Bankruptcy exemptions in Kentucky: what you can keep

Every Kentucky exemption with its amount and law, plus the federal rules that limit them.

Checked against official sources: October 25, 2026.

Short answer

In Kentucky you choose state or federal exemptions (exemptions are the property the law lets you keep). Your home (homestead): $5,000 in real or personal property that you or a dependent use as a permanent home in Kentucky, or in a burial plot.

Exemption system: State or federal, your choice
Car or other vehicle: $2,500 in one motor vehicle and its accessories. Ministers, attorneys, physicians, surgeons, chiropractors, veterinarians and dentists may exempt one more vehicle up to $2,500.
Wildcard (any property): $1,000 in any property, real or personal, for bankruptcy filers who use the Kentucky exemptions.
Amounts: Amounts set by statute and not indexed; main amounts unchanged since 1980.

What Kentucky lets you keep

Exemptions are the property the law lets you keep. You pick one whole set: the Kentucky list or the federal list. You can't mix them.

Law: KRS 427.170; 11 U.S.C. 522(b)(1)-(2); 11 U.S.C. 522(d)

What	Kentucky exemption	Federal exemption
Home (homestead)	$5,000 in real or personal property that you or a dependent use as a permanent home in Kentucky, or in a burial plot The exemption does not apply to a debt that existed before you bought the property or built the improvements, and it does not stop foreclosure of a mortgage or claims for unpaid purchase money. Law: KRS 427.060	$31,575 Law: 11 U.S.C. 522(d)(1)
Car or other vehicle	$2,500 in one motor vehicle and its accessories. Ministers, attorneys, physicians, surgeons, chiropractors, veterinarians and dentists may exempt one more vehicle up to $2,500. Mechanics and other skilled repair workers have their own $2,500 vehicle exemption. Law: KRS 427.040; KRS 427.030; KRS 427.010(1)	$5,025 Law: 11 U.S.C. 522(d)(2)
Household goods and clothing	$3,000 total for household furnishings, jewelry, personal clothing and ornaments. Professionally prescribed health aids and health savings account funds are fully exempt. Law: KRS 427.010(1)	Household goods: $800 per item, $16,850 total Jewelry for personal or family use: $2,125 Law: 11 U.S.C. 522(d)(3); 11 U.S.C. 522(d)(4)
Wildcard (any property)	$1,000 in any property, real or personal, for bankruptcy filers who use the Kentucky exemptions Law: KRS 427.160	$1,675 plus up to $15,800 of any unused part of the (d)(1) homestead amount Law: 11 U.S.C. 522(d)(5)
Tools of your trade	$300 in tools needed in your trade. Farmers: $3,000 in farm tools, equipment and livestock. Ministers, attorneys, physicians, surgeons, chiropractors, veterinarians and dentists: $1,000 in professional library, office equipment and instruments. Law: KRS 427.030; KRS 427.010(1); KRS 427.040	$3,175 Law: 11 U.S.C. 522(d)(6)
Wages	A creditor can garnish no more than the lesser of 25% of your weekly take-home pay or the amount above 30 times the federal minimum hourly wage. This limit does not apply to support orders, Chapter 13 orders or tax debts. Law: KRS 427.010(2)-(3)	—
Retirement accounts	IRAs, Roth IRAs, 401(k)s, pensions and other tax-deferred retirement plans are exempt, except contributions made within 120 days before filing and amounts subject to child support or maintenance orders. Kentucky public pensions are also exempt. Law: KRS 427.150(2)(e)-(f)	No dollar limit (IRAs are capped under 522(n)) Money in traditional and Roth IRAs is protected up to $1,711,975 in total. Law: 11 U.S.C. 522(d)(12); 11 U.S.C. 522(n); 90 FR 8941
Public benefits	Public assistance is exempt while not mixed with other money. Unemployment benefits are exempt while not mixed with other funds (except for necessaries bought while unemployed). Workers' compensation is exempt except for child support. Law: KRS 205.220(3); KRS 341.470(4); KRS 342.180	Your right to receive Social Security, unemployment, public assistance, veterans' and disability benefits; alimony and support you reasonably need; and certain pension or annuity payments you reasonably need: No dollar limit (some only as much as you reasonably need) Your right to certain payments: crime victim awards, wrongful-death and life-insurance payments for someone you depended on, personal bodily injury payments (not pain and suffering or actual money losses), and payments for lost future earnings: Crime-victim awards: no limit. Personal injury payment: up to $31,575. Others: as much as you reasonably need Law: 11 U.S.C. 522(d)(10); 11 U.S.C. 522(d)(11)
Other exemptions	Alimony and support you need for yourself and your dependents are exempt. Crime victim awards are exempt. Wrongful death payments and payments for lost future earnings are exempt to the extent you need them for support, and up to $7,500 of a personal bodily injury payment (not pain and suffering or actual money losses) is exempt. Benefits from assessment or cooperative life or casualty insurers and fraternal benefit societies are exempt. Law: KRS 427.150(1); KRS 427.150(2)(a)-(d); KRS 427.110	An unmatured life insurance policy you own (not credit life insurance): No dollar limit Cash value of life insurance: $16,850 Health aids prescribed by a professional for you or a dependent: No dollar limit Law: 11 U.S.C. 522(d)(7); 11 U.S.C. 522(d)(8); 11 U.S.C. 522(d)(9)

Amounts: Amounts set by statute and not indexed; main amounts unchanged since 1980. Federal 522(d) amounts, if you choose them, are set nationally.

Federal amounts: Amounts in effect for cases filed on or after April 1, 2025 (next automatic adjustment due April 1, 2028)

Law: 11 U.S.C. 104; 90 FR 8941-8942

These amounts are per person. If a married couple files one joint case, each spouse can claim the federal exemptions separately.

Keeping your home in Kentucky

$5,000 in real or personal property that you or a dependent use as a permanent home in Kentucky, or in a burial plot

The exemption does not apply to a debt that existed before you bought the property or built the improvements, and it does not stop foreclosure of a mortgage or claims for unpaid purchase money.

Law: KRS 427.060

IRAs, 401(k)s and pensions

IRAs, Roth IRAs, 401(k)s, pensions and other tax-deferred retirement plans are exempt, except contributions made within 120 days before filing and amounts subject to child support or maintenance orders. Kentucky public pensions are also exempt.

Law: KRS 427.150(2)(e)-(f)

Retirement money in tax-exempt accounts is protected whichever set of exemptions you use (IRAs subject to the 522(n) cap).

Law: 11 U.S.C. 522(b)(3)(C), 522(d)(12), 522(n)

Which state's law applies

You use the exemption law of the state where you lived (your domicile) for the full 730 days (2 years) before you filed. If you moved between states during those 2 years, you use the law of the state where you lived for the 180 days before that 2-year period, or where you lived the longest part of those 180 days.

Law: 11 U.S.C. 522(b)(3)(A)

If this rule leaves you with no exemptions at all (for example, the state's exemptions apply only to its residents and you no longer live there), you can use the federal exemptions instead.

Law: 11 U.S.C. 522(b)(3), flush language

State or federal list in Kentucky

In some states you can choose either the state exemptions or the federal exemptions. You must pick one whole set; you cannot mix them. Other states allow only the state exemptions. A married couple filing together must both pick the same set.

Law: 11 U.S.C. 522(b)(1)-(2); KRS 427.170; 11 U.S.C. 522(d)

In nearby states

Tennessee: State exemptions only. Home (homestead): $35,000 in real property you own and that you, your spouse or a dependent use as your principal residence.
Indiana: State exemptions only. Home (homestead): $22,750 in the home (real estate or personal property such as a mobile home) that you or a dependent live in.
Ohio: State exemptions only. Home (homestead): $182,625 in equity in one parcel or item of real or personal property that you or a dependent use as a residence (a house, condo or mobile home).
West Virginia: State or federal, your choice. Home (homestead): up to $35,000 in real or personal property that you or a dependent uses as a residence, or in a burial plot for you or a dependent.

Your next steps in Kentucky

Write down your property
List each thing you own and what it is worth on Official Form 106A/B.
Match each item to an exemption
The table above shows the Kentucky amount for each kind of property.
List the exemptions you claim
The exemptions you choose go on Official Form 106C.
Talk to legal aid
Ask for free help: Kentucky Justice Online (statewide legal aid finder) and Legal Aid Society (Louisville area).

Where to get free help in Kentucky

Questions about exemptions in Kentucky

Can I use the federal bankruptcy exemptions in Kentucky?

You can. Kentucky lets you choose the state exemptions or the federal exemptions in 11 U.S.C. 522(d). You must pick one whole set.

What is the homestead exemption in Kentucky?

$5,000 in real or personal property that you or a dependent use as a permanent home in Kentucky, or in a burial plot

How much of a car can I keep in bankruptcy in Kentucky?

$2,500 in one motor vehicle and its accessories. Ministers, attorneys, physicians, surgeons, chiropractors, veterinarians and dentists may exempt one more vehicle up to $2,500. Mechanics and other skilled repair workers have their own $2,500 vehicle exemption.

What is the wildcard exemption in Kentucky?

$1,000 in any property, real or personal, for bankruptcy filers who use the Kentucky exemptions

What household goods can I keep in Kentucky?

$3,000 total for household furnishings, jewelry, personal clothing and ornaments. Professionally prescribed health aids and health savings account funds are fully exempt.

Is my 401(k) or IRA protected in a Kentucky bankruptcy?

What is the wage exemption in Kentucky?

A creditor can garnish no more than the lesser of 25% of your weekly take-home pay or the amount above 30 times the federal minimum hourly wage. This limit does not apply to support orders, Chapter 13 orders or tax debts.