Bankruptcy exemptions protect the equity in your property from creditors and the bankruptcy court—preventing the equity from being used to pay your creditors. Equity is the value of property after you subtract the amount of any liens against the property from its fair market value.

The equity in your home is one such asset in bankruptcy. And bankruptcy exemptions—including the homestead exemption—allow you to protect the property you will need to maintain a home and employment after bankruptcy.

Bankruptcy exemption amounts vary by state, so the amount you will be able to protect will depend on where you live and the type of bankruptcy you file (Chapter 7 or Chapter 13).

In Kansas, bankruptcy exemptions play a crucial role in both Chapter 7 and Chapter 13 bankruptcy filings. The state allows debtors to use state exemptions instead of federal exemptions. One of the key exemptions is the homestead exemption, which protects a certain amount of equity in the debtor's primary residence. As of the knowledge cutoff in 2023, in Kansas, an unlimited amount of equity in the home or manufactured home (used as a residence) is protected by the homestead exemption, as long as the property does not exceed one acre in a city or town, or 160 acres on a farm. Other exemptions in Kansas include personal property, such as clothing, household goods, and certain amounts of cash, as well as tools of the trade, pensions, public benefits, and insurance proceeds, among others. The specific amounts and types of exemptions are subject to change, so it is advisable to consult with an attorney for the most current information and to understand how these exemptions apply to an individual's situation.