Filing

Reason & Kentucky law

What to do

Mortgages and Deeds

Becoming commonly taken in Kentucky filings. Taken if no timely filing of the  mortgage.

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 it goes to 30 days

Check your mortgage filing before  filing bankruptcy.  Last year over 50 million dollars in Kentucky homes alone were seized by Bankruptcy Trustees because mortgage filings were improper and they 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 10 days the Trustee owns the car.  On 10-2005 it goes to 30 days

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 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 Very commonly taken. Also used to verify income to force people into filing a Chapter 13.  After 10-2005 you must furnish IRS transcripts not your records

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.