For many Americans, debt is a serious day-to-day problem with the average family carrying thousands in unsecured loans. Credit cards, medical bills and other debts can add up for a Kentucky family, and some choose to file for Chapter 7 bankruptcy in order to get back in good financial shape. Many people worry that the road to economic stability will be difficult, with credit scores taking a hit as a result of a bankruptcy filing, but thankfully there are a variety of ways to rebuild credit even after Chapter 7.
When you file for bankruptcy, you might be accustomed to using your credit cards to pay for even the most basic bills. Now you have to learn how to live on only your income. This isn't always easy, and you have to plan ahead so you can come out on top.
Many Americans are familiar with Chapter 7, or liquidation bankruptcy, thanks to its prevalent appearances in popular culture. However, some Kentucky residents facing debt problems may be unaware that other bankruptcy options are available to them. One of the most popular is Chapter 13 bankruptcy, which differs from Chapter 7 in several important ways.
Many Americans fear for their financial future. In the current economy, debt runs rampant -- particularly credit card debt, one of the most difficult types of unsecured debt to discharge. Thankfully for Kentucky residents facing serious debt problems, Chapter 7 bankruptcy option when debt consolidation and repayment options have not solved the issue.
Credit card debt is among the most expensive and insidious types of debt facing Americans today. The ability to continue charging a credit card while paying only minimum monthly payments can lead to a serious debt spiral, as some Kentucky families already know. However, there are a variety of steps that can be taken to reduce debt, and for those in untenable debt situations, Chapter 7 bankruptcy remains a powerful option as well.