Kansas Bankruptcy Exemptions: Protecting Your Assets
In bankruptcy, non-exempt property refers to assets that a Chapter 7 trustee can sell to repay creditors. In a Chapter 13 case, the value of non-exempt property determines the minimum amount that must be paid to unsecured creditors through the repayment plan. Exemptions, on the other hand, allow you to safeguard certain assets from being affected by bankruptcy proceedings.
The exemptions detailed here highlight some of the most commonly used by individuals filing for bankruptcy. It’s important to note that the homestead exemption comes with specific residency requirements, which should be reviewed before filing. Similarly, eligibility for personal property exemptions depends on how long you’ve lived in your current state.
To better understand how these exemptions apply to your unique circumstances, schedule a free initial consultation with a trusted Kansas City Bankruptcy Attorney today.
Kansas Bankruptcy Exemptions (Assets You Can Protect)
ASSET | EXEMPTION | STATUTE |
Homestead | No monetary limit. One acre inside city limits or 160 acres outside city limits. | 60-2301 |
Household goods, clothing, food, and fuel to last 1 year | No monetary limit. | 60-2304 |
Jewelry | $1,000 limit per debtor. | 60-2304 |
Vehicle | 1 vehicle per debtor. $20,000 equity limit per vehicle used as main means of conveyance. No equity limit if equipped for disabled person. | 60-2304 |
Burial plot | No monetary limit. | 60-2304 |
Tools of Trade | $7,500 limit per debtor. | 60-2304 |
Life Insurance | No monetary limit if purchased over one year before filing. | 60-2313; 40-414 |
Worker’s Compensation | No monetary limit. | 60-2313; 44-514 |
Retirement Benefits (ERISA qualified) | No monetary limit. | 60-2308 |
Public Employee Retirement | No monetary limit. | 74-4923 |
Public Assistance Benefits | No monetary limit. | 60-2313; 39-717 |
Unemployment Benefits | No monetary limit. | 60-2313 |
Crime Victim Compensation | No monetary limit. | 60-2313; 74-7313 |
Liquor License | No limit. | 60-2313; 41-326 |
Fraternal Benefits | No monetary limit. | 60-2313 |
Cemetery Merchandise Trust | No monetary limit. | 60-2313 |
Prepaid Funeral | No monetary limit. | 60-2313; 16-310 |
Social Security Benefit | No monetary limit. | 60-2312; U.S.C. 522(d)(10) |
Veteran’s Benefit | No monetary limit. | 60-2312; U.S.C. 522(d)(10) |
Disability Benefit | No monetary limit. | 60-2312; U.S.C. 522(d)(10) |
Maintenance or child support | To the extent reasonably necessary for the support of the debtor and any dependent of the debtor. | 60-2312; U.S.C. 522(d)(10) |
All legal references are to Kansas Statutes Annotated unless otherwise stated. U.S.C. legal references are under Title 11.