Attorneys: Join Our Network

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


PAID ATTORNEY ADVERTISEMENT: This Web site is a group advertisement. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. The sole basis for the inclusion of the participating lawyers or law firms is the payment of a fee for exclusive geographical advertising rights. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network. The information contained herein is not legal advice. All photos are of models and do not depict clients. All case evaluations are performed by an attorney. An attorney responsible for the content of this Site is Kevin W. Chern, Esq., licensed in Illinois with offices at 25 East Washington, Suite 510, Chicago, Illinois 60602. To see the attorney in your area who is responsible for this advertisement, please click here.

If you live in Alabama, Florida, Missouri, New York or Wyoming, please click here for additional information.

By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.