Exemptions Available Outside of Bankruptcy

[Hillbilly]

New law and claiming exemptions outside bankruptcy

I'm interested in the possibility of using a State Homestead Exemption to prevent a judgment lien being from attached to my property without having to go through the entire BK process just to have this one single debt avoided.
Will the new bankruptcy law affect this?

I have just moved to Kentucky from Michigan. I see that Kentucy now also is allowing usage of the Federal Exemptions in BK, does anyone know if Kentucy has actually changed or raised its $5000 statutory homestead exemption?
Will the new residency requirements apply outside bankruptcy?

With the likelyhood of only one creditor (HELOC) obtaining a judgment against me, and my pension being exempt, BK may be more than I need.....If the state exemptions are sufficient as I have very little equity in my new home that has an 80/20 mortgage with 100% financing.
My worry is that they may attach a judgment lien that only a BK filing can avoid.

[HHM]

Well, if its is a Home Equity Line of Credit (HELOC) that is the problem, then they can foreclose on your house regardless of the exemption becaue the home is the security for the loan. However, which residence was the HELOC on, the Michigan or Kentucy?

As to your other question. BK laws only apply to BK. Otherwise, the state exemptions apply. When we discuss "federal exemptions" the federal exemptiosn are in the BK code, and therefore only apply to BK.

[Hillbilly]

Well, if its is a Home Equity Line of Credit (HELOC) that is the problem, then they can foreclose on your house regardless of the exemption because the home is the security for the loan. However, which residence was the HELOC on, the Michigan or Kentucky?

Thanks HHM, the HELOC is on the Michigan residence which is already in the process of foreclosure, and which we have no intent nor any possible financial means of redeeming.
All of our other debts are current, other than the mortgage and HELOC on the Michigan house. The mortgage payment on the Kentucky home is far less than was on the Michigan property.
However the KY property does need quite a bit of repairs, which continuing or resuming payments on the HELOC would make impossible (I doubt it would be as simple as now just resuming payments, as we are now 7 months behind)
And of course we have no way to retain the MI property that secures the HELOC.

As to your other question. BK laws only apply to BK. Otherwise, the state exemptions apply. When we discuss "federal exemptions" the federal exemptions are in the BK code, and therefore only apply to BK.

I was hoping for some up-to-date information as to what the state exemptions NOW are, and in what ways the New BK laws have affected them.
For example, The KY statutory exemption laws have excluded any debts acquired prior to obtaining a KY homestead from inclusion in their Homestead Exemption, however there has been much recent Legislative activity, what with the recent move to now allow the use of Federal BK exemptions, and bills and amendments being introduced to increase the states statutory homestead exemption.
I have spent hours doing Internet searches, and any clear answers are just not easy to find. I see the discussions but no conclusions.
Until I can detemine what will be the best course of action, I am in a holding pattern of "just doing nothing" as it presently appears that my income is well below the median in both States, and also exempt by both State and Federal law, that I would be "judgment proof", and that using either Federal or State BK, I will be a "no asset case".
So my principal worry is that of a lien attaching against my KY property, and accumulating interest for decades, canceling out any equity that I could ever attain.