March 29, 2017

If you file for Chapter 7 bankruptcy in Kansas, you can protect some or all of your property with Kansas’ bankruptcy exemptions. The bankruptcy exemptions in Kansas also play a role in Chapter 13 bankruptcy. Read on to learn about what property is covered by Kansas’ bankruptcy exemptions.

For a general overview of bankruptcy exemptions, see Bankruptcy Exemption.

Kansas Debtors Must Use State Exemptions

Because Kansas is an “opt out” state, you aren't permitted to use the federal bankruptcy exemptions when you file a bankruptcy. This means that Kansas bankruptcy filers may only exempt property using the Kansas exemptions.

Married Couples Can Double Kansas Exemptions

Married couples filing a joint bankruptcy in Kansas can double the exemption amount for any property in which both spouses have an ownership interest. For example, spouses can double the vehicle exemption amount to protect more of the equity in their jointly-owned car.

Common Kansas Exemptions

Here are some of the most common exemptions available under Kansas law. All references are to the Kansas Statutes Annotated.

Homestead or Residential Property

The homestead exemption protects the equity in your home or principal residence. You can protect the entire value of the real property or mobile home that you occupy (up to one acre if located in a town or city or up to 160 acres if located on a farm). Kan. Stat. Ann. § 60-2301, Kan. Const. Art. 15 § 9

For more details about how the homestead exemption works in Kansas see The Kansas Homestead Exemption.

Insurance Benefits

Life insurance proceeds (the debtor must file bankruptcy more than a year after the policy went into effect). Kan. Stat. Ann. §§ 40-414, 60-2313(a)(7)

Fraternal society benefits. Kan. Stat. Ann. § 60-2313(a)(8)

Motor Vehicle

You can protect up to $20,000 of equity in a motor vehicle that you regularly use to get to and from work. If the vehicle is equipped to assist with a disability, you can protect the full, unlimited value of the vehicle. Kan. Stat. Ann. § 60-2304(c)

To learn more about how to exempt your motor vehicle under Kansas law, see The Kansas Motor Vehicle Exemption in Bankruptcy.

Personal Property

Furnishings, clothing, earned income tax credits, and supplies, including food and fuel, that are in your possession and are reasonably necessary at your residence for up to one year. Jewelry, up to $1,000 in value. Burial plot or crypt. Kan. Stat. Ann. § 60-2304

Pension, Retirement, and Life Insurance Benefits

ERISA-qualified benefits, IRAs and Roth IRAs and federal government pension needed for support & paid within 3 months prior to filing bankruptcy. Kan. Stat. Ann. § 60-2308

Payment under a stock bonus, pension, profit-sharing, annuity, or similar plan or contract on account of illness, disability, death, age, or length of service, to the extent reasonably necessary for support. Kan. Stat. Ann. §60-2312

Public Benefits

Earned income tax credit. Kan. Stat. Ann. 60-2315

Wages

75% of disposable earnings or 30 times the federal minimum wage (whichever is greater). Kan. Stat. Ann. §60-2310

Tools of the Trade

Books, furniture, tools, and supplies used in your trade or profession, up to $7,500. Kan. Stat. Ann. §60-2304

Confirming the Status of Kansas’ Bankruptcy Exemptions

Kansas’ exemption amounts are adjusted periodically. To make sure you have the most recent figures, be sure to check for any updates at the official website of the Kansas Legislature (above).

For more information about filing bankruptcy in Kansas, see Kansas Bankruptcy Information.

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