Kentucky Bankruptcy Laws
Overwhelmed by debt? Kentucky Bankruptcy Lawyers Can Help
Many Kentucky residents have turned to filing bankruptcy as a way to get out of debt and get a fresh start. We aim to offer you basic information about filing personal bankruptcy on this page.
If you’d like to consult with a professional before making any major financial decisions, a bankruptcy lawyer can be a good resource.
Simply complete the below form and we’ll connect you with a Kentucky bankruptcy attorney near you.
Kentucky Bankruptcy Court May Protect Your Possessions
The United States Bankruptcy Code outlines two types of bankruptcy for individuals and families: Chapter 7 bankruptcy and Chapter 13 bankruptcy.
Chapter 7 bankruptcy offers filers a discharge of unsecured debts. Chapter 7 is sometimes referred to as a “liquidation” bankruptcy because a bankruptcy trustee can sell a filer’s non-exempt assets to pay off his or her creditors.
But don’t panic, Kentucky bankruptcy law protects many possessions from the liquidation sale.
Homestead
Up to $5,000 for real estate used as primary residence.
Wages
75 percent of your earnings.
Automobiles
One vehicle worth up to $2,500.
Other Property
- Up to $3,000 worth of household furnishings, household goods, clothing, appliances, jewelry, books.
- Up to $3,000 worth of livestock, tools and farming equipment.
- 100 percent of the value of any professionally prescribed health aids.
The other type of personal bankruptcy, Chapter 13 bankruptcy, is often referred to as “reorganization” bankruptcy because it gives filers time to catch up on their debts.
By following a 3-5 year repayment plan, Chapter 13 filers get a chance to catch up on late payments while keeping on top of current payments.
Many Kentuckians file Chapter 13 bankruptcy to prevent mortgage foreclosure because the bankruptcy automatic stay provision prevents creditors from making any collection action. In Chapter 13 cases, that often means no collections, including foreclosure or repossessions, for three to five years.
Talk to a Kentucky Bankruptcy Lawyer Today
Kentucky’s bankruptcy laws can be complex, which is why we make it easy to be connected with a local bankruptcy lawyer who may be able to help answer your questions.
Simply call us at 877-349-1309 or fill out the free bankruptcy case review form on this page and we’ll connect you with a Kentucky bankruptcy attorney practicing near you.
Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.
Laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local bankruptcy lawyer.
Read the full Kentucky Bankruptcy Code
