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What to avoid before filing bankruptcy?
There are some common mistakes to avoid if you file for bankruptcy. According to 11 U.S. Code § 548, a debtor is not allowed to transfer assets. It is important to know that bankruptcy courts will look back eight years to review all transactions made. You must disclose all assets because withholding assets is considered…
Read MorePresident Biden on Bankruptcy Reform
On Saturday, November 7th, Joe Biden was declared the winner of the presidential election by all major news outlets. According to Joe Biden’s official campaign website, Biden plans to adopt the bankruptcy reform proposal brought forth by Senator Elizabeth Warren. Warren believed the 2005 bankruptcy bill, originally sponsored by President-elect Biden, made it harder for…
Read MoreCriminal Records In Bankruptcy
Filing for bankruptcy is available to everyone including people with criminal records. Filing for bankruptcy with a criminal record can clear up any unnecessary debt from creditors and leftover money to put towards the debtor’s criminal financial obligations. However, bankruptcy does not discharge any criminal restitution payments. One of the benefits of filing a Chapter…
Read MoreDischarging Student Loans in Bankruptcy
With student loan debt topping over $1.6 trillion, it seems like a dream to ever be freed from student loan debt. However, It’s a possible task to discharge your student loan debt through bankruptcy. According to SSRN, only 0.1% have attempted to discharge their debts. It’s true that courts are willing, but few are asking.…
Read MoreWhere Do The Presidential Candidates Stand On Student Loans?
With student loan debt topping $1.6 trillion and over 40 million borrowers struggling to repay their debts during Covid-19, both President Trump and former Vice President Biden have plans to address one of the most important topics amongst the 2020 presidential election. Joe Biden plans to cancel up to $10,000 of student loan debt for…
Read MoreRecord breaking amount of companies filed for bankruptcy
A new record of 46 billion-dollar companies have filed for bankruptcy this year, passing the record of 38 billion-dollar companies from 2009 during the Great Recession. According to Market Insider who cited the Financial Times, 46 companies with at least $1billion in assets each have filed for Chapter 11 bankruptcy since August this year. That…
Read MoreScanlan Legislation Now To Add Covid To Bankruptcy Hardship
In recent years, student loan debt has topped $1.6 trillion, making it the largest of consumer debt. Common issues with student loan collection agencies consist of aggressive and abusive collection tactics and failure to accurately inform borrowers of their rights. Currently, bankruptcy laws make it difficult to discharge student debt. However , for most people…
Read MoreStudent Loan Relief During Covid-19
By: Priscilla Lozano In August 2019, Trump suspended the process of forgiving the debts owed by veterans suffering with severe disabilities, despite pledging and easy erasal. The loan forgiveness was halted in late October of 2019, for more than 20,000 veterans who qualify. In fact Pence stated, “With the stroke of a pen, the president…
Read MoreCongresswoman Attempting To Include Student Loans In Chapter 11
Philly Congresswoman Mary Gay Scanlon (D., PA) will be introducing a bill that allows for Covid-19 to be an argument for undue hardship on student loan borrowers. In bankruptcy court, there are many restrictions on student loan debt relief. Although it is very possible to receive a partial or even full discharge of student loan…
Read More68% Of Student Loans Are Changing Servicers in 2021
In 2021, the Department of Education is going to reduce their 11 services down to 5 student loan servicers. According to Business Insider, the DOE outlined a plan to reduce their service in order to “better customer service.” Only 3 servicers of the original 11 will continue in 2021: Edfinancial, MOHELA, and Maximus. The two…
Read MoreHeroes Act Passing Student Loan Debt
The HEROES Act, a $3 trillion stimulus package passed in a divided Congress this month, but holding many promises to ease the burden of student loan debt. Granted that this bill passed with a slim margin and facing opposition for the majority of Republicans including some Democrats. The moderate Democrats opposed the bill for overreaching…
Read MoreCriminal Records in Bankruptcy Process
Bankruptcy is an option available to virtually everyone including non-citizens in the U.S. and people with an arrest record or criminal history. With so many people getting arrested for protesting and incurring bail bonds debt, it would be beneficial to know that bail bonds are dischargeable in federal bankruptcy court near me. However, fines and…
Read MoreStudent Borrows Credits Drop with Covid Error
In the government’s initiative to reduce the financial burden on student loans, it has allowed borrowers to delay any loan payments on certain types of loans, mostly federal, until October under the CARES Act. If the HEROES act were to pass in the Senate, after it already passed Congress, then student loan repayments could be…
Read MorePro’s and Con’s To Putting Your Mortgage Into Forbearance
With unemployment on the rise and business shutdown in New Jersey and New York , more people are considering putting their mortgage payments into forbearance. A mortgage payment in forbearance means delaying the payments without penalty fees after giving notice to the creditor. When the unemployment checks run out in July and late August, many…
Read MoreDevos Sued For Garnishing Wages Against Presidents Orders
During her time as the Secretary of Education, Betsey Devos has plummeted the department into the ground with another lawsuit for garnishing wages from student borrowers during the coronavirus. Devos announced in March that she would take administrative action to prevent this practice, and the Trump CARES act protects borrowers from such measures. Politico reported…
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