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If I file bankruptcy can I keep my house?

When you file for bankruptcy any property you own will be classified as exempt property or non-exempt property.  Exempt property is safe during the bankruptcy.  Non-exempt property can be sold for the benefit of your creditors.  Each state is allowed to decide what exemptions are available to their residents.

In Kansas, a Kansas resident is allowed to keep their homestead subject to certain restrictions:

  • The home must be located on one acre or less if within the city limits;
  • If outside the city limits, the home must be located on 160 contiguous acres or less.

A further restriction under federal law, you must have purchased your home more than 3 years and 3 months before you file your bankruptcy case.  If you have transferred equity from a previous Kansas home within the 3 years and 3 months your home may still be exempt.

If you meet the state and federal requirements, there is no monetary limit to the homestead exemption in Kansas.

If you were renting and purchased your home within 3 years and 3 months before filing your bankruptcy case, your Kansas homestead exemption will be limited to $125,000.

A homestead can be a house, manufactured home, mobile home, and outbuildings located on the property of the homestead.  A homestead must be occupied by you when you file your bankruptcy case.  You cannot claim the homestead exemption for vacation homes or rental property.

In Missouri, a Missouri resident is allowed to keep their homestead subject to certain restrictions:

  • The home is subject to a $15,000 monetary limit
  • Mobile homes are subject to a $5,000 monetary limit.

The monetary limits cannot be doubled by joint filers, so married filers are limited to the $15,000 or $5,000 limit.

This is a quick overview of the homestead exemptions in Kansas and Missouri.  To fully understand exemptions and how they apply to your individual situation you need to arrange a free bankruptcy consultation with a Kansas City bankruptcy attorney.

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