What Do I Have To Give Up When I File Bankruptcy?

One of the most prevalent misconceptions about bankruptcy is that everyone who files bankruptcy will lose all their possessions. This is simply not true. In fact, some people who file bankruptcy do not have to surrender any assets at all.

I am bankruptcy attorney Ginger C. Cord. At the Law Office of Ginger C. Cord, PSC., I provide reassuring legal guidance for Kentucky clients who are considering bankruptcy. In addition to capably guiding you through the filing process, I am skilled in asset protection and can fight to help you keep as many of your possessions as possible.

Understanding Exempt Vs. Nonexempt Property

Bankruptcy court classifies property as either exempt or nonexempt. Exempt property is not eligible for surrender to creditors. However, debtors may have to give up their nonexempt property.

In Kentucky, exempt property includes:

  • Up to $5,000 in equity on a permanent residence
  • Up to $3,000 of clothes and furniture
  • Up to $2,500 in equity of one motor vehicle
  • Alimony and child support
  • Pensions and retirement accounts
  • Public benefits

You Can Choose State Or Federal Exemptions

Kentucky has its own set of rules regarding exempt property. There is also a set of federal exemptions. In our state, debtors can choose whether to apply state or federal exemptions to their estates. The two systems can be quite different - one may benefit you more than the other. I can help you determine which system of exemptions allows you to keep the most assets.

Discuss Bankruptcy And Property With A Lawyer

When you schedule a consultation at my office in Lexington, I can evaluate the unique circumstances of your case and give you a better idea of the property you can keep. To make your appointment, call 859-963-2073 or complete an online intake form.