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Reducing debt ahead of Chapter 7 filing

With spring rapidly arriving across America, many families take the opportunity to clean house after a long winter and holiday season. Here in Kentucky and elsewhere around the nation, financial advisors suggest many people could stand to "spring clean" their debt load as well. Credit card debt is one of the most destabilizing forms of unsecured debt that can put an individual or family in a precarious financial position. Before choosing to file for Chapter 7 bankruptcy or an equivalent, there are other steps that can be taken to sweep away lingering debt. 

For some people, having a set goal in mind beyond simply getting rid of debt can be a helpful motivator. One couple found planning a vacation to be taken once their debt was settled helped them stick to their budget. Of course, it would be important for any family considering this tactic not to go right back into debt while vacationing, but this simply highlights the importance of careful financial planning. 

Choosing the correct "cleaning solution" is also important when handling debt. Depending on the size of the debt as well as the individual's personal finances, there are several options available. For example, transferring debt onto a card with a no-interest promotional window costs a basic fee, but it can make a huge difference in knocking out large chunks of debt interest-free. 

Ultimately, there is no one right way to "spring clean" a debt problem. For individuals or families whose debt has risen to insurmountable levels, however, the option of Chapter 7 bankruptcy can be a wise choice. Chapter 7 liquidates assets to pay down existing debt and, in some cases, forgives unsecured debt entirely, bringing Kentucky families seriously in the red back to the road toward financial stability. 

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Law Office of Ginger C. Cord, PSC
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Lexington, KY 40507

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