MO Real Property Question

[Ripley]

I live in Missouri and own my home outright. With recent market prices, the county re-accessed it at 75K for property taxes. I read that exemption is only $8,000 in Missouri. Is that correct? So in theory (or reality) they can force me to sell my house and anything over $8,000 they can take in Chapter 7? I have read the exemptions several times and still am confused.Below I posted the quote for Missouri & that one states 15K.

Now I am really confused.

Thanks in advance!

The homestead of every person, consisting of a dwelling house and appurtenances, and the land used in connection therewith, not exceeding the value of $15,000.00, is generally exempt from attachment and execution. This homestead exemption
shall not be allowed for more than one owner if one owner claims the entire amount allowed but, if more than one owner claims an exemption of the same property, the exemption allowed to each of such owners shall not exceed, in the aggregate, the total exemption allowed as to any one homestead. (Section 513.475.)

[justbroke]

All the sources I've seen read $15,000. Where in the world did you read $8,000?

[Ripley]

Thanks for the reply but I still need to know if my house, which is paid for, is up for grabs with a Chapter 7 less $15,000. Apparently the old figure was $8,000 and was changed to $15,000.

http://www.house.mo.gov/content.aspx?info=/bills03/bilsum/commit/sSB470c.htm

Here's one source:

http://www.uslegalforms.com/realestate/homestead/

http://aglaw.missouri.edu/Chapter7.htm

(a) $8,000 in a homestead (house and related land, buildings and products);

http://www.creditclean.com/state_missouri.htm

Real property to $8000 or mobile home to $1000 (joint owners may not double)

http://www.newbankruptcylawsecrets.com/homesteadexemptions.htm

Missouri $8,000

[justbroke]

Thanks for the reply but I still need to know if my house, which is paid for, is up for grabs with a Chapter 7 less $15,000. Apparently the old figure was $8,000 and was changed to $15,000.

It's not so much that your home is up for grabs, but any part of the Equity which exceeds your exemptions, is. If you can't pay that amount (the non-exempt amount) from funds you have (which may be exempt funds in a 401(k) or other retirement plan)... then you are exposed.

So, the Trustee would seek to sell the property, if you can't pay your unsecured creditors.

How much unsecured credit do you have? Why are you filing for Chapter 7?

[Ripley]

It's not so much that your home is up for grabs, but any part of the Equity which exceeds your exemptions, is. If you can't pay that amount (the non-exempt amount) from funds you have (which may be exempt funds in a 401(k) or other retirement plan)... then you are exposed.

So, the Trustee would seek to sell the property, if you can't pay your unsecured creditors.

How much unsecured credit do you have? Why are you filing for Chapter 7?

Around $25,000...all unsecured CC. I already have two agreements entered against me. I was hoping to file Chapter 7 but since I paid cash for this house from selling another house before the market crashed that is no longer an option since I live in Missouri. Missouri only allows 15K.

I think they probably will attach a lien. I have no plans to ever sell or move so unless they can force me to sell.

I don't qualify for a Chapter 13 since I was laid off the end of January.

Someone told me that while the CC was unsecured, now that they have judgments, they are now secured.

[justbroke]

Someone told me that while the CC was unsecured, now that they have judgments, they are now secured.

Too bad about all that, including the layoff. Well, their judgments are secured by the liens, so that will stay attached to your home for up to 20 years.

It will be interesting if they are now considered secured (the $25K). Then the question will be, why are you even filing if all your debt is secured (and you have very very little unsecured debt).

[Ripley]

I don't know that it is now secured. I was told that by an attorney who also said for $200 he would give me the paperwork to make myself judgement proof. Very unscrupulous in my opinion. He also said they only look back one year. I got his name and number from the St. Louis Bar Association referral. Half hour consultation is $30. I called the Bar Association back and said that he was suggesting what amounted to fraud and to get another referral. The $30 fee is paid to the Bar Association, not the lawyer.

I jut spoke to another attorney and she agrees that I should not file a Chapter 7 as my home would be liquidated less the $15k Missouri allows.

Because I am on unemployment I cannot file a Chapter 13. Once I am employed I will contact her office immediately and file as they have levied my bank account once already and have a wage garnishment in place. (I got the $440 they took out of my account back as one can have up to $600 in personal property or a wild card exemption). But I was out that for about two weeks and had been saving up for my car payment & insurance.

So right now I am in limbo. Both judgments are being handled by a very aggressive pair of attorneys. If they do attach a property lien, they attach a lien as until I am working again there is no way to resolve this that I can see.

I added everything up and with the fees and interest it has ballooned to $29K. For example my Capital 1 balance WAS $1200. Now $6,012.