While the Income Driven Payment application process is shut down (paper applications were being processed, but now they too are reportedly on hold), to be first in line when it restarts, we suggest a paper application be sent to your loan servicer so it’s in the queue, and be sure…
More and more signs are pointing toward bankruptcy being the best platform going forward to address student loans. Why? We can often discharge private and even federal student loans (if either an undue hardship exists or it’s an unqualified education loan); We can cure a default of a federal student…
I’m sharing this here — it’s also being provided to our fellow attorneys signing up for our NACA webinar today at 2:00 p.m. Helping your clients take their lives back from their student loans sometimes involve bankruptcy related solutions. While filing bankruptcy has typically NOT been helpful for those with…
Much like the NASA moon landing, I have two very different powerpoints ready for a student loan presentation today at 2:00 p.m. for the National Association of Consumer Advocates (NACA) And I might be checking X on my phone every few minutes to see if there is any new Executive…
Big things are happening regarding Discover’s portfolio of student loans. If you have one of these, please follow along and see what can be done. Specifically, Discover is getting out of the private student loan business. Fully. They are sending letters to borrowers in a bankruptcy that they are forgiving…
So what exactly does a Chapter 13 do with regard to debt that is co-signed by someone who did not file bankruptcy? What about debt that survives a bankruptcy such as many (but not all) student loans? First off, a co-debtor stay is imposed immediately when a Chapter 13 is…
The SBA is sending out e-mails that seem to indicate that even though the signature block for the borrower is a corporate entity or LLC, the individual signing is also somehow liable in a personal capacity. But they also confirm that loans up to $200,000 require no personal guaranty. The…
Section 524(c) of the Bankruptcy Code sets forth the procedures in which a discharged debt may be reaffirmed. Creditor’s solicitation to reaffirm a discharged debt which does not comply with 524(c) is a violation of the discharge injunction. In re Latanowich, 207 BR 326, (Bankr.D.Mass.1997). Any time you are asked…
The Federal Reserve is meeting today and widely expected to start to reduce interest rates. I last heard that there was a 55% likelihood for a .50 cut. Frankly, I’d expect a .25 cut. But if they want to reach a goal of 100 basis points cut by year end,…
This month, lots of debt collectors are filing cases. You may have been served recently. First, don’t ignore it. If you ignore a summons, it’s easy for the debt collector to get a judgment and start to garnish your wages or bank accounts. Don’t do it. We call that “low…