Bankruptcy , I have a friend that is considering it she lives in KY?

She needs to know if she would be able to keep her home with the new laws or would she end up with out it?

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3 Responses to “Bankruptcy , I have a friend that is considering it she lives in KY?”

1. wartz Says:
   September 23rd, 2009 at 1:45 am

   Her right to a homestead exemption is based on state law so changes to the federal law would not affect this.

2. Rosella W Says:
   September 26th, 2009 at 3:57 am

   I would Google the words bankruptcy and Kentucky. Every state has different rules on how much property you can keep when you declare bankruptcy.

   Also read the educational essays on bankruptcy and credit use at and

3. DLeibowitz Says:
   September 28th, 2009 at 3:16 am

   Kentucky has a very small homestead exemption of only $5,000. However, while I am not a Kentucky lawyer, it does appear that Kentucky has not “opted out” of allowing you to use federal exemptions which are more generous – just over $20,000 for each debtor. This means that a couple could protect $40,000 or so in equity if they could afford to continue to make mortgage payments.

   You really should contact a local attorney to be sure about this.