Most people in Kentucky carry some type of debt from a credit card, car loan or mortgage. A closer look at FICO scores reveals a split in the consumer market. Although the average credit rating is at a record high above 700, the average emerges because some people are doing well and others are struggling. On the high end of…
Getting a debt consolidation loan could present a good strategy to someone in Kentucky struggling to keep up with debts, especially on credit card accounts. After paying off high-interest debts with a lower-rate loan, a person might achieve financial stability unless poor spending habits and unexpected bills undermine the plan. This scenario unfolded for one man who had already gone…
Overwhelming debt can have a serious impact on various areas of your life. One of the most significant and disruptive of these effects is the collection efforts that creditors may undertake to recover some of what you currently owe. Wage garnishment is an aggressive way to do this, and it involves losing a certain amount of your income to pay…
The months leading up to the choice to file bankruptcy can be demoralizing and stressful, but Kentucky residents in financial distress often look forward to the benefits of court intervention and a fresh financial start. One of those benefits is asset protection. Rules for protection of assets differ under Chapter 7 and Chapter 13. The family home and transportation are…
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…