The bankruptcy process can be a financial lifeline for Kentucky residents who fall into debt problems. Indeed, filing for bankruptcy can stop foreclosure proceedings in their tracks and help Kentucky families keep their homes. Once successfully navigated, bankruptcy will also provide individuals with a new financial lease on life by relieving them of financial burdens they have carried for years.
All this said, bankruptcy is not right for everyone, and there are a few things that Kentucky residents might consider trying in order to relieve their debt troubles before they pull the trigger on the bankruptcy process.
First, borrowers will want to speak with their creditors. In some cases, banks, creditors and loan issuers are willing to work with their borrowers and modify their debt repayment plans. A slight adjustment to a debt repayment schedule could mean the difference between staying on top of one’s finances and falling deeper into debt.
Second, borrowers should determine which of their debts are actually dissolvable by bankruptcy. Some debts cannot be resolved through the bankruptcy process — especially student loan debts and tax debts. In some situations, bankruptcy simply will not help an individual enough to make it worthwhile, and it is important to identify these cases ahead of time.
Third, alternatives to bankruptcy may be equally beneficial, like taking out a debt consolidation loan. Particularly if the debt is not that great, an additional loan might be a great way to consolidate one’s debts under a lower interest loan that reduces interest rates and gives borrowers more time to pay back what they owe.
At the Law Office of Allen E. Dunaway, PLC, we are particularly interested in helping borrowers get control of their debt. We help Kentucky residents evaluate their debt situations to determine if bankruptcy or another debt resolution option is right for them.