The main intention of the
bankruptcy act is to relieve the debtor from the weight of oppressive indebtedness and allow him
to start anew, free from the obligations and responsibilities consequent upon business misfortunes. The
bankruptcy act gives the chance to the honest and unfortunate debtors who surrender for distribution their property, at the time of bankruptcy. This is a new vista in life and clears the pressure of preexisting debt for the debtor.
Bankruptcy forms of Missouri:
The bankruptcy form plans will depend on whether the debtor files a chapter 7 bankruptcy or a chapter 13 bankruptcy.
Chapter 7 is an orderly, court-supervised procedure designed in which a trustee collects the assets of the debtor’s estate, converts them to cash, and makes distributions to creditors. This is subject to the debtor’s right to hold on to certain exempted property and the rights of secured creditors. Usually there is little or no, nonexempt property in most of these cases. Real liquidation of the debtor’s assets usually may not happen. Such cases are, also called “no-asset cases.” A creditor having an unsecured claim will get a share from the bankruptcy estate, only if the case is an asset case provided he files a proof of claim with the bankruptcy court. The debtor receives a discharge that releases him from any personal liability for some dischargeable debts. The debtor gets a discharge after three to four months from the petition filing date.
Chapter 13: The debtor usually proposes a repayment plan over a 3-5 year period. During this period, he can make overdue payments on any assets and pay into the plan the corresponding value of any assets not covered by exemptions. As the debtors plan requires regular monthly or biweekly payments, Chapter 13 is appropriate for an individual debtor who has a regular source of income. At the confirmation hearing, the court may either approve or disapprove the plan, depending on the Bankruptcy Code’s requirements for confirmation. Here the debtor usually has the possession of the estate and makes payments to creditors (a portion of the unsecured debt), through the trustee, based on the debtor’s anticipated income over the life of the plan. The discharge happens only after the debtor completes the payments required under the plan. The debtor gets protection from lawsuits, garnishments, and other creditor action while the plan is in effect. The discharge is also considerably broader (i.e., more debts are eliminated) under this than that of the chapter 7.
Exempted properties under the Missouri Law:
House or Real property worth upto $8000 or mobile home upto $1000, Property held as tenancy for the entirety may be exempt against debts owed by only one spouse Section-513.430(6), 513.475
Insurance Assessment or insurance premium proceeds like Disability or illness, Fraternal benefit society benefits upto $5000, made before 6 months of filing. Life insurance dividends, loan value or interest to $5000, bought over 6 months before filing Life insurance proceeds if policy owned by woman & insures her husband, Life insurance proceeds if policy owned by unmarried woman and insures her father or brother, stipulated insurance premiums, Un-matured life insurance policy
Sections-377.090, 513.430(10) (c), 513.430(8), 513.430(8), 376.530, 376.550, 377.330,
513.430(7)
Alimony, child support to $500 per month
Property of business partnership Section- 513.430(10(d), 358.250
Pensions of Employees of cities with 100,000 or more people, ERISA-qualified benefits needed for support (only payments being received), Firefighters and Highway & transportation employees, Police Department employees, State employees and teachers
Sections-71.207, 513.430(10) (e), 87.090, 87.365, 87.485, 104.250, 86.190, 86.353, 86.493, 86.780, 104.540, 169.090
Personal Property like Appliances, household goods, furnishings, clothing, books, crops, animals & musical instruments worth upto $1,000, Burial grounds to 1 acre or $100, Health aids, Jewelry worth upto $500, Motor vehicle to $1000, Personal injury causes of action, Wrongful death recoveries for person debtor depended on Sections- 513.430(1), 214.190, 513.430(9), 513.430(2), 513.430(5), 513.430(11)
Public benefits like the AFDC, Social security, Unemployment compensation, Veterans’ benefits and Workers’ compensation
Sections-513.430(10(a), 513.430(10) (a), 288.380(10(l), 53.430(10)(c), 513.430(10(b), 287.260
Tools of Trade like Implements, books & tools of trade to $2000 under section 513.430(4)
Wages Minimum 75% of earned but unpaid wages (90% for head of family); sometimes the bankruptcy judge may authorize more for low-income debtors. Wages of servant or common laborer upto $90. Sections-525.030, 513.470
Wild card $1250 of any property if head of family, else $400; head of family may claim an additional $250 per child under Section-513.430(3), 513.440
Missouri Bankruptcy Courts:
The residents of Missouri can file their cases in the two Missouri District Court Divisions and the county residents must file their cases in the respective courts only.
Missouri Eastern District Court located at Cape Girardeau, Hannibal, St. Louis.
Under its Jurisdiction the following counties placed
Adair, Audrain, Bollinger, Butler, Cape Girardeau, Carter, Chariton, City of St. Louis, Clark, Crawford, Dent, Dunklin, Franklin, Gasconade, Iron, Jefferson, Knox, Lewis, Lincoln, Linn, Macon, Madison, Maries, Marion, Mississippi, Monroe, Montgomery, New Madrid, Pemiscot, Perry, Phelps, Pike, Ralls, Randolph, Reynolds, Ripley, Saint Charles, Saint Francois, Saint Genevieve, Schuyler, Scotland, Scott, Shannon, Shelby, Stoddard, St. Louis, Warren, Washington and Wayne.
Missouri Western District Court located at Court Locations: Jefferson City, Joplin, Kansas City, Springfield, St. Joseph.
Under this court the Counties placed are Andrew, Atchison, Barry, Barton, Bates, Benton, Boone, Buchanan, Callaway,etc..