Grace owns a home in Elizabethtown, Kentucky, and faces a significant personal judgment debt. Her creditor seeks to force a sale of the home. Grace claims protection under the Kentucky homestead exemption. Under KRS 427.060, what is the maximum dollar amount of equity in her home that Grace can protect from this creditor claim?
Correct Answer
A) $5,000
Under KRS 427.060, the Kentucky homestead exemption protects up to $5,000 in value of real property used as a primary residence from certain creditor claims. This is the creditor-protection homestead exemption, distinct from the property tax homestead exemption for seniors and disabled persons under KRS 132.810. Grace can claim up to $5,000 of her home's equity as exempt from the judgment creditor.
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Related Topics & Key Terms
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Related Concepts
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
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