Bankruptcy exemptions are rules that exempt certain types and amounts of property from being sold or used to satisfy the claims of debtors in your bankruptcy case. Each state has a set of bankruptcy exemptions that you can use to protect your property while going through bankruptcy.

Federal law also provides a set of bankruptcy exemptions. Your state’s law will determine whether you can choose the federal bankruptcy exemptions, or if you must use your state’s bankruptcy exemptions. But if your state’s law allows you to choose between the two sets of bankruptcy exemptions, you must choose one or the other, and cannot choose exemptions from both your state and the federal exemptions.

In Missouri, bankruptcy exemptions play a crucial role in protecting certain assets of individuals filing for bankruptcy. Missouri has its own set of bankruptcy exemptions that residents are required to use; the state does not allow individuals to choose the federal bankruptcy exemptions. These exemptions include specific amounts of equity in a debtor's homestead, motor vehicle, personal property, tools of the trade, and certain pensions and benefits, among others. For example, Missouri's homestead exemption allows individuals to exempt up to $15,000 of equity in their residence. It's important for debtors in Missouri to review the state's exemption statutes to understand what property they can protect in a bankruptcy case. An attorney can provide guidance on how to apply these exemptions to maximize asset protection during the bankruptcy process.