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.
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.
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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
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 (..)
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Student Loan Default: Rehabilitation or Consolidation
Sawin & Shea
NOVEMBER 30, 2022
Student loan default can impact millions of Americans. Unfortunately, defaulting on a student loan can hurt your finances, credit, and other aspects of your life. If you fall behind on student loan payments, your loan won’t default immediately. What Are My Options After Defaulting on Student Loans?
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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.
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.
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.
How Long Will it Take to Rehabilitate a Student Loan?
Sawin & Shea
OCTOBER 5, 2022
Student loan debt is a serious problem in the United States, and it’s an issue that impacts millions of Americans. As of January 2022, around 45 million people have student loan debt, which is 13.5% The total collective amount of federal and private student debt is around $1.75 of the US population.
Student loan companies can set borrowers up to default
Roths Child Law
APRIL 15, 2021
Taking out a student loan is supposed to be a financial investment in your future. It can be very difficult for college graduates to balance their daily financial needs with the obligation to repay massive student loans. Some of these borrowers will eventually end up defaulting on their loans.
Navient Ordered to Stop Collections on Discharged Student Loans
Collection Industry News
JULY 18, 2022
A bankruptcy judge ordered student loan servicer Navient Corp. to suspend its efforts to collect payments from borrowers of certain private student loans who filed for bankruptcy and whose debts were likely eligible for a discharge. Bankruptcy Court in Brooklyn, N.Y., Source: site.
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.
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.
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.
Joe Biden Is Still Fighting Student Loan Debtors Who Declare Bankruptcy
Collection Industry News
APRIL 4, 2022
Joe Biden has been betraying his campaign promise to allow borrowers to discharge their student debts through bankruptcy. In a new letter, 27 Democratic senators are demanding the administration stop trying to overturn court rulings that help student debtors. Instead, the administration has fought debtors in bankruptcy court.“Over
Q3 Industry Insights: Preparing for Credit Card Bills, Student Loans and Holiday Spending
True Accord
OCTOBER 10, 2023
Economic stressors persist and are likely contributing to many consumers relying on credit to cover expenses, while the resumption of student loan payments adds another financial obligation to the mix. trillion in student debt under the CARES Act, student loan payments resume this month. And approximately 4.6%
How Can I Stop Student Loans from Taking My Taxes?
Credit Corp
MARCH 9, 2021
Going through student loan repayments can be a hassle. However, due to the COVID-19 pandemic, student loan payments and collection attempts have been paused until September 30, 2021. This means you have more time to find ways to repay your student loans before you have a defaulted loan.
CFPB Highlights Default Risk Factors for Student Loans
Troutman Sanders
APRIL 18, 2022
On April 14, the Consumer Financial Protection Bureau (CFPB or Bureau) published a report titled Student Loan Borrowers Potentially At-Risk when Payment Suspension Ends. Pre-pandemic payment assistance on student loans. Pre-pandemic payment assistance on student loans. Multiple student loan servicers.
‘Undue Hardship’ Is Too Strict A Standard To Discharge Student Loans In Bankruptcy, ABA Argues
Collection Industry News
AUGUST 30, 2021
Bankruptcy Code to allow borrowers to discharge student loans without proving that repayment of the debt imposes an “undue hardship” on them or their dependents. trillion in student loan debt, according to data from the Federal Reserve cited in the report accompanying the resolution. Source: site.
Is It Better To Declare Bankruptcy or Debt Consolidation?
Sawin & Shea
JANUARY 24, 2024
When you are overwhelmed by debt, you may start to wonder if declaring bankruptcy or pursuing debt consolidation is the better option. Understanding the key aspects of each can help you determine what is better, bankruptcy or debt consolidation, for your situation. Any debts not discharged, like student loans, remain.
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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52 Discharging Student Loan Debt: The Brunner Test
ABI
JANUARY 12, 2022
American Bankruptcy Institute Law Review Staff. . . Generally, student loan debt will not be discharged in a case under title 11 of the United States Code (the “Bankruptcy Code”) unless there is a showing of “undue hardship on the debtor and debtor’s dependents.” Julia Merani. 1] In Hull v. 2d 395 (2d Cir.
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?
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.
Congress Passes Relief for Student Loan Borrowers in CARES Act
Titan Consulting
JUNE 7, 2020
Congress recently passed legislation in the CARES act that provides direct and indirect benefits to Federal Student Loan borrowers. Benefits include a suspension of payments, no negative credit reporting, no collection activity, and no accrual if interest until September 30, 2020. Help Available for Borrowers with 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.
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?
Student Loan Debtors Seek High Court Standard In Debt Discharge
Collection Industry News
MAY 3, 2021
Supreme Court to provide a uniform, nationwide standard for what debtors must prove to eliminate student loan debt in bankruptcy. Wiping out student loan debt through bankruptcy is exceedingly difficult. Court of Appeals for the Fifth Circuit that the justices are being asked to consider.
How are Medical Bills Treated in Chapter 13 Bankruptcy?
Sawin & Shea
MAY 5, 2021
Filing for Chapter 7 or Chapter 13 Bankruptcy: Chapter 7 will wipe out (discharge) your medical debt along with other unsecured debt, but you must have low enough income to pass the means test in order to qualify for it. Chapter 13 bankruptcy is discussed below. Ten facts About Chapter 13 Bankruptcy and Medical Bills: #1.
How to Get Debt Collectors to Stop Calling after Bankruptcy
Sawin & Shea
FEBRUARY 1, 2023
The time period leading up to filing for bankruptcy is extremely stressful, as you know. Who knows how to get debt collectors to stop calling after bankruptcy? How long after filing for bankruptcy do collectors keep calling? You may be hearing from creditors who will not be affected by your bankruptcy. It is illegal.
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.
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105 Student loan companies can set borrowers up to default
Roths Child Law
APRIL 15, 2021
Taking out a student loan is supposed to be a financial investment in your future. It can be very difficult for college graduates to balance their daily financial needs with the obligation to repay massive student loans. Some of these borrowers will eventually end up defaulting on their loans.
What Can I Keep if I File For Chapter 7 Bankruptcy?
Sawin & Shea
SEPTEMBER 27, 2023
Filing for bankruptcy can provide you with a much-needed second chance when it comes to your finances. If you are a victim of debt collector harassment, it’s important to know the debt collection laws, and consider your options for debt relief. What is Chapter 7 Bankruptcy?
Does Biden’s Student Loan Forgiveness Plan Go Far Enough?
Collection Industry News
JULY 28, 2020
Former Vice President Joe Biden, the presumptive Democratic nominee for President, released his student loan forgiveness plan in April, and reaffirmed his commitment to student loan forgiveness in June. But how does Biden’s plan compare to other student loan forgiveness proposals?
10 Common Questions About Bankruptcy
Debt Free Colorado
MARCH 3, 2023
Find Out the 10 Common Questions About Bankruptcy with Colorado Bankruptcy Lawyers. The decision to file for bankruptcy is a significant one, and we are here to assist you in determining whether bankruptcy is the best course of action for your circumstances. Do bankruptcies come in different types?
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I’m Self Employed: What Are My Bankruptcy Options?
Sawin & Shea
MARCH 30, 2021
Nobody wants to be in a situation where they have to file for bankruptcy, but for the self-employed, it can be a doubly crushing blow. You may even have doubts about whether or not self-employed people are eligible to file for bankruptcy. For both of these types of bankruptcy, you will need to gather some paperwork. Chapter 13.
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Consumer Debt vs. Non Consumer Debt
Sawin & Shea
SEPTEMBER 14, 2022
When filing Chapter 7 or Chapter 13 bankruptcy, it’s critical to understand the difference between consumer debt and non-consumer debt. Your consumer and non-consumer debts impact your ability to file Chapter 7 bankruptcy, and your debt types also determine what’s protected by an automatic stay when filing Chapter 13 bankruptcy.
SoFi CEO on Biden and student loan forgiveness: ‘This is classic leadership by indecision’
Collection Industry News
MARCH 28, 2022
A major student loan refinancing company has joined the chorus of voices calling for broad-based student loan forgiveness as millions of borrowers brace for the end of the pandemic payment pause. They need to know whether and when their loan obligations will resume. The $10,000 student loan forgiveness argument.
Individual Bankruptcy Filings Fall During Pandemic
Collection Industry News
APRIL 2, 2021
The number of people seeking bankruptcy fell sharply during the pandemic as government aid propped up income and staved off housing and student-loan obligations. Bankruptcy filings by consumers under chapter 7 were down 22% last year compared with 2019, while individual filings under chapter 13 fell 46%, according to Epiq data.
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What Are The Types of Bankruptcies & How Do I Choose One?
Debt Free Colorado
JANUARY 10, 2022
When someone finds themselves in financial distress, they may consider filing for bankruptcy. But just like choosing a doctor or an in-law, not all forms of bankruptcy are the same and selecting the wrong one can wind up doing more harm than good. . Which type of bankruptcy should you take? Bankruptcy Defined.
Navient Settles with State AG Coalition Over Alleged Unfair, Deceptive, and Abusive Student Loan Origination and Servicing Practices
Troutman Sanders
JANUARY 20, 2022
On January 13, a coalition of 39 state attorneys general — led by AGs from Pennsylvania, Washington, Illinois, Massachusetts, and California — reached a settlement with student loan servicer Navient over allegedly unfair, deceptive, and abusive student loan origination and servicing practices.
Top 10 Changes to Consumer Bankruptcy Proposed in the Consumer Bankruptcy Reform Act of 2020
Collection Industry News
DECEMBER 21, 2020
proposed sweeping legislation that would overhaul consumer bankruptcy law. The proposed changes generally make it easier for consumers to access the bankruptcy system and discharge their debts. Below is a discussion of 10 critical changes proposed in the Consumer Bankruptcy Reform Act of 2020 (CBRA). and Jerrold Nadler (D-N.Y.),
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Can My Stimulus Check Be Garnished for Credit Card Debt?
Credit Corp
MAY 17, 2021
Federal Student Loan Debt: No. Your stimulus payment won’t be used to offset student loan debt if it’s a federal loan. This is not necessarily true for private student loans, though. Bankruptcy: Probably Not. Debt Collections: Yes. Child Support: No.
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Nearly Half of Indiana Facing Medical Debt
Sawin & Shea
OCTOBER 27, 2021
The INCAA survey also found that medical debts were most likely to be in collections. Out of the reported debt statistics, 35% of all debts in collections were medical, which surpassed other forms of debt. 25% of debts in collections were credit card related, and 20% were student loan debts. Bankruptcy Code.
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