FRANK D. TAFF, J.D., Attorney at Law - 3601 SW 29th Street, Topeka, Kansas 66614
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What Are Bankruptcy Exemptions?

YOUR HOME
The Kansas homestead exemption protects the equity in your home or principal residence. You can protect the entire value of the real property or mobile home that you occupy, if it is one acre or less within the city limits or 160 acres or less of farm land. K.S.A. 60-2301, Kansas Constitution Article 15 § 9

YOUR LIFE INSURANCE
Life insurance proceeds, if you file bankruptcy more than a year after the policy went into effect. K.S.A. 40-414 and 60-2313(a)(7).  Fraternal society benefits are also exempt BY K.

WHAT IS A TIME-BARRED DEBT?

State law usually determines when the statute of limitations expires on different types of debt.  It is different for oral obligations and written obligations.  The statute begins to run when the debt has matured and you fail to make a payment on it.  It stops, or is suspended, if you make a payment, or sometimes, make a new promise to repay.  It depends on two things: the type of debt and the law that applies, being either that of the state where you live or the state specified in your credit contract. For example, the statute of limitations for credit card debt in a few states may be as long as 10 years, but most states impose a period of three to six years. To determine the statute of limitations on different kinds of debts under Kansas law, check with us, if you are being threatened with collection on an old debt or bill.

But, You Can't Discharge a Federal Tax Lien in Chapter 7

Bankruptcy will not wipe out prior recorded tax liens.  A Chapter 7 bankruptcy will wipe out your personal obligation to pay the debt, and prevent the IRS from going after your bank account or wages, but if the IRS recorded a tax lien on your property before you file for bankruptcy, the lien will remain on the property.  In effect, this means you'll have to pay off the tax lien in order to sell the property.  Of course, if you rent and own no real estate, a federal tax lien may not be a concern.

Can You Get Rid of Income Taxes by Filing Bankruptcy?

Everyday, we see TV ads saying they can get the IRS to drastically reduce your taxes.  You pay them a bunch of money up front and usually receive nothing in exchange!

But, did you know bankruptcy can eliminate a lot of back taxes without paying money up front?  That can be done through a Chapter 13 wage earner plan, if the taxes are more than three years old.  Call us for more information.

Bankruptcy cannot discharge taxes for which no return was filed, however.  To quote one court:  "The goal of bankruptcy is to give the honest but unfortunate debtor a fresh start, but the law has always provided that certain debts cannot be discharged.
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What Are Bankruptcy Exemptions?
WHAT IS A TIME-BARRED DEBT?
But, You Can't Discharge a Federal Tax Lien in Chapter 7
Can You Get Rid of Income Taxes by Filing Bankruptcy?

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