Kentucky has a list of property exemptions that are applicable for someone who is filing a Chapter 7 bankruptcy in that state. These exemptions are the only ones allowed, as the federal exemptions may not be used in Kentucky. Therefore, if you are filing for bankruptcy in the state of Kentucky, you must use the Kentucky exemption list for the protection of assets. It is important to know what these exemptions are and how they are to be listed when filing bankruptcy.
How to Keep Your Car
Having to give up all forms of transportation when filing Chapter 7 can be a frightening thought, but the Kentucky exemption laws do allow for the retention of a lower value car. A wild card is also available for covering any property you choose to a specified amount. The wild card amount can be applied to any property you desire, including a motor vehicle.
- Motor vehicle to $2,500 may be retained
- The wild card exemption is for any property up to $1,000
How to Keep Your Home
Being allowed to keep your primary residence while filing for bankruptcy is also a big concern for most people and the homestead exemption laws in Kentucky are not very supportive of that possibility. The sale of your home is probably the best way to protect the value of that asset
- Primary residence of real or personal property may be kept up to the valued amount of $5,000
- Proceeds from the sale of your home are exempt from liquidation
- The wild card exemption can be applied to your home and make the exempt amount up to $6,000
Filing Schedule C of a Bankruptcy Petition
If you are hoping to protect any of your valuable assets while going through the process of a Chapter 7 bankruptcy, then you must file what is known as a schedule C form along with your petition for bankruptcy. The form needs to include the legal descriptions for each aspect of personal property that you are would like to have exemptions for and the Kentucky state statute numbers that they are protected under.
Getting Legal Help
Filing bankruptcy is a complicated process and it is wise to contact an experienced attorney to help shield your valuable assets through the liquidation period. An attorney will have extensive knowledge on how the exemption laws work in Kentucky and be able to guide you through the bankruptcy process.
