What Creditors Can't Take in Kentucky
Money, home and vehicle exemptions that protect your property from creditors in Kentucky.
Short answer: No general bank account exemption. Kentucky's exemption statutes protect specific property and funds (for example health savings accounts) rather than a set dollar amount in a bank account. KRS 427.010(1); KRS Chapter 427
| Money protected in a bank account | No general bank account exemption. Kentucky's exemption statutes protect specific property and funds (for example health savings accounts) rather than a set dollar amount in a bank account. Federal benefits such as Social Security deposited directly into an account are protected under federal rules (31 CFR Part 212). The $1,000 general exemption in KRS 427.160 applies only in bankruptcy. Source: KRS 427.010(1); KRS Chapter 427 |
|---|---|
| Homestead exemption | Up to $5,000 in value in real or personal property the debtor or a dependent uses as a permanent residence (or a burial plot). It does not apply against a mortgage or purchase-money debt on the home, or if the debt existed before the property was bought or improved. Source: KRS 427.060 |
| Vehicle exemption | One motor vehicle and its necessary accessories (including one spare tire), up to $2,500 in value. KRS 427.040 (an additional vehicle up to $2,500, listed with professional libraries): https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=18543 Source: KRS 427.010(1); KRS 427.040 |
| Bankruptcy exemptions | Kentucky is not an opt-out state: a debtor may choose the federal bankruptcy exemptions (11 U.S.C. 522(d)) or Kentucky's own exemptions. Kentucky adds a $1,000 general exemption for debtors using the state exemptions in bankruptcy. KRS 427.160: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=18558 Source: KRS 427.170; KRS 427.160 |
Where to get help in Kentucky
More Kentucky debt & collections
- Statute of Limitations on Debt in Kentucky
- Wage Garnishment in Kentucky
- How to Respond to a Debt Collection Lawsuit in Kentucky
- All Kentucky debt & collections rules
FAQ
How much money in a bank account is protected from creditors in Kentucky?
No general bank account exemption. Kentucky's exemption statutes protect specific property and funds (for example health savings accounts) rather than a set dollar amount in a bank account.
What is the homestead exemption in Kentucky?
Up to $5,000 in value in real or personal property the debtor or a dependent uses as a permanent residence (or a burial plot). It does not apply against a mortgage or purchase-money debt on the home, or if the debt existed before the property was bought or improved.
Can a creditor take my car in Kentucky?
One motor vehicle and its necessary accessories (including one spare tire), up to $2,500 in value.
Which bankruptcy exemptions can I use in Kentucky?
Kentucky is not an opt-out state: a debtor may choose the federal bankruptcy exemptions (11 U.S.C. 522(d)) or Kentucky's own exemptions. Kentucky adds a $1,000 general exemption for debtors using the state exemptions in bankruptcy.
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.