Louisville High School Students Learn the Benefits of Good Credit

Louisville High School Students Learn The Benefits of Good Credit

By Tracy L. Hirsch

Celebrating 11 years, CARE stands for Credit Abuse Resistance Education, and is a program that assigns local attorneys to Kentucky high school classrooms to teach teenagers about credit responsibility. These students are taught how to avoid getting into debt, how to create a budget, and how to manage credit.

I have been involved in this program as a public service project through the Louisville Bar Association for approximately 6 years. CARE is such an integral part of reaching out to high school seniors to educate them about financial literacy, budgeting, and overall responsibility as they enter adulthood.

Each year CARE reaches out to almost 3,000 Kentucky high school students to raise awareness throughout the state. We try to teach students about managing money and avoiding credit traps that individuals are often faced with as they become responsible for more of their finances.

Mastering financial literacy at a young age is key to a stable financial future.

Understanding the do’s and don’ts of fiscal responsibility is the first step towards financial success, and it’s an honor to help educate this next generation on how to make wise financial choices.

As a Louisville bankruptcy attorney, it’s heartbreaking to hear clients say that they wish they had been given financial guidance a young adult, as they feel that it would have prevented them from accumulating an unbearable amount of debt.

Thankfully, there’s still hope, as filing for bankruptcy can provide the chance for a fresh start, as well as an opportunity to receive education about credit and budgeting.

If you’d like to learn more about how Louisville bankruptcy can help you get back on track financially, call me today at (502) 435-2593. It’s never too late to set the “reset” button on your financial future. I’m here to help!

Tracy L. Hirsch

Jefferson County Public Schools Louisville KY

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Is Filing for Bankruptcy Really a Last Resort?

Is Filing for Bankruptcy Really a Last Resort?

By Tracy L. Hirsch

We’ve all heard that filing bankruptcy should be considered a last resort. The media, credit counselors, collectors, and debt relief programs claim that bankruptcy will destroy your credit and label you as a ‘failure’ from which there is little to no chance of return. This simply isn’t true. These are opinions and not based on facts.

In order to avoid filing for bankruptcy, people will sell assets, use up retirement accounts, and empty their savings, which puts them in a worse position. Comparatively, filing for bankruptcy in Kentucky can be the least expensive way to deal with debt, and can give you the quickest route to getting your life back on track.  

Here is a list of some of the benefits of bankruptcy.

1. Bankruptcy can stop foreclosures, garnishments, repossessions, and judgements liens.

The filing of a Chapter 7 or Chapter 13 bankruptcy immediately invokes the “Automatic Stay.” This is a rule in the Bankruptcy Code that immediately protects you from  your creditors and their attempts to collect a debt.

Companies that offer debt consolidation and credit repair cannot protect you from your creditors, and can actually put you in a worse financial situation.

Despite what you’ve heard, bankruptcy doesn’t need to be viewed as a “last resort.” 

2. Bankruptcy eliminates debt.

Filing for bankruptcy can help to eliminate (discharge) or greatly reduce debt with credit cards companies, medical bills, and other unsecured debt. It can even help you with owed IRS taxes.

3. Bankruptcy puts an end to those annoying phone calls.

Phone calls from creditors are not only stressful, but borderline harassment. Once you file for bankruptcy, creditors cannot contact you by phone or mail, or try to talk to you at your place of employment. If they do so, they are in violation of the law.

Even after you’re discharged from your bankruptcy case, there are serious repercussions for creditors who continue to harass you, despite being informed of your bankruptcy.

4. Bankruptcy provides you with professional legal counsel.

Once you file with a bankruptcy attorney, s/he will give you the guidance that you need to successfully complete your plan. Debt consolidation and credit repair organizations are not there to protect you. They’re actually there to exploit you by adding on interest to your already unmanageable amount of debt.

5. Bankruptcy provides a chance to start over.

A Louisville, KY bankruptcy eliminates the roadblocks that keep you from moving forward in life. We are here to reassure you that making the decision to file for bankruptcy is the first step in making a full financial recovery. If you’re ready for your free consultation, call or text Attorney Tracy Hirsch at (502) 435-2593.

filing for bankruptcy in Kentucky

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Student Loan Debt: Is There Any Relief?

Student Loan Debt: Is There Any Relief?

By Tracy L. Hirsch

If you have student loans, that’s something that unfortunately won’t fade away in bankruptcy. However, for individuals qualifying for the Public Service Loan Forgiveness Program (PSLFP), relief may be within reach.

Under this program, some individuals in Louisville, Kentucky (and other cities and states), qualify for forgiveness of the balances of their student loans with Direct Loans.

After 120 consecutive payments are made while employed full time by certain public service employers. many teachers and other public service employees qualify under this program.

If you work in the public service sector, find out more about student loan forgiveness here.

For those individuals drowning in student loan payments that do not qualify, bankruptcy may still provide temporary relief. Many individuals enter into a five-year Chapter 13 repayment plan in order to pay something to their creditors.

While under the five-year bankruptcy protection, debtors are protected by the “Automatic Stay” and creditors cannot attempt collection of these student loans as long as they are included in the repayment plan.

Although any remaining balance of the student loans will survive at the completion of the Chapter 13 Plan. That being said, this often provides debtors with an opportunity to get back on track so that when they complete their plan, they’re able to set up a payment plan directly with the student loan lenders.

kentucky student loans

If you want to find out if bankruptcy is a viable option for you, call me or text me to set up a free consultation. My direct number is  (502) 435-2593. Find out how to achieve financial relief from your students loans and other debts. I’m here to provide you with the help that you deserve!

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5 Ways to Prevent Credit Fraud

5 Ways to Prevent Credit Fraud

By Tracy L. Hirsch

Almost anyone can become a victim of credit fraud. In the past few years, we have all heard numerous reports regarding stolen credit cards numbers, checking account numbers, and even social security numbers.
 
Many of us have friends and family members that have had to deal with cleaning up after some type of identity theft. Even some of the most popular chain stores, like Target, have had their own issues.
 
While it’s not always completely unavoidable, there are certain ways that you can proactively protect yourself from falling victim to this type of theft. Here are the top five:
 
1.) Shred documents that you don’t plan on keeping.
 
Believe it or not, most people don’t realize that bank statements, tax documents, and monthly billing statements often have all of the information necessary for an individual to steal your identity. The biggest culprit is tax documents, as most of them have your social security number on them.
 
If you need any of these hard copy documents, be sure to put them in a locked file or a safe. However, if you have them safely stored on your computer and an external hard drive, shred each financial document before putting them in the trash or recycle bin,
 
2.) Keep your private information “close to the vest.”
 
Never give personal information, such as date of birth, social security number, or any bank account or credit card information via e-mail, text, or online form.
 
If that information is needed, it’s best to mail it, drop it off in person, or give it over the phone only if you trust the person retrieving that information.
 
Never give that information to someone who calls you. If someone calls saying that they’re from your bank or tax office, tell them that you’re going to hang up the phone and call the phone number that is listed on their website or Google Business page.
 
Once you do that, ask if someone from that institution was trying to reach you, and if so, why they were asking for that information.

While you can’t completely prevent identity theft or credit fraud 100% of the time, there are things that you can do to greatly minimize the risk.

3.) Protect your devices.
 
Make sure that you always arm your computer with up-to-date anti-virus protection. This greatly decreases your chances of getting a computer, which can steal personal information from your computer.
 
In addition, be sure to add passwords to all laptops, tablets, and smart phones, so that private information cannot be accessed if those devices get into the wrong hands.
 
4.) Only shop on secured websites.
 
It’s okay to shop online, but make sure that you are shopping on protected websites. If there is an “https” with a padlock icon next to it in the domain name at the top of the page, then your information will be encrypted and you are safe from hackers.
 
If you only see “http” on a website domain without the padlock icon, then don’t make purchases from that particular site.
 
5.) Check your credit report.
 
Everyone is entitled to one free credit report per year. Arm yourself with information! Go to annualcreditreport.com to verify your credit accounts and look for errors and suspicious activity.
 
In the unfortunate event that you or someone you know falls victim to credit fraud, you need to act quickly. Here’s a helpful article on what to do if you suspect identity theft.
identity theft kentucky

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Don’t Do These 7 Things Before Filing for Bankruptcy

Don't Do These 7 Things Before Filing for Bankruptcy

By Tracy L. Hirsch

Below is a list of common mistakes that clients make before filing for bankruptcy in Kentucky. These mistakes can have a detrimental affect on a consumer’s ability to obtain relief under the bankruptcy code.

If you are anticipating filing a bankruptcy petition, please review the following list carefully. As always, if you are unsure as to whether an action will affect your bankruptcy filing, seek the advice of a legal professional.

1.) Don’t transfer any property or assets.

Oftentimes, an individual who is contemplating filing for bankruptcy in Kentucky, fears that they will lose assets to the bankruptcy estate. More often than not, this is not the case. In fact, transferring an asset out of your name before the filing of a bankruptcy can actually cause you to lose an asset that would have otherwise been protected.

This type of transfer can be construed as fraud, allowing the trustee to take the property from the individual it was transferred to and sell it for the benefit of your creditors.

2.) Don’t pay off debts to relatives.

Many debtors owe credit card companies, as well as family members. While it is understandable that most individuals do not want to file for bankruptcy against their relatives, paying back a debt to a relative before the filing of a bankruptcy petition could be bad news.

Repaying debts to relatives before filing bankruptcy is considered a “preferential payment.” This gives the bankruptcy trustee the right to recover funds from the relative that you paid, and to distribute the funds evenly among all of your creditors.

While filing for bankruptcy can protect your from your creditors in most situations, there are certain actions that you must avoid in order to obtain that legal protection.

3.) Don’t tap into your retirement accounts.

Most qualified retirement funds are protected assets in a bankruptcy filing. Cashing out or withdrawing funds from these types of accounts not only puts your retirement funds at risk, but it also has the potential for creating tax liabilities that will not be eliminated in bankruptcy.

4.) Don’t incur more debt.

Once you have made the decision to file for bankruptcy in Kentucky, it is improper to incur additional debt that you do not have the intention or ability to repay.

Creditors may object to those charges and may be able to have them excluded from your bankruptcy discharge. So don’t max out your credit cards or take out a car loan before filing.

5.) Don’t use the equity in your home.
 
Many people think that if they have any equity in their home when they file for bankruptcy, then they will lose their home. This is not the case. All states have exemptions that cover at least some of your equity.
 
Kentucky uses federal exemptions which allow each debtor to protect $20,200.00 in equity (that’s $40,400.00 for jointly owned property). In Indiana, each debtor can have up to $15,000.00 of equity and still protect his or her home.
bankruptcy louisville ky
6.) Don’t get married before consulting with a bankruptcy attorney. 
 
If you are contemplating marriage before filing for bankruptcy, it’s a good idea to speak to a Louisville bankruptcy attorney prior to your marriage.
 
In some cases, it’s better to get married and then file for bankruptcy if you are both in debt and need to file. However, the opposite can be true. If your soon-to-be spouse makes a significant amount of money, you may not qualify for certain chapters of bankruptcy if you get married first.
 

7.) Don’t omit certain types of information on your bankruptcy petition.

Your attorney can only provide proper legal advice if you provide him or her with truthful and accurate information. Failing to disclose income, expenses, assets, debts, or any questionable actions for transfers could prove to be a costly mistake.

Failing to disclose pertinent information when filing for bankruptcy could result in loss of assets, denial of your discharge, and even fines or imprisonment.

If you’re looking for an experienced bankruptcy lawyer who can guide you through this process, call me or text me at (502) 425-2593. I’ll set up a free consultation to provide you with options and advice on whether or not a bankruptcy filing is right for you.

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How is Your Credit Score Determined?

How is Your Credit Score Determined?

By Tracy L. Hirsch

Credit scores, as we all know, are extremely important. When someone uses the term “credit score,” they are usually referring to your FICO score. However, other Kentucky lenders, such as banks and large institutions, will calculate your credit score using their own methods which are often kept secret.

Your FICO score is your credit history at the moment in time that you apply for a loan. Lenders will look at your credit history to determine if you are trustworthy enough to purchase the amount of credit you are applying for.

Your FICO Scores take both positive and negative information in your credit report into consideration. If you make late payments, it will lower your FICO Scores. However, if you consistently make your payments on time every month, that will help raise your score.

It’s important to know what your credit score is before applying for a loan or line of credit. If it needs improvement, there are ways to increase it before borrowing from a lender.

For the general public, FICO determines your score using five categories that are seen in the chart below. However, there are some groups where the categories may vary. For example, if you have little to no credit history, the calculations will be different.

720 is the average U.S. credit score, which means that half of the population’s credit score is higher than 720, and the other half of the population’s credit score is lower than 720.

Your Kentucky credit score is determined by multiple factors, including (but not limited to) timely payment record, the amount of debts owed, and your credit history.

If your credit score is suffering due to an overwhelming amount of debt, contact me today. You can text or call (502) 435-2593 to set up a free consultation, or email me at tracy@hirschbklaw.com. 

credit score in Kentucky

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5 Red Flags to Identify a “Credit Repair” Scam

5 Red Flags to Identify a "Credit Repair" Scam

By Tracy L. Hirsch

We’ve all seen the ads for repairing your credit with a company. While some are legitimate, some Louisville credit repair companies use illegal actions that can get pinned on you.

Whether or not you choose bankruptcy, if you’re thinking about getting help to rebuild your credit, here are a few red flags to help you recognize and avoid these scams.

1.) A requirement to pay money upfront.

If a credit repair company in Louisville is asking for money upfront from the consumer before any services are performed, then this is a red flag. A legitimate company will inform you of actions that you can take on your own, and they’ll give you those tips for free. They should be there to help you, not put you into further debt!

While you can’t completely prevent identity theft or credit fraud 100% of the time, there are things that you can do to greatly minimize the risk.

2.) Lack of information.

Don’t ever be afraid to ask questions. Transparency is your friend, and reputable companies should have nothing to hide. You should be informed of your legal rights and given a copy of “Consumer Credit File Rights Under State and Federal Law.”

This particular document lets you know your rights in regards to obtaining a credit report and disputing inaccurate credit report information. You should be informed through the entire process since they are working for you. If a credit repair company tells you not to contact the credit bureau directly, then be very leery.

3.) Questionable contract integrity.

Your contract should be given to you before signing it so that you can carefully review it. It should contain the following:

> The fee for the services performed

> Detailed information about the services being performed on your behalf

> The date by which the services will be performed (or the time period required to perform the services)

> The name and business address of the organization

> A statement letting you know you can cancel the contract within 3 days

credit repair KY

4.) Being Asked to Create Anything “New.”

If a credit repair company in Kentucky (or any other state) suggests that you need to create a “new” credit report by applying for an Employer Identification Number (to use instead of your Social Security Number), then this can be a clear sign of fraud.

Don’t ever let a credit repair organization try to talk you into doing something illegal. If you’re ever in doubt, speak with an experienced and reputable bankruptcy attorney.

5.) Everything sounds too good to be true.

If it doesn’t feel right, then it probably isn’t. Be wary of any credit repair company that promises to remove reputable information that’s on your credit report. Do not partake in any action that seems illegal. If you follow any illegal advice and commit fraud, then you may be subject to prosecution.

Use common sense and trust your gut. Rebuilding credit isn’t an easy process, and there are no shortcuts. Often times, filing for bankruptcy may be the best option and other times it may not.

I’m here to guide and help you through the process. Contact me to set up a no-obligation, free consultation, and let’s get your finances back on track.

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I Just Received My Bankruptcy Discharge. What’s Next?

I Just Received My Bankruptcy Discharge. What's Next?

By Tracy L. Hirsch

If you filed for bankruptcy, completed your payment plan, and recently received a discharge from the Court, you may be wondering what to do next.
 
Understanding how to make wise financial decisions after your bankruptcy discharge is essential if you want to avoid financial hardship in the future. Here are five helpful tips on how to get yourself and your family back on top of your finances.
 

1.) Keep all of your bankruptcy paperwork in a safe place.

Once you receive your bankruptcy discharge, you should keep copies of your discharge papers, your bankruptcy petition, and your notice of filing in a locked desk drawer, filing cabinet, or safe.
 
Make sure to always have a hard copy and an electronic copy. If you received all of your paperwork in person, scan it into your computer, and save it to an external hard drive as well.
 
You need these documents so that future lenders (including mortgage loan companies) can see your detailed bankruptcy report. It’s also important to have these papers on hand in case an old creditor tries to comes after a debt that was discharged in your bankruptcy case.

Utilize financial resources, such as Dave Ramsey’s Financial Peace University, to get solid advice on how to avoid incurring debt again in the future.

2.) Check your credit reports on a regular basis.

Six months after your bankruptcy discharge, it’s important to check your credit reports to make sure that any discharged debts are not being counted against you.
 
If you see an erroneous outstanding balance, you can work to have it removed from your credit report to improve your credit score.
 

3. ) Create a budget.

Take advantage of your brand new start by doing some financial planning. Creating a budget will help you monitor your expenses, and also help you and your family plan ahead for the future. Planning for retirement, a life change (such as the birth of a child), or future tuition fees, will help you stay out of debt and avoid the temptation of using credit cards.
Louisville bankruptcy discharge

4.) Set up a savings account.

Saving money will help you avoid future debts incurred from unforeseen circumstances. Setting money aside for emergencies, as well as planned life changes such as the ones mentioned above, will prevent you from getting into a position where your debt is unmanageable again and unable to be paid.
 

5.) Start rebuilding your credit.

You can rebuild your credit without a high credit line, which is the best way to go. After you’ve been discharged for several months, you can consider getting a credit card with a small credit limit.
 
You can put small expenses on it, such as gas or groceries, and then pay off the balance in full each month. Don’t max out the credit card — just use a small amount of your credit limit each month and pay it off on time and in full during each billing cycle.
 
                                               *****
 
Getting on a path to financial freedom takes work, but it’s worth it knowing that you and your family have a secure financial future. Call or text me today at (502) 435-2593 to find out if filing for bankruptcy is right for you.

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The Top 5 Bankruptcy Myths

The Top 5 Bankruptcy Myths

By Tracy L. Hirsch

If you’re considering filing for bankruptcy in Louisville, KY, you’ll be happy to know that it can benefit you in multiple ways. In spite of the stigma, bankruptcy can give you hope for a better financial future by wiping your slate clean after you’re discharged from your bankruptcy plan.

Unfortunately, there are a lot of myths surrounding bankruptcy, which keep people from pursuing it, and thus getting the protection that they need. As a Kentucky bankruptcy attorney with 22 years of experience, I want you to know the truth by addressing the most common bankruptcy myths: 

Myth #1: If I file for bankruptcy, I will lose my assets, primarily my house and my car.

In every Kentucky bankruptcy petition, you have to give a full disclosure of your assets. However, in most cases, debtors are able to use available exemptions to protect all of their assets.

Additionally, if you’re like most debtors, you may have little to no equity in your home or vehicle, so as long as you continue to make your required monthly payments to their mortgage company and car loan lender, you’ll be able to keep your house and car.

Myth #2: Filing for bankruptcy will permanently ruin my credit.

For most individuals contemplating a bankruptcy in Kentucky, there are collections, lawsuits, or late payments already being reported on their credit report.

Filing a bankruptcy immediately prevents any of these creditors from continuing to report negatively on their report. Once your old debts are removed from your credit report (upon the completion of your bankruptcy plan), you have an opportunity to begin rebuilding your credit right away.

Most people only know about the myths and negative stigmas surrounding bankruptcy. We’re here to set the record straight.

Myth #3: I don’t owe enough money to qualify for bankruptcy.

There are no minimum debt limits in bankruptcy. Each case is looked at individually based on income, expenses, and need. It is important to consult with an attorney from the beginning to see if bankruptcy will benefit your specific situation.

Myth #4: My spouse has great credit, and if I file for bankruptcy, it will negatively affect his or her credit.

When an individual that is married files bankruptcy, their spouse isn’t forced to file with them. It is absolutely possible for one spouse to file, leaving the other spouse’s credit unaffected by the bankruptcy filing.

However, it is important to discuss these situations with a Louisville bankruptcy attorney to ensure that the debts listed in the petition are unique to one spouse, and are not joint debts. If there are numerous joint debts, it could be beneficial to file for bankruptcy jointly.

foreclosure Louisville KY

Myth #5: I will never be able to buy real estate again.

For many individuals considering a Louisville bankruptcy, their credit score is too low to even attempt to qualify for a home loan right now. One way to get on a path to potentially increase their score is to file a bankruptcy petition.

How is that possible? A bankruptcy will help you to qualify for a mortgage once the liability for your debts is relieved at the completion of your case.

This means that after you successfully finish your bankruptcy plan, you no longer have massive amounts of debt, and you can now start to actively rebuild your credit. In turn, mortgage lenders will be more willing to give you a home loan since your financial situation is no longer a liability.

Are you ready to take the next step? Get in touch with me directly so that we can schedule your free consultation. I’m the only bankruptcy attorney in Louisville, KY who provides my personal cell phone number. You can call or text me at (502) 435-2593 or email me at tracy@hirschbklaw.com.

I look forward to helping you get the fresh start that you need!

Chapter 13 Bankruptcy vs Debt Settlement: The Pros and Cons

Chapter 13 Bankruptcy vs Debt Settlement: The Pros and Cons

By Tracy L. Hirsch

If you’ve found yourself drowning in a sea of debt, and are wondering how you’ll ever get out, there are viable options that can help you get on the right track.

While it’s stressful and overwhelming, making a decision to take control of your finances (instead of allowing your finances to control you), is the one of the best decisions you’ll ever make. 

If you’ve been searching the internet to weigh your options, you’ve probably seen two main solutions: bankruptcy or debt settlement. Before you make a decision, it’s important to understand the pros and cons of each.

What is Debt Settlement and How Does it Work?

Debt settlement is the process of consolidating debt relief company in order to pay off all of the debts you currently have at a lower interest rate or a negotiated payment plan.

Debt settlement companies offer to add up your debts from various creditors into a single lump sum, and in return, you pay a low monthly amount, which the debt settlement company divides and distributes to your creditors.

They also claim that they will get your creditors to “settle” your debt, meaning that you would only have to pay back part of what you owe to each creditor. While this may sound enticing, there are several disadvantages to this, as there is more than meets the eye.

Working with a debt consolidation company may initially sound enticing, but the type of “relief” they offer is usually too good to be true.

The Disadvantages of Debt Settlement Companies

The first main disadvantage is that debt settlement usually doesn’t reduce the amount of debt that you owe, but rather, redistributes it. Most creditors aren’t interested in settling, and there is no guarantee that a debt settlement company will even make a reasonable attempt to get them to do so.

This means that you’re still stuck repaying your debts in full, and even though a Louisville debt settlement company will incorporate all of your unsecured debts (credit card balances, medical bills, etc.) into one large sum, you will still owe all of that money and you’ll still be paying interest on it.

The second disadvantage is that while you would technically only have one “low” monthly payment instead of several different monthly payments, debt settlement companies take a hefty fee for themselves first, then pay your creditors small amounts using what’s left over (and those amounts usually don’t even cover the minimum amount that is due to each creditor).

This means that your creditors are still going to come after you, and they’re also going to report your deficient payments to the credit bureau, which will lower your credit score.

There are multitudes of debt settlement scams that lure people in with a “low monthly payment,” but then hit debtors with a high APR, as well as administrative costs and hidden fees.

And again, they don’t tell you upfront that they’re going to be paying your creditors a paltry amount each month, which means that you’ll have multiple collection agencies coming after you.

If some of your debts have already gone to collections, you’ll basically end up right back where you started since debt settlement companies cannot stop collection actions, and they will continue until the debt is paid in full.

The third disadvantage is that if some of your creditors actually decide to settle your debt (meaning, they accept less than the full amount that you owe), you’ll have to pay taxes on it since the IRS will view the forgiveness of debt as taxable income. This is another additional cost that usually isn’t mentioned by debt settlement agencies.

Now you’re probably wondering, “So what exactly are the benefits of using a debt settlement company?” The honest answer is: there aren’t any.

Choosing Louisville debt settlement isn’t going to protect you, and that’s why Chapter 13 Bankruptcy is a better option.

debt consolidation Louisville KY

How is Chapter 13 Bankruptcy a Better Option?

When you file for Chapter 13 bankruptcy, the court allows you and your bankruptcy attorney to negotiate a bankruptcy repayment plan with your creditors, where you can often pay off a portion of your debts over a three to five year period.

You are assigned a trustee, and you make one monthly payment to the trustee that is commensurate with your income and the size of your household.

The Advantages of Bankruptcy

The disadvantage of filing bankruptcy is that this brings your credit score down. However, the first advantage of this is that if you have too much debt that you can’t possibly repay, a Chapter 13 bankruptcy will discharge most unsecured debts, such as unpaid rent, utilities, credit card debts, and medical bills (which means that you don’t have to pay it all back).

Another advantage is that Chapter 13 bankruptcy in Kentucky gives you protection from your creditors. Once you officially file for bankruptcy, an “automatic stay” goes into effect, which means that all collection actions will cease, including wage garnishment, car repossession, and home foreclosure.

When you opt for debt settlement in Kentucky (or any other state), you don’t have this protection. Finally, the most important advantage of Chapter 13 is that it gives you the chance to start over in regards to your finances.

When part of your debts are discharged, you not only have the opportunity to regain solid financial footing, but you can also let go of the immense stress that comes with an overwhelming amount of debt that is impossible to repay.

If you’re considering bankruptcy, and want peace of mind that things will get better, come in for a free consultation where we can discuss your options.

Call, text, or email me today at (502) 435-2593 to take the first step toward a more stable financial future.

All the best,

Tracy L. Hirsch

[Please note that this article is purely for informational purposes, and should not be construed as legal advice. If you need legal protection from your creditors, please meet with a licensed bankruptcy attorney. Please remember that I’m here to help!]