Stopping Foreclosures- Saving Your Home

Entire websites are devoted to this topic so I will try to summarize how a bankruptcy can keep you in your home.

Chapter 7- This proceeding can stop a foreclosure temporarily and give you at least 30 days in most jurisidictions to move out and surrender the home, or if you are lucky, work out a loan modification with the lender so you can save your home( very unlikely but possible).

Chapter 13- The better choice to save your home and reorganize your debts. Your past due mortgage payments are spread out over 3 to 5 years so you can take your excess income and pay the bank back.

BANKRUPTCY AND TAX REFUNDS

Many clients who are seeking debt relief in bankruptcy proceedings are surprised to find that if they file a chapter 7 or chapter 13 their annual state and federal income tax refunds are considered an asset of the bankruptcy estate. The question often asked: ”Is the court going to take my tax refunds?” The short answer is it depends.

Kentucky residents filing chapter 7 have generous bankruptcy exemptions and depending on many factors can usually keep most if not all of their tax refunds.

Recent changes in Ohio law now exempt income tax refunds portions derived from the child tax credit and the earned income credit. For many, this is the main source of the their tax refund dollars and Ohio clients filing chapter 7 normally get to keep this portion of the refund and more.

Depending primarily on when they file their petition, Chapter 13 Ohio and Kentucky clients reorganizing their debts can retain their tax refund or pay it into the plan.

Eye Opener Number One

Good Morning,

Just a quick "mic check" to ensure this blog is up and running. I am Ryan Ruehle and I have been licensed in Ohio and Kentucky courts for over ten years. I hope this blog will benefit you as we explore general topics involving consumer and small business bankruptcy for which I have a passion.