Bankruptcy Basis in Missouri and Kansas part one

Part One
There are 4 types of bankruptcy that people can file. There are other types – for other entities like rail roads companies can file. But there are only 4 types for people. First, let’s talk about the ones that most of my clients don’t file. Chapter 11 is reorganization; it is not for most people because the retainer for the attorney’s fees is over $10,000. The second type is for farmers. That leaves us with Chapter 7 and Chapter 13. Chapter 7 is liquidation, and Chapter 13 is reorganization.

I file more Chapter 13s than Chapter 7s in my practice because my clients have houses and cars to save and they can do that can do in Chapter 13. Chapter 7 is liquidation, but most people don’t lose anything. Missouri and Kansas both decided to only allow their state’s exemptions and you can’t use the federal exemptions in bankruptcy cases … unless you are not a resident of the state.

Kansas is a great debtor state. Missouri is a creditor state. This makes practice in our border town very interesting. I tell my clients and my staff to walk me through the following questions before I can answer bankruptcy questions. First, is the case Kansas or Missouri? Second, is the case Chapter 7 or Chapter 13? Third, is the case filed? The answers to these questions change my advice.

Why is Kansas a debtor state? Because the exemptions are very good for debtors in Kansas, so it is a good place to be a debtor. The exemption for cars/trucks is $20,000 per car per debtor. Compared with Missouri’s cars/trucks exemption is only $3,000 per debtor per car. In Kansas, the household goods exemption is all of the furniture, clothing, heating fuel that you and your family need for the next year. In Missouri, the household good exemption is $3,000 per debtor. The crazy part is there is no exemption for cash in Kansas. Missouri has a wild card exemption and exemptions for each child under the age of 18 and head of house hold exemption which can be applied to cash, tax refunds or any thing that they want to exempt. Missouri is a creditor state because it is a good place to be a creditor.

This blog is not intended to give anyone legal advice. See an attorney for legal advice in your case.

If you are looking for an attorney in the Kansas City Area, call our office for an appointment at (816-453-2240) or email us at www.bratcherlaw@yahoo.com. We represent Debtors in Chapter 7 and 13s.