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.
Many factors can push an individual or family into debt. Medical bills, the loss of a job and underemployment are just a few examples of issues that can lead to reduced cash flow and the inability to keep up with monthly expenses. People in this situation do have options, and they can often benefit from the help of a credit counselor in determining whether some form of debt consolidation or a bankruptcy filing is the best solution. For Kentuckians, who rank 46th in the nation in financial literacy, such counseling can be a vital first step in addressing the problem of debt.
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.
Kentucky residents who are struggling with their financial obligations may wish to learn more about the differences between debt settlement and credit counseling companies. Although the two may seem similar, there are important differences that can influence how negotiations with creditors are handled.
Our readers are aware of the debt problems faced by Americans, and the stress this puts on individuals and families. What readers may not know is that over one-third of Americans are indebted enough that they have debt in collections. That data, which comes from a recent study published by the Urban Institute, doesn’t speak well for the state of financial health in this country.
A report issued last month by the Consumer Financial Protection Bureau concluded what many Americans already know to be the case—hefty medical bills are having a bad impact on consumer credit scores, and in many cases unfairly. The problem, according to the report, lies not only with the way the medical industry handles medical debts, but also with the credit-scoring models currently used.
Bankruptcy can be many things to many people in that it can bring relief from a variety of burdensome debts and become the means of a new beginning. One of the not uncommon motivations for a bankruptcy filing is to avoid or delay foreclosure. A recent article in the Huffington Post took on this topic, pointing out that bankruptcy acts as a sort of foreclosure “kill switch,” a last resort for underwater homeowners who have been unsuccessful in obtaining relief from their lenders.
Filing for bankruptcy is not something one should take lightly. One of the reasons why debtors need to think carefully before filing for bankruptcy is that their filing will remain on their credit report for quite some time. According to Experian, it can be 7 or 10 years, depending on the type of bankruptcy filing. A Chapter 7 filing remains on one’s credit for 10 years, and a Chapter 13 filing remains for seven years.
Readers know that health care is a big business and you have to pay to play. Even with health insurance, costs can be great for patients, particularly those undergoing emergency procedures or treatment for major medical conditions. When patients receive medical bills for these procedures, the shock can be great. And while patients are often able to work with providers to get on a payment plan, there are some cases where billing isn’t correct or the hospital has simply charged and arm and a leg.