If you decide to file for bankruptcy due to your debts being more than you can manage, then you may find yourself a little afraid of what comes next. The court will begin to go through your assets except those you have an exemption for and use them to pay back your creditors. This can be unnerving if you worry about losing your home and vehicle. However, Kentucky does allow you some exemptions to ensure you keep a roof over your head and a vehicle to allow you to get to work.
The Kentucky Revised Statutes explain that the vehicle exemption is very simple. The law allows you to keep one vehicle with a value not to exceed $2,500. You can keep any accessories, include one spare tire. You can usually use an appraisal value from a reliable source, such as Kelley Blue Book, to determine the value of your vehicle.
When it comes to y our home, that is more complex. If you do not own your home, then you will have to work with the bank in order to keep it. The bank may or may not be willing to work with you as you go through bankruptcy. If you own your home, then the law allows you to keep it if your aggregate interest in it is not more than $5,000. You must live in the property as your main residence. Valuation for your home may be more complex than valuing your vehicle. You should work with professionals to determine the value to present to the court.
It is important to not try to hide assets from the court during a bankruptcy. You should also not try to use false valuations. Doing these things could lead to legal issues for you. This information is for education. It is not legal advice.