Montana Bankruptcy

Bankruptcy is a legal proceeding that is initiated by an individual or business that cannot repay its outstanding debts and obligations. It allows the individual or business to seek relief from their creditors.

Although bankruptcy is handled under federal law, Montana’s own exemption statutes may determine what property you keep in a bankruptcy filing. Montana has opted out of the federal exemption list, so filers must use the state exemptions.

How to File Bankruptcy in Montana

There are practical steps you can take to file your bankruptcy case in Montana, even without the assistance of an attorney. Gather all necessary documents that support your case, including property, debts, assets, tax returns, and bank statements.

It is mandatory to complete a court-approved credit counseling program within 180 days. It is crucial that you choose the appropriate chapter and apply Montana exemptions. You may choose Chapter 7 (liquidation), Chapter 13 (repayment plan), or Chapter 11 (business or large-debt reorganization).

You must file your petition and schedules along with your certificate of credit counseling to the District of Montana. Attorneys must file this electronically, while self-represented filers may check the local clerk’s procedures for additional information. Pay the standard bankruptcy fees (such as $338 for a new case in Chapter 7) or confirm the exact amount with the court clerk.

You must appear with a valid ID and any requested documents at the 341 meeting of creditors. All questions from the trustee and creditors must be answered under oath. After filing, you must complete the required debtor education and respond to trustee or court requests until you receive the discharge or complete your payment.

Montana Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

The key chapters operate differently, and this is affected by Montana’s exemptions.

Chapter 7 (Liquidation)

In this chapter, a trustee, appointed by the court, can sell non-exempt assets to repay creditors. You are able to protect certain assets due to the Montana exemption schedule (such as homestead exemption, vehicle exemption, and tools of trade). This method is suitable for low-income individuals.

Chapter 13 (Repayment Plan)

This chapter allows individuals with regular income to pay off debts under a 3–5 year plan. The court must approve your repayment amount, which depends partly on whether you have non-exempt equity under Montana exemptions.

Chapter 11 (Reorganization)

This bankruptcy type is commonly associated with businesses or individuals with very large debts or complex assets. The court allows you to stay in control while your plan to reorganize your debts is confirmed.

Step-by-Step Checklist for Montana Filers

This is a quick checklist for you to learn how to file for bankruptcy in Montana:

• Complete credit counseling
• Gather documents such as tax returns, income, bank statements, asset/debt lists, and titles/deeds to support your case.
• Choose Chapter 7, 13, or 11 and apply Montana exemptions
• File your petition and schedules with the court
• Pay the filing fee or seek an installment/waiver
• Attend the 341 meeting of creditors
• Complete a debtor‐education course
• Finally, respond to trustee requests or court communications until discharge or plan completion.

Montana Bankruptcy Court & Record Access

Here is how to access filing venues and records in Montana:

Court Locations

• The District of Montana: The headquarters for the U.S. District Bankruptcy Court for the District of Montana is in Butte, with divisional offices in Billings, Great Falls, and Missoula. You may contact the main courthouse at:

Record Access

In compliance with the policy of the Judicial Conference of the United States, you may access bankruptcy cases filed in Montana through the Public Access to Court Electronic Records (PACER) system. The PACER system is available 24 hours a day via the internet. Users are required to create a free account and pay a $0.10 fee to search and view case documents.

You can access many bankruptcy courts through a centralized Voice Case Information System (VCIS) at (866) 222-8029 from any touch-tone telephone. This service is free, and users may retrieve basic information, including the case type, debtor name, filing date, case number, debtor attorney, attorney phone number, closing date, trustee, and discharge date.

All the court's offices in Billings, Butte, Great Falls, and Missoula have public-access computers that can allow individuals to view court information and obtain copies. However, there is a small per-page charge for any pages printed from the system.

You may request old or archived case files from the National Archives and Records Administration (NARA). Alternatively, you may visit the clerk’s office with a valid ID to request copies of court documents. You must contact the clerk’s office during office hours, on weekdays.