When a Kentucky reader has a significant amount of debt, this is usually accompanied by phone calls from debt collectors, continual contact from creditors, and even threats of repossession or foreclosure. This can be overwhelming, and for many milliennials, it is something they deal with every day. A significant number of young adults carry unmanageable debt burdens, and it is very stressful. In some cases, it may be appropriate for them to consider the benefits of consumer bankruptcy.
Many Kentucky consumers use credit cards for daily spending and everyday needs. In fact, some consumers use their credit cards as a type of emergency fund, especially if they do not have a lot in savings. Credit card balances can quickly spiral out of control, especially because of accumulating interest and minimum payments. Eventually, a person struggling with this type of debt may find that he or she needs to file for bankruptcy.
One of the most difficult decisions any business owner here in Kentucky can face is whether to file for bankruptcy when financial obligations become overwhelming. The decision not only affects the owner but their employees as well.
While no one wants to file for bankruptcy, it can be a useful tool for some people to deal with overwhelming financial obligations. Filing for bankruptcy will likely negatively affect a person’s credit, but the good news is that the damage can be repaired.
When Kentucky students look forward to their college career, they may think about how expensive tuition will be or how much they may have to pay to live on campus. While most people consider the cost of books, they may overlook the expense associated with everyday life away from home, such as gas, groceries and other necessities. As a result, more students are relying on credit cards, and more are facing the possible need to file for bankruptcy in the future.
Though regular readers of our Louisville Bankruptcy Law Blog have certainly heard of Chapter 7 and Chapter 13 bankruptcies, not everyone is sure of differences between the two.
If you’re struggling with significant debt but can’t bring yourself to consider bankruptcy, it may be due to the stigma associated with bankruptcy and the narrative that is too often attached to people with debt problems. The narrative goes like this: people who file for bankruptcy were irresponsible with money, accumulated too much credit card debt and lived beyond their means. They didn’t want to pay the money back, so they filed Chapter 7 instead.