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Personal Bankruptcy Archives

Efforts to retire credit card debt may not last

For Kentucky residents facing financial challenges, the first advice from family and friends is often to cut back on unnecessary expenses. Consumers across the nation followed this advice by showing fiscal discipline in the first quarter of 2017, according to research. Credit card debt shrank an average of $300 per household. Unfortunately, this decrease may not be breaking a larger trend of rising debt in all categories. The research did not consider the rate of unpaid bills, personal bankruptcy or delinquent debt.

How interest rate hikes will increase some monthly payments

On June 14, the Federal Reserve raised the federal funds rate, and this means that monthly credit card payments will go up as well. Some homeowners and people with car loans may also be affected. Furthermore, it is expected that there will be another rate hike later in 2017. These hikes could continue in 2018 and 2019.

Millennials facing budget challenges

Millennials in Kentucky may be struggling more with debt than the baby boomers and other generations did. Many millennials have high student loan debts, and the average income for this age group is the lowest since 1980. However, there are a number of things millennials might be able to do to reduce their debts.

Steps to rebuilding credit after declaring bankruptcy

Some Kentucky residents who have filed for bankruptcy might be concerned that they will be unable to rebuild their credit. However, even though a bankruptcy remains on the credit report for a number of years, they can start to rebuild their credit when the bankruptcy is discharged. Payment history is a significant part of a FICO score, and creating a budget can help ensure that a person pays on time. A budget should also leave room for a person to create a savings account. This emergency fund can help keep a person from falling into debt again.

Court finds for debtor in bankruptcy case

Kentucky residents may be interested a Chapter 7 bankruptcy case involving a woman who filed her petition after taking a credit card cash advance. The U.S. Bankruptcy Court for the Northern District of West Virginia found that she didn't have to repay $7,993 because the credit card issuer couldn't prove that the women never intended to pay that money back. The bank argued that there was a presumption against discharge under the Bankruptcy Code.

Why people use tax refunds to file for bankruptcy

For some Kentucky residents, a tax refund is an opportunity to pay off debt. However, many people use their refunds to pay for the process of filing for bankruptcy. According to statistics from the Administrative Office of the U.S. Courts, bankruptcy filings increase by up to 34 percent in March, a month that's popular for tax filing. Data also showed that there was a 15 to 25 percent increase in the month of April.

Tips for young people looking to get out of debt

Millennials in Kentucky and elsewhere typically carry student loan debt of $40,000 in addition to other long-term repayment obligations. Repaying that debt in a timely manner may make it easier to build a stronger financial future. The first step to getting out of debt is acknowledging that it exists. This may be done by listing existing credit card, student loan or other debts.

Preparing for legal action taken by creditors

While creditors would much rather work out a payment plan, it is possible for a Kentucky resident to be taken to court for nonpayment of a debt. Creditors typically sue when a debtor fails to make a good faith effort to pay the debt. Therefore, it may be possible to avoid a lawsuit by contacting a creditor and making arrangements to get current on a loan.