Kentucky State Bankruptcy Exemptions
Kentucky follows the federal bankruptcy exemptions at 11 U.S.C. § 522(d)
(d) The following property may be exempted under subsection (b)(2) of this
section:
(1) The debtor's aggregate interest, not to exceed $ 18,450 in value, in real
property or personal property that the debtor or a dependent of the debtor uses
as a residence, in a cooperative that owns property that the debtor or a
dependent of the debtor uses as a residence, or in a burial plot for the debtor
or a dependent of the debtor.
(2) The debtor's interest, not to exceed $ 2,950 in value, in one motor vehicle.
(3) The debtor's interest, not to exceed $ 475 in value in any particular item
or $ 9,850 in aggregate value, in household furnishings, household goods,
wearing apparel, appliances, books, animals, crops, or musical instruments,
that are held primarily for the personal, family, or household use of the
debtor or a dependent of the debtor.
(4) The debtor's aggregate interest, not to exceed $ 1,225 in value, in jewelry
held primarily for the personal, family, or household use of the debtor or a
dependent of the debtor.
(5) The debtor's aggregate interest in any property, not to exceed in value $
975 plus up to $ 9,250 of any unused amount of the exemption provided under
paragraph (1) of this subsection.
(6) The debtor's aggregate interest, not to exceed $ 1,850 in value, in any
implements, professional books, or tools, of the trade of the debtor or the
trade of a dependent of the debtor.
(7) Any unmatured life insurance contract owned by the debtor, other than a
credit life insurance contract.
(8) The debtor's aggregate interest, not to exceed in value $ 9,850 less any
amount of property of the estate transferred in the manner specified in section
542(d) of this
title [11 USCS § 542(d)], in any accrued dividend or interest under, or
loan value of, any unmatured life insurance contract owned by the debtor under
which the insured is the debtor or an individual of whom the debtor is a
dependent.
(9) Professionally prescribed health aids for the debtor or a dependent of the
debtor.
(10) The debtor's right to receive--
(A) a social security benefit, unemployment compensation, or a local public
assistance benefit;
(B) a veterans' benefit;
(C) a disability, illness, or unemployment benefit;
(D) alimony, support, or separate maintenance, to the extent reasonably
necessary for the support of the debtor and any dependent of the debtor;
(E) a payment under a stock bonus, pension, profitsharing, annuity, or similar
plan or contract on account of illness, disability, death, age, or length of
service, to the extent reasonably necessary for the support of the debtor and
any dependent of the debtor, unless--
(i) such plan or contract was established by or under the auspices of an insider
that employed the debtor at the time the debtor's rights under such plan or
contract arose;
(ii) such payment is on account of age or length of service; and
(iii) such plan or contract does not qualify under
section 401(a),
403(a),
403(b), or
408 of the Internal Revenue Code of 1986.
(11) The debtor's right to receive, or property that is traceable to--
(A) an award under a crime victim's reparation law;
(B) a payment on account of the wrongful death of an individual of whom the
debtor was a dependent, to the extent reasonably necessary for the support of
the debtor and any dependent of the debtor;
(C) a payment under a life insurance contract that insured the life of an
individual of whom the debtor was a dependent on the date of such individual's
death, to the extent reasonably necessary for the support of the debtor and any
dependent of the debtor;
(D) a payment, not to exceed $ 18,450, on account of personal bodily injury, not
including pain and suffering or compensation for actual pecuniary loss, of the
debtor or an individual of whom the debtor is a dependent; or
(E) a payment in compensation of loss of future earnings of the debtor or an
individual of whom the debtor is or was a dependent, to the extent reasonably
necessary for the support of the debtor and any dependent of the debtor.
(12) Retirement funds to the extent that those funds are in a fund or account
that is exempt from taxation under
section 401,
403,
408,
408A,
414,
457, or
501(a) of the Internal Revenue Code of 1986 [
26 USCS § 401,
403,
408,
408A,
414,
457, or
501(a)].
Note: Exemptions may have changed since our last update. For the latest updates on these property exemptions, speak to a local bankruptcy lawyer.
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