Missouri Laws on Bankruptcy and Eviction Protection

In the state of Missouri, understanding the laws surrounding bankruptcy and eviction protection is essential for residents facing financial difficulties. Both bankruptcy and eviction can have significant repercussions, and knowing your rights can help navigate these challenging situations.

Missouri Bankruptcy Laws

Bankruptcy in Missouri is governed by federal laws, but there are state-specific exemptions and procedures that individuals should be aware of. The two most common types of bankruptcy filings for individuals are Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy: This type allows for the discharge of most unsecured debts, including credit card debts, medical bills, and personal loans. Individuals can keep certain exempt properties, such as a primary residence up to a certain value, a vehicle, and necessary personal items.

Chapter 13 Bankruptcy: This type of bankruptcy is designed for individuals with a regular income who wish to repay their debts over time. A repayment plan is established, typically spanning three to five years, during which the individual makes monthly payments to a bankruptcy trustee, who then distributes the funds to creditors.

Missouri also offers specific exemptions that can help protect your assets during bankruptcy. For example, residents may exempt a portion of their equity in their home, personal property, and retirement accounts, among others.

Eviction Protection in Missouri

Eviction laws in Missouri are detailed and offer certain protections to tenants. A landlord must follow a proper legal process to evict a tenant, which starts with a notice. This can include a Notice to Quit, which provides a timeframe for tenants to either pay overdue rent or vacate the premises.

If the tenant does not respond to the notice, the landlord can file an eviction lawsuit, known in Missouri as an unlawful detainer action. The tenant will be served with court documents and has the right to appear in court to contest the eviction.

Additionally, under the federal law, during some financial hardships, such as the COVID-19 pandemic, temporary eviction moratoriums may have been implemented. While these protections have evolved, it’s vital to stay informed about any current regulations that may offer relief.

Bankruptcy and Eviction: Interconnection

One crucial aspect to understand is how bankruptcy can impact eviction proceedings. Generally, filing for bankruptcy invokes an automatic stay, which halts most collection actions, including eviction processes. However, certain exceptions apply: if a tenant has a history of misconduct or if the eviction is due to a foreclosure, the landlord may continue with the process despite the bankruptcy filing.

Furthermore, if a landlord obtains a judgment for eviction before the bankruptcy is filed, the tenant may still be required to vacate the property even if they have declared bankruptcy.

Conclusion

Bankruptcy and eviction protection laws in Missouri provide essential safeguards and processes for tenants and individuals facing financial distress. It is crucial for those in these situations to understand their rights and the appropriate legal steps to take. Consulting with a legal professional who specializes in bankruptcy or tenant rights can provide further guidance tailored to individual circumstances.