Filing Bankruptcy in Kentucky: Means Test, Exemptions and Courts

Kentucky has two federal bankruptcy districts: the U.S. Bankruptcy Court for the Eastern District of Kentucky (https://www.kyeb.uscourts.gov) and the Western District of Kentucky (https://www.kywb.uscourts.gov).

1 person: $61,652; 2 people: $73,892; 3 people: $85,212; 4 people: $109,443; add $11,100 for each additional person over 4. These figures apply to bankruptcy cases filed on or after July 15, 2026 (the Census median income data was last updated for cases filed on or after April 1, 2026).

Filers may choose either Kentucky's exemptions or the federal bankruptcy exemptions: a Kentucky-domiciled debtor "is authorized to exempt" the property listed in 11 U.S.C. 522(d).

Up to $5,000 in real or personal property used as a permanent residence in Kentucky (or a burial plot). Does not apply against a mortgage or purchase money owed on the homestead, or to debts that existed before the property was bought or improved.

One motor vehicle and its necessary accessories (including one spare tire), up to $2,500 in aggregate value.

In bankruptcy only: a general exemption of up to $1,000 that can be applied to any real or personal, tangible or intangible property.

A person's interest in IRAs and annuities, deferred compensation accounts, tax-sheltered annuities, SEPs, pensions, profit-sharing, stock bonus and other tax-deferred retirement plans is exempt, including in bankruptcy, with exceptions for certain recent contributions. State public pensions exempt under KRS 61.690, 161.700 and 427.125 are also exempt.

Garnishment may not exceed the lesser of 25% of weekly disposable earnings or the amount above 30 times the federal minimum hourly wage. These limits do not apply to support orders, Chapter 13 bankruptcy court orders, or state or federal tax debts.

E.D. Ky. offers Electronic Self-Representation (eSR), electronic document submission, a page for debtors or those considering filing, local forms and a Chapter 13 form plan, and an intake office in Lexington. W.D. Ky. has a "Filing Without an Attorney" page, debtor resources and filing requirements.

Eastern District of Kentucky: under Local Rule 2016-2 (local rules effective December 1, 2024), the debtor's attorney in a chapter 13 case may accept, in lieu of an itemized fee application, a presumptively reasonable fee in an amount up to and including $4,500, provided a plan is confirmed, the debtor and counsel execute the Rights and Responsibilities of Chapter 13 Debtors and Their Attorneys (Local Form 2016-2(a)(i)), and counsel files a certification within 14 days of the petition. The fee includes all services through confirmation, listed post-confirmation services, representation in any two listed post-confirmation matters (e.g., responding to a motion to dismiss or for stay relief, motions to modify, incur debt or sell property), and related expenses other than filing fees and credit counseling costs; it excludes adversary proceedings and certain other matters. It may be allowed in the confirmation order. Western District of Kentucky: the court's notice provides that, effective with plans confirmed on or after 2/17/2025, the chapter 13 "Flat Fee" is $4,750.00 for cases in which the amount being paid into the plan is $10,000.00 or more, and $2500.00 for cases in which the total amount paid into the plan is less than $10,000.00 (set out in Section 5.1 of the court's Administrative Manual under Local Rule 2012-1).