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Report Reveals Millions of Student Loan Borrowers Eligible for Bankruptcy Discharge

Account Recovery

JANUARY 26, 2022

A report that has been published by the Student Borrower Protection Center suggests that there are “tens of billions” of dollars in unpaid student loans that are eligible to be discharged via the bankruptcy process and that “industry schemes have robbed borrowers of their right to discharge.”

Student loans

Companies Illegally Collecting on Student Loans Discharged in Bankruptcy: CFPB

Account Recovery

MARCH 17, 2023

The post Companies Illegally Collecting on Student Loans Discharged in Bankruptcy: CFPB appeared first on AccountsRecovery.net.

Student loans

Bill Introduced to Put Universities on Hook for Portion of Student Loan Defaults

Account Recovery

SEPTEMBER 26, 2022

A bill has been introduced in the Senate that seeks to hold universities accountable for paying a portion of student loans that go into default while also allowing student loans to be discharged when an individual files for bankruptcy protection. 4912 was introduced last week by Sen. Josh Hawley [R-Mo.],

Student loans

Chapter 13 Bankruptcy and Student Loans

Sawin & Shea

JULY 14, 2021

Student loan debt can be crippling. Trying to put money towards a house or a car, as well as paying all of your other bills on top of student loan debt, is often exhausting and can sometimes feel impossible. In America alone, the average student loan debt in 2021 comes to around $1.7 How Does Student Loans Bankruptcy Work?

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Appeals Court Rules Some Private Student Loans can be Discharged in BK

Account Recovery

JULY 19, 2021

The Court of Appeals for the Second Circuit has upheld a lower court’s ruling allowing a plaintiff’s private student loans to be discharged as part of his bankruptcy filing, ruling that the provision of the bankruptcy code that prohibits the discharge of “an obligation to repay funds received as an educational benefit” does not apply … (..)

Student loans

Daily Digest – July 19. Appeals Court Rules Some Private Student Loans Can be Discharged; InDebted Raises $25M

Account Recovery

JULY 19, 2021

Appeals Court Rules Some Private Student Loans Can be Discharged; InDebted Raises $25M appeared first on AccountsRecovery.net.

Student loans

Can I Discharge a Private Student Loan in Bankruptcy?

Sawin & Shea

JULY 13, 2022

The majority of people in Indiana who have thought about declaring bankruptcy likely already know how challenging it is to get student loans erased. Although it is not impossible, debtors normally need to pass the Brunner test, which establishes that repaying the student loans will put them in an unreasonably difficult position.

Student loans

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Appeals Court Upholds Dismissal of FDCPA Case Over Collection of Post-BK Student Loan

Account Recovery

APRIL 5, 2022

The Court of Appeals for the Third Circuit has affirmed the dismissal of a Fair Debt Collection Practices Act case against a student loan servicer for continuing to attempt to collect a student loan debt after it had been discharged in bankruptcy because the plaintiff failed to follow the proper procedure.

Student loans

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What Is a Personal Guarantee in Bankruptcy?

Sawin & Shea

JULY 6, 2022

A common question we receive from those considering bankruptcy is how it impacts personal guarantees. If you’re considering filing for bankruptcy, you need to consult with a bankruptcy attorney before signing a personal guarantee. Does a Personal Guarantee Survive Bankruptcy? What Is a Personal Guarantee?

Bankruptcy

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Is Student Loan Discharge in Bankruptcy Now Within Reach?

Nerd Wallet

OCTOBER 22, 2020

Student loan borrowers who seek to have their debt canceled in bankruptcy — what’s known as discharge — typically find it an expensive process with standards that can be difficult to meet. But recent bankruptcy court rulings and lawmakers’ support of relief for overburdened borrowers may signal a change is coming.

Student loans

CFPB Denies Petition in Student Loan BK Collection Discharge Investigation

Account Recovery

SEPTEMBER 21, 2023

The Consumer Financial Protection Bureau has denied a petition from the Pennsylvania Higher Education Assistance Agency to set aside a civll investigative demand into whether the servicer maintained adequate policies and procedures to determine whether loans were dischargeable in bankruptcy and if attempts were made to collect on loans that had been (..)

Student loans

Will filing for bankruptcy clear all my debts?

Roths Child Law

FEBRUARY 29, 2024

There are many reasons that people feel the need to file for personal bankruptcy. Before filing, you should understand what a personal bankruptcy filing can and cannot do. If you fail to pay, the courts could create an order to take it from your wages or other sources, even if you file for bankruptcy.

Bankruptcy

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What Is the Impact of Bankruptcy on Professional Licenses and Certifications?

Sawin & Shea

APRIL 3, 2024

Filing for bankruptcy is a great financial option for those struggling with cumbersome debt. But you may be wondering, “What Is the Impact of Bankruptcy on Professional Licenses and Certifications?” How Will Filing Bankruptcy Impact My Professional License?

Bankruptcy

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CFPB Heightens Scrutiny of Unlawful Collection of Payments on Discharged Student Loans

Consumer Finance

MARCH 15, 2023

Today, the Consumer Financial Protection Bureau (CFPB) released a bulletin warning servicers of their obligation to halt unlawful conduct with respect to private student loans that have been discharged by bankruptcy courts.

Student loans

What Debts Are Not Discharged in Bankruptcy?

Sawin & Shea

OCTOBER 11, 2023

People file for bankruptcy for any number of reasons, from job loss, to unpaid medical bills , to sky-high credit card bills. And it’s not an uncommon event either– roughly 375,000 people filed for bankruptcy in 2022 alone. There are some debts that filing for bankruptcy will not discharge. What do we mean by this?

Bankruptcy

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Is Student Loan Discharge in Bankruptcy Possible?

Luftman, Heck & Associates.

FEBRUARY 10, 2021

You’ve probably resigned yourself to paying your student loans for decades. Bankruptcy can help with a credit card, medical, mortgage, and other debts, but not with student loans. Historically, private and federal student loans can’t be canceled by bankruptcy. That could all be changing, though.

Student loans

Filing for bankruptcy after graduation

Roths Child Law

AUGUST 14, 2023

Student loans are one of the primary ways graduates build up debt. College students are often also targets of credit card companies, which can lead to all kinds of debts. Many students use their credit cards to buy books, supplies, coffee, alcohol, clothes, rent and food. One common solution to debt is bankruptcy.

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Court Ruling Favors Student Loan Bankruptcy Discharge

Debt

OCTOBER 2, 2020

There hasn’t been much good economic news in 2020, but if you’re buried in student loans, there was an astoundingly positive development recently. Thanks to a recent court ruling, you might be able to get out of that debt through bankruptcy!!

Student loans

Discharge in Bankruptcy – Bankruptcy Basics

Sawin & Shea

AUGUST 30, 2023

What is Bankruptcy? Bankruptcy is an opportunity for someone to forge their way through what seems like an impossible debt-ridden situation and come out the other side. Although businesses can also declare bankruptcy, we will focus on personal bankruptcy in this article. Which Debts Cannot be Discharged in Bankruptcy?

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Debt Consolidation vs Bankruptcy: Which is Better?

Sawin & Shea

MARCH 6, 2024

Two of the most common options for dealing with unmanageable debt are filing for bankruptcy and pursuing debt consolidation. Bankruptcy and debt consolidation are distinct solutions, each with advantages and potential drawbacks. A bankruptcy attorney can help you determine the best kind of bankruptcy filing for your circumstances.

Debt Consolidation

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CFPB Releases Blog Post on the Dischargeability of Private Student Loans in Bankruptcy

Troutman Sanders

APRIL 14, 2022

On April 12, the Consumer Financial Protection Bureau (CFPB) released a blog post titled “ Busting myths about bankruptcy and private student loans.” In the blog post, the CFPB argues that certain private education loans can be discharged in bankruptcy. Loans to a student attending school less-than-half-time.

Student loans

Second Circuit Rules Private Student Loans May Be Discharged in Bankruptcy

Troutman Sanders

JULY 19, 2021

Court of Appeals for the Second Circuit ruled that private student loans are not explicitly exempt from a debtor’s Chapter 7 bankruptcy discharge. In Homadian , the borrower, after graduating from Emerson College, filed for Chapter 7 bankruptcy in 2007 and obtained a discharge in 2009.

Student loans

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That’s a Brunner, Man. Supreme Court Declines to Revisit Overly Rigid Standard for Discharge of Student Loans in Bankruptcy

PBWT

JUNE 22, 2021

1] The Bankruptcy Code generally excludes student loan debt from the general discharge individual debtors are entitled to receive upon the conclusion of their case. McCoy might be able to repay some of her student loan debt in the future, which they treated as dispositive under Brunner’s second prong. § 523(a)(8). [1]

Student loans

Who Can Declare Chapter 7 Bankruptcy?

Sawin & Shea

JANUARY 18, 2023

If you’re struggling with overwhelming debts, Chapter 7 bankruptcy could be your best option. Chapter 7 is the most common form of bankruptcy for individuals and families, and it allows you to discharge many of your unsecured debts within only a few months. What is Chapter 7 Bankruptcy?

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What Happens to Your Credit Score after Bankruptcy?

Credit Corp

MAY 30, 2023

Bankruptcy can happen to anyone—despite their best efforts. And while most people understand that bankruptcy is generally bad for them, many don’t realize the details of how it can impact you. Read below to find out what happens to your credit score after bankruptcy and what you can do to repair your credit afterward.

Bankruptcy

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CFPB Warns Student Loan Servicers About Collecting on Discharged Debt

Troutman Sanders

MARCH 16, 2023

On March 16, the Consumer Financial Protection Bureau (CFPB) released a compliance bulletin entitled Unfair Billing and Collection Practices After Bankruptcy Discharges of Certain Student Loan Debts. The compliance bulletin focused on the treatment of certain private student loans following a bankruptcy discharge.

Student loans

Pros and Cons of Chapter 13 Bankruptcy

Sawin & Shea

DECEMBER 28, 2023

Filing for Chapter 13 bankruptcy can provide much-needed relief if you are overwhelmed with debt and struggling to keep up with payments. While this type of bankruptcy comes with unique advantages, it also does not fit into every situation. What Is Chapter 13 Bankruptcy? Pros of Filing Chapter 13 Bankruptcy 1.

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Chapter 13 Bankruptcy Hardship Discharge: Am I Eligible?

Sawin & Shea

JANUARY 4, 2024

Filing for Chapter 13 bankruptcy is a positive step during a challenging time in your life. Instead of fighting with your creditors, you work with them proactively in the bankruptcy process to resolve your debts. In some cases, you may be eligible for a Bankruptcy Hardship Discharge. What is a Bankruptcy Hardship Discharge?

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Student loan companies ‘abusing the bankruptcy system’ will face consequences: CFPB letter

Collection Industry News

APRIL 11, 2022

Student loan companies will face consequences if they mislead borrowers and collect on private debt that has been discharged by a bankruptcy court , according to a letter sent by the country’s top consumer watchdog to Senator Dick Durbin (D-IL) that was obtained by Yahoo Finance. “I Source- site.

Student loans

How Much Debt is Needed to File for Bankruptcy?

Sawin & Shea

MARCH 9, 2022

When facing bankruptcy, many wonder how much debt is needed to file bankruptcy. There is no minimum amount of debt you need in order to file for bankruptcy, but there are other critical factors you need to take into consideration before filing under Chapter 7 or Chapter 13. Should I File for Bankruptcy?

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Second Circuit holds that private student loans may be discharged in bankruptcy

Public Citizen

JULY 20, 2021

As you may know, most student loans are notoriously difficult to discharge in bankruptcy. In that decision , the Second Circuit has joined the Fifth and Tenth Circuits and held that private student loans are dischargeable in bankruptcy. But not all loans, according to In re Hilal K. Homaidan (CA2 July 15, 2021).

Student loans

How to Go Back to School With Defaulted Student Loans

Nerd Wallet

JULY 23, 2021

If you need solutions for your student debt: Find help: Options for legit student loan help resources and organizations to contact. Pause payments: Find out the differences between student loan forbearance and deferment. Get out of default: Learn the consequences of and remedies for defaulting on your student debt.

Student loans

What Should You Know About Medical Debts & Bankruptcy?

Sawin & Shea

NOVEMBER 1, 2023

Because of the serious burden medical debts have placed on Americans, many are turning to bankruptcy as a potential option. However, while bankruptcy can help, it’s important to understand how the process works, especially concerning your medical debt. Can You File Bankruptcy on Medical Bills? Does Bankruptcy Clear Medical Debt?

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U.S. Student loan debt statistics you should know in 2023

Credit Corp

MARCH 21, 2023

million Americans have student loan debt, which totals over $1.7 If you owe tens of thousands of dollars in student loan debt, you’re not alone. million Americans have some form of federal or private student loan debt. Not only can you not declare bankruptcy on many forms of student loan debt, but it can also harm your credit.

Student loans

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CFPB Releases Blog Post on the Dischargeability of Private Student Loans in Bankruptcy

Collection Industry News

APRIL 18, 2022

On April 12, the Consumer Financial Protection Bureau (CFPB) released a blog post titled “ Busting myths about bankruptcy and private student loans.” In the blog post, the CFPB argues that certain private education loans can be discharged in bankruptcy. Loans to a student attending school less-than-half-time.

Student loans

Questions to Ask a Chapter 7 Bankruptcy Lawyer Before Filing for Bankruptcy

Sawin & Shea

MARCH 7, 2023

Are you wondering how to file bankruptcy Chapter 7? Or if filing for bankruptcy is right for you? If you’re struggling with debt and considering bankruptcy, speaking with a bankruptcy lawyer can help you determine your best options and give you some clarity on how the process works. What is Chapter 7 Bankruptcy?

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What You Need to Know if You Are Retired and Filing for Bankruptcy

Sawin & Shea

JUNE 22, 2022

Since 1991, the number of retirees filing for bankruptcy has tripled , with 12.2% of all bankruptcies being filed by people 65 and older. And student loan payments are often even a burden for senior citizens today. However, though bankruptcy can be a good option, it is not always the best option, especially if you are retired.

Bankruptcy

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Does Filing for Bankruptcy Eliminate Debt?

Sawin & Shea

AUGUST 23, 2023

With these kinds of figures, it isn’t surprising that we often get the question from clients: Does filing for bankruptcy eliminate debt? Bankruptcy Explained Bankruptcy is a powerful legal process that can help individuals or businesses that are overwhelmed by debt get a fresh start and a path to rebuild. And we have the answer.

Bankruptcy

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5 questions to ask before filing for bankruptcy

Roths Child Law

JULY 12, 2023

Bankruptcy is a great process that helps many people recover from overwhelming debt obligations. Are you considering filing for bankruptcy? How often can I file for bankruptcy? People can file for bankruptcy as many times as they wish. Or, a Chapter 7 to a Chapter 13 bankruptcy may require people to wait 4 years.

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Debts That Can’t Be Discharged During Bankruptcy

Sawin & Shea

JULY 28, 2021

It’s tempting to believe that filing for bankruptcy is like having a magical wizard wave his wand to make all of your problems disappear. Bankruptcy isn’t rare in the Hoosier state; Indiana has the 7th highest percentage of bankruptcies in the United States, based on population: 22,748 in 2019, or 3.38 per every 1,000 people.

Bankruptcy

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Federal agencies have a plan to help discharge student loan debt

Roths Child Law

JANUARY 2, 2023

If one of the reasons you’ve decided against bankruptcy is because you’ve heard that it’s nearly impossible to discharge student loan debt, the federal government has announced a plan that could change that for you. It’s been a confusing and frustrating time for Americans of all ages who are mired in student loan debt.

Student loans