 days prior to that 730-day period. The purpose of this law is to prevent debtors from trying to take advantage of the states that offer the most generous bankruptcy exemptions.
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Qualification
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While all debtors must qualify if they wish to file Chapter 7 bankruptcy, if you live in Missouri you must qualify for bankruptcy using Missouri income data. The specific process by which you qualify for Chapter 7 bankruptcy is called the means test. Essentially, if you have a high income compared to the rest of the state of Missouri you will not qualify for Chapter 7 bankruptcy in Missouri. Under these circumstances, you can elect to file Chapter 13 bankruptcy and repay some of your debts or do not file at all.
Effects
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When you file for bankruptcy in Missouri, it will have a lasting impact on your credit. A Chapter 7 bankruptcy filing in any state shows on credit reports for 10 years, while a Chapter 13 remains for seven. Depending on which bankruptcy chapter you choose, you may have a financial cost as well. A Chapter 7 bankruptcy in Missouri forces you to give up property above Missouri exemption levels, while a Chapter 13 consists of monthly payments to creditors for three or five years. Additionally, bankruptcy is a public record. Any interested party could review the files of the Missouri bankruptcy court and see not only that you filed bankruptcy, but also the details of your petition.
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