Some people still believe that bankruptcy is often caused by a failure to control spending. They believe all that is needed is a little self-discipline and these financial problems would be alleviated. Until they get sick.
What would you do if I offered you a debit card that worked with your student loan accounts? You're going to want it because it gives you immediate access to your student loans. If you direct deposit those funds, they'll take a week to clear. Same goes with a paper check, except that one of those will take 21 days to clear. Wouldn't you rather use this debit card so you can have your money now?
There are many preconceived notions people have about filing for bankruptcy. You might associate bankruptcy with financial ruin and failure, or you could believe that filing bankruptcy will solve all your money problems. In reality, the truth lies somewhere between these two.
During a bankruptcy proceeding, some may worry that they might have to surrender all of their property. Fortunately, you are entitled to "exemptions" that permit you to keep many of your possessions during your bankruptcy. There are two sets of exemptions, those created by the Kentucky legislature and those provided by federal law. You can choose either, but you must use only one or the other, and you cannot mix between the two.
When you have debt that has risen to a level where you have to make choices between paying for your housing or your food, you know you need to take action. For many in Kentucky, the first thought would be to find another job with better pay. Or maybe work a second job.