Montana Bankruptcy Law
Bankruptcy Courts in Montana
If you live in Montana and are considering filing for bankruptcy, your case will be handled by the U.S. Bankruptcy Court for the District of Montana, with court locations, or divisions, in Butte, Billings, Great Falls, and Missoula. You’ll file your case in the division that covers the county where you live or where your main property or business is located.
All bankruptcy cases follow federal bankruptcy law, but the Montana bankruptcy court also applies local rules that supplement those laws. Court decisions are guided and reviewed by the U.S. Court of Appeals for the Ninth Circuit, which also covers several western states. Because local court rules and property protection limits can be complex, it’s best to work with a bankruptcy attorney who can make sure your filing is complete and your property fully protected.
Bankruptcy Filing Trends in Montana
Each year, hundreds of Montana residents file for bankruptcy to eliminate overwhelming debt, stop foreclosure, or prevent repossession. Chapter 7 filings—which discharge unsecured debts such as credit cards and medical bills—are the most common, followed by Chapter 13 repayment plans for individuals who want to keep their homes and vehicles while repaying part of their debt.
Filings are concentrated in larger cities like Billings, Missoula, and Great Falls, reflecting how many Montanans turn to bankruptcy as a legal tool to regain financial control.
Montana Exemptions — What You Can Keep
Filing for bankruptcy doesn’t mean losing everything you own. Montana law protects certain property called exempt property, which includes items you need to live and work. Exempt property is protected by law and cannot be taken or sold to pay creditors.
Montana does not allow the use of federal exemptions, meaning debtors must use exemptions provided by state law. A married couple filing jointly may each claim the full amount of every exemption in property they jointly own.
Below are examples of the most common exemptions available to Montana residents:
| Type of Property | Amount You Can Protect (Individual / Joint) |
|---|---|
| Homestead (primary residence) | $409,450 / $818,900 |
| Household goods, furniture, clothing, and jewelry (no item > $1,250) | $7,000 / $14,000 |
| Motor vehicle (one) | $4,000 / $8,000 |
| Tools of trade or professional library | $4,500 / $9,000 |
| Burial plot | Reasonable value / full lot |
| Health aids, professionally prescribed | 100 % |
| Public assistance, Social Security, veterans’, and disability benefits | 100 % |
| Retirement accounts and pensions (IRAs, public employee, teacher, firefighter, police, and university plans) | 100 % |
| Medical or health savings accounts and benefits | 100 % |
| Insurance benefits (life and disability proceeds) | 100 % (beneficiary not the insured) |
| Annuity contracts (certain types) | Limited protection under state law |
| Crime victims’ compensation and workers’ compensation | 100 % |
| Unemployment benefits | 100 % |
| Earnings (wages) | 75 % of net earnings or 30× federal minimum wage per week (whichever is greater) |
| Cemetery lots and cooperative shares | $500 / $1,000 (for shares) |
| Proceeds of exempt property lost or destroyed | 100 % |
An experienced bankruptcy attorney can ensure your assets are fully protected.
Steps and Local Requirements
Credit counseling. Before filing, you must take a credit counselling course from an approved provider. A second debtor education course is required before discharge.
Means test. To qualify for Chapter 7, your income must be below Montana’s median or pass a means-test calculation comparing your income and expenses.
Filing fees. The filing fee is $338 for Chapter 7 and $313 for Chapter 13. You may request to pay in installments or apply for a waiver if you cannot pay in full.
Meeting of creditors. About a month after filing, you’ll attend a brief “341 meeting.” It’s not held before a judge. A bankruptcy trustee will verify your identity and review your petition.
In Montana, meetings are typically held virtually or in person in Butte, Billings, Great Falls, Missoula, or Helena, depending on where your case was filed.
Local rules and forms. The court’s website provides all current local rules and forms. Following them carefully helps your case move forward without delay.
What This Means for You
Filing for bankruptcy in Montana can give you a fresh financial start and stop most creditor actions immediately. The automatic stay halts lawsuits, foreclosures, garnishments, and repossessions.
Most filers keep their homes, vehicles, and personal property. Because bankruptcy involves complex eligibility rules, strict deadlines, local procedures, and specific property protections under Montana law, it’s best to consult an experienced bankruptcy attorney before filing.
An attorney can help you:
- Decide whether Chapter 7 or Chapter 13 best fits your situation
- Protect your property using Montana’s exemptions
- Complete required credit-counseling courses
- File all forms correctly and meet local deadlines
With professional guidance and preparation, bankruptcy can help you regain financial stability and build a path toward long-term recovery.
U.S. Bankruptcy Court – District of Montana (Butte Division)
Federal Circuit: Ninth Circuit Court of Appeals
Court Location: Butte
Where You File Depends on Where You Live
The Butte Division serves as the administrative headquarters of the U.S. Bankruptcy Court for the District of Montana. It handles cases filed in central and southwestern Montana and hosts many statewide hearings.
Counties Served
Beaverhead • Broadwater • Deer Lodge • Gallatin • Granite • Jefferson • Lewis and Clark • Madison • Meagher • Park • Powell • Silver Bow
If you’re unsure whether your county is included in the Butte Division, a bankruptcy attorney can confirm where to file and make sure your documents meet all local requirements.
Recent Filing Statistics
The Butte Division processes a steady number of bankruptcy cases each year. Most filings are Chapter 7 cases for individuals seeking to eliminate unsecured debts, while Chapter 13 repayment plans are also used by homeowners and wage earners aiming to retain property.
U.S. Bankruptcy Court – District of Montana (Billings Division)
Federal Circuit: Ninth Circuit Court of Appeals
Court Location: Billings
Where You File Depends on Where You Live
The Billings Division covers the eastern and southeastern parts of Montana, including Yellowstone County and nearby areas. Bankruptcy cases from this region are filed and administered through the U.S. Bankruptcy Court in Billings.
Counties Served
Big Horn • Carbon • Carter • Custer • Dawson • Fallon • Garfield • Golden Valley • McCone • Musselshell • Petroleum • Prairie • Richland • Rosebud • Stillwater • Treasure • Wibaux • Yellowstone
If you’re uncertain where to file, a bankruptcy attorney can confirm your division and ensure your paperwork is filed correctly under local rules.
Recent Filing Statistics
The Billings Division records one of the highest bankruptcy volumes in the state. Chapter 7 filings are most common, with Chapter 13 plans frequently used by individuals with regular income to manage mortgage arrears or prevent repossession.
U.S. Bankruptcy Court – District of Montana (Great Falls Division)
Federal Circuit: Ninth Circuit Court of Appeals
Court Location: Great Falls
Where You File Depends on Where You Live
The Great Falls Division serves north-central Montana, including much of the Hi-Line region. Bankruptcy cases from this area are filed and administered through the U.S. Bankruptcy Court in Great Falls.
Counties Served
Blaine • Cascade • Chouteau • Fergus • Glacier • Hill • Judith Basin • Liberty • Phillips • Pondera • Teton • Toole • Valley
If you’re unsure whether your county falls under the Great Falls Division, a bankruptcy attorney can verify where to file and help ensure your case complies with local procedures.
Recent Filing Statistics
The Great Falls Division handles several hundred bankruptcy cases each year, most of which are Chapter 7 filings. Chapter 13 repayment plans are also common among debtors with steady income seeking to protect secured assets such as homes or vehicles.
U.S. Bankruptcy Court – District of Montana (Missoula Division)
Federal Circuit: Ninth Circuit Court of Appeals
Court Location: Missoula
Where You File Depends on Where You Live
The Missoula Division covers western Montana, including the Bitterroot Valley and surrounding counties. Bankruptcy cases from this region are filed and administered through the U.S. Bankruptcy Court in Missoula.
Counties Served
Flathead • Lake • Lincoln • Mineral • Missoula • Ravalli • Sanders
If you’re uncertain where to file, a bankruptcy attorney can confirm your filing location and ensure your documents are properly prepared.
Recent Filing Statistics
The Missoula Division processes hundreds of bankruptcy cases annually, most of them Chapter 7 filings for individuals eliminating unsecured debts. Chapter 13 cases are also frequent among homeowners and small-business owners seeking to protect property and restructure payments.
