Law Offices of
Mark A. Wortman |
9229 Ward Parkway
Suite 255
Kansas City
Missouri
64114 |
| Tel |
(816) 523-6100 |
| Fax |
(816) 523-6106 |
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| Office Information
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Bankruptcy Exemptions
WE ARE A KANSAS CITY DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE
Exemptions
Experienced Kansas City bankruptcy lawyer Mark Workman will help you with your debt relief. Kansas City Bankruptcy Lawyer practices in Missouri and Kansas. The bankruptcy law provides for "exemptions" that debtors can use to protect property. If an exemption can be applied to a particular item of property, then that property is protected and it cannot be taken and sold to pay creditors in a Chapter 7. Exemptions are also relevant in a Chapter 13 case because non-exempt property must be valued and the equivalent in cash paid to the creditors through the plan, so properly applying exemptions can drastically affect the amount of the plan payment. Exemptions exist for all types of property, such as real estate, vehicles, household and personal goods, retirement plans, and sometimes even cash. Although bankruptcy law is primarily federal, and the federal law does provide its own set of exemptions, in the vast majority of Chapter 7 and Chapter 13 cases, Missouri and Kansas state exemption laws are used.
Residency restrictions do apply, however, and although there is only a roughly three month (greater part of 180 days) residency requirement to file the bankruptcy case itself, there is a 2 year requirement for state exemptions. The appropriate state exemptions to be used are those of the state where the debtor's domicile was located for the 730 day period (2 years) prior to the filing of the case. If the debtor's residence was not located in one single state for that 2 year period, then the state where the debtor's domicile was located for the 180 day period (roughly 6 months) before the 2 year period, or for a longer portion of such 180 day period than any other place, is used. This means that it is possible for a debtor to file bankruptcy in one state, but will have to use the exemptions from another state, or the federal exemptions.
It is important to note that the term “exemption” means the ability to protect income or property from creditors, it does not mean that it exempt from inclusion in income for purposes of qualification for bankruptcy or the means test.
Bankruptcy Exemptions for Missouri and Kansas
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Missouri Bankruptcy Exemptions
| Exemption |
Individual |
Joint |
Household goods, furnishings, clothing, books, appliances, musical instruments, animals, crops |
$3000 |
$6000 |
Motor Vehicle |
$3000 |
2@$3000 max each vehicle |
Homestead |
$15000 |
$15000 |
Mobile Home (land not exempt) |
$5000 |
$10000 |
Wedding Ring |
$1500 |
$3000 |
Other Jewelry |
$500 |
$1000 |
Tools of the Trade |
$3000 |
$6000 |
Wild card (can be used for any property, account, or cash) |
$600 |
$1200 |
Head of Household (can be used for any property , account, or cash |
$1250+$350 for each child |
$1250+$350 for each child |
Unmatured Life insurance dividends, interest, loan value |
$150,000 |
$300,000 |
Qualified retirement plan |
Unlimited |
Unlimited |
Retirement benefits- local government employees |
Unlimited |
Unlimited |
Retirement benefits – city employees |
Unlimited |
Unlimited |
Retirement benefits- police and highway patrol |
Unlimited |
Unlimited |
Retirement benefits-state employees |
Unlimited |
Unlimited |
Retirement benefits – teachers and school employees |
Unlimited |
Unlimited |
Retirement benefits – special consultants on retirement, aging |
Unlimited |
Unlimited |
Retirement benefits – administrative judges and legal advisors |
Unlimited |
Unlimited |
Burial plots |
1 acre or $100 |
2 acres or $200 |
Workers compensation claims or funds |
Unlimited |
unlimited |
Financial responsibility deposits with state treasurer |
Unlimited |
Unlimited |
Specific partnership property |
Unlimited |
Unlimited |
Life insurance benefits |
Unlimited |
Unlimited |
Surviving spouse of judge |
Unlimited |
Unlimited |
Unmatured life insurance |
Unlimited |
Unlimited |
Health aids |
Unlimited |
Unlimited |
Government benefits and public assistance (social security, unemployment, VA, disability |
Unlimited |
Unlimited |
Alimony or support |
$750 per month |
$750 per month |
Reasonable and necessary stock bonus, pension, annuity, or retirement plan payments |
Reasonable and necessary |
Reasonable and necessary |
Wrongful death awards |
Reasonable and necessary |
Reasonable and necessary |
Tenancy by the entirety property |
Certain circumstances |
Certain circumstances |
Net earnings |
75% , 90% if head of household |
75%, 90% if head of household |
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Kansas Bankruptcy Exemptions
| Exemption |
Single |
Joint |
Household goods, furnishings, clothing, books, appliances, musical instruments, animals, crops |
Unlimited |
Unlimited |
Motor Vehicle |
$20000 |
2@20,000 |
Homestead |
Unlimited value if under 160 acres farm land or 1 acre city |
Unlimited value if under 160 acres farm land or 1 acre city |
Mobile Home (land not exempt) |
Unlimited value if under 160 acres farm land or 1 acre city |
Unlimited value if under 160 acres farm land or 1 acre city |
Jewelry |
$1000 |
$2000 |
Trade tools, breeding stock, seed grain, growing plants |
$7500 |
$15000 |
Qualified retirement plan |
Unlimited |
Unlimited |
Retirement benefits- police and firemen |
Unlimited |
Unlimited |
Retirement benefits – state school employees |
Unlimited |
Unlimited |
Retirement benefits- court reporters |
Unlimited |
Unlimited |
Retirement benefits- judges |
Unlimited |
Unlimited |
Retirement benefits – public employees and elected officials |
Unlimited |
Unlimited |
Retirement benefits – Highway Patrol |
Unlimited |
Unlimited |
Retirement benefits – administrative judges and legal advisors |
Unlimited |
Unlimited |
Funds held for prearranged funeral agreement |
Unlimited |
Unlimited |
Luggage detained by innkeeper |
Unlimited |
unlimited |
Public Assistance |
Unlimited |
Unlimited |
Life Insurance |
Unlimited if case filed greater than 1 year after policy |
Unlimited if case filed greater than 1 year after policy |
Fraternal Benefit Society benefits |
Unlimited |
Unlimited |
Liquor club or license |
Unlimited |
Unlimited |
Workers Compensation |
Unlimited |
Unlimited |
Unemployment Compensation |
Unlimited |
Unlimited |
National Guard uniforms, arms, and equipment |
Unlimited |
Unlimited |
Specific Partnership Property |
Unlimited |
Unlimited |
Burial Plot |
Unlimited |
Unlimited |
Earnings |
Greater of 75% or 30x federal minimum wage |
Greater of 75% or 30x federal minimum wage |
Crime victims separation award |
Unlimited |
Unlimited |
Liquor license |
Unlimited |
Unlimited |
Cemetery trust fund money |
Unlimited |
Unlimited |
Property listed in 11 USC §522(d) |
11 USC §522(d) |
11 USC §522(d) |
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Missouri and Kansas Bankruptcy Lawyer
Mark A. Wortman is an experienced Kansas City Bankruptcy Lawyer practicing in Missouri and Kansas. Our law firm handles Business and Individual Chapter 7 cases as well as Consumer Chapter 13 reorganization cases in the Western District of Missouri and the District of Kansas. Contact us to talk to a Kansas City bankruptcy attorney today.
Related Topics:
Chapter 7 Bankruptcy
Chapter 7 Means Test
Chapter 13 Bankruptcy
Chapter 13 Plan & Plan Payment
Bankruptcy Exemptions |
Practice Areas
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