Kentucky residents may be aware that the 2009 Credit CARD Act placed restrictions on credit card interest rate increases. Issuers are still allowed to increase rates in certain situations, but they must notify consumers in writing 45 days before the new rate goes into effect. The law also allows consumers to decline the new interest rate and pay off their outstanding balance.
Credit card debt climbs
Though defaults on credit card payments reached a six-year low last year, Kentucky and the rest of the United States added a record-breaking $57.1 billion in net credit card debt. These and other findings related to American consumer debt are based on the results of a recently released CardHub survey.
How does a debt management Plan work?
Kentucky residents who are feeling overwhelmed by debt may have heard of debt management plans, but they may not be certain how they work or what they are. These plans are often used in order to help an individual debtor pay off his or her debts, normally over a period lasting around five years.
Bankruptcy filing for debtors with tax debts
Kentucky individuals who are struggling with debt and considering filing for bankruptcy may not know that past due tax obligations are not always eligible for discharge. A Chapter 13 bankruptcy establishes an arrangement for the debtor to repay all obligations over a period of three to five years in accordance with an approved plan, but Chapter 7 allows the discharge of certain types of debt, including federal tax debt if it meets strict requirements.
