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Kansas Bankruptcy Laws
Those who are eligible for Chapter 7 bankruptcy can also claim certain property exempt from liquidation under state or federal laws. In Kansas, the law allows only state exemptions, which can include:
Homestead
Unlimited
Personal Property
Motor vehicles up to $20,000; clothing for 1 year; household equipment and furnishings; fuel and food for 1 year; burial plot
Wages
Either 30 times the federal hourly minimum wage/wk. or minimum of 75% of disposable weekly wages
Pensions
Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000/person; police and firefighters; elected and appointed officials; ERISA-qualified benefits; pension payments; state school employees; state highway patrol officers
Public Benefits
General assistance; veteran’s benefits; Social Security; unemployment; worker’s comp; crime victim’s compensation
Tools of the Trade
Arms and equipment for National Guard members; equipment, furniture, books, documents, breeding stock, seed, and grain up to $7,500
Insurance
Some types of life insurance proceeds; disability and illness benefits; fraternal benefits
Once all their options are considered, choices are made, and credit counseling is completed, filing the petition for bankruptcy is often a smooth process. The court places a temporary stay on debt collections and the bankruptcy trustee takes charge of the process, leaving the debtor and their lawyer responsible to answer questions and provide information as requested. After a required 341 meeting with creditors to explain the plan and the distribution of assets, the debtor can often start fresh rebuilding their credit score and financial future.
