As a bankruptcy attorney, I wish more young people included financial literacy and personal finance in their high school and post-secondary education. The Credit Abuse Resistance Education (CARE) Program is a good place for both students and parents (and unsophisticated consumers) to start.The CARE program is designed to motivate young people to understand and appreciate the techniques … [Read more...]
$1 Trillion in Student Loans Not Dischargeable in Bankruptcy
January 30, 2012 By
The amount of student loans taken out last year crossed the $100 billion mark for the first time and total loans outstanding will exceed $1 trillion for the first time this year, USA Today reported in late 2011. Americans now owe more on student loans than on credit cards, reports the Federal Reserve Bank of New York. Students are borrowing twice what they did a decade ago after … [Read more...]
The Credit Abuse Resistance Education Program
January 26, 2012 By
I belong to a number of professional organizations, including the American Bankruptcy Institute (ABI). As a bankruptcy attorney, I wish more young people included financial literacy and personal finance in their high school and post-secondary education.The Credit Abuse Resistance Education (CARE) Program is a good place for both students and parents (and unsophisticated consumers) to … [Read more...]
Dealing with Creditor Calls
January 25, 2012 By
Some of the best advice a bankruptcy attorney can give is about timing: when to file. In many circumstances, we advise our clients to wait until a date certain to file, and to maintain the status quo until then, which often means dealing with a deluge of creditor and bill collector calls.Just this morning, I e-mailed back and forth with a client who wants and needs to wait until this fall … [Read more...]
Second Mortgage Options in Chapter 13 Bankruptcy
January 24, 2012 By
Mortgage modifications are rare. Modifications for second mortgages present challenges of their own. Clients who are in financial difficulty are well advised to consider a Chapter 13 bankruptcy case as an option when they are current on their first mortgage but are not paying, in full and on time each month, their second mortgage (including a home equity loan or other debt secured by the … [Read more...]
Will Bankruptcy Prevent Me from Getting a Student Loan?
January 19, 2012 By
Clients often ask us whether filing a bankruptcy case will affect their eligibility for student loans.Generally, these are parents who plan to seek PLUS loans for their kids’ college educations, but sometimes it is the client who plans to go back to school and needs financial assistance in order to do so. The bankruptcy code is specific The Bankruptcy Code contains a specific provision … [Read more...]
Military Personnel Exempt from Bankruptcy Means Testing
January 17, 2012 By
On December 13, 2011, the President signed into law H.R. 2192, the National Guard and Reservist Debt Relief Extension Act of 2011. My dad retired from the Army Reserves as a lieutenant colonel, and we are all aware of the sacrifices made by those on active duty. That’s why I’m happy that this law exempts certain military and homeland defense members from a means-test presumption of abuse … [Read more...]
Debt Resolution Programs: Beware, Beware
December 21, 2011 By
We’ve been seeing more new folks with an interest in “debt resolution” – either they are considering joining a program, or made the mistake of joining one and now need a bankruptcy lawyer to pick up the pieces. Most of these new clients are motivated by a desire to “do the right thing” and honor their debts, and thus try to avoid bankruptcy, or don’t understand how bankruptcy … [Read more...]
Bankruptcy Filing Fees Increasing November 1, 2011
October 28, 2011 By
November 1, 2011 the filing fees for each chapter will be as follows:Chapter 7--$306 Chapter 11--$1,046 Chapter 12--$246 Chapter 13--$281 Chapter 15--$1,046There are other miscellaneous fee increases for certification, exemplification, audio recording, records searches, record retrieval, and returned checks.Source: http://www.wieb.uscourts.gov/ … [Read more...]
Bankruptcy Protection
October 21, 2011 By
Bankruptcy Protection for Developers, Contractors, Subcontractors and Vendors Perhaps because of the stigma of bankruptcy, or desperation to hold on to something they can no longer afford, we see clients who act against their own financial interests. They do things that can’t be undone or mitigated when they finally do file for bankruptcy protection. We see this acutely in the construction … [Read more...]