Bankruptcy Exemptions in Montana

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.