Bankruptcy Exemptions in Kentucky
What property you can keep in bankruptcy in Kentucky: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: 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). KRS 427.170
| State or federal exemptions | 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). Spouses filing together must both use the same system (11 U.S.C. 522(b)(1)). Source: KRS 427.170 |
|---|---|
| Homestead exemption | 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. No acreage limit is stated. Source: KRS 427.060 |
| Car exemption | One motor vehicle and its necessary accessories (including one spare tire), up to $2,500 in aggregate value. Source: KRS 427.010(1) |
| Wildcard exemption | In bankruptcy only: a general exemption of up to $1,000 that can be applied to any real or personal, tangible or intangible property. Source: KRS 427.160 |
| Retirement accounts | 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. Source: KRS 427.150(2)(e)-(f) |
| Wages | 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. This is the garnishment limit, not a separate bankruptcy wage exemption. Source: KRS 427.010(2)-(3) |
More Kentucky bankruptcy
FAQ
Can you use the federal bankruptcy exemptions in Kentucky?
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).
How much home equity is protected in bankruptcy in Kentucky?
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.
Can I keep my car in bankruptcy in Kentucky?
One motor vehicle and its necessary accessories (including one spare tire), up to $2,500 in aggregate value.
Does Kentucky have a wildcard exemption?
In bankruptcy only: a general exemption of up to $1,000 that can be applied to any real or personal, tangible or intangible property.
Are retirement accounts protected in bankruptcy in Kentucky?
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.
Are wages protected in bankruptcy in Kentucky?
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.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.