Missouri Debt Collection Laws: SOL, Garnishment, and Exemptions

Missouri Debt Law Quick Reference

Statute of Limitations in Missouri

The statute of limitations sets the deadline within which a creditor or debt buyer can sue you for an unpaid debt. In Missouri, the standard limits are 5 years for credit card debt, 10 years for written contracts, and 5 years for oral contracts. The clock generally starts on the date of last activity on the account, which for most credit accounts is the date of last payment.

If a collector sues after the statute has expired, you can plead the SOL as an affirmative defense in your answer and the case will typically be dismissed. The catch is that several actions can restart or extend the clock: making any payment (no matter how small), signing a payment agreement, sending written acknowledgment of the debt, and in some states, making a verbal admission. The cleanest way to handle a time-barred debt is to do nothing that could be construed as reviving it.

Judgments in Missouri are enforceable for 10 years and are typically renewable, which means a judgment can become a long-running source of collection pressure if not addressed.

Wage Garnishment in Missouri

Up to 25 percent of disposable earnings; 10 percent if head of household with dependents. In Missouri, a creditor generally cannot garnish your wages without first obtaining a court judgment. The federal Consumer Credit Protection Act caps garnishment for consumer debt at 25 percent of disposable earnings (15 U.S.C. § 1673), and Missouri's rule applies the lower of the federal cap and the state limit.

Three categories of debt have different garnishment rules nationwide and override most state limits: child support and alimony (up to 50 to 60 percent of disposable earnings), federal income tax (IRS continuous wage levy with an exempt amount based on Publication 1494), and federal student loans (administrative wage garnishment up to 15 percent without a court order under 20 U.S.C. § 1095a).

If your wages are being garnished, filing bankruptcy stops most private-creditor garnishments immediately through the automatic stay (11 U.S.C. § 362). See our collection defense guide and bankruptcy overview for the broader playbook.

Bankruptcy Exemptions in Missouri

Missouri requires debtors to use the state exemption list. The Missouri-specific exemptions for consumer bankruptcy filers:

• Homestead: $15,000 ($5,000 if mobile home) of equity in a primary residence.
• Motor vehicle: $3,000 of equity in a vehicle.
• Wildcard: $600 plus $1,250 for head of household plus $350 per child.

Retirement accounts receive separate, very strong protection in Missouri. ERISA-qualified plans (401(k), 403(b), most pensions) are fully exempt without dollar limit in every state under federal law. Traditional and Roth IRAs are protected up to $1,512,350 per person under 11 U.S.C. § 522(n). Social Security benefits are fully exempt under 42 U.S.C. § 407.

Missouri has a relatively low homestead exemption and an unusual wage garnishment rule that reduces to 10 percent for heads of household.

Missouri Debt Collection Statute

Missouri Merchandising Practices Act covers some collection conduct. The federal Fair Debt Collection Practices Act (15 U.S.C. §§ 1692 to 1692p) applies in every state and sets the floor for consumer debt collection protection. Missouri's rules either extend those protections to additional entities (like original creditors) or provide additional remedies.

Common protections under both federal and state debt collection law: collectors cannot call before 8 AM or after 9 PM in your time zone; cannot use abusive, deceptive, or unfair practices; cannot threaten actions they have no legal right to take; cannot discuss the debt with third parties (other than for limited location purposes); must verify a disputed debt within 30 days of a written request; and must comply with the Consumer Financial Protection Bureau's Regulation F (effective 2021) on call frequency and electronic communications.

When Bankruptcy Makes Sense for Missouri Debtors

For most Missouri consumer debtors with $20,000+ of unsecured debt and below-median income, Chapter 7 bankruptcy is the fastest and cheapest path to resolving the debt. Total cost is typically $1,500 to $2,800, the case lasts 3 to 6 months, and qualifying unsecured debt is discharged entirely. The means test compares your household income to Missouri's state median for your household size (published by the U.S. Trustee Program and updated twice a year).

Chapter 13 is the right tool when you need to catch up on a mortgage to keep your house, protect nonexempt assets above the homestead or other exemption amounts, or address priority debt (recent taxes, child support arrears) that Chapter 7 cannot discharge.

For a deeper comparison of bankruptcy versus debt settlement and debt management plans, see our bankruptcy vs settlement and bankruptcy vs DMP guides.

Missouri Debt Collection FAQ