There may be many different ways that a Kentucky consumer can obtain debt relief. For instance, it may be possible to file for bankruptcy, enroll in a debt management program or consolidate debts using a credit card or personal loan. Generally speaking, people should consider taking one of these steps if they will be unable to pay all outstanding balances within five years.

It can also be a good idea for individuals to learn more about debt relief options if their monthly payments are more than half of their gross income. Prior to entering into a debt relief program, they should take time to understand the potential tax ramifications of doing so. It can also be worthwhile to find out about any fees that a debt management company or any other relief provider might charge.

As a general rule, filing for bankruptcy is preferable to seeking a debt settlement. This is because debt settlement companies may ask debtors to stop paying their creditors. Failure to make payments in a timely manner could result in one or more creditors filing a lawsuit against a debtor. Those who qualify for Chapter 7 bankruptcy may have their unsecured debts discharged in a matter of months.

Those who want to learn more about bankruptcy and debt relief may want to speak with an attorney who can discuss the potential pros and cons of filing for bankruptcy or enrolling in a debt relief program. Filing for bankruptcy may put a temporary halt to lawsuits or other actions taken by creditors to obtain the money that they are owed. It may also provide an individual with leverage to renegotiate the terms of certain loans.