Kentucky residents may be interested in the outcome of a recent Supreme Court case involving bankruptcy issues. In Wellness International Network, Ltd. v. Sharif, a majority of the justices ruled that bankruptcy judges have jurisdiction over disputed issues when the debtor gives consent. This means that bankruptcy judges can issue rulings and final orders on bankruptcy matters, and they do not need to go through district judges.
Many Kentucky residents who are overwhelmed by their student loan debts are often tempted to turn to debt relief agencies for help. However, state attorney generals are now suing many of these agencies for unlawful business practices. In early May, five debt relief agencies were sued by the attorney general of Illinois for breaking state laws.
As some Kentucky residents may know, the U.S. Supreme Court decided on whether a debtor may automatically appeal if a payment plan is not accepted by the bankruptcy court. A Massachusetts debtor had petitioned the court to rule because of differences in circuit court opinion on this issue.
In some cases, Kentucky residents may want to go back to college after they have obtained a discharge of debt through bankruptcy. Some of them may be concerned that their bankruptcy will prevent them from being able to secure student loans to help them pay their college tuition, and they may refrain from enrolling as a result.
Debtors in Kentucky may be interested in learning more about major changes to the credit industry that were announced on March 9. All three major credit bureaus have committed to changing the way medical debt is reported and improving how they respond to errors identified by consumer complaints. The New York State Attorney General began investigating the three bureaus in 2012 and was able to negotiate these changes as part of a settlement.
Kentucky residents may be aware that the Credit Card Accountability Responsibility and Disclosure Act, which was passed in 2009, placed a number of new restrictions on credit card companies. One of the most significant changes brought in by the law was a strict set of rules governing when an issuer could increase interest rates and by how much the rates could go up.
Medical debt is a big problem for many Kentucky residents who are hoping to raise their credit scores. In fact, almost half of all collection accounts that are listed on credit reports are for unpaid medical bills. The Federal Reserve reported that one out of every six credit reports in the U.S. contains at least one unpaid medical bill that has gone into collections.
Business owners in Kentucky may be able to keep their businesses after filing for bankruptcy in some cases. For instance, the owner of a sole proprietorship may personally file for bankruptcy while still maintaining their business. The owner of a larger company who would like to keep their business has the option of filing for Chapter 11 bankruptcy.
When a person in Kentucky goes through the bankruptcy process, many of the debts that once hung over their head may be eligible to be discharged. A bankruptcy debt discharge means that the debtor is under no legal obligation to repay a debt, and the creditor that issued the debt is not allowed to take any action to collect it.