In these uncertain times, financial storms are hitting more and more families in Kentucky. These financial difficulties include job loss, illness, divorce, or other unexpected emergencies.
To find reprieve, some people turn to credit cards or divert money meant for secured debts. One poor financial decision leads to another and a never-ending cycle leaves them neck–deep in more debt, stressed, and with almost no way out, except filing for bankruptcy.
Bankruptcy not only gives you a fresh start but also a chance to get your finances back in order. If you’ve decided to file for bankruptcy, you may wonder what it all means for your possessions such as your pension, car, or home, and what exemptions can do to help.
What Are Bankruptcy Exemptions?
Bankruptcy exemptions are federal and state laws that allow you to keep certain property when you file for bankruptcy. If you file for Chapter 7 bankruptcy certain items are exempt from liquidation and for Chapter 13, certain items are exempt from being considered as part of the repayment plan.
In Kentucky, you can either use the federal or state exemptions when filing for bankruptcy but you cannot use both or mix and match items from both lists. An experienced bankruptcy attorney can assist you to determine the best chapter in your current situation.
Chapter 7 Bankruptcy Exemptions
- Real or personal property used as a family residence or a burial plot not exceeding $5,000
- One motor vehicle not exceeding $2,500
- Library, office equipment, instruments, and furnishings for a minister, attorney, physician, surgeon, dentist, veterinarian, or chiropractor, not exceeding $1,000
- Tools, livestock, and pets not exceeding $3,000
- Non-farm tools not exceeding $300
- Alimony or child support
- Personal injury recovery up to $7,500
- Clothing, adornments, and jewelry not exceeding $3,000
- Social security benefits, 401(k)s, 403(b)s, SIMPLE and Roth IRAs, social security benefits, equity, and life insurance plans
- Nonexempt real or personal property not exceeding $1,000
- Real or personal property not exceeding $27,900
- One motor vehicle not exceeding $,4,500
- Tools of trade not exceeding $2,800
- Spousal and child support
- Social security, disability, veteran, illness, and unemployment benefits
Chapter 13 Bankruptcy
For Chapter 13 bankruptcy, you agree to pay arrearage through a three-five repayment plan and you get to :
- Maintain your regular payment
- Keep all your property
- Save your home from foreclosure
- Save your car from repossession
Hire an Experienced Bankruptcy Attorney
Bankruptcy law is extremely complicated. Getting a seasoned bankruptcy attorney in Kentucky like W. Ron Adams to take you through the process gives you peace of mind that your affairs are in safe hands. Contact us today for a free bankruptcy consultation to get started.
