{"id":286851,"date":"2021-04-22T13:55:48","date_gmt":"2021-04-22T18:55:48","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/bankruptcy-laws-by-state\/kentucky-bankruptcy-exemptions-and-law.html"},"modified":"2021-04-22T14:10:49","modified_gmt":"2021-04-22T19:10:49","slug":"kentucky-bankruptcy-exemptions-and-law","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/bankruptcy-laws-by-state\/kentucky-bankruptcy-exemptions-and-law.html","title":{"rendered":"Kentucky Bankruptcy Exemptions and Law"},"content":{"rendered":"\n
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Kentucky Bankruptcy Exemptions and Law<\/h1>\n
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\n By Bret Thurman, J.D.<\/a> | Legally reviewed by Bridget Molitor, JD<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Most people cannot weather the financial storms of life. About 60%<\/a> of Kentuckians have less than $1,000 in savings. A significant number of families have nothing at all. These financial storms include things like serious illness, job loss, and other events which affect almost every family at one time or another.
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Families react to these events in different ways. Some use credit cards to pay bills when money is tight. Others stop paying secured debts, like home mortgage payments, and use these funds elsewhere. These stopgaps begin downward financial spirals that can seem endless.<\/p>\r\n

These families basically have two alternatives. They can watch things get worse, or they can work with a Kentucky bankruptcy attorney<\/a> and regain control over their own financial situations. Bankruptcy has a number of other benefits as well, which are outlined below. Keep reading to find out what this federal debt relief program can do for you and your family, both now and in the future.<\/p>\r\n

<\/a>Kentucky Bankruptcy Law<\/h2>\r\n

Frequently, federal and state laws control the same area. Criminal law is a good example. Some offenses could be charged at the federal or state level. Bankruptcy is another good example. The federal Bankruptcy Code<\/a> applies in most areas. The Kentucky Revised Statutes<\/a> apply in other areas.<\/p>\r\n

Bankruptcy 101<\/h3>\r\n

One sentence, albeit a rather long sentence, tells you pretty much everything you need to know about bankruptcy. According to former Supreme Court Justice James Clark McReynolds, \u201cIt is the purpose of the bankrupt act to convert the assets of the bankrupt into cash for distribution among creditors, and then to relieve the honest debtor from the weight of oppressive indebtedness, and permit him to start afresh free from the obligations and responsibilities consequent upon business misfortunes."<\/p>\r\n

The two basic elements of this fresh start are examined below. Some other aspects of McReynolds’ summary, including qualifying for bankruptcy and property exemptions are examined later.<\/p>\r\n

The Automatic Stay<\/b><\/p>\r\n

McReynolds penned these words in 1915. A little over a hundred years later, creditors are much less patient with distressed debtors. In fact, banks can legally begin processes like repossession and foreclosure if one payment is one day late.<\/p>\r\n

Bankruptcy’s automatic stay<\/a> protects debtors from such actions. Section 362 of the Bankruptcy Code prohibits all forms of adverse creditor actions, such as:<\/p>\r\n