Getting court-ordered debt relief is the worst thing a person can do for their credit. It will only make things worse. Seeking a debt modification of sorts is the better route. These are all things individuals touting certain debt relief strategies would have people believe. The simple truth is, for those who are really far in debt, bankruptcy may be the best option, but there are a few things about it that Kentucky residents should know before taking the plunge.
Bankruptcy is for those who really cannot afford to pay back their creditors, either at all or with their current payment schedules. For those with little to no income, Chapter 7 bankruptcy — if court-approved — will allow for the discharging of certain debts. For those individuals with income deemed high enough to pay debts just stretched too far, a Chapter 13 — if approved in court — will result in one achieving an affordable payment schedule to pay off or pay most of his or her debts.
Filing for bankruptcy does cost money. There are court costs, though they are typically fairly minor. Bankruptcy approval can affect one’s credit rating, but it is possible to raise one’s score over time. Finally, bankruptcy is usually a last resort. There are reasons to file right away and reasons to put it off.
With the help of legal counsel, Kentucky residents will be able to make informed decisions regarding whether filing bankruptcy is really right for them. If it is, that is okay. Further assistance putting together and filing the appropriate bankruptcy petition can be provided.
Source: refinery29.com, “What Happens When You File For Bankruptcy?“, Judith Ohikuare, March 9, 2018