In 1934, the Supreme Court stated in one of its opinions that bankruptcy represents an opportunity for the honest but unfortunate debtor to get a fresh start without being discouraged by previous debt. There are several different chapters in the Bankruptcy Code that allow individuals, married couples and businesses to get the fresh financial start that they need.
Residents of Kentucky may be interested in a recent article in Daily Finance, a financial website, which discussed average credit card debt calculations. The article pointed out the values associated with average credit card debt and the ways in which those values are used by reporting agencies. The article provided insight into why the reported averages seem to vary. Some common factors that go into calculating the average include whether or not the report includes store and gas cards and whether or not it includes those who typically pay their card off completely each month.
Kentucky residents may be aware of the upfront costs of using credit cards, including interest rates and annual fees. However, there are other side effects to relying on credit to make purchases that tend not to be discussed in the pages of disclaimers that are handed out when a person completes an application and accepts that shiny, new card.
Where repeated phone calls or past due letters were once the main products of creditor harassment experienced by people unable to pay their debts, litigation has become what people should fear. Kentucky residents who have outstanding debts may get a surprise in the way of asset seizure. Wages, secondary homes and other assets may be taken to reimburse debt-buying agencies who win in court even in cases where the debtor was unaware that he or she was being sued.