For many Americans, the prospect of declaring bankruptcy can be even more daunting than facing insurmountable debt. As many Kentucky residents are probably aware, Chapter 7 bankruptcy is often portrayed as a "hail Mary" final effort to discharge debt before financial collapse. The reality is somewhat different, and depending on the unique situation of the debtor in question, bankruptcy can sometimes be the most financially responsible option.
The specter of debt is pervasive in the daily lives of many Americans. Between mortgages, car payments, credit card debt, medical bills and other forms of debt, Kentucky residents can sometimes get overwhelmed by the amount of money they owe to creditors. This is why it is important for struggling individuals and businesses to fully understand how debt management solutions like Chapter 7 bankruptcy work, well in advance of reaching the point where it could be a necessary step toward financial health.
American household debt is believed to have reached some $13 trillion by the end of last year, according to the Federal Reserve. Kentucky residents have contributed to that number through student loans, car loans, mortgages and credit card debt. For some people, the weight of debt can become too much to bear, which is why it is important to understand all potential avenues to lowering debt. This can include everything from loan consolidation to Chapter 7 bankruptcy.
It is a widely held belief that filing for bankruptcy could mean the end of future credit and financial security. However, this is not the case. Kentucky residents who choose to file for Chapter 7 bankruptcy are not necessarily in danger of jeopardizing their future finances by erasing their current untenable debt.
A baseball player who made history in the 80s is facing financial strife in the modern era, according to sports and business news sources. Kentucky baseball fans may be familiar with Jack Clark, a power hitter who played with the St. Louis Cardinals from 1985 to 1987. Despite embarking on many successful business ventures in the intervening years, Clark is now filing his second Chapter 7 filing in the face of mounting debt.
When the word "bankruptcy" is spoken in popular media, it is often meant to sound dramatic and fatalistic. However, financial experts agree that in many cases, filing for bankruptcy like Chapter 7 can be quite the opposite, opening doors to new opportunities for struggling Kentucky residents to rebuild their financial lives. In the face of overwhelming debt, this can sometimes be an extremely smart financial decision.
A famed toy chain is closing its doors in a surprise bankruptcy filing. Toys R Us, known here in Kentucky and around North America as the premier provider of toys and children's supplies, is converting an existing Chapter 11 bankruptcy to Chapter 7 liquidation proceeding. While there is no word on when, or in what manner, the chain will begin closing its locations, Americans can expect to look elsewhere for toys this coming holiday season.
Most Kentucky business owners know what it's like to encounter various financial challenges during the course of their careers. Even those who have been in business 40 years or more may face financial crises that are difficult to overcome. In some situations, it makes more sense to seek immediate debt relief options, such as Chapter 7 bankruptcy, than to keep sinking deeper into a financial black hole.
Students and staff at an out-of-state post-secondary school were surprised to learn their university was closing its doors as of Nov. 2017. St. Gregory's University has filed for Chapter 7 bankruptcy, citing financial difficulties due to a lack of operating funds. As some Kentucky business owners already know, this may be the best decision university leadership could make to account for mounting debt.
Losing track of debt is not an uncommon hardship to befall an American family. Here in Kentucky and throughout the country, credit card debt and other types of debt can have a crippling effect on individuals and households. Thankfully, there are ways to mitigate and even erase debt that becomes unmanageable, using a variety of tactics from simple budgeting through to Chapter 7 bankruptcy.