Kansas Bankruptcy Exemptions
Clarifying legislative intent underlying the Kansas bankruptcy exemption value amounts
As a condition of approval for Kansas bankruptcy exemption claims, each debtor is assigned the burden of proof for showing each item is covered by an appropriate statutory provision. Both the trustee and the court review claims, and may require sworn testimony to clarify legal issues. Creditors may also file motions objecting to property claimed as exempt, and force a hearing to resolve disputes.
Court interpretation of property definitions
Despite the best intentions, Kansas legislators cannot anticipate all possible applications of exemption statutes. Some assets, and especially financial products and pseudo-financial instruments, defy classification in all circumstances yet may nevertheless remain exempt because of their purpose. By way of example, consider the popularity of stock options in compensation plans. If properly designated as one of the permissible retirement assets covered by Kansas bankruptcy exemptions, the contractual nature of future appreciation potential may be claimed as exempt. Frequently, adversary proceedings are required to protect disputed property issues.