Bankruptcy filings have dropped for the third year in a row across the U.S., by approximately 12 percent. This is seen as a sign that consumers are still very careful in taking on new debt since the Great Recession ended five years ago.
Some people in Louisville think bankruptcy is something that cannot happen to them. They have a good job with medical insurance and have their finances under control. Then they get sick or have other health related problems. And the medical expenses begin. And if their illness or medical condition is severe enough, they may no longer be able to work. And without a job, they may lose their insurance coverage.
When you file for bankruptcy protection, you know that your credit rating may take a hit. Not because the bankruptcy filing has some magic property, but you recognize that by the time you need to file a bankruptcy, your financial situation is less than stellar. Your finances have deteriorated to the point that your debts are so overwhelming that you simply cannot meet your obligations any longer and a Chapter 7 or Chapter 13 bankruptcy becomes your only option.
When it is a car title loan. With a 300 percent interest rate. This type of loan has the potential of driving your car into repossession and your financial situation into bankruptcy. They operate in a manner very similar to payday loans, a while banned in some states, they are available in Kentucky.