Kansas Bankruptcy Laws
The process of going through bankruptcy is protected by federal and state laws. These laws, which are different in every state, can be rather complicated. So before you make a decision on bankruptcy, be certain you know all the facts about how the laws in your state will apply to you. You can find answers by speaking with a local bankruptcy lawyer. When you complete the free form on this page, you can get a free case evaluation with an attorney near you.
Kansas bankruptcy laws are designed to protect debtors and also limit fraudulent bankruptcy claims. Before filing bankruptcy in Kansas, make sure you understand what the laws permit and exclude.
Kansas Bankruptcy Exemptions
One reason to consider filing bankruptcy is the protection provided under Kansas bankruptcy laws. While bankruptcy will take some of your assets, certain vital items are protected, including:
- Up to $125,000 for your homestead, which can be up to 160 acres of farming land, one acre of land in the city or a mobile home
- The furnishings, food, clothing, fuel, supplies, food and equipment needed for one year
- Up to $1,000 for jewelry
- Up to $7,500 for breeding stock, seed grain, growing plant stock, books, furniture, tools and equipment for your trade
- Your burial plot
- Public assistance or compensation programs
- Live insurance proceeds and interest, which are not protected if the policy was purchased in the year prior to filing bankruptcy
- National guard equipment
- 75 percent of disposable earnings
- Award for crime victim’s restitution
- Retirement money or pension
- Property your landlord has in lieu of rent payment
- Cemetery merchandise trust funds
- Up to $20,000 for a vehicle
Keep in mind that your vehicle may still be repossessed if you owe money on it. You must reaffirm the loan within 45 days of your 341 meeting to keep your car, and you also must pay the monthly payment amount.
Kansas Chapter 7 Bankruptcy Law
Chapter 7 bankruptcy protection is the type of bankruptcy most people think of when considering the process. This form of bankruptcy liquidates assets in an attempt to pay back what is owed, then wipes out all remaining debt. You may file bankruptcy if you pass the means test, which requires that your income be at or below the median level in your state. Some debts, like back taxes and child support payments, still must be paid, even with Chapter 7 protection in place.
Kansas Chapter 13 Bankruptcy Law
Under Chapter 13 bankruptcy, the court and the bankruptcy trustee help you create a repayment plan, which they then supervise, as you attempt to repay your debts over a period of three to five years. While some assets are still liquidated, this form of bankruptcy allows you to reaffirm certain debts, like your car loan, or bring other debts current, like your mortgage.
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