Reboot Your Life

Published on: January 19, 2023

REPAYE will be Revamped and the Changes are FANTASTIC!

New IDR Terms Announced! Sorry for the delay in getting this out, Covid has put me behind a week or so.

The new IDR Plan expected out in July before the payment pause ends will not exactly be a new plan. Instead of confusing borrowers and making yet another IDR plan, the Department of Education has decided to modify the terms of the existing Repaye plan to try and simply things. While some of us are a little worried that this process would enable a future administration to change the terms back, we do feel that the steps underway will be a huge improvement for federal student loan borrowers. Also, it would be difficult for a new administration to back date substantive negative changes so while we don’t expect this to occur, it’s in the back of our minds.

The changes are underway now and a formal 30 day comment period commenced a few days ago. If the terms do not meaningfully change before implementation this summer or fall, here’s what to expect:

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Published on: June 22, 2022

Chapter 13s – Easier to File Now Due to Debt Cap Increases

By Christie D. Arkovich, P.A.

If you have significant debt but have been told that you cannot file a Chapter 13 consumer bankruptcy, now you can file bankruptcy and not risk dismissal by the U.S. Trustees office. This change occurred because the Bankruptcy Threshold Adjustment and Technical Corrections Act was signed into law yesterday. Prior to this Act, someone with high debt was forced into a Chapter 11 — which is extraordinarily expensive and time consuming for the average consumer. A Chapter 13 is much more cost-effective and efficient to reorganize someone’s finances.

While the name of this Act is thoroughly boring, it is very practical and necessary. This Act fixes a recurring problem that has reared its head more in the past year than ever before. Student debt has reached such a high number for many borrowers, that it was actually preventing someone from filing bankruptcy to address that student debt, or even to get rid of ordinary household debt or stop a foreclosure.

Now the debt limit for an individual filing a Chapter 13 is $2.75 million and the Act also removes the distinction between secured and unsecured debt. This new law is temporary and will sunset on June 21, 2024. So basically, this means that if you wait two years to file, you will NOT receive the benefit of this debt increase and may again, be prohibited from filing bankruptcy.

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Published on: May 19, 2022

Foreclosure and Deficiency Reporting on Credit Reports

By Christie D. Arkovich, P.A.

A mortgage servicer called a “furnisher” for purposes of credit reporting is responsible for updates to a borrower’s credit report. Many times following a foreclosure, there is a limited time for the lender to seek a deficiency judgment. Here is Florida it is one year. If a year goes by, and the lender fails to seek a deficiency judgment then it waives the amount it is still owed after the foreclosure sale of a home.

Here’s the good news: If a lender fails to report a deficiency as having been eliminated, discharged or abolished, it is then reporting inaccurate information. This inaccurate reporting opens the door to the furnisher’s liability under the federal Fair Credit Reporting Act, 15 U.S.C. Section 1681 et seq., (the “FCRA”) per the Ninth Circuit (California) in a recent case. Gross v. CitiMortgage, Inc., 20-17160 (9th Cir. May 16, 2022).

This case is being compared to a leading contempt case, where the Supreme Court in Midland Funding LLC v. Johnson, 137 S.Ct. 1407, (2017) found that a debt collector who filed a proof of claim in a bankruptcy that was obviously barred by the statute of limitations did NOT engage in false, deceptive, misleading, unconscionable, or unfair conduct so there was no violation of the Fair Debt Collection Practices Act. While this decision involved a different set of circumstances and a different law, it is clear that these two views could be considered as inconsistent.

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Published on: April 14, 2022

Inflation: What is the Real Rate? How do I Beat That?

By Christie D. Arkovich, P.A.

Life Isn’t Meant to be Lived Paycheck to Paycheck

I know there’s been lots of press about the 8.5% inflation rate that was announced this week.

I also know that many people don’t believe that number. Why not?

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Published on: December 20, 2021

Make Sure You Don’t Ask Your Auto Insurer for the Lowest Possible Payment!

By Christie D. Arkovich, P.A.

We started a video series this fall with attorney Melissa Solevilla at Carey, Leisure & Neal, about issues facing our grown children, and how to help them get a good start in their lives. I’m thinking about his now, when I have consult coming up with a former NFL athlete who was involved in an auto accident which was not his fault! The other driver had some insurance, but very little. So who pays for the $400,000 in medical bills???!!! Take a listen below to hear our tips on easy things you can do to avoid such traps.

Published on: August 9, 2021

Behind the Scenes Student Loan Reform: It’s Happening Right Now!

By Christie D. Arkovich, P.A.

While everyone was talking about CyberPunks and NFTs on Twitter this weekend, as well as the impact of various amendments to the infrastructure bill and how they may affect cryptocurrencies and development in blockchain tech, there was significant movement on the student loan front.

1. Late Friday afternoon, the Biden administration announced that it was extending the federal student loan restart from Oct 1 to Feb 1, 2022. Where might that money go for the next few months?
2. Also on Friday, the Department of Education announced that it was creating a rulemaking committee to rewrite regs for PSLF, income-contingent repayment plans, borrower defense to repayment, closed school discharges, false certification discharges, interest capitalization, arbitration and class action bans, and even disability discharges. Many of these programs while good in intentions, have been virtually shut down or misrepresented in past years.

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Published on: August 6, 2021

Infrastructure bill – crypto provisions – call your Senator!

By Christie D. Arkovich, P.A.

More people than we think are involved in the crypto world. It is a way for our younger generation who understands the tech behind blockchain to perhaps improve their way of life. It’s a way for our industries to be more transparent, competitive and efficient.

Unfortunately, the infrastructure bill is being used as a vehicle to possibly limit the development and involvement of U.S. citizens in this growing new technology. While I certainly agree with KYC – Know Your Customer rules, and believe that all citizens should comply with our tax laws, the amendments to the bill are in part designed to kill this nascent industry which would put us behind in the U.S.

I’ve always hated how things like this are tacked onto other larger bills. With little discussion by anyone because it is added so quickly and often at the end — which is exactly what is being done here. Why not have a separate blockchain/crypto bill introduced and discussed in an open forum as to what is best for the U.S. and its citizens? But I digress.

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Published on: July 15, 2021

New Rules to Help Those with Student Loan Debt Qualify for a Mortgage

By Christie D. Arkovich, P.A.

Are you looking to buy a house now? Waiting could cost you as inflationary pressures will likely cause your dollar to decline. Moreover, interest rates will begin to rise in 2022 – 2023 as the Fed begins to normalize the interest rate. If you have student loan debt that has prevented you in the past from buying a home, keep reading…

In light of this, mortgages and refinances are a very popular topic now — especially among those with student loan debt. One big hang up was just resolved. Previously, a mortgage lender had to use 1% of the outstanding loan balance, even when a borrower was in IDR and the monthly payment reported on the Borrower’s credit report was zero.

We would suggest a temporary fix: the borrower would exit IDR for a month or two where the payment may have been zero, make a fixed standard or extended payment, apply for the mortgage and after approval, get back into the IDR. This wasn’t the best fix; however, as it unnecessarily caused a student loan borrower to have the loan capitalize the unpaid interest. But it did let someone buy a house who otherwise could not.

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Published on: July 14, 2021

Top Ten Bankruptcy Attorney in Tampa Bay Area – Legal Elite

By Christie D. Arkovich, P.A.

Florida Trend just came out with its Legal Elite 2021 list on July 1 where we’re proud to be listed as one of the top 10 bankruptcy attorneys in Tampa Bay. This is not a publication that we pay for a listing — we don’t subscribe to that philosophy. We also don’t like to throw money away to be on lists.

Something I also don’t tend to harp about, we are proud to have a really good rating by Martindale-Hubbell which is an independent review by and for attorneys. We have what is called a Preeminent rating which them — there is no higher rating. Again, we don’t solicit or pay for that rating.

We believe in reviews. I use reviews when I seek out a service or product. Whatever we have to say about ourselves and our practice can usually be said much better by our clients – and in their own words. So if you are looking for a bankruptcy attorney, please check out our reviews! Then give us a call. Hope we can help.

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Published on: February 16, 2021

Have You Wondered Why You Can Never Seem To Get Ahead?

By Christie D. Arkovich, P.A.

Inflation and interest rates are the two primary culprits.

Bankruptcy can actually be a fix to this problem and is something that everyone should evaluate NOW. Does it make sense to clear the deck and start fresh? Especially when that deck is stacked against most Americans who are not otherwise wealthy. Especially, for anyone who has private student loans, the decision is pretty much a no brainer — bankruptcy can result in a full discharge of many private student loans or a very low payment plan, with very low interest. Basically, a way out.

High credit card balances, underwater vehicle loans, unpaid rent — bankruptcy can easily fix this.

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