Kentucky Laws on Filing Bankruptcy

Kentucky residents who cannot pay their credit cards, medical bills or similar debts may need to visit their local bankruptcy courts to formally pursue debt relief. However, filing for bankruptcy in Kentucky is not as easy as it was before 2005 bankruptcy reform laws went into effect, according to the book "How to File for Chapter 7 Bankruptcy." Kentuckians must meet a number of legal requirements to successfully receive federal debt relief, according to the United States Bankruptcy Court Western District of Kentucky.

Chapter 7 Income Qualification

Individuals who make more than their state's median income may not qualify for Chapter 7 bankruptcy, according to the book "How to File for Chapter 7 Bankruptcy." In 2008, the median income in Kentucky was $41,489, according to the U.S. Census Bureau. Kentucky residents who make more than the median income may need to complete a federal means test to determine if they have the resources to repay even part of their financial obligations. Individuals who have disposable incomes will most likely be required to repay some of their debts under court supervision; this is called Federal Chapter 13 bankruptcy.

Any debt acquired through fraud or embezzlement may not be included in your bankruptcy case, according to the United States Bankruptcy Court Western District of Kentucky. You also may not include court fines, drunken driving-related damages, child support or alimony in your case, according to the book "How to File for Chapter 7 Bankruptcy." In addition, tax bills less than three years old may not be reduced or eliminated through bankruptcy; Kentuckians who owe federal, state or local taxes from more than three years ago may discharge them through bankruptcy. In nearly all cases, federal student loans may not be included in bankruptcy cases. A Kentucky bankruptcy judge would have to accept your petition of permanent disability to discharge such obligations, which is rare.

You must get credit counseling no more than 180 days before filing for bankruptcy, according to the United States Bankruptcy Court Western District of Kentucky. Such sessions must be completed through a federally approved organization and usually last about 60 to 90 minutes, according to the Federal Trade Commission. In some cases, you may complete this requirement online or via the telephone; you must also pay any costs that the counseling organization charges for the session.