Legal Question in Bankruptcy in Kentucky

Re: How to file bankruptcy and keep home

An individual can claim up to $20,200.00 exemption on their homestead. If married and filing jointly, the two can combine their exemptions to claim $40,400.00. Even if you are married, that still leaves over $25,000 that is non-exempt. So, a Chapter 7 would put your home at risk unless you have a way negotiating a settlement with the Trustee - in other words, if you could somehow come up with a chunk of money - I'm guessing around $15,000 to "buy" your non-exempt part of the home. The Trustee MIGHT consider this since it would avoid the cost of a sale in an uncertain market.

Obviously, you are having a hard time laying your hands on a large amount of money.

Your best bet is to look at a Chapter 13 which, depending on your income, would run 3 or 5 years. You should take your specific facts to a bankruptcy attorney or to a NON-PROFIT credit counseling service approved by the US Trustee's office.