Legal Question in Bankruptcy in Missouri

There is always the remote possibility that your creditors could force you into an involuntary bankruptcy in order to seize your assets, which it sounds like are pretty much nonexistent at this time.

However, you should consider the future. How would your financial situation change if your husband died suddenly? How will it change in 10 years? 20 year? If you own a home with your husband and are not in bankruptcy, creditors cannot place a lien on the property. But again, consider what happens if your husband dies. Now you own the property and your creditors can seize it. If you file bankruptcy, this "tenancy by the entireties" form of ownership can be broken, and your creditors would be able to divide the nonexempt excess of your portion. Notice that I said "nonexempt"--the homestead exemption in Missouris $15,000. So if there is less than $15,000 worth of equity in the house, your home would be safe. Equity equals Fair Market Value minus the Amount Owed on the house. If your house is worth $100,000 and you owe $85,000, then you have $15,000. If your house is worth $100,000 and you owe $65,000, then there is $35,000 worth of equity in the house. The first $15k is exempt, but the remaining $20k isn't. Half of this is presumably your husband's, but the other $10k is yours, and would be available to partially satisfy creditor debts. Even after the trustee pays the real estate agent and other fees, there would still be money left to pay to creditors. Obviously, every year that you do nothing is a year that equity accumulates in your home and probably other assets as well. At some time, you should address the issue. Bankruptcy is one way and estate planning might be another. But that's a question for a different lawyer.