Filing Chapter 7 Bankruptcy in Montana (2026)
Reviewed by DocDraft Legal Team · Montana · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is set by Montana. Montana is an opt-out state: under Mont. Code Ann. 31-2-106 you must use Montana's exemptions and cannot choose the federal 522(d) list. Montana is notable for a large inflation-indexed homestead exemption under Mont. Code Ann. 70-32-104, which sits at roughly $425,828 for 2026. This page explains Montana's homestead, vehicle, personal-property, wage, and retirement exemptions, the means-test median income, and the single U.S. Bankruptcy Court for the District of Montana where Montanans file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, or child and spousal support.
Does Montana use state or federal bankruptcy exemptions?
Montana is an opt-out state. Under Mont. Code Ann. 31-2-106, a debtor filing bankruptcy in Montana must use Montana's exemptions and may not elect the federal 11 U.S.C. 522(d) list. Unlike the roughly sixteen choice states, Montana gives you only the state set, so your planning centers on Montana's homestead and personal-property exemptions.
Can I keep my house if I file Chapter 7 in Montana?
Often yes. Montana's homestead exemption under Mont. Code Ann. 70-32-104 is inflation-indexed from a $350,000 base set in 2021, rising four percent each year, which puts it at roughly $425,828 for 2026. If your home equity fits within that limit, Chapter 7 generally lets you keep the house.
Can I keep my car if I file Chapter 7 in Montana?
Usually yes if your equity is modest. Montana exempts up to $4,000 of value in one motor vehicle under Mont. Code Ann. 25-13-609(2). If your car equity is at or below that figure, the vehicle is protected. Equity above $4,000 may be partly reachable by the trustee unless another exemption covers it.
What is the income limit to file Chapter 7 in Montana?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Montana are $71,310 for one earner, $91,452 for two, $103,285 for three, and $121,698 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Montana's Opt-Out Rule, the Indexed 70-32-104 Homestead, and the District of Montana Court
Montana is a bankruptcy opt-out state. Under Mont. Code Ann. 31-2-106, a debtor filing in Montana must use Montana's exemptions and cannot choose the federal 11 U.S.C. 522(d) set. Montana's headline protection is its homestead exemption under Mont. Code Ann. 70-32-104, which was set at a $350,000 base in 2021 and increases four percent every calendar year by rule of the Department of Revenue, reaching roughly $425,828 for 2026, making it one of the more generous fixed-dollar homesteads in the country. On personal property, Montana exempts up to $4,000 in one motor vehicle under Mont. Code Ann. 25-13-609(2), and up to $7,000 in aggregate (capped at $1,250 per item) in household furnishings, goods, appliances, jewelry, apparel, books, firearms, sporting goods, animals, crops, and musical instruments under 25-13-609(1). Montana does not offer a large general wildcard, so filers rely on the specific categories. Montanans file in a single court, the U.S. Bankruptcy Court for the District of Montana, which sits within the Ninth Circuit and holds proceedings in cities including Great Falls, Butte, Billings, Missoula, and Helena.
Relevant Laws
Montana Homestead Exemption (Mont. Code Ann. 70-32-104)
Limits the homestead value that is exempt from execution. The limit was set at a $350,000 base in 2021 and increases four percent every calendar year by Department of Revenue rule, reaching roughly $425,828 for 2026. This is the exemption that lets many Montana homeowners keep their house in Chapter 7.
Montana Bankruptcy Opt-Out (Mont. Code Ann. 31-2-106)
Montana's opt-out statute. It bars a debtor in a bankruptcy case from exempting the property listed in the federal 11 U.S.C. 522(d) set, forcing use of the Montana exemptions instead, and preserves exemptions such as those for retirement and public benefits.
Montana Personal Property and Vehicle Exemptions (Mont. Code Ann. 25-13-609)
Sets the value-limited personal-property exemptions: up to $7,000 in aggregate (maximum $1,250 per item) in household goods, appliances, jewelry, apparel, firearms, and similar items; up to $4,000 in one motor vehicle; and up to $4,500 in implements and tools of a trade.
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b)(2) lets a state opt out of the federal 522(d) exemptions, which Montana has done, and section 707(b) sets the means test measured against state median income.
Regional Variances
Montana Chapter 7 Exemption Table
Homestead
Mont. Code Ann. 70-32-104: indexed from a $350,000 base set in 2021, increasing four percent each calendar year by Department of Revenue rule, reaching roughly $425,828 for 2026. Protects a primary residence, with the current dollar figure set annually.
Motor vehicle
Mont. Code Ann. 25-13-609(2): up to $4,000 of value in one motor vehicle. Equity above the figure may be reachable by the trustee unless another exemption category covers it.
Wildcard
Montana does not provide a large general wildcard exemption. Filers rely on the specific value-limited categories in Mont. Code Ann. 25-13-609 and 25-13-608 rather than a broad catch-all, so careful asset valuation matters.
Personal property
Mont. Code Ann. 25-13-609(1): up to $7,000 in aggregate, capped at $1,250 per item, in household furnishings, goods, appliances, jewelry, apparel, books, firearms, sporting goods, animals, feed, crops, and musical instruments. Implements and tools of a trade are exempt up to $4,500 in aggregate under 25-13-609(3).
Wages
Mont. Code Ann. 25-13-614: the exempt portion of weekly disposable earnings is 75 percent, or thirty times the federal minimum hourly wage, whichever is greater, tracking the federal garnishment cap. A bankruptcy judge may authorize a larger exemption for a low-income debtor.
Retirement
Mont. Code Ann. 31-2-106 preserves exemptions for retirement and similar benefits; public retirement system benefits are exempt under Mont. Code Ann. 19-2-1004. ERISA-qualified plans are also separately excluded from the bankruptcy estate under federal law, so most tax-qualified retirement savings are protected.
Suggested Compliance Checklist
Confirm the current Montana means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Montana median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $71,310 for one, $91,452 for two, $103,285 for three, and $121,698 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for the District of Montana and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Confirm the current Montana homestead figure and value your assets
Before preparing your schedules days after startingThe Mont. Code Ann. 70-32-104 homestead is inflation-indexed and set yearly by the Department of Revenue, so confirm the current dollar limit, roughly $425,828 for 2026. Value your home, vehicle, and personal property so you can match assets to the Montana exemptions.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Montana, the single federal bankruptcy court for the state. Filing triggers the automatic stay that pauses collection and garnishment.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Montana means-test median income | Check your household size against the U.S. Trustee Montana median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $71,310 for one, $91,452 for two, $103,285 for three, and $121,698 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for the District of Montana and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Confirm the current Montana homestead figure and value your assets | The Mont. Code Ann. 70-32-104 homestead is inflation-indexed and set yearly by the Department of Revenue, so confirm the current dollar limit, roughly $425,828 for 2026. Value your home, vehicle, and personal property so you can match assets to the Montana exemptions. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Montana, the single federal bankruptcy court for the state. Filing triggers the automatic stay that pauses collection and garnishment. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
Under Mont. Code Ann. 70-32-104, Montana's homestead exemption is indexed from a $350,000 base set in 2021 and increases four percent every calendar year, reaching roughly $425,828 for 2026. The Department of Revenue adopts the yearly figure by rule. If your equity fits within the current limit, the homestead protects your primary residence in Chapter 7.
Under Mont. Code Ann. 25-13-609, you can exempt up to $7,000 in aggregate, capped at $1,250 per item, in household furnishings, goods, appliances, jewelry, apparel, books, firearms, sporting goods, animals, feed, crops, and musical instruments. You may also exempt one motor vehicle up to $4,000 and implements and tools of your trade up to $4,500 in aggregate.
Under Mont. Code Ann. 25-13-614, Montana follows the federal garnishment limit: the exempt portion of your weekly disposable earnings is 75 percent, or thirty times the federal minimum hourly wage, whichever is greater. A bankruptcy judge may allow a larger exemption for a low-income debtor. This limits how much of your paycheck creditors can reach.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or spousal support, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
Montana is a single-district state, so you file in the U.S. Bankruptcy Court for the District of Montana. The court, part of the Ninth Circuit, hears matters in cities including Great Falls, Butte, Billings, Missoula, and Helena. You file where you have lived for most of the prior 180 days within the state.
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