Kentucky Bankruptcy Exemption List
State or Federal Exemption List Allowed
Kentucky has constructed their own list of bankruptcy exemptions, but you may use either the state list or the federal list of exemptions. The goal of the exemption list is to allow you to keep some of your assets and personal property even if you file bankruptcy.
It is important to discuss all of your personal property and what assets you may keep with a Kentucky Bankruptcy Attorney prior to filing bankruptcy. There may be some federal supplemental exemptions that you may be able to use if you choose the Kentucky exemption list. There also may be residency requirements you must meet to use the Kentucky list of exemptions. All of your assets and personal property may not have a corresponding exemption on the list.
Exemptions
|
Exemption Amount
|
Statutes
|
Homestead |
Real or personal property used as residence to $5,000; sale proceeds exempt |
427.060, 427.090 |
Public Benefits |
Aid to blind, aged, disabled, public assistance |
205.220 |
|
Crime Victims’ Compensation |
427.150(2)(a) |
|
Unemployment Compensation |
341.470 |
Pensions |
Firefighters, police officers |
67A.620, 95.8878, 427.120
427.125 |
|
IRAs |
In re Worthington, 28 B.R. 736 (W.D. KY. 1983) |
|
State employees |
61.690 |
|
Teachers |
161.700 |
|
Urban county government employees |
67A.350 |
|
Other pensions |
427.150(2)(e), (f) |
Tools of the Trade |
Library, office equipment, instruments and furnishings of minister, attorney, physician, surgeon, chiropractor, veterinarian or dentist to $1,000 |
427.040 |
|
Motor vehicle of mechanic, mechanical or electrical equipment servicer, minister, attorney, physician, surgeon, chiropractor, veterinarian or dentist to $2,500 |
427.030 |
|
Tools, equipment, livestock and poultry of farmer to $3,000 |
427.010(1) |
|
Tools of non-farmer to $300 |
427.030 |
Wildcard |
$1,000 of any property |
427.160 |
Personal Property |
Burial plot to $5,000 in lieu of homestead |
427.060 |
|
Clothing, jewelry, articles or adornment and furnishings to $3,000 total |
427.010(1) |
|
Health aids |
427.010(1) |
|
Lost earnings payments needed for support |
427.150(2)(d) |
|
Medical expenses paid and reparation benefits received under motor vehicle reparation law |
304.39-260 |
|
Motor vehicle to $2,500 |
427.010(1) |
|
Personal injury recoveries to $7,500 (not to include pain and suffering or pecuniary loss) |
427.150(2)(c) |
|
Wrongful death recoveries for person you depended on needed for support |
427.150(2)(b) |
|
Burial plot to $5,000 in lieu of homestead |
427.060 |
Miscellaneous |
Alimony, child support is needed for support |
427.150(1) |
|
Property of business partnership |
362.270 |
Insurance |
Annuity contract proceeds to $350 per month |
304.14-330 |
|
Cooperative life or casualty insurance benefits |
427.110(1) |
|
Fraternal benefit society benefits |
427.110(2) |
|
Group life insurance proceeds |
304.14-320 |
|
Health or disability benefits |
304.14-310 |
|
Life insurance policy if beneficiary is a married woman |
304.14-340 |
|
Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary’s creditors |
304.14-350 |
|
Life insurance proceeds or cash value if beneficiary is someone other than insured |
304.14-300 |
Wages
|
Minimum 75% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtors |
427.010(2), (3) |
There are certain debts such as deeds of trust, taxes, and mortgages which are discharged by filing bankruptcy. Lenders may proceed with all legal debt collection efforts if you fail to pay non-dischargeable debt.
For more information call us at 866-210-1722 or fill out the form below.