What Do I Get to Keep If I File Chapter 7 Bankruptcy in Kansas?
The most common items that a debtor gets to keep in a chapter 7 bankruptcy in Kansas are as follows:
- Equity in a primary residence – this is practically unlimited so long as the home has been owned for more than three (3) years, and you live on less than one acre inside a city limit (160 acres if not in a city limit).
- Up to $20,000.00 equity value in a car (two cars if married).
- Retirement accounts – again virtually unlimited.
- All household goods and furnishings and clothing (but jewelry is only $1k per person).
- Tools of a trade up to $7,500.00
In a chapter 13 case, even many non-exempt assets can still be protected with a little diligent planning. Chapter 13 involves making a monthly payment to the bankruptcy court for 3-5 years depending on various circumstances. Kansas has some of the most liberal exemption laws in the country. Common assets that are sometimes lost in a bankruptcy case are: bank account balances on the date of filing; claims for personal injury; third cars or motorcycles, boats or other extra vehicle; pending tax returns; and other real estate.