Individuals in Kentucky and throughout the country may soon find that it is easier to bring legal challenges against banks and credit card companies. On July 10, the Consumer Financial Protection Bureau issued a new rule stating that companies cannot use arbitration clauses to prevent class-action lawsuits. These clauses have traditionally made it harder for consumers to take action against…
Encouraging signals of growth in the economy aside, some Kentucky residents are still suffering from creditor harassment and in need of debt relief. Filing for bankruptcy is never an easy choice, and it can become complicated when considering how the options could impact individual situations. One Virginia court decision showed how a Chapter 7 case may play out, and the…
Borrowers in Kentucky and across the United States are likely to see their payments rise following interest rate hikes announced by the Federal Reserve on June 14. Credit cards, home equity loans and adjustable rate mortgages all base their variable interest rates on the Federal Reserve benchmark. Fixed rate loans, on the other hand, remain the same regardless of the…
In a Chapter 13 bankruptcy, Kentucky debtors typically get to keep their possessions while adhering to a repayment plan that lasts either three or five years. There are many options for how this might work, and in one case a couple decided to give up their vehicle when modifying their plan. Chapter 13 bankruptcy provides debt relief while debtors reorganize…
An increasing number of people in Kentucky are carrying record amounts of debt, raising concerns that there may be an uptick in the number of bankruptcies that might be filed. The previous peak was at the start of the recession in the fall of 2008. According to the Federal Reserve Bank of New York, U.S. household debt reached $12.73 trillion…
Kentucky residents who are struggling to pay their bills are sometimes reluctant to explore their debt relief options because they worry about what would happen to their credit ratings if they filed for personal bankruptcy. While discharged bankruptcies can remain on Experian, Equifax and TransUnion reports for up to 10 years, research suggests that they do not greatly affect credit…
Kentucky residents sometimes continue to struggle financially because they worry that filing for bankruptcy will do irreparable harm to their credit ratings. While pursuing debt relief will have an impact on the credit scores handed out by companies like Equifax, Experian and Trans Union, the effects are not nearly as severe or long-lasting as many people believe. Individuals who file…
Kentucky consumers who are considering filing for bankruptcy may struggle with the cost of the process. Bankruptcy can cost as much as $1,500 or more, and people might use their tax refunds to pay for it. As a result, both March and April tend to show spikes for Chapter 7 bankruptcy filings. The cost of bankruptcy has increased considerably since…
Kentucky consumers who are considering filing for Chapter 13 bankruptcy might be interested to learn that one couple’s payment plan was rejected because too large a proportion of the plan was for the couple’s retirement account. A Louisiana judge decided that the percentage in a payment plan that should go toward retirement is 3 percent although there might be exceptions…
Residents of Kentucky who are considering filing for chapter 13 protection should be aware of a recent ruling by the United States Court of Appeals for the Fourth Circuit. Typically, a chapter 13 debtor is prohibited from modifying a lender’s claim that is only secured by his or her primary residence. In the recent decision, the Fourth Circuit ruled that…