Filing |
Reason & Kentucky law |
What to do |
Mortgages and Deeds
Becoming commonly taken in Kentucky filings. Taken if
the mortgage is not properly or timely filed. |
If a mortgage is not filed at all the Trustee can take your home. OR under Kentucky law
If the mortgage was filed within 90 days before filing bankruptcy but was not filed within 20 days after the property was purchased or filed 10 days after refinancing the Trustee takes your home.
On Oct 2005 this went to 30 days |
Check your mortgage filing before filing bankruptcy.
In 2008 over 50 million dollars in Kentucky homes alone were seized by Bankruptcy Trustees because mortgage filings were improper and were sold for about 75-80% of their value. |
Car titles
Commonly taken if liens not recorded or if no timely filing |
Like mortgages filings if no lien was recorded or under Kentucky law if you bought the car within 90 days of filing bankruptcy and the lien filing was not recorded in
30 days the Trustee owns the car. |
Check car titles and when the lien filing was recorded after you bought it. More cars are taken than homes in bankruptcy. |
Bank Account
Not often taken |
Shows payments transfers. If you have too much in the bank when filing bankruptcy you
may lose it. |
Keep a minimum until you get a bankruptcy filing notice.
However you now have large exemptions and taking accounts now are rare. |
Tax filings
Refunds
rarely taken due to large exemptions. Also used to verify income to force people into filing a |
Used to verify income. How much is your tax refund. The unearned income child credit part of your refund is a welfare benefit and not normally attachable but the remainder of your income tax refund is an asset merely held by the government. |
Plan your tax refund and filings carefully. If you receive a large refund you may lose it. If you earn over
40,000 the US Trustee often objects to you filing a chapter 7 and may ask you to file a 13. Couples earning
40,000 may want to have just one spouse file. However you now have
large exemptions and taking accounts now are rare. |
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Paystubs Prior 6 months now required or statement from work. |
Test for income and whether or not you need to be in a Chapter 13 |
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Proof of Expenses |
Recent expenses such as Charitible contributions, 401
deductions and private school expenses that were added just before
filing are not allowed |
High Expenses such as 800 Per month for medicals for a
family or 3 would require documentation. |
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