Chapter 7 Bankruptcy Montana: 3 Things You Need to Know

If you're facing money troubles, sorting through your options can feel overwhelming without proper help. That's why we've created this article to assist folks dealing with similar challenges. If you're thinking about Chapter 7 bankruptcy, especially in Montana, here are some important things to think about before moving forward:
Information in this article does not constitute legal advice, it is for informational purposes only, and may not constitute the most up-to-date information. Readers should contact their attorney for advice on any particular legal matter.
  1. Qualification and Cost: Check if you meet the requirements for Chapter 7 bankruptcy and understand how much it costs to file in Montana.
  2. Exploring Other Options: Look into different solutions that might suit your financial situation better.
  3. Specifics of Chapter 7 in Montana: Get to know the unique details about Chapter 7 bankruptcy in Montana, which we'll discuss below to make sure you're well-informed.

For those who like visuals, we've included the Montana Chapter 7 Calculator below to give you an idea of eligibility and costs.

1) How Chapter 7 Bankruptcy Works in Montana

How Fast Do You Get Relief in A Chapter 7 Bankruptcy in Montana

Usually, a no-asset Chapter 7 case in Montana wraps up in about 120 days from start to finish. In simple terms, "no-asset" means you don't own significant assets beyond what's protected by Montana bankruptcy laws. So, if your assets fit within these limits, your bankruptcy process can move quickly, giving you a speedy solution to your money problems.

How Much Does It Cost To File Chapter 7 bankruptcy in Montana

Filing Chapter 7 bankruptcy typically costs between $500 and $3000, but the precise amount varies by location. For instance, bankruptcy filing fees in Great Falls or Billings are estimated to be around $1,450.

There are also opportunities to reduce expenses, like applying for a fee waiver. Check out the Montana filing fee waiver for further details.

So, How Do I Qualify For Chapter 7 Bankruptcy in Montana?

When determining your eligibility for Chapter 7, it's crucial to examine the Chapter 7 Bankruptcy Montana Income Limits. This assessment determines if you qualify for a bankruptcy discharge, meaning your debts are forgiven. Passing the means test means that Chapter 7 can address most of your unsecured debts, such as medical bills, personal loans, certain old income tax debts, old utility bills, credit card debts, and most personal judgments, which lack collateral.

What about secured debts in Chapter 7?

If your goal is to erase secured debts such as car loans and mortgages, Chapter 7 bankruptcy might be a solution. However, you'll have to relinquish the asset to the creditor, who will view it as complete payment for your debt.

IMPORTANT: Chapter 7 Qualification via Montana Means Test

You can utilize the Bankruptcy Means Test to assess your eligibility for Chapter 7 bankruptcy in Montana. This form determines your average yearly income by considering your gross income over the past six months. It then compares this amount to the median income of households in Montana. If your median income falls below the Montana median income, you may be eligible for a Chapter 7 bankruptcy discharge.

Please feel free to use the calculator provided below:

Help! My Income Exceeded The Chapter 7 Means Test Allowable in Montana

If your income exceeds the median income in your state, you might need to explore part 2 of the means test or consider alternative options. We suggest examining this useful resource: passing the Chapter 7 means test when income exceeds the median.

Chapter 7 Bankruptcy Montana Income Limits

If you file for bankruptcy in Montana on or after November 1, 2023, here are the income limits based on household size:

# of PeopleAnnual Income
  • 10+ individuals: Add $9,000 for each additional person

Will I lose my belongings if I file Chapter 7 bankruptcy? Understand Montana bankruptcy exemptions

Bankruptcy exemptions shield your property that be at risk of being repossessed during a bankruptcy filing. Specifically, the homestead exemption is crucial, offering a $250,000 protection to everyone in Montana. It safeguards your home and mobile homes. It also protects sale, condemnation, or insurance proceeds for 18 months.

Reviewing Montana's bankruptcy exemptions is essential to safeguarding assets. Federal bankruptcy exemptions are detailed in the 11 U.S. Code §522. However, Montana doesn't allow their use.

Always stay updated on bankruptcy exemptions to make informed decisions.

Chapter 7 Bankruptcy Montana Pros and Cons


  • Quick discharge: In approximately 120 days, you could clear debts and embark on a fresh start.
  • Asset protection: Meeting exemption criteria may enable you to retain much of your personal property when filing for Chapter 7 bankruptcy.
  • Halting debt lawsuits: Filing triggers an automatic stay, halting legal actions by debt collectors, including calls and letters.
  • Debt deficiency resolution: Bankruptcy could alleviate burdens from loans exceeding collateral value.


  • Qualification income criteria: Meeting specific income requirements is necessary to qualify for Chapter 7 bankruptcy.
  • Potential property loss: Exceeding exemption limits could result in the loss of some belongings.
  • Credit report repercussions: Filing for Chapter 7 bankruptcy can significantly impact your credit report, remaining on record for a decade and complicating future loan approvals or favorable interest rates.
  • Non-dischargeable debts: Not all debts are eligible for discharge through Chapter 7 bankruptcy; obligations like student loans and child support payments typically remain non-dischargeable.

2) Alternatives to Chapter 7 Bankruptcy in Montana

a) Chapter 13 Bankruptcy

If your income exceeds the Chapter 7 bankruptcy limit, one option is to consider Chapter 13 bankruptcy over Chapter 7 Bankruptcy. With Chapter 13 Bankruptcy in Montana, you can reorganize your debts into a more manageable monthly plan. This restructuring aids in retaining your home and vehicles, preventing foreclosure, and stopping belongings from being repossessed. Additionally, it may lower unpaid child support, alimony, and car loan payments.

Can you afford Chapter 13 bankruptcy?

If you're thinking about Chapter 13 bankruptcy, this calculator can assist in estimating whether you can handle the monthly payment.

b) Debt Settlement/Relief

Another alternative to Chapter 7 and Chapter 13 bankruptcy is debt settlement. With this option, a debt settlement company negotiates a reduced amount on your total debt, offering potential savings over time. However, it's crucial to assess its impact on your credit score and conduct thorough research to select a reputable and transparent debt settlement company.

c) Debt Management

Another avenue to explore is debt management. Unlike debt settlement, which aims to reduce your total debt, debt management focuses on lowering your interest rates. These programs typically span 3 to 5 years and may come with higher costs compared to debt settlement. It's worth noting that not all creditors may cooperate with debt management companies.

However, if you're burdened with substantial high-interest credit card debt, debt management could slash your interest rates by 10-20%. This reduction could lead to significant savings of 30-50% on your current debt, facilitating more efficient repayment. Assessing your financial situation and weighing the pros and cons of each option is crucial in making an informed decision.

d) Debt Payoff Planning

Another option worth considering is debt payoff planning. While this approach demands effort and entails trimming expenses and saving surplus income to tackle debt, it offers tangible progress each month by selecting a suitable payoff strategy. Moreover, as you chip away at your debts, you can compound those payments towards the remaining balances, accelerating your journey towards becoming debt-free.

3) Specific Montana Chapter 7 Bankruptcy Information:

Montana Chapter 7 Bankruptcy Credit Counseling and Debtor Education Courses

As you navigate the Chapter 7 bankruptcy process, you'll be required to complete a series of courses to obtain a bankruptcy discharge. These courses aim to enhance your financial literacy and equip you with tools to manage your finances effectively. Following the initial filing, you must also undertake a debtor education course, which focuses on bolstering your financial management skills for the future.

[Debtor Education Approved Courses](

Approved by the United States Trustee's office, specific companies in Montana offer these mandated bankruptcy courses. To access a list of these approved providers, visit the UST website for more information.

[Credit Counseling Approved Courses](

Montana Chapter 7 bankruptcy Court Locations

It's essential to remember the 341 meeting(s) of creditors during the bankruptcy process. While many of these meetings have shifted to phone or Zoom due to the pandemic, being aware of the nearest courthouse is crucial in case an in-person appearance is required. To assist you, we'll furnish a list of court locations based on the bankruptcy districts in Montana.

District of Montana

  • 2601 2nd Avenue North, Billings, MT 59101
  • 400 N. Main, Butte, MT 59701
  • 125 Central Avenue West, Great Falls, MT 59404
  • 901 Front Street, Helena, MT 59626
  • 201 E. Broadway, Missoula, MT 59802

Chapter 7 Bankruptcy Trustees Montana

Below, you'll find a list of Chapter 7 bankruptcy trustees in Montana, broken down by bankruptcy district. If you would like to check out the original list, you can find it here: [link].

  • Christy L. Brandon: (406) 837-5445
  • Darcy M. Crum: (406) 727-8400
  • Richard J. Samson: (406) 721-7772
  • Joseph V. Womack: (406) 252-7200
Christy L. Brandon(406) 837-5445
Darcy M. Crum(406) 727-8400
Richard J. Samson(406) 721-7772
Joseph V. Womack(406 )252-7200


After learning about Chapter 7 bankruptcy in Montana, you should feel more informed about its requirements and available alternatives. However, if you seek a quick estimate of your eligibility and potential costs, consider using the Chapter 7 bankruptcy means test calculator provided below.

If you want to dive deeper into the Chapter 7 bankruptcy process, check out our guide here: .

Lastly, most individuals tend to work with an attorney when it comes to Chapter 7 and Chapter 13 bankruptcy. However, if you want to save on attorney fees and don't mind doing some work yourself, there is an option to file without one. Head to: filing bankruptcy without an attorney to find out more.

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