Category Archives: Bankruptcy Law

College loans what do I need to know?

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.

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Metaphors in the Language of Bankruptcy

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

Student Loan Expense Not Considered in Means Test

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

Bankruptcy Law and Moving out of State

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

A Student Loan and Different Ways to Defer the Debt

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