Kentucky Bankruptcy Law (KY)
How Kentucky laws affect Chapter 7 and Chapter 13 filings
Fluctuations in the value of exemptions allowed under Kentucky law result from changes in the consumer price index. Kentucky bankruptcy exemptions are determined by Kentucky state statutes exclusively, because the state chooses to "opt out" of federal exemption jurisdiction, which acts as a prohibition for state residents from claiming federal exemptions under Section 522 of the Code.
As the value amounts of the exemptions change from time to time, increases seldom keep pace with inflation. The situation is similar to increases in the federal minimum wage, in that federal protection provides only modest assistance at best. Far better, Kentucky residents who file Chapter 7 bankruptcy or consumer Chapter 13 plans should consider competent legal advice as a first choice, and only then decide if filing is the right choice. Filing is a highly effective way to stop foreclosures, retain homes, and prevent seizure of assets. The attendant cost however includes far more than the original filing fee. With the assistance of a highly qualified lawyer, pre-bankruptcy planning can minimize, and eliminate the forfeiture of assets. Retaining a lawyer should be a high priority because of recent new laws that greatly increased the requirements for legal compliance.