Back in 2009 during the mortgage meltdown, President Barack Obama instituted a program to slow down the flood of home foreclosures. The goal of the Home Affordable Modification Program (HAMP) was to offer incentives to banks and mortgage lenders who were willing to modify mortgages of homeowners who were on the verge of losing their homes.
Preventing a Housing Market Disaster
The idea behind...Read More
With all the news surrounding Puerto Rico’s struggle to recover from Hurricane Maria, you’ve probably heard mention of this U.S. Territory’s financial struggles. During his recent visit, Donald Trump suggested that Puerto Rico’s massive debt should be wiped out. This news might leave some wondering how can a government could just have their debts wiped away. But what many don’t realize is that...Read More
The Brunner Test is the standard for approving the discharge of student loan debt for all courts of appeal except for the First and Eighth Circuits. But this standard has become obsolete with its stance on proving undue hardship. While it’s difficult to discharge student loan debt through bankruptcy, it isn’t impossible if you and your attorney can prove undue hardship.
Determining Undue...Read More
Today, too many families are just one serious illness or one lost paycheck away from financial disaster. It might start out small with a late mortgage payment, but late charges add up fast. The next thing you know you are missing payments and your mortgage company already has zeroed in on beginning foreclosure proceedings.
When to Start Thinking About Bankruptcy
Once you are two months behind...Read More
In 2016, the average college student graduated with $37,172 in loan debt. That’s almost 6 percent more than the previous year. This is not really a great way to start out, especially if you’re in an entry level job and unable to afford rent or any of the other basic necessities of so-called “adult-life.” It leaves many students struggling to make ends meet while making their...Read More
If you thought that claiming Chapter 13 bankruptcy is harmful to the economy, it’s time to think again. A 2015 study published in the American Economic Review showed that bankruptcy could actually help the economy.
What the Study Found
This study analyzed 500,000 bankruptcy filings against administrative tax and foreclosure information to determine the economic impact of Chapter 13 bankruptcy,...Read More
The number of millennials filing for bankruptcy has grown at an alarming rate. Considering the prosperous period between 1980 and 2000 that this generation was born into and raised, most have found themselves in a financial rut with debt that they cannot dig out from.
Reasons for Debt
For a long time millennials have been the butt of jokes by older generations about having poor lifestyle...Read More
Chapter 7 bankruptcy could allow you to get rid of a significant amount of your debt. However, some debt cannot be discharged through bankruptcy.
Debt that Cannot Be Discharged
There are numerous types of debt that bankruptcy won’t usually eliminate, including:
Federal student loan debt (unless you can show a hardship)
Some tax debt, e.g. back taxes owed to the IRS
Unscheduled debts, meaning...Read More
The collective perception about how people view debt has changed. During the past three decades, living in debt has become the new norm to many baby boomers. Debt doesn’t carry the stigma it once did, which has begun to alter the way that people spend and save.
Research from insurance provider Allianz Life provides some insight on the current view of debt among baby boomers. Almost half of...Read More
If you’re considering filing for bankruptcy, your bankruptcy lawyer will help you determine which type of bankruptcy would be best suited for your personal situation. For individuals filing bankruptcy, liquidation (chapter 7 bankruptcy) might be the best solution for them, while some might be better off with reorganization (chapter 13 bankruptcy).
What is Liquidation?
Choosing a Chapter 7...Read More
If you currently find yourself struggling with debt and are considering Chapter 13 Bankruptcy protection, you may want to hold off. While Chapter 13 may be right for you, looking into all possible avenues is important. A bankruptcy stays on your credit report for years and makes it difficult to secure additional lines of credit, so if at all possible, using another option is typically...Read More
Whether departments within a company or outsourced collection agencies, debt collectors use any means they can to track you down and seek out repayment. These days, that includes social media channels. As a debtor, you have rights. Regardless of how creditors contact you, the law prohibits collectors from harassing debtors and making false statements concerning debt, among other behaviors....Read More