A recent post on this blog talked about how Louisville, Kentucky, residents might want to explore the using a Chapter 13 bankruptcy to "strip off" liens from their property, such as a second or third mortgage they took out in exchange for a home equity loan.
Many people in Louisville, Kentucky, usually in an effort to manage their finances, take out a second or even a third mortgage on their home. This works well so long as the family has a steady income and no other financial problems. However, in the midst of financial problems, a family can get behind in their second mortgage payments.
In many cases, a Louisville family may file a Chapter 13 bankruptcy, which involves repaying creditors all or part of the family's debts over the course of 3 to 5 years, simply because they make too much income to qualify for a personal bankruptcy under Chapter 7. In other cases, people might sense a moral obligation to repay their debts as best as possible, even though they see the financial advantages to filing a Chapter 13.
Louisville, Kentucky, residents routinely use Chapter 13 bankruptcy in certain situations where they want to resolve personal debts such as a mortgage or a credit card.
While many Louisville, Kentucky, residents may be under the impression that any type of bankruptcy will stop a foreclosure, such an impression is only true to a certain extent.
As this blog has discussed on several previous occasions, many residents of Louisville, Kentucky, who find themselves in financial trouble may consider Chapter 13 bankruptcy as an option for debt relief. As has been explained, a Chapter 13 bankruptcy involves making and performing a repayment plan in which all or part of a debtor's disposable income goes to repay the person's creditors.
Although the figures had not been completely processed, the Federal Reserve Bank announced recently that the people of Louisville, Kentucky, along with their fellow Americans, are carrying around almost $13 trillion in consumer debt. This marks the 13th quarterly increase in this figure in a row and is also the highest number on record.
Filing for bankruptcy can be a difficult time for a Kentucky resident. Besides the stress of dealing with creditors and debt collectors, there is the fear of not being able to get through the legal process. Add to this that the individual needs to decide what kind of bankruptcy case to file, and it can be a traumatic experience for anyone. One thing that may help ease that stress is to know, ahead of time, what will be expected in a bankruptcy process.
Making the decision to file for bankruptcy is stressful. Deciding what type of bankruptcy to file can be equally as stressful. Not everyone is able to file for all forms of bankruptcy, and while some may wish to pursue Chapter 13 and some may want to take a different route, it's important to understand what qualifies a person for such an action.
The economic downturn that occurred in Kentucky and across the United States around 2008 hit many people quite hard. Lack of growth and a crash in certain markets led to loss of jobs for many, which led to depressed consumer spending, leading to more lay-offs in a negative feedback loop. Unfortunately, when this happened, many individuals found themselves unemployed and with poor job search prospects due to the lack of hiring that was happening.