Lesser-known Student Loan Solution
A recent article in the national association of chapter thirteen trustees newsletter reminds us that, “just because your private student loan uses the term “student loan” doesn’t mean it is one.” It reminds us that, “a student loan must be from an “eligible educational institution” to be considered non-dischargeable. If it’s not, getting rid of it […]
Are We There Yet?
Parents are familiar with the question posed above by their children who have lost all patience with the long range journey. The same question comes to mind for those people who have been hoping to avoid filing bankruptcy by riding a rebound in the Real Estate market. Why does the current Real Estate market play […]
Courage on All Fronts
Each month I teach a class on bankruptcy at Cummings Library in Palm City as part of the Southern District of Florida’s Federal Bankruptcy Court’s “Pro Se” Program. Over the course of the year, many attendees learn how to help themselves, family, and/or friends resolve their financial difficulties. They learn about Bankruptcy avoidance, as well […]
Dying to get rid of your Student Loans? Don’t Bother!
The need to reform bankruptcy law to allow discharge of student loans has been a repeated subject in this section. This month’s report again shows how some student loan agencies take absurd advantage of the status quo. Hopefully you will agree that change is needed. According to a recent article in the Miami Herald, an […]
Bankruptcy Aftermath: Restoring Your Credit
Most of my job is helping people get through the bankruptcy process and out the other side in one piece. Once we have gone through the courts and established a plan, my job is done – but yours is not. One theme about bankruptcy you will find when talking to me or going through this […]
Revocable Trust or Irrevocable Trust?
We’re going to take a break from bankruptcy today to talk about living trusts. These trusts help to distribute your assets after death. There are two major types of living trusts you can form: revocable and irrevocable. In this article we will go over the differences between the two in order to help you better […]
Mortgages, Student Loans & Bankruptcy Mortgages
Two of our local judges recently posted an article regarding their travels through the Real Estate Collapse and resulting Foreclosure Crisis. Their analysis reassembles four chapters in a yet unfinished volume. Some of this insight follows: In the first chapter the jurists note, “Liberalized credit, inflated real estate appraisals, unsustainable repayment terms, securitization of mortgage loans, and sloppy lending practices […]
What Allows Discharge of Student Loans in Bankruptcy?
Bloomberg Business recently published an article that pretty much shows the reality of how much “hardship” is required under the “undue hardship” standard when determining if a debtor can discharge student loans in bankruptcy. The Headline read: “Courts Rule That Disabled Woman Living Below the Poverty Line Must Repay Student Loans.” “Despite providing that paying back […]
Don’ts in Preparing to File Bankruptcy (Part 1)
1. Don’t leave out bank, checking, savings, brokerage, credit union accounts.2. Don’t use your credit cards.3. Don’t take credit cards cash advances.4. Don’t use convenience checks.5. Don’t make balance transfers.6. Don’t pay debts to family.7. Don’t pay debts to friends.8. Don’t tell a creditor you intend to pay.9. Don’t leave assets of any kind […]
Top 3 Reason NOT to Reaffirm a Mortgage in Bankruptcy
1. Truth is, if the lender is not going to report to the credit bureau, the debt to income ration should be minimized by not reaffirming the mortgage. 2. Borrower‘s struggling through a Chapter 13 have a hard time making mortgage payments on time; thus the likely hood of negative information is high if reaffirmed. […]
