Kentucky Statutes 427.150 – Property totally or partially exempt
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(1) To the extent reasonably necessary for the support of an individual and his dependents in addition to property totally exempt under subsection (2) of this section, that individual shall be entitled to exemption of money or property received and rights to receive money or property for alimony, support, or separate maintenance.
(2) An individual shall be entitled to exemption of the following property: (a) An award under a crime victim’s reparation law;
(b) A payment on account of the wrongful death of an individual of whom the debtor was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;
(c) A payment, not to exceed seven thousand five hundred dollars ($7,500), on account of personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss, of the debtor or an individual of whom the debtor is a dependent;
(d) A payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is or was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;
(e) Assets held, payments made and amounts payable under pensions exempt pursuant to KRS § 61.690, 161.700, and 427.125; or
(f) The right or interest of a person in an individual retirement account or annuity, deferred compensation account, tax sheltered annuity, simplified employee pension, pension, profit-sharing, stock bonus, or other retirement plan described in the Internal Revenue Code of 1986, or Section 408 or 408A of the Internal Revenue Code, as amended which qualifies for the deferral of income tax until the date benefits are distributed. This exemption shall also apply to the operation of the Federal Bankruptcy Code, for the purpose of applying the provisions of 11 U.S.C. § 522(b)(3) in a federal bankruptcy proceeding and only to the extent otherwise allowed by applicable federal law. This exemption shall not apply to any amounts contributed to an individual retirement account or annuity, deferred compensation account, a pension, profit-sharing, stock bonus, or other qualified retirement plan or annuity if the contribution occurs within one hundred twenty (120) days:
1. Before the debtor files for bankruptcy if this exemption is being applied in a federal bankruptcy proceeding; or
2. Before the earlier of the entry of the judgment or other ruling against the debtor or the issuance of the levy, attachment, garnishment, or other execution or order against which this exemption is being applied, if this exemption is being applied in other than a federal bankruptcy proceeding. This exemption shall not apply to the right or interest of a person in an individual retirement account or annuity, deferred compensation account, pension, profit-sharing, stock bonus, or other retirement plan to the extent that that right or interest is subject to any of
the following:
a. An order of a court for payment of maintenance;
b. An order of a court for payment of child support.
Effective: January 1, 2015
History: Amended 2014 Ky. Acts ch. 92, sec. 313, effective January 1, 2015. — Amended 2010 Ky. Acts ch. 155, sec. 5, effective July 15, 2010. — Amended 1998
Ky. Acts ch. 376, sec. 1, effective July 15, 1998. — Amended 1990 Ky. Acts ch. 220, sec. 2, effective July 13, 1990. — Created 1980 Ky. Acts ch. 236, sec. 8, effective April 9, 1980.
(2) An individual shall be entitled to exemption of the following property: (a) An award under a crime victim’s reparation law;
Terms Used In Kentucky Statutes 427.150
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Dependent: A person dependent for support upon another.
- earnings: means compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonus, or otherwise, and includes periodic payments pursuant to a pension or retirement program. See Kentucky Statutes 427.005
- Federal: refers to the United States. See Kentucky Statutes 446.010
(b) A payment on account of the wrongful death of an individual of whom the debtor was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;
(c) A payment, not to exceed seven thousand five hundred dollars ($7,500), on account of personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss, of the debtor or an individual of whom the debtor is a dependent;
(d) A payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is or was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;
(e) Assets held, payments made and amounts payable under pensions exempt pursuant to KRS § 61.690, 161.700, and 427.125; or
(f) The right or interest of a person in an individual retirement account or annuity, deferred compensation account, tax sheltered annuity, simplified employee pension, pension, profit-sharing, stock bonus, or other retirement plan described in the Internal Revenue Code of 1986, or Section 408 or 408A of the Internal Revenue Code, as amended which qualifies for the deferral of income tax until the date benefits are distributed. This exemption shall also apply to the operation of the Federal Bankruptcy Code, for the purpose of applying the provisions of 11 U.S.C. § 522(b)(3) in a federal bankruptcy proceeding and only to the extent otherwise allowed by applicable federal law. This exemption shall not apply to any amounts contributed to an individual retirement account or annuity, deferred compensation account, a pension, profit-sharing, stock bonus, or other qualified retirement plan or annuity if the contribution occurs within one hundred twenty (120) days:
1. Before the debtor files for bankruptcy if this exemption is being applied in a federal bankruptcy proceeding; or
2. Before the earlier of the entry of the judgment or other ruling against the debtor or the issuance of the levy, attachment, garnishment, or other execution or order against which this exemption is being applied, if this exemption is being applied in other than a federal bankruptcy proceeding. This exemption shall not apply to the right or interest of a person in an individual retirement account or annuity, deferred compensation account, pension, profit-sharing, stock bonus, or other retirement plan to the extent that that right or interest is subject to any of
the following:
a. An order of a court for payment of maintenance;
b. An order of a court for payment of child support.
Effective: January 1, 2015
History: Amended 2014 Ky. Acts ch. 92, sec. 313, effective January 1, 2015. — Amended 2010 Ky. Acts ch. 155, sec. 5, effective July 15, 2010. — Amended 1998
Ky. Acts ch. 376, sec. 1, effective July 15, 1998. — Amended 1990 Ky. Acts ch. 220, sec. 2, effective July 13, 1990. — Created 1980 Ky. Acts ch. 236, sec. 8, effective April 9, 1980.