KRS 412.160: Proceedings against surety after bankruptcy of principal.

In an action for the recovery of money in which the defendant may have given bond with

sureties, or for whom sureties may have given bond, pursuant to the provisions of

subsection (1) of KRS 425.116; or in which an appellant may have given bond with

sureties, or for whom sureties may have given bond, for the purpose of appeal from an

inferior court to a circuit court or for the purpose of a supersedeas pending an appeal to

the Court of Appeals -- if such defendant or appellant have thereafter become a bankr upt

under the laws of the United States, upon notice thereof from his adversary being served

on the sureties, by summons, the court shall decide whether or not anything, and, if

anything, how much, should have been adjudged against the defendant or appella nt, but

for the bankruptcy; and such decision shall be conclusive as to the liability of the sureties;

but they shall not be liable upon a bond given pursuant to subsection (1) of KRS 425.116,

if property released from an attachment by reason thereof, or i ts proceeds, have lawfully

come to the defendant's or appellant's assignee in bankruptcy.