Montana Bankruptcy Laws
Montana has one bankruptcy district court: Montana Bankruptcy Court. It serves the entire state of Montana.
Montana Bankruptcy Exemptions
Under chapter 7 bankruptcy, you are allowed to keep certain property. These are called exemptions. According to Lawyers.com, under Montana bankruptcy laws, you may keep:
- Homestead to $250,000. In 2007, the Montana Legislature passed a bill that increased homestead debt protection. These changes became effective March 30, 2007. Previously, the limit was $100,000.
- Household goods and furnishings, jewelry and clothes to $4,500, with no one item over $600
- One motor vehicle to $2,500
- Tools of the trade and professional books to $3,000
- Unmatured life insurance contracts to $4,000
- Proceeds from lost, damaged or destroyed exempt property
- Professionally prescribed health aids
- Social security and public assistance benefits, except support payments
- Veterans' benefits, except support payments
- Disability or illness benefits
- Medical benefits
- Maintenance and child support
- Burial plot
- Property necessary for government functions
- 75% of net earnings per week
- Retirement benefits
- Life insurance proceeds
- Group life insurance proceeds
- Proceeds of disability insurance
- Annuity contracts
- Shares in cooperative associations
- Association cemetery lands and property
- Unemployment compensation
- Workers' compensation
- Silicosis benefits
- Public assistance
- Crime victims' compensation
- Benefits from hail insurance
NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.
New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.
This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.
Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.
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