Bankruptcy Exemptions in Kansas

When an individual has accumulated an amount of debt that may be impossible to repay, chapter 7 bankruptcy may be worth considering in an effort to begin the process of restoring your financial standing.  In this type of bankruptcy, an individual will petition the court for a discharge of outstanding debt.  Debt is treated differently by the courts depending on whether it is secured or unsecured debt.  It is possible to sell personal items in order to repay some of these debts.

Real estate mortgages as well as secured loans are generally exempt, and based on the value of the property state laws will determine what may be exempt. Although some types of unsecured debt may be legally discharged, child and spousal support, income and property taxes, student loans and fines and restitution imposed by a court do not fall into this category.

While there are state exemptions in all states, some states also offer federal exemptions, however, federal bankruptcy exemptions are not available in Kansas.

How to Keep Your Car

It may be possible to keep your car beyond the bankruptcy process if it falls under the exemption limit or you can cover the difference between the outstanding debt and the equity.

• The Kansas exemption amount for an automobile is $20,000
• There is no limit on the vehicle exemption if it is equipped or designed for a disabled person

How to Keep Your Home

In some cases, the bankruptcy process may help in the prevention of a home from going into foreclosure.  The home exemption relates to the amount of equity in the home and whether or not it falls within the state’s exemption amount.

• Home exemptions in Kansas include real property, manufactured homes, or mobile homes of unlimited value, but can not exceed 1 acre in a city or town, or 160 acres on a farm
• You must currently occupy or prove that you intend to occupy the property at the time you file for bankruptcy

Filing Schedule C of a Bankruptcy Petition

A Schedule C which lists the property you are claiming to be exempt is required when you file bankruptcy.  For the property to be considered, the schedule C must include:

• The value of the property you are claiming exempt
• The laws which apply to the exemption deductions
• The value of the exempt property before and after the deduction

Using an Attorney to Represent Your Case

Should you find yourself in a position of inability to repay outstanding debts, possibly foreclosure or repossession of assets, it is important to discuss your situation with a bankruptcy attorney.  There are different types of bankruptcy and the state and federal laws as well as the filing process can be confusing.  A Kansas bankruptcy attorney is familiar with bankruptcy laws and will assist you through the decision and filing process relating to bankruptcy.