Kentucky allows you to choose between **state exemptions** or **federal exemptions** when filing for bankruptcy—this is known as being a dual-choice state. Below is a list of commonly used **Kentucky**-specific exemptions, along with statutory references. Always confirm the latest amounts and rules with a **licensed attorney** or the **official code**, as laws and interpretations can change.
| Asset / Type of Property | Exemption Description | Statute / Code | Notes |
|---|---|---|---|
| Homestead | Real or personal property used as residence, up to \$5,000. Sale proceeds also exempt (time-limited). | KRS 427.060, 427.090 | If no real estate, you may use burial plot in lieu of homestead (KRS 427.060). |
| Annuity Contract Proceeds | Up to \$350/month. | KRS 304.14-330 | |
| Cooperative Life or Casualty Insurance Benefits | Fully exempt. | KRS 427.110(1) | |
| Fraternal Benefit Society Benefits | Fully exempt. | KRS 427.110(2) | |
| Group Life Insurance Proceeds | Fully exempt. | KRS 304.14-320 | |
| Health or Disability Benefits | Fully exempt. | KRS 304.14-310 | |
| Life Insurance Policy (Beneficiary is Married Woman) | Fully exempt from creditors. | KRS 304.14-340 | |
| Life Insurance Proceeds (Anti-Creditor Clause) | Exempt if policy prohibits using proceeds for beneficiary’s creditors. | KRS 304.14-350 | |
| Life Insurance Proceeds / Cash Value | If beneficiary is other than insured (e.g., spouse or dependent). | KRS 304.14-300 | |
| Alimony / Child Support | Exempt to extent needed for support. | KRS 427.150(1) | |
| Property of Business Partnership | Exempt from partner’s individual creditors. | KRS 362.270 | |
| Firefighters, Police Officers | Exempt pension/retirement benefits. | KRS 67A.620, 95.8878, 427.120, 427.125 | |
| IRAs | Exempt per In re Worthington. | In re Worthington, 28 B.R. 736 (W.D. Ky. 1983) | Case law indicates IRAs are protected. |
| State Employees | Exempt retirement/pension. | KRS 61.690 | |
| Teachers | Exempt retirement benefits. | KRS 161.700 | |
| Urban County Government Employees | Exempt retirement/pension benefits. | KRS 67A.350 | |
| Other Pensions | Exempt if needed for support. | KRS 427.150(2)(e), (f) | |
| Burial Plot | Up to \$5,000 in lieu of homestead. | KRS 427.060 | |
| Clothing, Jewelry, Household Furnishings | Up to \$3,000 total. | KRS 427.010(1) | Includes health aids needed. |
| Motor Vehicle | Up to \$2,500 equity. | KRS 427.010(1) | |
| Personal Injury Recoveries | Up to \$7,500, excludes pain & suffering or pecuniary loss. | KRS 427.150(2)(c) | |
| Wrongful Death Recoveries | Needed for support if you depended on the deceased. | KRS 427.150(2)(b) | |
| Lost Earnings Payments | Exempt to extent needed for support. | KRS 427.150(2)(d) | |
| Medical Expenses & Reparation Benefits (Auto) | Exempt under motor vehicle reparation law. | KRS 304.39-260 | |
| Aid to Blind, Aged, Disabled, Public Assistance | Fully exempt. | KRS 205.220 | |
| Crime Victims’ Compensation | Fully exempt. | KRS 427.150(2)(a) | |
| Unemployment Compensation | Fully exempt. | KRS 341.470 | |
| Workers’ Compensation | Fully exempt. | KRS 342.180 | |
| Library, Office Equipment, Instruments, Furnishings of Minister/Attorney/Physician/etc. | Up to \$1,000. | KRS 427.040 | |
| Motor Vehicle of Mechanic, Minister, Attorney, Doctor, etc. | Up to \$2,500 for that occupational vehicle. | KRS 427.030 | |
| Farmer’s Tools, Equipment, Livestock & Poultry | Up to \$3,000. | KRS 427.010(1) | |
| Tools of Non-Farmer | Up to \$300. | KRS 427.030 | |
| Wages | Minimum 75% of earned but unpaid wages exempt; possibly more if low-income debtor. | KRS 427.010(2), (3) | |
| Wildcard | \$1,000 of **any** property. | KRS 427.160 |
This list is for general informational purposes only and may not reflect recent legislative updates or local court rulings. It does not constitute legal advice. Always consult a licensed Kentucky bankruptcy attorney to confirm these amounts and determine their applicability to your situation.