Some 43 million Americans carry a balance on their credit cards, estimated to make up about 22 percent of all credit card users in the country. Kentucky residents who count themselves in that number could be laboring under the false notion that carrying a balance can help improve a credit score. Unfortunately, this is nothing more than an enduring myth, and could land consumers in serious debt. Options like Chapter 7 bankruptcy can help to eliminate that debt, when financial circumstances warrant that relief.
The prospect of filing for bankruptcy can be destabilizing for the average American citizen. This is partly because, here in Kentucky and elsewhere in the nation, people are not properly educated on what is involved in the process of Chapter 7 bankruptcy filing. The truth is, bankruptcy can represent a fresh start to an individual or business struggling with mounting debt, but it is important to have the right information going into the process.
Bankruptcy does not have the best reputation in the public consciousness. Here in Kentucky and elsewhere in the nation, individuals in debt are often under the mistaken impression that a Chapter 7 filing is something to be avoided even in cases of extreme debt. Many experts disagree. In fact, they suggest that the longer an individual in debt crisis waits to file for bankruptcy, the longer lasting the financial damage can be.
Of all the debt owed by American families, credit card debt is among the most persistent. With the average Kentucky family paying upwards of 20 percent interest on their credit cards, some families are being pushed so deeply into debt they are struggling to get back out. Thankfully, many strategies exist to help those families recover, from simple planning through to a Chapter 7 bankruptcy filing.
For many Kentucky residents, making the decision to file for bankruptcy is incredibly difficult. Many have tried to gain control of their finances for years before they give bankruptcy serious consideration. Once they decide to move forward, the next step involves determining whether Chapter 7 bankruptcy or Chapter 13 is a better fit for their needs.
Credit card debt is the most pervasive and common form of debt faced by the American people in this day and age. Here in Kentucky, individuals and households rack up tens of thousands of dollars in debt per year, leading many to seek out the best possible solution to the problem. While Chapter 7 bankruptcy filings have a proved track record of helping people get back on financial track, there are other options available in advance of such a filing.
College students across the country deal with challenging debt loads when they leave academia and enter the working world. Indeed, student debt is a major issue for politicians and educators alike. It is generally accepted that student loans cannot be discharged through a Chapter 7 bankruptcy filing, but Kentucky students may be buoyed to learn that in some instances, student debt is in fact eligible for discharge.
Many Americans have a tendency to view bankruptcy with no small degree of skepticism, if not outright panic. Of course, debt can spring from a variety of unforeseen sources. Thankfully, there are ways to speed up the process of returning to financial health even after a Chapter 7 bankruptcy in Kentucky.
A restaurant owned by American actor and rapper T.I. has filed for bankruptcy after closing its doors nearly two years ago, according to business news. Kentucky fans of the rapper might be familiar with Scales 925, a high-end restaurant opened by the entertainer in 2015 in a southeastern state. The restaurant has been closed since 2016 amid complaints from employees who allege they were not paid wages. The Chapter 7 bankruptcy was filed by T.I.'s business partner on May 1.
Bankruptcy is one of the most well-known and least-understood debt-relief options. In Kentucky and across the country, a Chapter 7 bankruptcy filing carries with it no small amount of mystery for the average person, who may not understand how filing for bankruptcy can actually be a positive financial move. One of the most pressing concerns is the concept of repossession, and what assets someone who files can hope to retain.