Main Navigation

Jeffersonville: 502-412-2254 Louisville: 800-392-0352

THIS IS AN ADVERTISEMENT
Law Office of Allan E. Dunaway, PLC

Free Initial Consultations

Louisville Bankruptcy Law Blog

The shocking truth about credit card debt in the United States

Kentucky residents are carrying massive amounts of credit card debt. If your income is sufficient to pay your credit card bills, this debt may not be a huge problem. However, as soon as a problem comes up that interferes with your ability to pay your monthly bills, you could face serious debt problems -- and maybe the only way to get out from under those difficulties is bankruptcy.

According to statistics, the average American holds anywhere from $3,600 to $5,700 worth of credit card debt each month. When you consider that average household incomes in the United States are around $55,000, this amount of debt doesn't appear too horrible -- especially when you consider the fact that most credit card holders pay down their monthly balances to zero each month.

Stop creditor harassment now

Kentucky residents suffering from debt troubles will quickly realize how harrowing creditor harassment can be. Constantly being tracked down, called and contacted in different ways by creditors is nerve-wrecking, embarrassing and in some cases it is also unlawful. So, how do Kentucky residents put a stop to it?

One of the best ways to stop creditor harassment is via the "automatic stay" component associated with filing for Chapter 13 and Chapter 7 bankruptcy. Once an automatic stay has been put into affect through the bankruptcy process, creditors can no longer harass a Kentucky borrower to pay his or her debts. In fact, if the creditor violates the automatic stay, the creditor can face serious legal consequences and fines.

How to stop your car from being repossessed

Even if you have worked hard and paid your car payments on time for years, a financial hiccup that prevents you from paying for your car several times could result in a repossession. However, by filing for Chapter 13 bankruptcy, some individuals may be able to stop a car repossession in its tracks through what is called an "automatic stay."

An automatic stay prevents debt collectors from trying to secure debts payments owed from you. Automatic stays also prohibit auto loan institutions from repossessing the vehicles of people who are delinquent on their payments. An automatic stay associated with a Chapter 13 filing can even help a vehicle owner to get his or her vehicle back after it has already been repossessed in certain situations.

Kentucky Judge orders debt relief company to leave the state

A Franklin Circuit Judge has struck a blow to predatory debt relief peddlers, ordering a Florida-based company to cease operations within Kentucky. The decision was handed down after the company came under investigation for making allegedly misleading claims about college debt forgiveness.

Among the charges leveed are claims that the company promised to work with federal load providers to acquire loan consolidations and other debt relief options, all while seeking large payments from its clients. Whether or not the charges are valid, the company has been barred from operating in Kentucky until it complies with orders to supply documentation verifying its claims.

Advice for buying a car while in Chapter 7 bankruptcy

You might be in the middle of Chapter 7 bankruptcy proceedings, but that does not change the fact that you need to drive an automobile to and from work, take your kids to school and basically get from A to B. When it comes to purchasing a vehicle while in Chapter 7 bankruptcy, however, there are several things that bankruptcy filers will want to keep in mind.

-- Review your borrowing past and pay special attention to your borrowing related to car loans. Credit lenders will focus on your credit history after your bankruptcy is discharged. If your problem relates to situationally bad credit, they will look at it more positively than if you have had habitually bad credit. As such, if you are applying for a car loan, they'll want to see what your previous auto loan history looks like.

Frightening information about credit card debt

Nobody likes having credit card debt to pay off, but most Americans have some form of credit card debt or another, and it usually has a very high interest rate attached to it. The high-interest rates and other fees associated with most credit cards are particularly frightening for consumers, but there are some other lesser-known -- but equally frightening -- facts that consumers should know about, too.

For example, did you know that there's too much credit card debt right now? At this time, U.S. consumers owe a whopping $953.3 billion in credit card debt. According to the Federal Reserve, the debt could skyrocket to $1 trillion before the end of 2016.

Is it a bad idea to pay college tuition with my credit card?

We all fall short of cash from time to time, but being low on money when it's time to pay our college tuition can affect our future. Many of us end up reaching for the credit card to pay our college bills when we don't have enough money, but this isn't the best idea.

Most Kentucky universities and colleges will accept credit card payments in lieu of a check or cash these days. However, the fees and other costs associated with credit card debt can really add up, so people who plan to hold their college costs as a balance on their credit cards may want to consider other financing options.

Are your wages being garnished?

Kentucky residents work so hard for their money, and most of them are living from paycheck to paycheck. This means that when a creditor successfully takes legal action to garnish your wages, the consequences for your finances can be devastating. In fact, you may not even be able to put food on your family's table after the wage garnishers take their share.

If this is happening to you, it may be time to file for bankruptcy. A bankruptcy filing is the best way to put a stop to wage garnishment. In fact, if creditors continue to try and harass -- or garnish the wages of -- a Kentucky resident who has entered the bankruptcy process, the creditor will face stiff and extremely prohibitive legal consequences. In fact, the consequences are so severe for creditors who fail to honor and respect a bankruptcy filer's privacy, that it is very rare for a creditor to violate the do-not-harass policy.

Millennials are feeling wary about credit card debt

A lot of millennials are currently suffering under a mountain of college debt and this is making them wary of having credit card debt too. Less than one-third of millennials (people from the age of 18 to 35) own a credit card. This percentage is strikingly low compared to most statistics.

One millennial, who also runs a wealth management blog, said that she has been more careful with her finances because there are not a lot of job opportunities right now. She said that she has found many other millennials taking the same position. Simply put, young people are being careful not to overspend beyond their means. They are being careful not to use credit cards or take risks -- even when the risks appear to be "smart" and involve investing.

What is the Credit CARD Act of 2009?

The Credit Card Accountability Responsibility and Disclosure Act of 2009, also known as the Credit CARD Act of 2009, is a federal law that was passed by Congress and signed into law in May 2009. The law is a comprehensive piece of credit card reform designed to foster transparent and fair practices on the part of credit card companies.

Among the parts of the Credit CARD Act of 2009 is the Credit Cardholders' Bill of Rights, which includes multiple provisions that were created to limit the way credit card companies charge their customers. However, it does not include rate caps, price controls or fee settings. The following are the main provisions in the Credit Cardholders' Bill of Rights:

FindLaw Network