Filing Bankruptcy in Montana: Means Test, Exemptions and Courts

Montana has one federal bankruptcy court district: the U.S. Bankruptcy Court for the District of Montana (https://www.mtb.uscourts.gov/).

Median family income for Montana: 1 person $71,310; 2 people $91,452; 3 people $103,285; 4 people $121,698; add $11,100 for each additional person beyond 4. These figures apply to bankruptcy cases filed on or after July 15, 2026.

Montana has opted out of the federal exemptions. A person filing bankruptcy in Montana may not use the federal exemption list in 11 U.S.C. 522(d) and instead uses the exemptions listed in Montana law, including the execution exemptions in Title 25, chapter 13, part 6 and the homestead law in Title 70, chapter 32.

A homestead (the dwelling house or mobile home the claimant lives in, its appurtenances and the land it sits on) is protected up to the homestead value limit. The statute set the limit at $350,000 in 2021 and requires it to increase by 4% every calendar year after 2021, with the Department of Revenue setting the figure by administrative rule. A co-owner's exemption is limited to a share proportional to the co-owner's interest. The statute sets a value limit, not an acreage limit. The person selecting a homestead must sign, acknowledge and record a declaration of homestead.

The debtor's interest in one motor vehicle, up to $4,000 in value.

Montana's execution exemption statutes do not include a general wildcard exemption for any property. Personal property exemptions are limited to listed categories, such as household goods and similar items (up to $7,000 total, $1,250 per item), one motor vehicle ($4,000), and tools of the trade ($4,500).

In bankruptcy, a debtor may exempt the right to receive benefits from a private or government retirement, pension, stock bonus, profit-sharing, annuity or similar plan, except the part of the debtor's own contributions made in the year before filing that exceeds 15% of the debtor's gross income for that year (subject to listed exceptions for certain insider plans). Montana law also exempts IRAs and Roth IRAs (to the extent of qualifying contributions and their earnings, plus rollovers) and benefits from listed Montana public retirement systems. IRA assets are not exempt from collection of child support or spousal maintenance.

Earnings that cannot be garnished are exempt. Garnishment is limited to the lesser of 25% of weekly disposable earnings or the amount above 30 times the federal minimum hourly wage (higher limits apply to support orders). Exempt earnings stay exempt for 45 days after the debtor receives them, as long as they can be traced, for example in a bank account. These execution exemptions are among those Montana allows in bankruptcy.

The Montana bankruptcy court has a Filing Without an Attorney section organized as Before You File, When You File and After You File. It reminds filers that the clerk's office cannot give legal advice or help prepare forms. The When You File page links to a Pro Se Handbook, a notice to all debtors to read before filing, a Chapter 7 pro se document checklist, instructions for creating a mailing matrix, means-testing information, approved credit counseling agencies, and Debtor Electronic Bankruptcy Noticing (DeBN) and filing by email. The court offers eSR (Electronic Self-Representation), a free online tool for preparing an individual Chapter 7 petition (not Chapter 13); after submitting, the filer must deliver a signed eSR declaration, an SSN statement form, the filing fee or a fee application, and the credit counseling certificate before the case is filed.

District of Montana (the state's only bankruptcy district): under Mont. LBR 2016-1(b) (local rules dated December 15, 2023), absent an objection by a party in interest, fees incurred in a chapter 13 case in which a plan has been confirmed are presumed reasonable if debtor's attorney (1) uses the standard Attorney Retention Agreement (Mont. LBF 3-A), (2) discloses the terms of compensation under Fed. R. Bankr. P. 2016(b), and (3) seeks compensation for professional services that does not exceed $6,000.00 and costs that do not exceed $750.00. An attorney receiving presumptive compensation may seek additional fees by application for allowance of additional compensation.