Posts by Evalena Labayen
Will the New Year start with a recession?
Several states across America, especially in the southern states like Tennessee, Alabama, and Georgia, are experiencing an increase in bankruptcy filings according to NerdWallet. Market Watch, The New York Post, and CNBC have all published articles speculating on the rise of bankruptcy filings as a symptom of an impending recession. Market Watch in their article…
Read MoreWhat would happen if all student loan debt was eliminated?
What would happen to the American college system if Bernie Sander’s plan of “free college” and “eliminate all student loan debt” came to life? The United States education system is often compared to the system of our European Allies like Germany and Finland who have free education system. Critics asked “If America is so great,…
Read MoreChicago city officials corrupt impounding of cars from bankruptcy filers
The 7th US Circuit Court of Appeals ruled against Chicago city official’s practice of keeping impounded cars from debtors after they’ve filed for bankruptcy. A report from ProPublica in Illinois helped discover that thousands of debtors, mostly black and low-income, were forced into a Chapter 13 bankruptcy filing. Most of the debt the judges discovered,…
Read MoreLaws Changing For Student Loan Defaulters
The student loan debt crisis has already gripped the attention of courtrooms from bankruptcy court to state and federal court, but finally, it has gained traction among lawmakers on both sides of the aisle. In an unexpected allyship, Sen. Elizabeth Warren D-Mass and Sen. Marco Rubio R-Fla proposed a bill: “Protecting JOBs Act”. This bill…
Read MoreDefault student loan rates rising to 40% by 2023
A startling new report by Urban Institute, a progressive think-tank in Washington, estimated that in 5 years, 40% of student loan borrowers would be in default. In other numbers, it’s estimated that 44 million americans have student loans, and so 17.6 million students would default. It’s not just private loans that are unwieldy, but also…
Read MoreJudge Rules against DeVos for Corinthian College
In the case of the thousands of students defrauded by Corinthian College Inc., the Department of Education under DeVos tried to implement a new policy that would replace the Obama Administration’s “Borrower Defense to Repayment rule”. DeVos’s plan would prevent students from receiving a full discharge of the student loan debt they accumulated while receiving…
Read MoreDOE no longer giving full discharge for defrauded cases
The U.S. Department of Education is passing an act that will make it harder for students to sue for-profit colleges for claims of fraud or misleading practices. As of July 1, 2019, this act would evaluate the students’ need for compensation based on their salary compared to their peers, instead of receiving a full discharge…
Read MoreFour States Suing Navient, Government Agency In Bed With DOE
California is the fourth state to file a lawsuit against one of the government’s largest debt collecting agencies: Navient. California is the largest state to file a lawsuit against Navient, joining Pennsylvania, Washington, and Illinois. Navient is one of the eight largest debt collection services hired by the United States “to collect $1.4 trillion owed…
Read MoreDepartment of Education Not Allowing Loan Forgiveness
Four senators are taking a stand against Betsy DeVos and the dysfunctional Department of Education when it comes to student loan forgiveness. Federal loans make up $1,331.7 billion of all student loan debt as of this year . Democratic Senators Tim Kaine, Sheldon Whitehouse, Tammy Duckworth, and Maggie Hassan sent a letter to Secretary DeVos…
Read MoreJudges Considering Student Loan Bankruptcy
More bankruptcy judges are realizing that student loan debt decisions must be made in favor of the debtor. Student loan debt is the second highest consumer debt in America, but it is the hardest to reduce in court. The average student loan debt for a Bachelor’s degree is over $37,000 and does not include the debt adults accumulate…
Read MoreDo Medical Bills Correlate with Bankruptcy Filings?
Elizabeth Warren, along with David Himmelstein, Deborah Thorne and Steffie Woolhandler, continue to face controversy over their paper published in the journal Health Affairs in 2005 and updated in 2009. This paper, based on surveys and testimonies from 1,800 Americans, estimated that 62% of bankruptcy cases are caused by medical bills. Warren’s paper opened a…
Read MoreNew Jersey Higher Education Student Assistance Authority ruled for a partial discharge
Last week, Hon. John Sherwood ruled a partial discharge for debtor Sarah Hunter against NJ HESSA (New Jersey Higher Education Student Assistance Authority). NJ HESSA says they are a “state agency” on their website but they are not run by the state of New Jersey. The loan company is privately owned, receiving their $1.9 billion…
Read MoreTuition Free New York City Colleges
Hillary Clinton and Governor Andrew Cuomo signed into effect a law that provides free tuition to public colleges and universities in New York State. The requirements and stipulations makes me question whether “free” college tuition has seen achieved or if it remains out of reach. Any progress towards this goal is appreciated, but upon reading…
Read MoreStudent loan dischargeable debt
A simple internet search can discourage anyone from trying to file their student loan debt as dischargeable bankruptcy, but it is in fact a debt that can be resolved through bankruptcy law. Michelle Labayen has successfully discharged or reduced student loan debt for numerous clients. The debtor must prove that repaying their loans places an…
Read MorePresident Trump and Student Loan Debt
As a hopeful optimist, I looked at President-elect Donald Trump’s proposal for student loan debt. His plan is to increase the rate of repayment from 10% as in Revised Pay As You Earn (REPAYE) to 12.5% so the student can be out of debt in fifteen years opposed to twenty. Several websites and students worry…
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