Bankruptcy in Montana

$350,000 in 2021, increased by 4% every calendar year after 2021. The law tells the Montana Department of Revenue to set the homestead value limit by administrative rule. The homestead is the house or mobile home you live in, plus the land under it.

You must sign a declaration of homestead, acknowledged like a deed, and record it with the county clerk where the land is. If you own only part of the property, the exemption is limited to your share. Property in a revocable trust you set up can qualify. The homestead does not protect you from construction or vendors' liens, a mortgage signed by you (and your spouse), or a mortgage recorded before your declaration of homestead. Money from a sale, condemnation or insurance on the homestead stays exempt for 18 months if you can trace it.

Law: Mont. Code Ann. 70-32-101, 70-32-103, 70-32-104, 70-32-105, 70-32-107, 70-32-202, 70-32-216

$4,000 of equity in one motor vehicle

Law: Mont. Code Ann. 25-13-609(2)

$7,000 total, and no more than $1,250 for any one item, in household furnishings and goods, appliances, jewelry, clothing, books, firearms and other sporting goods, animals, feed, crops and musical instruments. Health aids prescribed by a professional are exempt with no limit.

Law: Mont. Code Ann. 25-13-609(1), 25-13-608(1)(a)

$4,500 total in implements, professional books and tools of the trade of you or your dependent

Law: Mont. Code Ann. 25-13-609(3)

At least 75% of your weekly disposable earnings is exempt (more if you earn less than 30 times the federal minimum hourly wage per week). The limit is different for child support or alimony orders. Exempt earnings stay exempt for 45 days after you receive them if you can trace them.

Law: Mont. Code Ann. 25-13-614, 25-13-610(2)

IRAs and Roth IRAs are exempt to the extent of contributions made before the lawsuit was filed, plus earnings; rollovers are exempt. Montana public retirement benefits are exempt. Other retirement plans are exempt, except contributions made in the year before filing that are more than 15% of your gross income for that year. IRAs are not protected against child support or alimony debts.

Law: Mont. Code Ann. 25-13-608(1)(e), (i), (j), (2); Mont. Code Ann. 31-2-106(4)

Social Security, local public assistance, veterans' benefits, disability or illness benefits, unemployment benefits and workers' compensation are exempt (with exceptions for child support and alimony). State public assistance cannot be reached by any bankruptcy law.

Law: Mont. Code Ann. 25-13-608(1)(b)-(d), 39-51-3105, 39-71-743, 53-2-607, 31-2-106(3)

• Alimony (maintenance) and child support you receive are exempt.
• A burial plot for you and your family is exempt.
• Your interest in unmatured life insurance contracts you own is exempt.
• Health savings accounts, medical savings accounts and Montana medical care savings accounts are exempt to the extent of contributions made before the lawsuit, plus earnings.

Law: Mont. Code Ann. 25-13-608(1)(g); Mont. Code Ann. 25-13-608(1)(h); Mont. Code Ann. 25-13-608(1)(k); Mont. Code Ann. 25-13-608(1)(l), 25-13-603