Kentucky Bankruptcy Laws & Exemptions
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Kentucky Bankruptcy Laws

Overwhelmed by debt? Kentucky Bankruptcy Lawyers May Be Able to 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 someone before making any major financial decisions, a bankruptcy lawyer may be a good resource.

Simply complete the below form and we’ll connect you with a Kentucky bankruptcy attorney near you.

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Kentucky Bankruptcy Exemptions 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 bankruptcy 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, bankruptcy law protect many possessions from the liquidation sale. You have the option of choosing either the exemptions provided by federal bankruptcy laws or those provided under Kentucky bankruptcy laws. But you can only choose one list of exemptions to use. The exemptions listed below are the federal bankruptcy exemptions.


Up to $21,625 for real estate used as primary residence.


One vehicle worth up to $3,450.

Other Property

  • Up to $11,525 worth of household furnishings, household goods, clothing, appliances, books.
  • 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, filing bankruptcy under Chapter 13 may give you the 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 lawyer 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.

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