Many different types of debts can be discharged in a Kentucky bankruptcy. Almost every type of unsecured debt such as personal loans, medical bills and credit card balances can be addressed in both Chapter 7 and Chapter 13 proceedings. Secured debts such as mortgages and auto loans are also likely to be discharged in a Chapter 13 case. A few types of debts, such as back taxes, fines and child support, cannot be discharged.
The Fair Debt Collection Practices Act provides debtors throughout Kentucky and the rest of the country with protections against certain debt collector activities. For instance, a debt collector does not have the right to harass a debtor or act in a deceiving manner. When a person receives a call from a debt collector, it is important to verify that the amount in question is actually owed.
Women in Kentucky and throughout the country tend to have more debt than men. This is partially because of the gender wage gap that sees a female worker earning as little as 72 cents for every dollar made by a male. For instance, a woman paying student loans has an average debt of $30,716 compared to a man's average of $24,232.
Debtors in Kentucky and throughout the country may be doing themselves a disservice by waiting to file for bankruptcy. By waiting, they could deplete assets or otherwise negate some or all of the financial benefit gained by filing. In many cases, individuals who choose to file only do so when they are at the point when they face debt collection calls or creditor lawsuits. The time that people spend putting off asking for protection from creditors is called the sweatbox.
Some people in Kentucky who are in the midst of a Chapter 13 bankruptcy might wonder whether they can obtain an auto loan. It is possible to do this, but it may take time because it is necessary to first get court approval.
Kentucky residents who are facing overwhelming debt may be interested in one legal limitation that consumers face when seeking a Chapter 13 bankruptcy. A decision from the nation's highest court has clarified when a person has the ability to appeal the bankruptcy court's rulings.
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.
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.
Kentucky residents with overwhelming consumer debt may be interested in repayment options, including those that come after debt is discharged in bankruptcy. Depending on the specifics of the debt, some borrowers may still wish to pay these debts when there is no legal need to do so.
Kentucky homeowners who are having financial difficulties may be wondering how filing for Chapter 13 bankruptcy affects their mortgage. When this specific type of bankruptcy is filed, the mortgage lender typically wants to prevent the foreclosure process as much as the homeowner.