Missouri Bankruptcy Records

Are Bankruptcy Records Public Information in Missouri?

Yes, bankruptcy records are public information in Missouri. According to the Freedom of Information Act (FOIA), records that federal agencies generate or manage are public information unless such records are exempt by the FOIA or any other statutes. It is important to note that federal laws state that sealed bankruptcy records are not public information. Additionally, confidential information on bankruptcy records is not public. Examples of such confidential information may include social security numbers and personal financial details such as bank accounts numbers. Since bankruptcy is a federal process managed by federal agencies, which are the federal bankruptcy laws, bankruptcy records are subject to federal information and privacy laws.

Record seekers looking for an alternative to government sources may obtain bankruptcy records from third-party websites. These non-governmental websites often come with tools that help simplify the search for single or multiple records. However, record availability on third-party sites tends to vary because they’re independent of government sources. To obtain bankruptcy case information using third-party sites, record seekers may need to provide:

• A complete name of the debtor involved in the record
• A bankruptcy case number

Bankruptcy in Missouri: How It Works

In Missouri, bankruptcy is a court process involving companies, individuals, and other entities that are incapable of meeting financial obligations like loan repayment. As established under federal laws and rules, this process is designed to provide relief to insolvent parties by helping debtors repay creditors and get rid of dischargeable debts with the multiple forms of bankruptcy available.

The bankruptcy process is usually initiated by debtors filing a bankruptcy petition in the U.S. Bankruptcy court located in the area where the debtor resides, operates a business, or has the majority of assets. However, creditors may file a petition for Chapter 7 and Chapter 11 bankruptcy (involuntary filing). There are two bankruptcy courts in Missouri:

• United States Bankruptcy Court for the Eastern District of Missouri: With courthouses in Cape Girardeau, Hannibal, and St. Louis;
• United States Bankruptcy Court for the Western District of Missouri: With courthouses in Kansans, Jefferson, and Springfield.

Like most court records, records of bankruptcies filed in Missouri are public and shall include copies of documents filed in relation to the case, such as the bankruptcy petition, certificate of credit counseling completion, schedules of assets and liabilities, and any reorganization plans. These shall disclose public information like filing date, debtor’s name, list of assets and debts, case disposition, and other steps taken in the bankruptcy process.

What are Missouri Bankruptcy Records?

Missouri bankruptcy records contain information about local bankruptcy cases, from when a petitioner begins the bankruptcy filing process until the court closes the case. Based on the type of bankruptcy case a petitioner files, the process may require different documents. Federal bankruptcy laws provide for different types of bankruptcy cases, depending on the petitioner’s needs, occupation, and income level.

Missouri state courts do not have jurisdiction to hear bankruptcy cases. Only federal courts do. The court clerk in the Bankruptcy Court maintains bankruptcy records. US bankruptcy courts also offer electronic filing and access to court records. Except for sealed records, interested parties may obtain bankruptcy information from third-party websites.

The bankruptcy process offers debtors relief from outstanding financial obligations that such persons can no longer meet. Debtors, which may be individuals, couples, partnerships, corporations, and other entities, may liquidate nonexempt assets to repay creditors. Debtors may also choose to create a payment plan, thus ensuring the protection of the creditor’s interests.

Where to Conduct a Free Bankruptcy Case Search in Missouri

The United State Bankruptcy Courts in Missouri allow inquirers to conduct bankruptcy case searches at no cost via these tools:

• The Voice Case Information System (VCIS): People can undertake a free bankruptcy case search using VCIS, which is provided without charge. VCIS allows requesters to access free information on bankruptcy records when they call (866) 222-8029. However, the number of bankruptcy records in the VCIS is limited.
• The Public Access to Court Electronic Records (PACER): Users are required to register before access can be given. This service can be used freely if:
  • An individual is a party to a case ( they get a free electronic copy of bankruptcy records at no cost)
  • A person seeks to view bankruptcy case information at any federal court.
  • The courts grants a person or organization fee exemption
  • A person is requesting court opinions

What Do Missouri Bankruptcy Records Contain?

Missouri bankruptcy records contain documents and information created during a bankruptcy process. These documents include petitions, statements, lists, transcripts, and detailed financial information. Apart from bankruptcy petitions, federal laws require petitioning parties to file different forms along with the petition. The types of forms a petitioner must file depends on the type of bankruptcy case the petitioner files. Typically, the documents contain information that supplements the bankruptcy petition. Such information may include:

• The debtor’s name and identifying details
• A list of creditors and the amount the debtor owes each creditor
• The debtor’s income and employment information
• A comprehensive list of the debtor’s assets, including businesses, investments, stock, real property, and bank accounts
• Bankruptcy case number
• Filing date
• The appointed trustee’s name or other identifying information

How to Get Missouri Bankruptcy Records

Interested parties may obtain Missouri bankruptcy records electronically through the Public Access to Electronic Court Records (PACER) system. Requesting parties may find bankruptcy records filed at the federal bankruptcy courts in Missouri through the direct court login. Requesting parties must register to PACER before using. Access to bankruptcy records on PACER is fee-based; a charge of $0.10 applies to every search page and retrieved document. However, PACER charges quarterly, and persons who accumulate no more than $30 in a quarter will have the fee waived.

Requesting parties may also make requests in person at the Bankruptcy Court Clerk’s office. In Missouri, the bankruptcy court charges $.0.50 per page and an additional $11.00 for certified copies. Requesting parties must make payment as soon as the parties submit the request. The bankruptcy court in Missouri will not accept personal checks from debtors involved in bankruptcy cases at the time of the request.

The US Bankruptcy Court in Missouri also offers bankruptcy records by mail. Requesting parties may send the bankruptcy record request, money order or check, and a self-addressed envelope. Requesting parties may contact the Bankruptcy Clerk’s office to confirm the total cost of the records request.

Older records, such as records of bankruptcy cases filed in Missouri before March 1, 2001, are maintained by the National Archives and Record Administrator (NARA). To get these records, interested parties may request physical copies of the records online. NARA has a smart scan option that allows users or requesting parties to find paper records and mail them to the court. Interested parties must submit Smart Scan requests through the court, containing information about the exact document in question. NARA charges a fee for Smart Scan requests. The charge is $19.90 for retrieval and copies at $0.65 per page. Requesting parties may also send a written request to the US bankruptcy court to review the courthouse’s records. The court charges $64 to retrieve one (1) box of file records and $39 for every additional box that the staff at the US bankruptcy court retrieves.

How Do I Find Out if My Bankruptcy Case is Closed in Missouri?

Bankruptcy records contain information about bankruptcy case status; interested parties may request bankruptcy records to confirm a bankruptcy case’s status. Requesting parties may also contact the US bankruptcy court clerk in the division where a party filed for bankruptcy. Interested parties may obtain bankruptcy case status information through PACER. It is also possible to obtain case status information in person at the courthouse or send in a request by mail.

Can a Bankruptcy Be Expunged in Missouri?

While federal laws do not expressly provide for expungement, the law allows bankruptcy records to be sealed. Expungement completely erases a record while sealing restricts the document from public access. Interested parties may file a motion to seal a bankruptcy record; if the court grants the motion, the court will thoroughly remove the bankruptcy record from public access. Alternatively, the court may choose only to redact confidential information such as social security numbers.

What is the Downside of Filing for Bankruptcy in Missouri?

Filing bankruptcy can have several negative effects on the debtor, especially financially. Firstly, bankruptcy records are public and available to whoever is interested in the case, such as prospective employers, landlords, and credit reporting agencies. As a result, there may be employment, housing, and financial implications, such as:

• Bankruptcy shall reflect on the debtor’s credit report for seven to ten years and may lead to a dramatic reduction of credit scores. For instance, average credit scores may fall by 130 to 150 points and high credit scores by 200 to 240 points
• Bankruptcy may further lead to high interest rates on loans and mortgages, loss of credit cards, and inability to obtain these credit options for some time
• Debtors may be unable to get managerial jobs or act as the director of a limited liability company
• If the court decides to take monthly payments directly from the debtor’s paycheck, the employer and co-signers on the loan may be notified
• Landlords may also run a credit report, and debtors may be denied due to their bankruptcy status
• Loss of reputation due to the bankruptcy

Furthermore, debtors may face the following challenges when filing bankruptcy:

• The bankruptcy process may be expensive. The debtor has to pay court fees and may also have to hire a bankruptcy lawyer
• The process may be long and stressful, especially for Chapter 13 and Chapter 11 bankruptcy
• Bankruptcy may lead to loss of assets, company downsizing, or strict personal budget, depending on the type of bankruptcy

Lastly, not all debts are settled with bankruptcy. Student loans, criminal fines, alimony, and child support are some of the non-dischargeable debts that debtors have to continue paying even after closing a bankruptcy case.

What is Chapter 11 Bankruptcy in Missouri?

A Chapter 11 bankruptcy is a legal process that is mainly used by businesses who wish to settle debts while still operating the business. However, this option is also available to celebrities, pro-athletes, and other individuals who want to maintain assets but have too many secured and unsecured debts to qualify for a Chapter 13 procedure. The following parties may not file for bankruptcy under Chapter 11:

• Individuals with dismissed bankruptcy petitions within the past 180 days
• Commodity brokers and stockbrokers
• Debtors who did not take pre-filing credit counseling within 180 days before filing

A fundamental feature of Chapter 11 bankruptcy is the reorganization plan – a proposal that organizes debts into classes, restructures business operations, and layouts a plan for debt repayment. The process is expensive, long, and complex, and can take months to file the plan alone. Usually, the case closes within two years, but there is no specific time limit.

Filing for bankruptcy under Chapter 11 of the Bankruptcy Code usually involves:

• Taking a pre-bankruptcy course and filing the certificate
• Filing the bankruptcy petition and other bankruptcy forms
• Automatic stay order
• Filing a reorganization plan and disclosure statement
• Creditors voting on the plan and court approval
• Confirmation hearing
• Plan implementation
• Taking a pre-discharge class
• The court issues a discharge letter
• The court closes the case

A debtor’s credit report shall reflect a Chapter 11 bankruptcy for 10 years. Furthermore, court records on Chapter 11 bankruptcy shall remain publicly available unless sealed by court order or expunged.

What is Chapter 7 Bankruptcy in Missouri?

Chapter 7 bankruptcy is a straight liquidation process that involves settling debts through selling assets, distributing proceeds to creditors, and discharging unsecured non-priority debts. As per the U.S. Bankruptcy Code, individuals must pass a means test to qualify for bankruptcy under this chapter. Essentially, debtors must be unable to repay debts through monthly repayments. Therefore, the debtor’s income per household must be below Missouri’s median income. Otherwise, the disposable income (income after expenses) must be too low to qualify for a Chapter 13 bankruptcy.

A debtor that files Chapter 7 bankruptcy agrees to sell or liquidate nonexempt properties for immediate relief from nonexempt debts. This form of bankruptcy is also good at discharging unsecured debts, and the entire process from filing to discharge often takes between four to five months. A Chapter 7 bankruptcy record shall remain on file indefinitely unless the court expunges it and can last up to 10 years on a debtor’s credit report.

What is Chapter 13 Bankruptcy in Missouri?

Also known as a wage earner’s plan, Chapter 13 bankruptcy is a legal procedure that provides relief from personal debts which debtors cannot settle. Individuals, self-employed persons, and owners of unincorporated businesses whose secured and unsecured debts do not exceed the debt limit may file a petition under this chapter as long as other conditions are satisfied. These include:

• The debtor must have a disposable income high enough to make monthly payments
• The debtor must present evidence of income tax returns filed for the last four years
• Debtor completed a credit counseling course within the 180 days prior to filing
• The debtor did not have any bankruptcy petition dismissed within 180 days prior to filing
• Not more than $1,257,850 in unsecured debts and $419,275 in secured debts (from April 2019 and scheduled for review in April 2022)

Although the Chapter 13 bankruptcy process may be complex, filers can repay debts, protect assets, and discharge certain unsecured debts with this option. Filers also have the option of converting a Chapter 13 bankruptcy into a Chapter 7 bankruptcy if there are any significant changes in the debtor’s finances.

Chapter 13 bankruptcy court records shall contain copies of filed documents and information relating to the case. This shall be publicly available except under extenuating circumstances. Moreover, the debtor’s credit report shall show a Chapter 13 bankruptcy for seven years.

What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy in Missouri?

Chapter 7 and Chapter 13 bankruptcy differ in the following ways:

• Chapter 7 of the Bankruptcy Code is based on the liquidation of assets to repay debts, while Chapter 13 is focused on debt repayment through reorganization. Hence, the former causes the debtor to lose assets, while the latter protects assets
• Settling debts under Chapter 7 is faster and only take a few months, whereas Chapter 13 deals with monthly repayments that may last for three to five years
• Determining eligibility for filing a Chapter 7 bankruptcy is less complicated, while Chapter 13 has several eligibility requirements
• The filing process for Chapter 13 bankruptcy may take longer because of reorganization and proposing a repayment plan
• Chapter 13 discharges slightly more debts than Chapter 7. This includes discharges from payments for malicious injury to property and debts arising from divorce/separation property settlements
• Chapter 13 is also more flexible and allows for modification in loan terms and repayment plan

What is Bankruptcy Protection in Missouri?

In Missouri, bankruptcy protection comes in the form of an automatic stay - an order from the bankruptcy court preventing most creditors from taking collection actions against the debtor. This order temporarily suspends activities like property repossession, foreclosures, and even collection calls or mails. It also levels the playing field for creditors, granting them equal and fair opportunities to receive payments.

Furthermore, after the stay order, the debtor no longer has to deal with creditors directly, but the court shall consolidate debts into a single amount paid through the trustee. However, not all actions shall cease with the automatic stay. This includes criminal cases, civil proceedings, medical obligations, tax audits, and other non-creditor actions. Additionally, the court may grant a creditor’s petition to lift the stay if there are sufficient grounds for the creditor to continue collection activities.

A willful violation of an automatic stay may lead to sanctions for contempt of court, creditor returning properties, and payment of damages suffered by the debtor.

Note: There may be a limitation on an automatic stay if the debtor has a previously dismissed bankruptcy case.

What are Missouri Bankruptcy Exemptions?

Missouri bankruptcy exemptions are legal provisions that prohibit creditors from liquidating some of the debtor’s assets and help debtors make claims of a specific amount. Therefore, Chapter 7 filers can claim exemptions to protect a primary residence, some personal properties, and other stated assets. Federal bankruptcy exemptions are not available in Missouri, and the debtor may only make claims if residence in the state is up to two years.

Missouri bankruptcy exemptions include:

Homestead exemption: Equity not exceeding $15,000 in real estate or $5,000 in an unattached mobile home

Insurance exemption:

• Up to $150,000 on life insurance bought more than six months before the bankruptcy filing
• Unmatured life insurance policy
• Disability or illness benefits
• Fraternal benefit

Pension and retirement plan exemption:

• Teachers and school employees
• Firefighters
• Highway patrol and police
• State employees
• Public officers and employees
• Tax-exempt retirement accounts
• Persons who qualify for ERISA benefits

Personal property exemption:

• Not more than $3,000 value in clothing, appliances, furniture, books, musical instruments, and non-farm animals
• Up to $100 or up to one acre of burial grounds
• A maximum value of $1,500 in a wedding ring and $500 in other jewelry
• Up to $1,500 in firearms and ammunition
• Awards or wrongful death settlements deemed necessary for support
• Health savings accounts
• Health aids
• Earned income tax credit

Public benefit exemption:

• Unemployment compensation
• Social Security benefits
• Workers’ compensation
• Veteran’s benefits
• Public assistance
• Crime victim compensation

Tools of the trade exemption: Not more than $3,000 in books, work tools, and implements

Vehicle exemption: Equity not exceeding $3,000

Wage exemption: Seventy-five percent of earned unpaid wages or up to 30 times the minimum hourly wage

Wildcard exemption:

• Not more than $600 in any property
• Up to $1,250 in any property if the debtor is the head of the family, with an additional $350 per child

Miscellaneous exemption: Domestic support not exceeding $750 monthly

• Property of a business partnership
• Employee spendthrift trust

What are the Other Types of Bankruptcy in Missouri?

There are three other types of bankruptcies that debtors may file under the U.S. Bankruptcy Code:

• Chapter 9 Bankruptcy: This is a form of bankruptcy filed by municipalities such as counties, districts, cities, towns, and villages in Missouri. Similar to Chapter 11 and 13, Chapter 9 bankruptcy is based on reorganization. In summary, the process involves the insolvent municipality renegotiating terms by extending debt maturities and adjusting interest or principal amount before implementing the plan.
• Chapter 12 Bankruptcy: Provides relief for insolvent family farmers and fishermen through repayment plans and installmental payments. Similar to Chapter 13 bankruptcy, this legal procedure allows eligible farmers and fishermen to create a repayment plan to be implemented in three to five years.
• Chapter 15 Bankruptcy: Deals with ancillary and cross-country bankruptcy cases filed by a foreign representative. This process deals with cases involving assets, debtors, creditors, and other interested parties across two or more countries.

How Much Does It Cost to File Bankruptcy in Missouri

The amount required to file bankruptcy in Missouri varies depending on the bankruptcy chapter. For instance, Chapter 7 bankruptcy costs $338, while Chapter 13 bankruptcy costs $313. In certain circumstances, debtors can have their filing fees waived by the court or be eligible to pay the fee in installments. Requests to pay filing fees installmentally can be submitted by completing Application To Pay Filing Fees In Installments forms to the Clerk of Courts. If a Chapter 7 debtor cannot afford to pay the filing fee, they can apply to waive it by filling out an Application to Have the Chapter 7 Filing Fee Waived.