Many people in Kentucky are currently living with some amount of credit card debt. This isn't unusual as many households throughout the U.S. use credit cards to manage their personal finances. However, when credit card debt becomes unmanageable, people may need to seek debt relief options.
In fact, a recent study shows that America's credit card debt levels are at what they were in 2007 before the Great Recession. While credit card default rates remain significantly lower than they were during the Recession era, defaults have been creeping up, possibly in response to credit card companies' loosening standards.
Being overwhelmed by credit card debt can create significant problems for individuals and families. These issues may include creditor harassment; possible judgments and liens; and difficulty with securing jobs, insurance, or housing due to a poor credit history.
Bankruptcy is one option for people who are faced with high levels of debt. While it isn't an option for everyone, it can provide significant relief. In a Chapter 7 bankruptcy, a debtor liquidates his or her assets, and the proceeds are distributed to creditors. All eligible debts are then discharged by the court, giving the debtor a fresh start. In a Chapter 13 bankruptcy, a person agrees to a court-supervised repayment plan with eligible debts discharged after plan completion.
People who are struggling with credit card debt may benefit from speaking with an experienced bankruptcy attorney. A lawyer may be able to review his or her client's case and make recommendations regarding the types of bankruptcy for which the person qualifies. If the client chooses to pursue bankruptcy, the attorney may be able to represent him or her throughout the duration of the case.