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Personal Property Exemptions

On Behalf of | May 10, 2019 | Bankruptcy, Debt, Firm News

If you are facing a garnishment, attachment or execution on a judgment in Kentucky, you are probably wandering what personal property you own is exempt from creditor attachment.  Under KRS 427, many items of personal property are exempt from  judgment creditor seizure including:  jewelry, personal clothing and ornaments not to exceed $3,000 in value; tools, equipment, and livestock including poultry, of a person engaged in farming, not exceeding $3,000 in value; one motor vehicle and its necessary accessories, including one spare tire, not to exceed $2,500 in value; professionally prescribed health aids of the debtor, or a dependent of the debtor; and funds deposited in a health savings account as described in Section 223 of the Internal Revenue Code of 1986.

Typically, wage garnishments do not exceed 25% of the debtor’s disposable earnings for a week; however, this exemption does not apply to child support garnishment or garnishment for federal and state tax liabilities.  See KRS 427 for a complete list of totally and partially exempt property.  Please note individuals filing for bankruptcy relief can also claim the state exemptions or federal exemptions.  Most individuals typically claim the federal exemptions as they tend to be higher in dollar amount when compared to the state exemptions; however, each individual’s case is different and you should consult with an attorney when making an election on which exemptions to use when you file for bankruptcy relief. If you do not file for bankruptcy relief, the state exemptions are still available to you.

About DelCotto Law Group

DelCotto Law Group is Kentucky’s asset protection law firm known for its commitment to the lifetime success of its clients. With offices located in Lexington, Louisville and Danville, DLG serves Kentuckians with complicated financial matters, especially in the areas of bankruptcy, complex litigation, and estate planning. For more information about filing bankruptcy or DelCotto Law Group, please call (859) 231-5800 or email [email protected].

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