Kansans in financial distress often ask, “Will I will lose my home if I file bankruptcy?“ The simple answer is that most Kansans do not lose their home if they file for bankruptcy. We are lucky in Kansas to have a homestead law that protects one acre of land in the city and 160 acres of land in the country from forced sale. There is no limit on the dollar value of the homestead.
The longer answer to the question, though, is that some Kansans filing for bankruptcy relief will lose their homesteads to mortgage foreclosure, but probably not to the bankruptcy. Occasionally, bankruptcy filers lose their homes in bankruptcy because their home does not qualify for Kansas homestead protection or other exception to the general rule.
Kansas homesteads are not exempt for debts to acquire or improve the home, or for voluntary liens such as mortgages and home equity loans, or for real estate taxes. But, generally, Kansas homesteads cannot be sold to pay medical or credit card debts even if the creditor sues and obtains a judgment. That is true inside and outside bankruptcy. so most most Kansans can file bankruptcy and keep their home (if the mortgage and taxes are paid). As with all things legal, there are exceptions to the general rules and debtors should obtain seek individualized legal advice about their circumstances.
Contact attorneys Mark Neis or Jill Michaux at the Bankruptcy Law Office to find out if your home is exempt under the Kansas homestead law and whether you will lose your home if you file bankruptcy.