Kentucky Bankruptcy Lawyers Blog

It's the beginning of 2012 and while it's a new year, for most people, the financial baggage of 2011 didn't stay behind in December. Times are tough, finances are tight and after the holiday season, bills may be looming.

Our Louisville bankruptcy lawyers recognize the frustration and pain that many people are going through right now financially. Government programs haven't done much to help working-class people, jobs are still tough to find, bad mortgages are still hurting families and prices keep climbing for groceries and other everyday needs.

Our lawyers also recognize that filing for Louisville bankruptcy has benefits for those who take advantage of these laws. They are consumer-focused and allow people a fresh start when expenses have gotten out of control and money is tight.

Some believe that bankruptcy is a bad option because it can hurt a person's credit, but the opposite is true. If a person has missed payments and is behind on various bills, his or her credit score has likely taken a tumble.

Filing for bankruptcy will actually begin to repair what has been broken by the past. The purpose of bankruptcy is to provide assistance to consumers who have fallen into bad times, often because of circumstances beyond their control.

The most obvious in recent years has been the housing collapse, which has affected nearly every American. As foreclosures have increased, housing prices have dwindled. Bad loans that people were trapped into signing years before the housing bubble burst are now coming back to haunt them. As the housing market collapsed, so did the rest of the economy, costing millions of people their jobs. And without a job, money has gotten even tighter.

It's a cycle that no one has figured out how to fix and many Louisville residents are stuck in the middle. They are trying to get by, but are having difficulty and aren't sure how long the difficulty will last.

Creating a plan to get out of debt and to try to get out of tough times takes a lot of work. Sometimes, it can be done without the help of bankruptcy, but through other financial and legal avenues, such as a short sale, credit counseling or stopping wage garnishment, there are ways to improve your money situation.

These are a few smaller steps that people can take to try to make some progress in the area of personal finances:

Quit smoking or lose weight -- Common New Year's resolutions, but these could cut down on insurance premiums and save a little money. Obese policyholders and smokers pay between 15 and 22 percent more for insurance than others.

Shop smart -- Clipping coupons, not being tempted by buy-one-get-one-free sales and using generic brands can keep some money in the wallet.

Simplify your finances -- Set up online accounts so you don't have to worry about checks, stamps and the mail. Max out your savings and do it automatically so you don't have to worry about forgetting.

Get smart about money -- Don't be in the dark about money issues, but study up on terms and that will allow you to be more active in financial planning.

Plan for the unexpected -- Start an emergency fund -- most experts suggest having six month's worth of funds set aside.

Pay down your debt -- Paying off your high-interest debt can save you money in the long run. And try to pay more than the minimum.

Create a basic budget -- Don't make it unrealistic, but attempt to keep it simple. Be transparent and allow it to be fluid.

Continue reading "A New Year's Resolution: Strengthening Your Finances Through Louisville Bankruptcy" »

With the rising cost of education, it should come as no surprise that student loan debt is quickly becoming the most prevalent type of consumer debt in Kentucky and Indiana, surpassing even credit card debt. One of the most devastating facts about student loan debt is the ease with which lenders make these funds available to students, especially given the increasingly difficult job market for new graduates. As a prospective college student, one should avoid the temptation to borrow a significant amount of money just because it is there for the taking. This is not free money and has to be paid back at some point. Here are a few tips to keep in mind when looking to finance a college education:

1. Minimize your expenses. If you are attending a local college or university, consider living at home in order to cut down on the amount you have to borrow, or at least get a roommate to share living expenses.

2. Explore all opportunities for grants and scholarships before borrowing money. Check with your high school adviser about possible opportunities. There is also a wealth of information on the internet. There are science fair competitions, essay writing, and other contests that you can enter to possibly win scholarship money for school. Hey, this is free money so why not see if you can find it before going into debt.

3. Create a budget. Make sure that you know each month what you can and can't afford and stick to the budget. Avoid using high interest credit cards to pay for things that you don't need.

Over 10% of college students drop out of college because of credit card problems. For many of these young kids, that means they are left with student loan payments, credit card payments, unpaid tuition bills, and an unfulfilled academic career. In an already sluggish job market, many of these kids end up unemployed and back "at home", negatively affecting the financial affairs of their parents.

Regardless of the type of debt you have, inability to pay your bills has an adverse affect on your credit rating. Your credit score can have a direct affect on your ability to own a home, obtain a job, purchase a vehicle and other credit matters. Understanding debt, credit and the importance of your financial reputation is a valuable lesson that can help young people create healthy spending and saving habits at an early age.

TIPS FOR SAVING MONEY WHEN TIMES ARE TOUGH
By: Tracy L. Hirsch, Attorney

For most of us, life is more expensive now than it has ever been, and we do not always have enough money to go around. Here are a few easy, friendly ways to help make your monthly budget pass muster:

1- Learn how to save on your utility bill- lower the setting on your hot water heater, install a timer on your thermostat, and make sure to turn the lights out when you leave a room.

2- When planning weekly meals for your family, look through the grocery ads, cut coupons, make a list, and buy and make food in bulk. Freezing leftovers can not only save you money and reduce waste, but it can save you time on those busy nights when everyone comes home late!

3- Brown bag your lunch. People sometimes spend a fortune on eating lunch out. Not only is it often healthier to make your own meals, you will save on food and gas costs as well.

4- Write everything down!! Similar to a diet, we think about what we are spending (or eating) when we force ourselves to be accountable for our spending habits. If you realize that you are spending $15.00 a week on Starbucks, it may help to explain why you may be short on cash at the end of the month.

5- Avoid ATM and other bank fees. Be aware of the fees your bank may charge you to use ATM machines, if your bank charges for usage at other banks, make sure to only stick to your bank's ATM machine. Additionally, pay attention to your bank balance on a daily basis in order to avoid bounced checks, overdrafts, and other service charges.

6- Buy generic brands as often as possible. For many items, such as over the counter medications, and several food items, there is no difference in the quality or content of these products. Read labels carefully and save money when you can by purchasing the generic equivalent.

7- Find free activities for your family. Look through the paper and search online for free local entertainment for the kids. Libraries, zoos, museums, festivals at schools, church groups, are all good sources for information on free entertainment for people of all ages.

8- Pay bills online. Almost all banks have free online banking now. If you set up payments through your bank, not only will you save money on postage, you can set up your payment to be certain to arrive to the creditor on time and avoid any late fees.

9- Price insurance annually. You can save several hundred dollars a year by purchasing auto and home insurance from a licensed, low-price insurer. Make sure to get four price quotes before committing to one company.

10- When shopping for major purchases, check local ads and the internet for the best prices and also be sure to check consumer reports to ensure you are making the best decision for your budget.