Having to declare bankruptcy can have a serious effect on those who endure it, especially when it comes to the question of how to prevent losing a home. However, residents of Kentucky and Indiana may have the option of keeping their home because of the Homestead Exemption, which protects a home from bankruptcy depending on the owner’s status regarding age, disability or military status.
The Kentucky Department of Revenue notes that people 65 years of age and older may qualify for this bankruptcy protection, and understanding the exemption amounts based on certain qualifications may help both Kentucky and Indiana homeowners keep their homes, even if they decide to declare bankruptcy.
The Homestead Exemption, designed to lower taxes for those who might have to endure bankruptcy, typically changes from year to year. Kentuckians who want to qualify can do so in several ways, including:
- Their status as a disabled individual
- Their status as a veteran of the United States military
- The age of the homeowner
The total exemption amount for Kentucky is currently $39,300.
Indiana residents may take advantage of several different Homestead Exemption laws, especially when married. Spouses who own a home together, whether it is a stationary or mobile home, can double the current exemption amount for the state, which stands at $19,300. Indiana does not offer any federal exemptions, so those who wish to apply for these exemptions and protect their home from liquidation may want to follow the state’s laws carefully before proceeding.
Individuals who wish to qualify may want to make a list of documents they need before attempting to qualify. This can streamline the process and prevent delays.