Email this page to a friendMontana Exemptions
In general, a debtor may claim exemption of his homestead and certain personal property from attachment and execution of a judgment, or in a bankruptcy proceeding.
A judgment debtor is entitled to a homestead exemption of his dwelling house or mobile home, and all appurtenances thereon, from execution or forced sale. (MCA 70-32-101, 70-32-201.) If the debtor is married, the homestead may be selected from the property of either spouse. (MCA 70-32-103.) The value of a homestead may not exceed $60,000. (MCA 70-32-104(1).) If a debtor who is an owner of an undivided interest in real property claims a homestead exemption, he is limited to an exemption amount proportional to his undivided interest only. (MCA 70-32-104(2).)
A debtor, who is a resident of the State of Montana is also entitled to claim exemption of certain personal property from execution or forced sale. (MCA 25-13-606.) Some of the personal property which may be exempt from execution, without limitation, are professionally prescribed health aids for the debtor or his dependent, federal social security or local public assistance, veterans' benefits, disability or illness benefits, benefits paid or payable for medical, surgical, or hospital care to the extent they are used or will be used to pay for the care, maintenance and child support, a burial plot, and social security legislation benefits. (MCA 25-13-608.) Personal property which are exempt up to a limited value may include household furnishings and goods, appliances, jewelry, wearing apparel, books, firearms and other sporting goods, animals, feed, crops, and musical instruments to the extent of a value not exceeding $600.00 in any item or $4,500.00 in aggregate value, one motor vehicle not to exceed $1,200 in value, implements, professional books and tools of the trade not to exceed $3,000.00 in aggregate value, and any unmatured life insurance contracts not to exceed $4,000.00 in value. (MCA 25-13-609.)
In situations where money or property has been sold, lost, damaged or destroyed, and the judgment debtor has been indemnified, he is entitled for six (6) months to an exemption of proceeds that are traceable. Earnings of the judgment debtor may also remain exempt for 45 days after receipt by him and while in his possession in a form that is traceable. For the purpose of tracing, the principles of first-in first-out, last-in first-out, or any other reasonable basis for tracing selected by the judgment debtor may be applied. (MCA 25-13-610.)
In a bankruptcy proceeding, a debtor may not claim exemption of the property specified in 11 U.S.C. 522(d) except for those property which may be exempt from execution of judgment under the laws of Montana, unemployment benefits and certain retirement plan benefits. (MCA 31-2-106.)
TITLE 70. PROPERTY
CHAPTER 32. HOMESTEADS
PART 1. ESTABLISHMENT OF THE HOMESTEAD
70-32-104. Limitation on value
(1) A homestead may not exceed $250,000 in value. In a proceeding instituted to determine the value of the homestead, the assessed value of the land with included appurtenances, if any, and of the dwelling house as it appears on the last-completed assessment roll preceding the institution of the proceeding is prima facie evidence of the value of the property claimed as a homestead.
(2) If a claimant who is an owner of an undivided interest in real property claims a homestead exemption, the claimant is limited to an exemption amount proportional to the claimant's undivided interest.
TITLE 70. PROPERTY
CHAPTER 32. HOMESTEADS
PART 2. HOMESTEAD EXEMPTION -- EXECUTION
70-32-201. Homestead exempt from execution generally
The homestead is exempt from execution or forced sale, except as in this chapter provided.
70-32-202. Execution allowed under certain judgments
The homestead is subject to execution or forced sale in satisfaction of judgments obtained:
(1) on debts secured by construction or vendors' liens upon the premises;
(2) on debts secured by mortgages on the premises, executed and acknowledged by the husband and wife or by an unmarried claimant; or
(3) on debts secured by mortgages on the premises, executed and recorded before the declaration of homestead was filed for record.
70-32-216. Tracing homestead proceeds
(1) If property or a part of property that could have been claimed as an exempt homestead has been sold or taken by condemnation, as provided in Title 60, chapter 4, or Title 70, chapter 30, or has been lost, damaged, or destroyed and the owner has been indemnified for the property, the owner is entitled for 18 months to exemption of the proceeds that are traceable.
(2) Proceeds are traceable under this section by application of the principles of first-in first-out, last-in first-out, or any other reasonable basis for tracing selected by the judgment debtor.
TITLE 25. CIVIL PROCEDURE
CHAPTER 13. EXECUTION OF JUDGMENT
PART 6. PROPERTY EXEMPT FROM EXECUTION
25-13-601. Waiver of exemptions in unsecured note unenforceable
Any waiver of statutory exemption from execution in an unsecured promissory note shall be unenforceable.
25-13-606. Protection of property of residents
A resident of this state is entitled to the exemptions provided in this part.
25-13-607. Claim enforceable against exempt property
Notwithstanding any other provision of this part, a creditor may levy against exempt property to enforce a claim for:
(1) the purchase price of the property; or
(2) a loan made for the express purpose of enabling the judgment debtor to purchase the property and used for that purpose.
25-13-608. Property exempt without limitation -- exceptions
(1) A judgment debtor is entitled to exemption from execution of the following:
(a) professionally prescribed health aids for the judgment debtor or a dependent of the judgment debtor;
(b) benefits the judgment debtor has received or is entitled to receive under federal social security or local public assistance legislation, except as provided in subsection (2);
(c) veterans' benefits, except as provided in subsection (2);
(d) disability or illness benefits, except as provided in subsection (2);
(e) except as provided in subsection (2), individual retirement accounts, as defined in 26 U.S.C. 408(a), to the extent of deductible contributions made before the suit resulting in judgment was filed and the earnings on those contributions, and Roth individual retirement accounts, as defined in 26 U.S.C. 408A, to the extent of qualified contributions made before the suit resulting in judgment was filed and the earnings on those contributions;
(f) benefits paid or payable for medical, surgical, or hospital care to the extent they are used or will be used to pay for the care;
(g) maintenance and child support;
(h) a burial plot for the judgment debtor and the debtor's family;
(i) benefits or payments paid or payable from a retirement system or plan within Title 19, chapters 3, 5 through 9, and 13, as provided by 19-2-1004;
(j) benefits or payments paid or payable from a retirement system or plan within Title 19, chapter 20, as provided by 19-20-706; and
(k) the judgment debtor's interest in any unmatured life insurance contracts owned by the judgment debtor.
(2) Veterans' and social security legislation benefits based upon remuneration for employment, disability benefits, and assets of individual retirement accounts are not exempt from execution if the debt for which execution is levied is for:
(a) child support; or
(b) maintenance to be paid to a spouse or former spouse.
25-13-609. Personal property exempt subject to value limitations
A judgment debtor is entitled to exemption from execution of the following:
(1) the judgment debtor's interest, not to exceed $4,500 in aggregate value, to the extent of a value not exceeding $600 in any item of property, in household furnishings and goods, appliances, jewelry, wearing apparel, books, firearms and other sporting goods, animals, feed, crops, and musical instruments;
(2) the judgment debtor's interest, not to exceed $2,500 in value, in one motor vehicle; and
(3) the judgment debtor's interest, not to exceed $3,000 in aggregate value, in any implements, professional books, and tools, of the trade of the judgment debtor or a dependent of the judgment debtor.
25-13-610. Tracing exempt personal property
(1) If money or other property exempt under 25-13-608 and 25-13-609 has been sold or has been lost, damaged, or destroyed and the judgment debtor has been indemnified for it, he is entitled for 6 months to an exemption of proceeds that are traceable (for example, in a bank or savings account).
(2) Earnings exempt under 25-13-614 remain exempt for 45 days after receipt by and while in the possession of the judgment debtor in a form into which the exempt earnings are traceable (for example, in a bank or savings account).
(3) Proceeds are traceable under this section by application of the principles of first-in first-out, last-in first-out, or any other reasonable basis for tracing selected by the judgment debtor.
25-13-613. Property necessary to carry out governmental functions
(1) In addition to the property mentioned in 25-13-609(1), the following property is exempt from all judgment debtors:
(a) all necessary firefighting equipment and facilities of a governmental fire agency organized under Title 7, chapter 33;
(b) all arms, uniforms, and accouterments required by law to be kept by any person and one gun to be selected by the debtor;
(c) all courthouses, jails, public offices, and buildings, lots, grounds, and personal property and the fixtures, furniture, books, papers, and appurtenances belonging and pertaining to the courthouse, jail, and public offices belonging to any county of this state; and
(d) all cemeteries, public squares, parks, and places, public buildings, town halls, public markets, buildings for the use of fire departments and military organizations, and the lots and grounds owned or held by any town or incorporated city or dedicated by a city or town to health, ornament, or public use or for the use of any fire or military company organized under the laws of the state.
(2) The property listed in this section is not exempt from execution issued upon a judgment recovered for its price or upon a judgment of foreclosure of a mortgage lien on the property, and a person who is not a resident of this state is not entitled to these exemptions.
25-13-614. Earnings of judgment debtor
(1) Earnings of a judgment debtor that are not subject to garnishment as provided in this section are exempt.
(2) Except as provided in subsections (3) and (4), the maximum part of the aggregate disposable earnings of a judgment debtor for any workweek that is subjected to garnishment may not exceed the lesser of:
(a) the amount by which his disposable earnings for the week exceed 30 times the federal minimum hourly wage in effect at the time the earnings are payable; or
(b) 25% of his disposable earnings for that week.
(3) The restrictions of subsection (2) do not apply in the case of an order or judgment for the maintenance or support of any person, issued by a court of competent jurisdiction or pursuant to an administrative procedure that is established by state law, affords substantial due process, and is subject to judicial review.
(4) (a) The maximum part of the aggregate disposable earnings of a judgment debtor for any workweek that is subject to garnishment to enforce an order described in subsection (3) may not exceed:
(i) 50% of the judgment debtor's disposable earnings for that week if he is supporting his spouse or dependent child (other than a spouse or child for whom the order is issued); or
(ii) 60% of the judgment debtor's disposable earnings for that week if he is not supporting a spouse or dependent child described in subsection (4)(a)(i).
(b) However, the amount stated in subsection (4)(a)(i) may be 55% and the amount stated in subsection (4)(a)(ii) may be 65% if such earnings are being garnished to enforce an order for maintenance or support for a period prior to the 12-week period that ends with the beginning of such workweek.
(5) For the purposes of this section, the definitions of earnings, disposable earnings, and garnishment are as set forth in 15 U.S.C. 1672.
25-13-615. Homestead
The homestead of a judgment debtor exempt from execution is provided for in Title 70, chapter 32.
