People in Kentucky who file for Chapter 13 bankruptcy protection may be able to have many of their unsecured debts discharged upon the successful completion of the process. However, there are a few kinds of obligations that are not eligible for discharge under Chapter 13 bankruptcy. Other kinds of debts may not be impossible to discharge, but it could be more difficult under this form of consumer debt relief.
Handling credit card debt
Kentucky residents who hold credit cards may be looking to eliminate some of them. While that may seem relatively simple and benign, there are reasons why some cards are better to get rid of than others.
Private student loans and bankruptcy in Kentucky
While most people believe that private student loans are not eligible for a bankruptcy discharge, that is not always the case. Some private student loans are capable of being discharged due to either the type of institution that the borrower attended or the manner in which the money was used.
Easing credit restrictions may help Kentucky borrowers
According to a Federal Reserve Bank of New York survey released in February 2015, borrowers with credit scores under 680 had a roughly 50 percent chance of increasing their credit card limits. This represents an increase from October 2014, where a similar survey showed that borrowers with subprime credit scores had a success rate of roughly 33 percent. While this may be good news for borrowers with checkered credit pasts, it has consumer advocates concerned.
Supreme Court case causes re-examination of older mortgage case
Kentucky borrowers and those who have had difficult times with their mortgages in an extremely fluid market may be interested in recent developments in a case before the Supreme Court. The case of Bank of America vs. Caulkett appears to have larger ramifications than the specific suit, which concerns whether or not a court of appeals should have allowed Caulkett and one other individual to use bankruptcy to modify of their second mortgages. The Supreme Court appears to be considering the use of this case to overturn a decision from 1992 that now seems deficient.
