Law Office of Allan E. Dunaway, PLC

Louisville Bankruptcy Legal Blog

Cash Advances Lead to Huge Credit Card Debt

Credit card debt can be difficult to overcome, and taking cash advances can make it so much worse. Everyone with a credit card has received this in the mail - the tempting offer to take cash advances from a credit card (such as using a credit card at an ATM). During the summer months when consumers are on that much need vacation, what could it hurt to take a little quick cash from the credit card? 

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?

Convenience fees charged for the use of credit cards are particularly high. For example, on average, $262 worth of convenience fees are expected for every $10,000 worth of debt. The interest on credit card debt, charged by the credit card company, is also exceptionally high. For example, interest that needs to be paid on the debt will probably outweigh any potential benefits received. Student loans offer far better interest rates.

Although the rewards associated with credit card use can be particularly good, they are only useful if one pays the balance on the credit card in full and if the card issuer does not charge the user a convenience fee for the transaction. In any other circumstances, scholastic loans are a much more affordable way to finance college tuition costs.

For some Kentucky residents, it is already too late for this blog post to be of use. Anyone who is suffering under a mountain of credit card bills knows how serious the problem is and that it is difficult to get out from under this debt. However, various legal solutions are available -- including bankruptcy -- which could help individuals resolve debt problems once and for all.

Source: Lexington Herald Ledger, "Put it on my card...or not," Sarah Skidmore, Sep. 04, 2016

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:

Choosing between Chapter 7 and Chapter 13 bankruptcy

Kentucky residents filing for bankruptcy tend to worry the most about the idea of losing their homes during the process. Especially for those who file for Chapter 7 proceedings, where assets are sold off in order to pay off debts, the idea of losing one's most prized possessions -- like the family home -- could be a serious deterrent.

Still, even under Chapter 7, not all assets can be seized as certain assets will benefit from exemptions up to a certain limit. Exempt assets may include cash, the family home, the family car, various kinds of daily life and work life essentials and more. Essentially, the government does not want the bankruptcy process to leave individuals high and dry and unable to carry out their normal life activities. They want bankruptcy to leave individuals with the base-level necessities they need to rebuild their lives.

Gawker Media, owner, and employee seeking bankruptcy protection

Hulk Hogan has gained legal control of assets belonging to Gawker's ex-chief editor, who was largely in charge of posting the scandalous sex tape of Hogan engaging in sexual intercourse with the ex-wife of his friend. Hogan won a favorable $100-plus million verdict against the founder and co-owner of Gawker Media, Nick Denton, who was also instrumental in the release of Hogan's tape.

Since winning the favorable award, the litigants Gawker Media and Nick Denton have filed for Chapter 11 bankruptcy protection. Due to the bankruptcy filing, and the resulting bankruptcy protection for Gawker and Denton, the ex-editor now owes the full total of $115 million to Hogan. He has also been ordered to pay $100,000 in punitive damages. However, the ex-editor only has $1,505.78 in his bank account.

Contact the Firm

Get Sound Advice In A Free Consultation

For sound bankruptcy advice you can count on, from a skilled lawyer who truly cares about your future, contact the Louisville Law Office of Allan E. Dunaway, PLC. We have two convenient locations: Louisville, Kentucky, and Jeffersonville, Indiana. Our main office in Louisville is located off the beaten path so you won't have to deal with downtown traffic and can pull right up to our door and walk right in.

Call us at 502-785-1005, or send an email message. Our law firm welcomes the opportunity to serve you in any way we can.

If for some reason personal bankruptcy is not for you, if you do not qualify for the Chapter 7 approach via the "means test" and Chapter 13 reorganization is not the answer, Allan E. Dunaway works hard to inform you of other appropriate means of debt settlement that suits your unique needs.

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