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.
With the American credit card debt topping $1 trillion this year, many families are feeling the strain of outstanding payments and overdrawn accounts. Thankfully, there are many ways Kentucky residents can pay down their credit card debt or find alternate solutions to their debt struggles. For challenging cases, Chapter 7 bankruptcy can also be an option to help clear away existing debt woes.
Credit card debt is a costly and pervasive issue that affects many American households. Here in Kentucky, individuals and families struggle under many different kinds of debt, but few that are accrued on a day-to-day basis. Thankfully, there are a variety of ways to handle unsecured debt of this type, from simple budgeting strategies through to Chapter 7 bankruptcy.
Credit card debt is one of the most pervasive financial issues facing the American family today. With consumer debt topping $1 trillion this past year, not to mention the associated $104 billion in interest, debt is clearly a problem for some Kentucky residents. Thankfully, there are a variety of ways for a family struggling with debt to handle it -- from savings and repayment methods, to debt reconstruction, to Chapter 7 bankruptcy in the most challenging cases.
Filing for bankruptcy is one of the most important decisions an individual or family can make when struggling with insurmountable debt. However, for some Kentucky residents, the prospect of a Chapter 7 filing can be daunting considering the sometimes-complicated paperwork involved in the process. The support of an experienced bankruptcy attorney can mean the difference between a difficult and confusing journey and a straightforward track to healthier finances.
Filing for personal bankruptcy in the United States typically allows the average person two distinct options. Chapter 7 bankruptcy and Chapter 13 bankruptcy each have their own unique benefits and drawbacks, depending on the individual case. Kentucky residents considering filing for bankruptcy are encouraged to understand the difference between the two and, if necessary, to seek out support from an experienced attorney in determining the course of action that is best for them.
There are six major types of bankruptcy, but the most common is liquidation or straight bankruptcy. This is also known as Chapter 7, and some Kentucky residents understand it through negative connotations. However, it is important to understand what a Chapter 7 filing constitutes, and what it means for the future financial health of an individual or family.
In 2017, fewer than 500,000 Americans filed for bankruptcy. This is concerning to some financial analysts who believe many people, both here in Kentucky and elsewhere in the nation, would benefit greatly from a Chapter 7 bankruptcy filing. Unfortunately, misinformation and fear can cause some to shy away from a valid and valuable financial solution to overwhelming debt. Thankfully, this can be addressed through education.
Any bankruptcy filing is intended to relieve debt issues, be it for an individual, a household or a business. The two prevailing types of consumer bankruptcy are Chapter 7 and Chapter 13, both of which are used by individuals and families here in Kentucky and elsewhere in the nation to handle debt that has become insurmountable. It is important to understand the distinctions between the two in order to determine which route is best for an individual's situation.