Too late for many, but at least a step in the right direction, Senator Al Franken (D-Minn) introduced the Understanding the True Cost of College Act on May 24, 2012. Were you aware that the Truth in Lending Act which requires disclosure of the cost of credit in home and…
Last month, it was well publicized that student loan interest rates were about to double unless Congress acted. Actually, this only involved subsidized Stafford loan interest rates. However, President Obama made the most of it and traveled around the country garnering support to help students. At the last minute, Congress…
This debtor in South Florida recently lost his free and clear car in bankruptcy (actually the debtor was allowed to pay for the one-half interest in a Chapter 13 so it wasn’t quite as bad as it initially appears). Joint ownership is getting murkier and legal advise is definitely needed…
What if I’ve co-signed my children’s student loan debt that is now in default? Here in Tampa, Florida, I just read an outrageous story today in Nation of Change that exemplifies the problems in the world of student loans. Basically, shortly out of college, this man’s son was killed in…
Back in 2009, the Florida legislature realized that tenants needed some protection from the foreclosure crisis. The resulting Protecting Tenants in Foreclosure Act protects tenants from eviction because of foreclosure on the properties they occupy. These provisions took effect on May 20, 2009, and originally were scheduled to expire on…
Here’s an example in Tampa, Florida this month for one of our foreclosure clients who wanted to keep her house and avoid the possibility of a deficiency judgment: New monthly payment: $933.45 with escrow Old monthly payment: $1,491.35 New interest rate: 4% fixed Old interest rate: 7.75 % fixed Term:…
To cram down property owned jointly, both spouses have to file a Chapter 13 bankruptcy. The Bankruptcy Court for the Southern District of Florida held recently that a Chapter 13 debtor whose spouse does not join in the debtor’s bankruptcy petition is not permitted to cram down a claim secured…
Many people think it is advantageous to only list certain creditors in their bankruptcy. This is not permissible in a bankruptcy because all creditors must be listed. You cannot favor one creditor over another. However, you can always voluntarily pay a creditor back after a bankruptcy if you wish. Besides…
Debt collectors excel at taking advantage of student loan borrowers by misrepresenting the law and options available to borrowers. Common violations we see in Florida are: 1) Misrepresenting that the collector may use federal powers such as Social Security offsets or administrative garnishment of wages; 2) Providing inaccurate information about…
For the first time ever, student loan debt has surpassed credit card debt as student loan debt reaches the $1 trillion mark per a recent Bloomberg article. Student loan debt collection has become big business. Contracted student loan debt collectors’ profits surpass $1 billion in 2011 alone! Little wonder when…