Board Certified Specialist in Bankruptcy
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...]
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...]
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...]
There are financial and emotional reasons to seek bankruptcy protection. Let's consider both categories. Financial questions to ask yourselfAre you able to make more than a minimal payment on your debts every month? How many times in the last year have you been late or skipped a payment on a debt? What is your total debt relative to your annual income? The higher your debt to annual … [Read more...]
With the college season upon families, some students still are applying for private student loans.If you find yourself considering private student loans, beware that in cases where the student dies, the co-signers often are obliged to pay off the balance of the loan themselves—a requirement typically not found in federal loans, according to a recent Wall Street Journal article.Sallie … [Read more...]
On April 15 of this year The Private Student Loan Bankruptcy Fairness Act of 2010 was introduced to the House of Representatives calling for certain student loans to be eligible for discharge under bankruptcy.Time will tell whether the Act becomes law; if it does, it is likely to undergo substantial revisions prior to passage. Student loans are not dischargeable Under the current law, … [Read more...]
Mortgage DelinquenciesThe Hope Now Alliance, comprised of counselors, mortgage companies, investors and other mortgage market participants, reported that there were more than 3 million mortgage loans 60 or more days delinquent through the end of July. Foreclosure starts were above 283,000 thousand in July, though completions totaled only 89,000, according to the data.Auto Loan … [Read more...]