Most people want to know whether they can keep valuable property before filing for bankruptcy—especially a home. If you qualify to use the Kentucky homestead exemption, you can protect some or all of the equity in your house. In this article, we explain:
For more bankruptcy information, read How Bankruptcy Works in Kentucky.
Kentucky lets filers use either the federal exemption system or Kentucky's state exemption system, so you'll have two homestead amounts to choose between. However, you can't mix exemptions from both lists, so you'll want to select the system that will protect your most important assets.
We've listed both exemption amounts below to help you make an informed choice. We've also included links to more complete federal and state exemption lists so you'll have an easier time deciding which set will work best for you.
If you're married, remember that spouses can double some exemption amounts, but not all. Find out about other filing considerations for spouses.
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Federal Homestead Exemption |
Kentucky Homestead Exemption |
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Homestead exemption amount |
$27,900 |
$5,000 |
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Can spouses who file a joint bankruptcy double the exemption? |
$55,800 is available to spouses who co-own property. |
Yes. |
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Homestead exemption law |
11 U.S.C. § 522(d)(1) |
Ky. Rev. Stat. Ann §§ 427.060, 427.090 |
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Other information |
Amounts will adjust on April 1, 2025. |
Can be used to protect a burial plot or real property sales proceeds; amount adjusts periodically. |
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Compare other federal and state exemptions. |
Kentucky Bankruptcy Exemptions |
In Kentucky, the homestead exemption applies to any property, real or personal, you use as a home, including houses, mobile homes, and condominiums. The exemption also applies to burial plots and the proceeds from the sale of a homestead.
You can file for bankruptcy in Kentucky after living there for more than 180 days. However, you must live in Kentucky much longer before using Kentucky exemptions—at least 730 days before filing, to be exact. Otherwise, you'd use the previous state's exemptions.
But suppose you lived in multiple states during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two-year period that immediately preceded your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.
In Kentucky, the homestead exemption is automatic—you don't have to file a homestead declaration to claim the homestead exemption in bankruptcy. When filing for bankruptcy, you'll list your homestead exemption on Schedule C: The Property You Claim as Exempt when completing your bankruptcy forms.
Remember that you'll need to meet other requirements to prevent losing your home in bankruptcy. Find out more in Your Home in Chapter 7 or Your Home in Chapter 13.
You'll find Kentucky's homestead exemption in the Kentucky state statutes at Ky. Rev. Stat. Ann §§ 427.060, 427.090 (go to the Kentucky legislature website and select "Kentucky Law" from the navbar). Learn about finding state statutes in Laws and Legal Research.
Did you know Nolo has been making the law easy for over fifty years? It's true—and we want to make sure you find what you need. Below you'll find more articles explaining how bankruptcy works. And don't forget that our bankruptcy homepage is the best place to start if you have other questions!
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We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated April 7, 2022