BANKRUPTCY EXEMPTIONS COMING IN 2027
- Cary Nathan
- Aug 24
- 7 min read
Missouri Bankruptcy Exemptions Increase January 1, 2027: What Debtors Need to Know
By Cary Nathan, Attorney at Law | Ozark, Missouri
Missouri bankruptcy exemptions are changing significantly on January 1, 2027. For individuals considering bankruptcy in the Western District of Missouri, these changes could provide substantially greater protection for homes, vehicles, household belongings, and other personal property.
The Missouri General Assembly recently increased several exemption amounts under Missouri law. The new amounts take effect January 1, 2027, and represent the first major increase in several of these exemptions in many years. The Western District of Missouri Bankruptcy Court has published materials identifying the revised exemption amounts.
What Is a Bankruptcy Exemption?
When a person files bankruptcy, virtually all of the debtor's legal or equitable interests in property become part of the bankruptcy estate. However, bankruptcy law allows debtors to protect certain property by claiming applicable exemptions.
Missouri is an "opt-out" state. In general, a Missouri bankruptcy debtor cannot elect to use the federal bankruptcy exemptions under 11 U.S.C. § 522(d). Instead, Missouri debtors generally use exemptions available under Missouri law and applicable non-bankruptcy federal law. Missouri Revised Statute § 513.427 specifically provides that a person seeking bankruptcy relief may claim Missouri exemptions but may not claim the federal exemptions listed in § 522(d).
That makes the changes taking effect January 1, 2027 especially important to Missouri bankruptcy debtors.
What Changes on January 1, 2027?
The following are some of the most important changes:
Exemption | Current Amount | January 1, 2027 |
Homestead | $15,000 | $40,000 |
Household goods | $3,000 | $15,000 |
Motor vehicle | $3,000 | $5,000 |
Additional vehicle protection | Limited | Up to $10,000 of unused household-goods exemption |
Mobile home | $5,000 | $12,000 |
Other jewelry | $500 | $1,700 |
Other property | $600 | $1,700 |
The Western District of Missouri's 2026 bankruptcy materials confirm these revised amounts.
1. The Missouri Homestead Exemption Increases to $40,000
Perhaps the most significant change for many homeowners is the increase in the Missouri homestead exemption from $15,000 to $40,000.
Beginning January 1, 2027, Missouri law will exempt up to $40,000 of value in a homestead from attachment and execution, subject to the applicable bankruptcy rules and limitations.
For example, assume a homeowner has:
Home value: $250,000
Mortgage balance: $220,000
Equity: $30,000
Under the new $40,000 exemption, the debtor may be able to fully protect that $30,000 of equity under the Missouri homestead exemption, assuming the debtor otherwise qualifies and there are no other issues affecting the exemption.
Compare that with the current $15,000 exemption, which could leave a substantially greater amount of equity exposed.
What about a married couple?
The application of the homestead exemption to married debtors can be more complicated than simply doubling the exemption.
The new Missouri statute provides that the total homestead exemption for one homestead is $40,000, although the statute addresses how the exemption may be claimed when more than one owner claims an exemption.
Accordingly, married homeowners should have their particular ownership and bankruptcy circumstances reviewed rather than assuming that two $40,000 exemptions automatically apply to one home.
2. Household Goods Exemption Increases to $15,000
The household-goods exemption increases dramatically—from $3,000 to $15,000.
The new law covers household furnishings, household goods, wearing apparel, appliances, books, animals, crops, and musical instruments primarily used for personal, family, or household purposes. The aggregate exemption increases to $15,000.
This is a major change for families with substantial household belongings.
For example, a debtor might have:
Furniture
Appliances
Televisions
Computers
Clothing
Household furnishings
Personal belongings
Under the old $3,000 exemption, a debtor with substantial household property could have significant non-exempt value.
The new $15,000 exemption provides considerably more protection.
3. Vehicle Exemption Increases—and There Is an Important Additional Benefit
The basic Missouri motor-vehicle exemption increases from $3,000 to $5,000.
But the new law provides an additional benefit that could be particularly valuable in bankruptcy.
Under the new statute, up to $10,000 of unused household-goods exemption may be allocated to a motor vehicle.
This means that, under the new exemption structure, a debtor could potentially have as much as $15,000 of exemption available for a motor vehicle, assuming the debtor has sufficient unused household-goods exemption to allocate toward the vehicle.
For example:
Vehicle value: $20,000 Vehicle loan payoff: $10,000 Equity: $10,000
If the debtor has sufficient unused household-goods exemption, the new law could potentially allow the debtor to protect substantially more of that vehicle equity than under the current $3,000 vehicle exemption.
This could be particularly important in Chapter 7 cases where vehicle equity is one of the primary concerns.
4. Mobile Home Exemption Increases to $12,000
The exemption for a mobile home used as the debtor's principal residence and not attached to real property in which the debtor has a fee interest increases from $5,000 to $12,000.
This change may provide meaningful additional protection for Missouri debtors whose primary residence is a qualifying mobile home.
5. Jewelry Exemption Increases
The new law increases the exemption for certain jewelry other than a wedding ring.
The new exemption for other jewelry held primarily for personal, family, or household use increases from $500 to $1,700.
The separate wedding-ring exemption remains $1,500.
Therefore, the new law does not simply create a $1,700 exemption for all jewelry. The statute treats a wedding ring separately from other qualifying jewelry.
6. The "Any Other Property" Exemption Increases to $1,700
Missouri's catch-all exemption also increases significantly.
The exemption for "any other property of any kind" increases from $600 to $1,700.
This exemption can be particularly useful when a debtor owns property that does not fit neatly into one of the other exemption categories.
What Does This Mean for Someone Considering Bankruptcy?
The increase in Missouri's exemptions could make a significant difference in determining whether a person can file Chapter 7 without losing property.
Consider a homeowner with:
$35,000 of home equity
$10,000 of vehicle equity
$12,000 of household goods
Other miscellaneous personal property
Under the old exemption amounts, that person's property could present significant exemption concerns.
Beginning January 1, 2027, the increased exemptions could provide substantially more protection.
However, exemptions are only one part of the bankruptcy analysis.
The value of the property, the amount of liens against the property, ownership interests, the timing of transactions, prior bankruptcy cases, transfers of property, and other circumstances can all affect the analysis.
Should You Wait Until January 1, 2027 to File Bankruptcy?
Not necessarily.
The increased exemptions may make waiting advantageous for some debtors, but waiting could be a mistake for others.
For example, a person facing:
A foreclosure
Wage garnishment
Bank account garnishment
Vehicle repossession
Lawsuit
Judgment collection
Creditor harassment
Imminent loss of property
may have reasons to file bankruptcy before January 1, 2027.
On the other hand, someone with significant home or vehicle equity and no immediate collection emergency may want to determine whether filing after the new exemptions take effect provides a meaningful advantage.
There is no one-size-fits-all answer.
The right filing date depends on the debtor's entire financial situation.
An Important Point About the Filing Date
The January 1, 2027 changes are important because the new Missouri exemption provisions become effective on that date. Missouri Revised Statute § 513.430 expressly identifies the revised version as effective January 1, 2027.
Missouri also enacted a new provision providing for future inflation adjustments to certain exemption amounts beginning April 1, 2029, with adjustments every three years thereafter. Those adjustments will be based on changes in the Consumer Price Index and rounded to the nearest $25.
In other words, the 2027 increases are not necessarily the last time Missouri's exemption amounts will change.
What About Chapter 13 Bankruptcy?
The new exemptions can also matter in a Chapter 13 case.
Chapter 13 differs from Chapter 7 because the debtor generally retains possession and control of property while making payments under a court-approved repayment plan.
Nevertheless, exemptions can affect the amount that must ultimately be paid to unsecured creditors through the Chapter 13 plan.
A larger exemption can therefore potentially reduce the amount of non-exempt equity that must be considered when determining the appropriate Chapter 13 plan payment.
The exact effect depends on the debtor's income, expenses, debts, property values, liens, applicable exemptions, and other Chapter 13 requirements.
What Should Missouri Debtors Do Before January 1, 2027?
If you are considering bankruptcy and have substantial equity in your home, vehicles, or personal property, do not assume that you should either file immediately or wait until January 1, 2027.
Instead, compare both scenarios.
An attorney can evaluate:
Your current property values
Mortgage balances and other liens
Vehicle values and loan balances
Household goods and personal property
Retirement accounts
Bank accounts and cash
Potential tax refunds
Recent property transfers
Recent refinancing or borrowing
Your income and expenses
Whether Chapter 7 or Chapter 13 is appropriate
The potential effect of filing before or after January 1, 2027
The timing of a bankruptcy filing can sometimes have a substantial financial impact.
The Bottom Line
Missouri's bankruptcy exemptions become significantly more generous on January 1, 2027.
The most notable increases include:
Homestead: $15,000 → $40,000
Household goods: $3,000 → $15,000
Motor vehicle: $3,000 → $5,000
Potential additional vehicle exemption: up to $10,000 of unused household-goods exemption
Mobile home: $5,000 → $12,000
Other jewelry: $500 → $1,700
Other property: $600 → $1,700
For some Missouri residents, these changes could make the difference between having significant non-exempt equity and being able to protect substantially all of their property in bankruptcy.
If you are considering bankruptcy in the Western District of Missouri, the timing of your filing may be important. A review of your assets, debts, and exemptions before filing can help determine whether filing in 2026 or waiting until 2027 makes the most sense for your particular situation.
Cary Nathan, Attorney at Law
712 N. 22nd St.
Ozark, Missouri 65721
(417) 581-0872
This article is provided for general informational purposes and is not legal advice. Bankruptcy law is highly fact-specific. The application of exemptions can depend on the type of bankruptcy, ownership of property, timing of transactions, prior bankruptcy filings, applicable federal limitations, and other circumstances. Individuals considering bankruptcy should consult with a qualified bankruptcy attorney regarding their particular circumstances.
Sources: Missouri Revised Statutes §§ 513.427, 513.430, 513.423 and 513.475; Western District of Missouri Bankruptcy Court, Revised Missouri Exemptions (2026).
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