Recently on our bankruptcy forum a user asked, “I am about to go to college. I read that up to 60% of students in the U.S. are now borrowing money to pay for college. If I do decide to take out a college loan what do I need to know before I do it?”
Asking questions about whether or not you need to borrow money for college is a great first step to ensuring you don’t make the same mistakes that so many students make. Unfortunately, experts estimate that college loan debt is likely to become the next crisis, most likely surpassing the housing crisis of 2008.
Recently on our bankruptcy forum a user asked, “I am going to file for Chapter 7 bankruptcy. I heard that I have to take some type of credit counseling course before I file. Is this true and what could this possibly accomplish?”
Officials involved in Detroit’s bankruptcy are weighing if they can include the Detroit Institute of Art’s collection as an asset in the city’s bankruptcy and if they should recommend the sale of that artwork to help satisfy the $18 billion in debt the city owes. Continue reading
The types of bankruptcy that people are most familiar with are those used by individuals. These typically include Chapter 7 to discharge many debts entirely and Chapter 13 to reorganize debts into an affordable payment plan. But the type of bankruptcy getting the most attention in the media in recent months is a Chapter 9 bankruptcy.
A federal bankruptcy judge indicated on Thursday that while he is not ready to rule on American Airlines’ plan to emerge from bankruptcy protection and merge with US Airways that he was leaning toward approving the plan.
Bankruptcy law can be complicated and confusing to the average layman. That is why the American judicial system certifies lawyers that have been educated in the field of bankruptcy law. Bankruptcy attorneys are formerly trained to help the average layman better understand bankruptcy laws so the layman can make informed decisions when going through the judicial system available to them. To complicate the issues, there are metaphors in the language of bankruptcy. Continue reading
A means test was instituted in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The idea of the bankruptcy changes was to make it harder for serial filers to abuse the system while offering token protection for consumers. Since a student loan is not considered a living expense under the means test, I find the law somewhat obfuscating the intent of protecting consumers. Continue reading
One of the leading causes of having to file for bankruptcy protection is the loss of income within your family. If you cannot replace the income, you often realize it doesn’t take long in getting way behind on your bills. In looking for a new job, many today are finding out what they have been qualified to do is no longer available where they currently reside, so they are moving out of state in order find work that they are qualified to do. How does moving out of state affect bankruptcy law? Continue reading
If you are considering a California bankruptcy you may have questions about the property you can keep and what type of bankruptcy is best for you. Recently on our forum we had a user ask, “If I live in California what issues should I consider prior to filing bankruptcy?”
One of the debts exempt from a bankruptcy discharge is a student loan debt. It use to be that only certain government type student loan debts were exempt from bankruptcy discharge, but after the 2005 bankruptcy law changes, both private and government student loan debts are now exempt from discharge. Nevertheless, there are different ways you can defer the payments of your student loan. Continue reading