Something going around one of the listserves I monitor daily is how debt settlement or debt consolidation companies are a sham. The facts for this one: (by the way, the client provided a copy of the written agreement to the attorney so the fees and proposed settlement amounts were verified)…
You can bounce back from bankruptcy way more quickly than you think. For instance, debtors who file bankruptcy can qualify for an FHA loan in as few as two years, or a conventional loan four years after filing. What about credit scores? They can and frequently do go up right…
The Economic Injury Disaster Loan (EIDL) program is a loan and grant program offered by the U.S. Small Business Administration (SBA) to help small businesses and non-profit organizations recover from economic injury caused by a declared disaster. The EIDL program provides two types of financial assistance: EIDL loans and EIDL…
The Brunner standard is a legal test used in certain circumstances to determine whether a borrower’s federal student loans can be discharged in bankruptcy. The test was established by the U.S. Supreme Court in the case of Brunner v. New York State Higher Education Services Corp. (1987). The Brunner test…
There are several ways to discharge federal student loans, including: Total and Permanent Disability (TPD) discharge: If you are completely and permanently disabled, you may be eligible for TPD discharge. Death discharge: If the borrower of a federal student loan dies, the loan may be discharged. Closed School discharge: If…
The average auto loan interest rates reported by DealerTrack are getting crazy high – hitting a decade high now: New cars: 8.41% Used cars: 12.88% Credit Unions are still around 4% -6% so that may be the best option for now. As bankruptcy attorneys, there are some cautionary tales involving…
First, and I must stress, EIDL loans are not forgivable. They were intended to help small businesses recover from the economic impacts of the Covid-19 pandemic. However, EIDL Advance funds are like grants and do not have to be repaid. More information is available on the SBA website: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl If…
Under the new provisions allowing a Debtor to attest to an undue hardship, a consolidation pre-filing would be viewed as evidence of good faith – this is the box that may be checked: engaging meaningfully with a third party they believed would assist them in managing their student loan debt.…
Here’s a news clip on this topic that ran yesterday: https://www.youtube.com/watch?v=77xsEU7rFM0 It’s a good short 2 minute summary of what this means and well worth a listen! I haven’t seen this in the news much and we really need to get the word out because in my 30 years of…
Credit reporting is changing for medical debt. Starting July 1, 2022, previously defaulted, but subsequently repaid, medical debt will no longer be reported on someone’s credit. Next year, medical debt of less than $500 will not be reported on credit reports any longer. This doesn’t mean that the medical provider…