Kansas Bankruptcy Exemptions

Educational reference to property exemptions available in a Kansas bankruptcy case under K.S.A. § 60-2301 et seq. Kansas has elected to opt out of the federal exemption scheme; filers domiciled in Kansas must use Kansas state exemptions on Schedule C.

Federal opt-out

11 U.S.C. § 522(b)(2) permits states to limit their residents to state-law exemptions. Kansas has done so by statute at K.S.A. § 60-2312(b). Federal § 522(d) exemptions are therefore unavailable to filers whose domicile under 11 U.S.C. § 522(b)(3)(A) is Kansas.

Domicile for exemption-selection purposes is governed by the 730-day rule in § 522(b)(3)(A): the debtor must apply the exemptions of the state where the debtor was domiciled for the 730 days preceding filing, or, if not domiciled in a single state for that period, the state where the debtor was domiciled for the greater part of the 180 days preceding the 730-day window.

Principal Kansas exemptions

Homestead — K.S.A. § 60-2301

Kansas provides one of the most generous homestead exemptions in the country: unlimited dollar value, subject only to acreage limits. The protected residence may consist of up to 1 acre within a city or town, or 160 acres of farming land outside city limits. Federal law caps homestead claims at the 11 U.S.C. § 522(p) amount (currently $189,050) for property acquired during the 1,215 days preceding filing.

Motor vehicle — K.S.A. § 60-2304(c)

Up to $20,000 of equity in one motor vehicle. The exemption rises to the full value of an equipped vehicle when the vehicle is designed or equipped for a person with a disability.

Personal property — K.S.A. § 60-2304

Includes household furnishings; one year's worth of clothing and food; jewelry up to $1,000; and a burial plot. The statute itemizes the categories.

Tools of the trade — K.S.A. § 60-2304(e)

Up to $7,500 in books, tools, equipment, breeding stock, seed, and grain reasonably necessary to carry on a profession, trade, business, or occupation.

Wages — K.S.A. § 60-2310

The greater of 75% of disposable earnings, or 30 times the federal minimum wage per week, is exempt from garnishment and protected as wages in a bankruptcy case.

Retirement and public benefits

ERISA-qualified retirement accounts are excluded from the estate under Patterson v. Shumate, 504 U.S. 753 (1992). IRAs and Roth IRAs are exempt up to the cap in 11 U.S.C. § 522(n) (currently $1,512,350). Social Security, unemployment compensation, workers' compensation, and veterans' benefits are protected by federal anti-attachment statutes and Kansas-specific provisions in K.S.A. § 60-2313.

Insurance proceeds — K.S.A. § 40-414

Proceeds from a life insurance policy and the cash value of a policy in force are protected from creditors of the insured.

Where exemptions are claimed in the case

Exemptions are claimed on Schedule C (Official Form 106C). The trustee or any creditor has 30 days after the conclusion of the § 341 meeting of creditors to object under Fed. R. Bankr. P. 4003(b). If no objection is filed, the claimed exemptions are deemed allowed under Taylor v. Freeland & Kronz, 503 U.S. 638 (1992).

Statutory amounts are periodically adjusted by the Kansas Legislature. Always verify current dollar limits against the official Kansas Revisor of Statutes site at ksrevisor.org before filing. Federal cap amounts under 11 U.S.C. § 522 adjust every three years per 11 U.S.C. § 104.

See also

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