The Student Loan Debt Crisis

The Student Loan Debt Crisis There is a new and worsening debt crisis in the United States: Student loans. The collective amount of student loan debt now exceeds the total debt owed by Americans on credit card accounts. The amount owed on student loans has been growing for several reasons. First, the cost of education is increasing much faster than the rate of inflation. Second, more Americans are having to borrow to finance secondary education because the recession has reduced the number of families with…

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MORTGAGE INTEREST RATES Mortgage interest rates are beginning to rise after remaining at historical lows for several years. If you have a high interest rate loan you should consider refinancing it before rates begin to go up. Although there are typically some costs associated with refinancing, the benefits can significantly outweigh them. For example, a 30 year mortgage loan on $150,000.00 at a fixed rate of 3.5 percent (typical today) will require you to pay $92,484.13 in interest over the life of the loan. That…

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The 2013 Consumer Bankruptcy Surge

Consumer bankruptcy attorneys across the country are anticipating a surge in bankruptcy filings in the year 2013. The stage seems set for a dramatic increase in the number of filings. Here’s why: Eligibility The bankruptcy reform legislation of 2005 became law on October 17, 2005. Many consumers were concerned about the availability of bankruptcy after the reform legislation took effect and so there was a massive surge in bankruptcy filings prior to the law’s effective date. One of the changes in the 2005 reform legislation…

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One of our principals, Richard Nemeth, made a presentation at the annual workshop conducted by the National Association of Consumer Bankruptcy Attorneys last week. NACBA is the only national organization that represents consumer bankruptcy attorneys and their clients. NACBA holds 2 conventions each year where nationally-known experts in the field of consumer bankruptcy make training presentations to other attorneys Mr. Nemeth was asked by NACBA to discuss the initial meeting with a potential bankruptcy client, how to assess the client’s goals and whether an attorney…

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7 Things Not To Do

Below is a list of common mistakes made by consumers prior to filing bankruptcy. These mistakes can results in significant financial detriment, so take the time now to learn what not to do before filing bankruptcy: 1. DO NOT TRANSFER PROPERTY OUT OF YOUR NAME! Many people transfer property out of their names just prior to filing bankruptcy on the incorrect belief that if they do not own the property at the time of filing, the trustee will be unable to take it from them.…

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Personal Bankruptcy


Chapter 7 is by far the most common form of bankruptcy. “Chapter 7” refers to the chapter of the United States Bankruptcy Code that permits the filing of these cases. Chapter 7 cases can be filed by individuals, married couples and businesses, whether they are proprietorships, partnerships, limited partnerships, limited liability companies, or corporations. In Chapter 7, the Federal Bankruptcy Court orders all creditors to cease all collection activities the moment the Chapter 7 case is filed. This order is known as the “automatic stay”…

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Personal Reorganization


Stopping foreclosures, restructuring vehicle and other collateralized loans, restructuring tax liens, adjusting general debts if you cannot qualify for personal bankruptcy due to high income or a prior bankruptcy. Chapter 13 is available only to individuals and married couples, not to partnerships, limited liability companies, or corporations. Chapter 13 is similar to Chapter 7 insofar as the automatic stay is concerned, with one notable exception: in Chapter 13, co-signers are protected from creditors also, even though they did not file bankruptcy. Therefore, if a parent…

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Business Reorganization


Stopping lawsuits, IRS levies, garnishments, property seizures, restructuring tax debt, restructuring lender debt obligations. Chapter 11 cases are reorganization cases that are typically filed by businesses and individuals with substantial assets and debt. Chapter 11 is expensive and therefore beyond the reach of the average consumer and small business. In Chapter 11, the court issues an initial order which protects the debtor from the collection efforts of all creditors. This order is known as the “automatic stay” and is effective even against the IRS. Creditors…

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Unfair Debt Collection


Collector harassment, deceitful, unfair and illegal collection practices, bankruptcy discharge violations, bankruptcy stay violations. Unpaid debts are often turned over to debt collectors. Debt collectors are third party companies that are in the business of collecting debts for others. Debt collectors use a variety of techniques to get you to pay. Some will send a series of collection letters. Some may call you at home or at work and demand that you make payments. Some may call friends, neighbors or relatives and ask them where…

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