Kentucky Bankruptcy Lawyers Blog

Most people would do just about anything for a sick relative: Hold a fundraiser, help pay the bills or make some sacrifices to lend a hand. But some families mired in financial problems pretty much have to go it alone. Especially when it comes to paying for medical care,

Many medical procedures are extremely costly these days, and there seems to be no limit on what hospitals and specialists try to bill for. When it costs $25 for one aspirin, you know we're in trouble. But there is help in the form of filing for bankruptcy in Louisville.

Our Louisville bankruptcy lawyers recognize the great power that our nation's bankruptcy laws have because they allow everyday, average citizens to get help if they have financial problems. And one of the biggest causes of financial problems in the United States is healthcare costs.

Even when people have routine out-patient surgeries, many insurance companies end up paying tens of thousands of dollars on behalf of their policyholders. When a person is diagnosed with a form of cancer or has to get treatment for another complex or potentially fatal illness, it's going to require specialists, many hospital visits, exploratory procedures, expensive medications and other help to try to stop the illness.

Even people who get in car accidents -- a daily occurrence -- can be saddled with amazingly large bills. From broken bones to internal injuries, these conditions must be addressed quickly. That, too, can be costly.

So what happens when insurance stops covering? The hospital starts going after the patient. They send letters, make calls, have collection agencies make calls, and conduct other collections practices. Yes, they offered services, but after catastrophic events, people need time to recover.

Take for example one family in Texas. The Austin American-Statesmen recently profiled a family with three kids who are now $25,000 in debt with medical bills because one of their three children has spina bifida and one kidney. She may soon require spinal surgery and their mother has had heart surgery recently, adding to their medical bills.

The community has reached out, providing presents for Christmas, repairing the family's van that was in need of repair and household repairs that were causing problems. The family is determined to pay off the medical bills, but with additional medical care potentially on the horizon, it could be a rocky road.

Having a major illness "affects everybody's life," the mother said. "It's very isolating for the whole family."

Indeed, and this is where Louisville bankruptcy can help. Rather than forcing every family member to suffer, using these consumer-based laws can really help. Filing for bankruptcy in Louisville can get rid of medical bills.

Imagine having that freedom. Instead of waiting for the calls to stop coming in, a family can let bankruptcy clear their debt and get them in the right direction. There are ways out of the debt and while bankruptcy can't stop the medical issue, it can help stop the debt from adding to the stress of the situation.

Continue reading "Major Medical Bills, Even With Insurance, Can Require Louisville Bankruptcy to Cover" »

Times certainly could be better. There has been some good news in recent weeks, as manufacturers are again hiring in the United States, including in Louisville, where GM has recently shifted some operations, The New York Times reports.

But for many others -- more than 9 percent to be exact -- finding a job hasn't gotten any easier. For some families, a potential solution is to consider Louisville bankruptcy.

Our Louisville bankruptcy lawyers know that job loss is a terrible thing. It hits us in our pride and can cause emotional problems. More practically, it brings financial instability.

Some families can't make payments on bills, they may miss a house payment, credit cards become much more of an everyday tool, and they may even opt to take out a loan. In the meantime, lenders are contacting these families by phone, e-mail and other means. They've probably hired collection agencies, attempting to get any kind of payment possible.

The good news according to Business Journal is that unemployment rates dropped in November in 351 of 372 metropolitan areas, including Louisville, according to recently released statistics. In October, the unemployment rate was 9.8 percent and a month later it was 8.8 percent.

Another report states that Kentucky's unemployment rate overall dipped from 9.6 percent to 9.4 percent from October to November. Both of these are encouraging pieces of news.

The New York Times wrote a piece that looks at manufacturing jobs and the fact that while more American businesses are hiring again, they are bringing in people at much lower rates than in years past, even those represented by powerful unions. The guarantee of work these days has become more important than fighting for big raises or large benefits packages.

The article hits on the fact that General Electric's factory in Louisville is now being used to create new water heaters, a process that previously was being done in China.

These are all encouraging bits of news for our state and local economy, but the bottom line is that more than 9 percent of people are still without work. At 9.4 percent unemployment, that means nearly 408,000 Kentucky residents are out of work, according to 2010 census numbers. So, where does that leave most people?

The bottom line is that filing for bankruptcy in Louisville can be an appealing prospect for some people who are out of work. The process is designed to help people get rid of debt that is making life difficult. Rather than continue struggling with minimum payments and constant reminders of the situation you're in, bankruptcy can solve those issues.

After completing the process, those who file for bankruptcy typically get all or most of their debt cleared away. That means credit card debt, medical bills, other types of loans and other debt can be gone and the process of restoring credit scores and savings accounts can begin.

Continue reading "Although Louisville Jobs Increase, Unemployment is High and Bankruptcy Could Help" »

Just about everyone relies on credit cards these days. It's difficult to make large purchases without them.

Yet they can lead to major debt for consumers who get hit by late fees or incur high interest rates that kick in after certain stipulations detailed in the fine print of a contract kick in.

Our Louisville bankruptcy lawyers recognize how useful credit cards can be when used wisely. But we also caution consumers that credit can be dangerous. In fact, credit card misuse is one of the leading causes for debt problems in America.

As such, many people who opt for the protections of a Louisville bankruptcy note that it was credit cards that encouraged them to make the decision to go through with bankruptcy.

Apparently, credit card companies know that many people who sign up for their card will one day miss a payment. They may also be relying on those consumers who pay only the minimum amount due each month. Whether it's a job loss, a medical issue or another circumstance, some consumers fall into these traps.

Creditcards.com reports some staggering statistics about Americans' use of credit cards.

The website states that the average U.S. household has about $15,799 in credit card debt, for a nationwide total of $793.1 billion as of May 2011. It's likely to have increased since then. That debt has been put on more than 600 million credit cards.

By 2008, the average person had 3.5 credit cards, on average, in their name. The average APR on a new card was 14.89 percent and the average APR on a card with a balance was 13.10 percent.

The total amount of consumer debt in May 2011 was $2.43 trillion, including other types of loans, not just credit cards. Through 2010, MasterCard had issued 171 million credit cards, Visa 269 million and American Express 48.9 million.

There's quite a bit of money locked up in credit cards in this country and it won't be going down soon. Many people are tied to their cards and are having difficulty breaking free.

A Washington Post columnist advises consumers to try the "Debt Dash," by putting any extra income, from a second job or reduced expenses perhaps, into credit card debt. The method is designed to get rid of debt as soon as possible. The plan is to pick the debt with the lowest balance and knock that off first while making minimum payments on the others. The plan is to move on to the next biggest debt and up until it's gone. The problem is that making minimum payments adds fees to the debt.

The only surefire way to get out from credit card debt is filing for bankruptcy in Louisville. Filing for bankruptcy allows consumers to rid themselves of all credit card debt. And once the process is over, the consumer can begin the process of trying to repair his or her credit.

Continue reading "Credit Cards Can Be Important, But Misuse Could Lead to Louisville Bankruptcy" »