We've written before about the impossible nature of discharging student loan debt in bankruptcy. The Project on Student Debt estimates the average debt for 2009 bachelor’s degree recipients at $24,000. Students with advanced degrees generally carry even more.Here's an article that lists a couple of creative repayment options for lawyers, teachers, primary care medical workers and even … [Read more...]
Non-Monetary Default: A Potential Bankruptcy Time Bomb
June 9, 2011 By
Everyone knows that in the event payments are missed, there has been a default. However, many business people overlook the fact that there can and often are other contract provisions that do not involve the payment of money which can trigger a default. These are known as non-monetary defaults.Bank loan agreements, leases, and other types of commercial contracts provide for events of … [Read more...]
Student Loans and Bankruptcy’s Automatic Stay
April 15, 2011 By
This week the LA Times reported that 40% of student loan borrowers fall behind on payments or end up in default. The article goes on to discuss options for staying out of default. Student loan payments can usually be deferred when borrowers are unemployed or underemployed for up to two years. If the borrower goes back to school, payments can be postponed almost indefinitely.If the borrower … [Read more...]
Plenty of Reasons NOT to Modify Your Mortgage
August 26, 2010 By
More news on mortgage modification trends.The WSJ reports that borrowers who receive a permanent mortgage modification still have lots of other debt. The median ratio of total debt payments to pretax income stands at 63.5%. This means 20% of borrowers (or more) with permanent modifications are likely to re-default, primarily because of those high debt levels.If you have significant … [Read more...]
Primer for Distressed Homeowners: Part 2 of 3
December 2, 2009 By
In our first post of this series we covered the foreclosure process and defined some basic real estate terms related to distressed sales.In this article we cover questions and answers on preventing foreclosure, negotiating with a mortgage company, and what to do about an adjustable rate mortgage that will soon reset. Q: Can I legally prevent a foreclosure? First, there is very rarely any … [Read more...]