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…
Reboot Your Life: Tampa Student Loan and Bankruptcy Attorney Blog
Department of Education’s vague email today
An email went out to federal student loan borrowers today that was rather vague. It basically said to stay tuned. None of us know exactly what the Biden administration is up too, other than confusing all of us, but it’s possible that they could be talking about this: A new…
Student Loan Update
PAYE and ICR for non-Parent Plus borrowers was supposed to be phased out under the SAVE regulations as of July 1. But those regulations are now blocked following the 8th Circuit’s order. So PAYE (and ICR) are available for borrowers to enroll, at least for now. But, the online IDR app is…
The 8th Circuit Just Put a Halt to SAVE
I had this ready to go last week, but just noticed it didn’t go out as planned. Still reviewing the impact of this Order, but it appears to block ED from implementation or action under the 2023 IDR regs that created SAVE and several other improvements to IDR while the…
If You File Bankruptcy Now You Can Obtain IDR Credit for all Plan Payments!
Lots of fighting over student loan forgiveness right now. One of the big things we were (and still are) looking forward to is a change of law allowing bankruptcy debtors to obtain IDR credit for their plan payments. Previously, many debtors did not receive such credit because the Department of…
SAVE Payments will go to Half for Undergrad (5%) under new 10th Circuit Ruling
The 10th Circuit came out with a ruling a couple days after the Missouri and Kansas rulings modifying the stay/injunction on the SAVE plan and student loan forgiveness. It will allow the Department of Education to implement SAVE’s 5% payment calculation for undergraduate loans starting July 1. The rest of…
The Kansas and Missouri Rulings June 24: What is the Fallout for Student Loan Forgiveness?
Just when we thought all things student loan related couldn’t get more complicated. The Department of Education (“ED”) has been trucking along with its plans to get everyone on SAVE, correct prior problems with PSLF and the heavily used forbearance option that only caused balances to increase dramatically. Now, on…
Is a Police Report Required for Claim that a Loan is Not Yours?
Do you see a debt on your credit report that is not yours? Did a relative (mother, child etc.) sign your name to obtain a loan? This is a typical fact pattern we see for our Fair Credit Reporting Act cases. Some unauthorized person signed for a debt and now…
Fewer Chapter 13 Bankruptcies Expected Under Reduced Debt Caps
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…
Has More than One Year Gone By Since You’ve Touched Your Student Loans?
The Biden administration’s overhaul of the Department of Education has put a lot of things on hold during the pandemic, but has created a number of good programs and fixed existing programs that should be taken advantage of now. If your student loans are in default for instance, while rehabs…