Exemptions determine what property you get to keep when you file bankruptcy. Understanding them is critical -- they can mean the difference between keeping and losing your home, car, and savings.
Bankruptcy exemptions are laws that protect certain property from being taken to pay your creditors. In Chapter 7, non-exempt property can be sold by the trustee. In Chapter 13, the value of non-exempt property affects how much you must pay through your plan.
Missouri requires you to use state exemptions -- you cannot choose the federal exemption system. Kansas gives you the choice between state and federal exemptions.
Protects up to $15,000 of equity in your primary residence. Equity is your home's current market value minus what you owe on the mortgage. If you are married and filing jointly, the exemption doubles to $30,000.
Example: Your home is worth $200,000 and you owe $190,000 on the mortgage. Your equity is $10,000 -- fully protected under the $15,000 exemption.
RSMo 513.475
Protects up to $3,000 of equity in one motor vehicle. If you owe more than the car is worth (you are "underwater"), there is no equity to protect and the exemption is not needed.
Example: Your car is worth $10,000 and you owe $8,000 on the loan. Your equity is $2,000 -- fully protected.
RSMo 513.430(1)
You can protect an additional $600 of any property. Plus, if you do not use all of your homestead exemption, you can add up to $1,250 of the unused amount to the wildcard. Maximum wildcard: $1,850.
The wildcard is often applied to bank accounts, tax refunds, or additional vehicle equity.
RSMo 513.430(3)
| Property | Amount | Statute |
|---|---|---|
| Household goods, furnishings, appliances | $3,000 total | RSMo 513.430(1) |
| Clothing | $1,500 | RSMo 513.430(1) |
| Tools of trade, books, equipment | $3,000 | RSMo 513.430(1) |
| Wedding rings | $1,500 | RSMo 513.430(1) |
| Health aids | Unlimited | RSMo 513.430(8) |
| Retirement accounts (IRA, 401k, pension) | Unlimited | RSMo 513.430(10)(e) |
| Social Security benefits | Unlimited | 42 U.S.C. 407 |
| Unemployment benefits | Unlimited | RSMo 288.380 |
| Workers' compensation | Unlimited | RSMo 287.260 |
| Public assistance benefits | Unlimited | RSMo 513.430(10)(a) |
| Life insurance proceeds | Unlimited (if for benefit of spouse/child) | RSMo 513.430(7) |
If you live on the Kansas side of Kansas City, you have a choice between Kansas state exemptions and federal exemptions. Key Kansas state exemptions include:
| Property | Kansas State | Federal Alternative |
|---|---|---|
| Homestead | Unlimited (1 acre urban / 160 acres rural) | $27,900 |
| Vehicle | $20,000 | $4,450 |
| Household goods | No per-item limit | $700 per item / $14,875 total |
| Wildcard | None | $1,325 + up to $14,025 unused homestead |
| Tools of trade | $7,500 | $2,800 |
| Retirement accounts | Unlimited | Unlimited |
The unlimited homestead exemption and $20,000 vehicle exemption make Kansas state exemptions significantly more protective for homeowners and car owners. Full state comparison.
Missouri's homestead exemption protects up to $15,000 of equity in your primary residence ($30,000 for married couples filing jointly). Equity is the difference between your home's value and what you owe. If you rent, this exemption does not apply to you.
Missouri's motor vehicle exemption is $3,000. You can add the wildcard exemption ($600 plus up to $1,250 of unused homestead) for a total of up to $4,850 in vehicle protection if you do not own a home.
Missouri's wildcard exemption is $600 plus up to $1,250 of any unused homestead exemption, for a total of up to $1,850. You can apply this to any property not covered by another exemption.
Yes. Under Kansas state exemptions, the homestead exemption is unlimited in value as long as the property does not exceed 1 acre in a city or 160 acres on a farm. Kansas filers can alternatively choose federal exemptions with a $27,900 homestead cap.