60-2315. Bankruptcy proceedings; earned income tax credits. An individual debtor under the federal bankruptcy reform act of 1978 (11 U.S.C. § 101 et seq.), may exempt the debtor's right to receive tax credits allowed pursuant to section 32 of the federal internal revenue code of 1986, as amended, and K.S.A. 79-32,205, and amendments thereto. An exemption pursuant to this section shall not exceed the maximum credit allowed to the debtor under section 32 of the federal internal revenue code of 1986, as amended, for one tax year. Nothing in this section shall be construed to limit the right of offset, attachment or other process with respect to the earned income tax credit for the payment of child support or spousal maintenance.
History: L. 2011, ch. 25, § 1; April 14.
Law Review and Bar Journal References:
"Giving Credit Where This Credit's Due: Kansas' Bankruptcy-Specific Exemption of the Earned Income Tax Credit Passes the Constitutional Test," Andrea Horvath, 24 Kan. J. L. & Pub. Pol'y, No. 2, 462 (Spring 2015).
CASE ANNOTATIONS
1. Bankruptcy-only Kansas state law exemption permitting debtors to exempt their "right to receive" tax refund based upon earned income credit did not conflict with internal revenue code indicating tax refunds are generally part of debtors' estate. In re Westby, 473 B.R. 392 (Bkrtcy. D. Kan. 2012).
2. Bankruptcy-only Kansas state law exemption permitting debtors to exempt their "right to receive" tax refund based upon earned income credit did not conflict with internal revenue code indicating tax refunds are generally part of debtors' estate. Earned Tax Credit Exempt. Constitutional Challenge Cases, 477 B.R. 791 (Bkrtcy. D. Kan. 2012).
3. Trustees could not exercise strong-arm rights to reach state and federal tax refunds which debtors had claimed as exempt under bankruptcy exemption statute. In re Murray, 506 B.R. 129 (10 th Cir. BAP 2014).
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