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I Live In Kentucky. Will I Lose Everything If I File Bankruptcy?

On Behalf of | Nov 3, 2011 | Bankruptcy

In a Chapter 7 case, you can keep all property which the law says is “exempt” from the claims of creditors. The exemption law that applies to you depends upon the state you reside in.

If you live in Kentucky, you may claim the protection of the federal exemption law or the state exemption laws. Most cases filed in Kentucky do use the federal exemptions and you should consult a skilled bankruptcy attorney to determine whether the federal or state exemptions should be used.

Federal exemptions include:

  • $21,625.00 in equity in your home;
  • $3,450.00 in equity in your car;
  • $525.00 per item in any household goods up to a total of $11,525.00;
  • $2,175.00 in things you need for your job (tools, books, etc.);
  • $1,075.00 in any property, plus part of the unused exemption in your home, up to $11,625.00;
  • Your right to receive certain benefits such as social security, unemployment compensation, veteran’s benefits, public assistance, and pensions.