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,…
Want to get out of debt by the end of the year? It’s possible. Really! How, you ask? File Chapter 7. These bankruptcy cases only last three months – 90 days. Wouldn’t it be nice to stop trying to juggle everything? Feeling overwhelmed with your finances? We often can help. …
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…
Right now, there is a lot of confusion regarding our federal student loan program. There are multiple federal cases and several injunctions that have pretty much frozen federal student loans. A couple things are still working. Total and Permanent Disability discharges of federal student loans, and filing bankruptcy on them.…
Bankruptcy is all about full disclosure. Tell the trustee or court whatever assets you have and in return you receive a full discharge of most debt. The reason I say most debt is because there are rules re: IRS debt, student loan debt and secured debt such as vehicles, 401k…
The debt limits of a Chapter 13 bankruptcy are dropping considerably tomorrow, June 21, 2024. The Bankruptcy Courts are reverting back to a two part test that limits eligibility to a maximum of $465,275 for unsecured debt and $1,395,875 for secured debt. Importantly, there is no talk of an extension…