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16 hours 17 min ago

This new report, titled “Innovation Highlights: Emerging Student Loan Repayment Assistance Programs,” is available at: http://files.consumerfinance.gov/f/documents/cfpb_innovation-highlights_emerging-student-loan-repayment-assistance-programs.pdf 
The CFPB provides a Repay Student Debt tool, which helps borrowers get unbiased tips on how to navigate student loan repayment, along with other sample letters they can send to their student loan servicers. More information is available at: consumerfinance.gov/students

The post Tool to Help Navigate Student Loan Repayment Programs appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.


3 days 4 hours ago

Millions of people file for bankruptcy each year in the United States. California is no exception, with nearly 72,000 cases filed statewide in 2016 alone. Over 14,000 of those cases were filed in Sacramento, peaking during March when more than 1,400 cases were filed. These statistics make it clear that bankruptcy is common – but the better question is, why do so many people file bankruptcy? And even more importantly, should you be one of them? Sacramento bankruptcy lawyers discuss some common reasons for filing bankruptcy in California to help you get a better idea of whether bankruptcy might be right for you.

bankruptcy attorney sacramento
California Bankruptcy Statistics
The United States Bankruptcy Court for the Eastern District of California has jurisdiction over more than two dozen counties in the North California and Central California regions, including Sacramento County and Placer County. If you reside in Sacramento, Elk Grove, Arden-Arcade, Citrus Heights, Folsom, Roseville, Rocklin, Lincoln, Granite Bay, Auburn, or other cities in the region, you are served by the Sacramento Division, which is located in downtown Sacramento.
Like other bankruptcy courts, the Sacramento Division provides detailed statistics about bankruptcy cases filed in recent years. These statistics paint a picture of bankruptcy trends in California. Court statistics are highlighted below with bankruptcy in Sacramento by year. Totals may appear low due to omission of Chapter 9 and Chapter 12, which are extremely rare compared to other types of bankruptcy.
2013

  • Chapter 7 Filings – 12,912 cases
  • Chapter 13 Filings – 3,227 cases
  • Chapter 11 Filings – 73 cases
  • Total Filings – 16,223 cases

2014

  • Chapter 7 Filings – 9,934 cases
  • Chapter 13 Filings – 2,551 cases
  • Chapter 11 Filings – 57 cases
  • Total Filings – 12,552 cases

2015

  • Chapter 7 Filings – 7,656 cases
  • Chapter 13 Filings – 2,254 cases
  • Chapter 11 Filings – 40 cases
  • Total Filings – 9,966 cases

2016

  • Chapter 7 Filings – 6,313 cases
  • Chapter 13 Filings – 2,147 cases
  • Chapter 11 Filings – 34 cases
  • Total Filings – 8,500 cases

bankruptcy lawyer sacramento
Medical Bankruptcies and Other Common Reasons for Bankruptcy
As you can see from the figures above, bankruptcy filings in Sacramento consistently declined from 2013 to 2016, shrinking by roughly half over just that short period. Nonetheless, as the data makes clear, thousands of people continue to file Chapter 7 bankruptcy in Sacramento or file Chapter 13 in Sacramento every year.
But what factors are driving all these bankruptcies? What are some of the most common reasons that people file bankruptcy in California?
While court statistics exclude reasons for filing, other sources of information can shed light on why Californians file bankruptcy. Five of the top leading causes of personal bankruptcy include…
Credit Card Debt
Most studies estimate that roughly 70% of Americans have at least one credit card – and millions are in debt for that very reason. As of 2009, Americans had more than $953 billion in credit card debt, and by 2016, the average Californian household reported more than $5,700 in debt related to credit cards. People tend to have more credit card debt if they earn a high level of income ($160,000 per year or more) or are in the 35-year-old to 64-year-old age range.
HELOC Debt
HELOC, which is an abbreviation for “Home Equity Line Of Credit,” is an unconventional type of loan in which the borrower, rather than receiving a lump sum from a lender, can borrow up to a certain credit limit during a set “draw period,” typically up to 10 years. When the draw period ends, repayments begin – but for many Californians, those repayments have led to deep debt. Government reports from 2009 revealed that Americans had over $577.8 billion in HELOC debt.
Medical Debt
A 2013 study by NerdWallet Health, which combined data from sources like the CDC and U.S. Census figures, revealed medical bills to be the number one cause of bankruptcy in the United States.
Mortgage Debt
While the market has rebounded from the mortgage crisis of 2007-2008, mortgage debt continues to threaten millions of households with the threat of foreclosure. Filing Chapter 13 bankruptcy can prevent your home from being foreclosed on. The Federal Reserve Board of Governors reported that, as of 2008, mortgage debt in the U.S. had climbed to $14.64 trillion. In 2015, a report by the Legislative Analyst’s Office found that, due to above-average housing costs in California, “the average California homeowner had $55,000 in mortgage debt outstanding as of 2013, about $17,000 more than the average U.S. homeowner ($38,000).”
Student Loans
California is one of the top 20 states in the country for highest student loan debt. According to a 2017 report by Forbes, which sourced data from The Institute for College Access and Success, the average student loan debt in California was $22,191 for the Class of 2015. (For context, New Hampshire had the highest average student loan debt at $36,101.)
If you’ve thought about filing for bankruptcy due to these or other reasons, rest assured that you are not alone. Thousands of other Californians – and millions of other Americans – are in a similar position at this very moment.
No matter how challenging or hopeless your financial problems look to you right now, bankruptcy could be the first step toward financial stability and a fresh start. If you’re struggling with credit card debt, medical debt, mortgage debt, or other types of debt, we encourage you to learn more about your financial options by contacting the Sacramento Chapter 13 attorneys of The Bankruptcy Group for a free consultation about filing bankruptcy.
Sacramento Bankruptcy Attorneys for Chapter 7, 13, and 11
While there are certainly patterns in causes of debt, every debtor ultimately has their own personal reasons for considering bankruptcy. Our Sacramento Chapter 7 bankruptcy lawyers will take the time to evaluate your reasons for thinking about bankruptcy, so that we can help you make a strategic decision about how to proceed. Our Roseville Chapter 7 lawyers can help you determine whether bankruptcy is right for you, which chapter of bankruptcy is right for you, when you should file, whether you should file individually or with your spouse, which bankruptcy exemptions you should use, and other important decisions concerning the California bankruptcy process.
Start getting your debt under control today. For a free legal consultation about bankruptcy in California, call the Sacramento Chapter 11 attorneys of The Bankruptcy Group at (800) 920-5351.
The post The 5 Most Common Reasons People File Bankruptcy in Sacramento, CA appeared first on The Bankruptcy Group, P.C..


3 days 16 hours ago

Wells Fargo is on the front page AGAIN – this time for “allegedly” over charging military veterans for refinance loans.
Wells FargoWells Fargo in trouble again, again and again.
In an article published by Housingwire, author Ben Lane, Wells Fargo announced that it will pay $108 million to the federal government to settle allegations that the bank overcharged military veterans for refinance loans.
Specifically, the issue relates to a lawsuit from 2006 that claimed some Department of Veterans Affairs Interest Rate Reduction Refinance Loans originated by Wells Fargo should not have been eligible for VA guarantees due to the bank allegedly collecting unauthorized fees with the loans.

Wells Fargo agrees to pay $108 million dollars but denies any wrongdoing.  REALLY?  What nine-year old is going to believe, based on the revelations over the last year*, that Wells did nothing wrong?

Under the agreement, Wells Fargo denies the allegations in the lawsuit but will pay $108 million to the government to resolve the claims, the bank said in a statement issued Friday. Where exactly this penalty will be paid to, the VA or some other branch of the Federal government, is not yet clarified. Wells Fargo

* Fraud and Deceit – below are just a few of the cons Wells Fargo has been involved in, that we know of thus far.

The Wells Fargo Fake Account Scandal: A Timeline – Forbes

https://www.forbes.com/pictures/ejhj45fjij/where-wells-went-wrong/

On September 8, 2016, Wells Fargo announced that it was paying $185 million in fines to Los Angeles city and federal regulators to settle allegations that its …

Wall Street is livid over Wells Fargo’s latest scandal: ‘Here we go again’

https://www.cnbc.com/…/wall-street-is-livid-over-wells-fargos-latest-s...

Jul 31, 2017 – Analysts are angry over the latest Wells Fargo scandal where hundreds of thousands of customers were required to buy auto insurance they …

Wells Fargo account fraud scandal – Wikipedia

https://en.wikipedia.org/wiki/Wells_Fargo_account_fraud_scandal

The Wells Fargo account fraud scandal is an ongoing controversy brought about by the creation of millions of fraudulent savings and checking accounts on …
Background · ‎Effects on Wells Fargo … · ‎Effects on others · ‎Government actions

There’s a New Wells Fargo Scandal: This Time It’s the TruCoat

https://theintercept.com/…/theres-a-new-wells-fargo-scandal-this-time-...

2 days ago – Beginning in at least in 2009, Wells Fargo teamed up with a home warranty firm to foist a product on unsuspecting mortgage customers, …

24 hours later, ANOTHER massive Wells Fargo fraud scandal / Boing …

https://boingboing.net/2017/08/12/american-home-shield.html

2 days ago – It’s been a whole day since we learned about another example of systematic, widespread fraud by America’s largest bank Wells Fargo (ripping …

OSHA orders Wells Fargo to reinstate, pay whistleblower in fake …

https://www.usatoday.com/story/money/2017/…/wells-fargo…scandal/5009...

Jul 21, 2017 – OSHA orders Wells Fargo to reinstate and pay a whistleblower $577000 in the fake-account scandal.

Wells Fargo, Awash in Scandal, Faces Violations Over Car Insurance …

https://www.nytimes.com/2017/08/07/business/wells-fargo-insurance.html
Aug 7, 2017 – Wells Fargo, the scandal-plagued bank, is facing new regulatory scrutiny for not refunding insurance money owed to people who paid off their …

Viking Global just made a big bet on scandal-plagued Wells Fargo …

www.businessinsider.com/viking-global-just-made-a-big-bet-on-scandal-pla...

8 hours ago – One of the world’s largest hedge funds made a huge bet that scandal-plagued Wells Fargo‘s worst days are behind it. Viking Global, a $30 …

How Wells Fargo’s Cutthroat Corporate Culture Allegedly Drove …

https://www.vanityfair.com/news/2017/05/wells-fargo-corporate-culture-fraud
But with the major scandal unfolding at Wells Fargo, angry former employees illuminate the alarming pressure that allegedly led local bankers to defraud …

Wells Fargo Opened a Couple Million Fake Accounts – Bloomberg

https://www.bloomberg.com/view/…/wells-fargo-opened-a-couple-million-f...
Really that’s just one principle: You get what you measure, but only exactly what you measure. There’s no guarantee that you’ll get the more …

What is the cost to those who will never be reimbursed?

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About the Author:
Diane L. DrainDiane L. Drain is a well known and respected Arizona bankruptcy attorney. She is an expert in both consumer bankruptcy and Arizona foreclosure. Since 1985 she has been a dedicated advocate for her clients and spokesperson for Arizona citizens. Diane is a retired professor of law teaching bankruptcy for more than 20 years. As a teacher she believes in offering everyone, not just her clients, advice about the Arizona bankruptcy laws. She is also a mentor to hundreds of Arizona attorneys.
I would be flattered if you connected with me on GOOGLE+
*Important Note from Diane: Nothing on this website should be construed as establishing a lawyer-client relationship between you, me, the author of any page or the website owner (me) who happens to be a lawyer.  Everything on this web site is available for educational purposes only, is not intended to provide legal advice nor create an attorney client relationship between you, me, or the author of any article.  You may pick up some information about bankruptcy, foreclosure or the practice of law written by myself or others.  Any information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state.*

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Wells Fargo in Trouble Again –

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3 days 22 hours ago

When Mortgage Lenders Monkey With Your Loan
By
The following are some excerpts from a very informative blog on a well-known consumer bankruptcy advocate’s web site: www.BankruptcySoapBox.com.

Spoiler Alert:  As a borrower, you are an expendable resource in home loan servicing to be exploited for fees and charges.

mortgage lendersMortgage lenders & servicers are in the business to take your money, not save your home.
Borrowers just trying to keep their homes are subject to a campaign of systematic and deliberate deception. This fundamental deception is now often combined with the fraudulent surcharging of fees costs and other “expenses” designed to make vast additional amounts of money for lender/servicers.
When used aggressively, their techniques run homeowners slowly into foreclosure, resulting in the permanent loss of home(s).
If the hapless borrower manages to retain the home, lender/servicers make hundreds of millions of dollars of additional annual revenue at little or no cost. (They make this money by doing as little as possible and getting you to do or not do things for which they can aggressively bill you.)

Lender/servicers frequently subcontract out the process of servicing your loans including applying for (among other things) loan modifications. By this I mean lender/servicers actually “farm these functions out” to ACTUAL SUBCONTRACTORS (FULFILLMENT COMPANIES) WHO DO NOT WORK FOR THE LENDER/SERVICER.

In the case of OCWEN, it was recently fined by the State of Washington for subcontracting out sensitive loan servicing functions to unlicensed entities in India and the Philippines.
…………

  • Ever receive a letter from your “authorized contact” at the lender/servicer that seemed totally disjointed and disconnected from everything you had labored to achieve with him/her up to that moment?
  • Ever receive a letter totally non-responsive to the written request you faxed to your point of contact?
  • Ever receive a letter telling you the EXACT opposite of what you’d discussed verbally on the phone?
  • Ever been told on the phone your loan mod was approved and then receive a letter saying you did not send documents required?
  • Ever try to get your “contact” to fax you a confirmation in writing that your loan mod was approved (or that your foreclosure was postponed) after they assured you of this verbally on the phone?

See the rest of Mr. Purdy’s article for even more revealing and frightening truths about the lending and servicing market.  Navient Illegal activities

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About the Author:
Diane L. DrainDiane L. Drain is a well known and respected Arizona bankruptcy attorney. She is an expert in both consumer bankruptcy and Arizona foreclosure. Since 1985 she has been a dedicated advocate for her clients and spokesperson for Arizona citizens. Diane is a retired professor of law teaching bankruptcy for more than 20 years. As a teacher she believes in offering everyone, not just her clients, advice about the Arizona bankruptcy laws. She is also a mentor to hundreds of Arizona attorneys.
I would be flattered if you connected with me on GOOGLE+
*Important Note from Diane: Nothing on this website should be construed as establishing a lawyer-client relationship between you, me, the author of any page or the website owner (me) who happens to be a lawyer.  Everything on this web site is available for educational purposes only, is not intended to provide legal advice nor create an attorney client relationship between you, me, or the author of any article.  You may pick up some information about bankruptcy, foreclosure or the practice of law written by myself or others.  Any information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state.*

Related Post

OCWEN Slammed With $2 Billion Settlement

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3 days 22 hours ago

Whether you are only considering bankruptcy, or currently in the middle of one, you are probably already looking ahead to the future. Life after bankruptcy may seem scary, but it is actually pretty great! The feelings of stress and anxiety you felt while drowning in debt will have melted away, and you can begin to focus on planning and preparing for your new life. The primary concern for many people coming out of a bankruptcy is rebuilding and repairing credit. If you are wondering how to begin improving your credit score, this post may provide some insight on establishing a solid credit history post bankruptcy.
The post Rebuilding Credit After Bankruptcy appeared first on Tucson Bankruptcy Attorney.


6 days 22 hours ago

There are several types of bankruptcy in California, including Chapter 7 bankruptcy, Chapter 13 bankruptcy, and, as this article will focus on, Chapter 11 bankruptcy. While individuals can file Chapter 11 bankruptcy in rare circumstances, Chapter 11 is more commonly used by businesses, ranging from small family-owned companies to well-known national franchises. Our Sacramento bankruptcy attorneys explore some common reasons businesses choose to file Chapter 11 in California. Could Chapter 11 be right for your company? Continue reading to find out.

folsom bankruptcy attorney
3 Reasons Companies File Chapter 11 Bankruptcy in California
It might seem like there is an obvious reason to file Chapter 11 bankruptcy: your company is struggling with a period of financial difficulty. Unfortunately for business owners, making the decision to file Chapter 11 is not necessarily that simple or straightforward.
Filing Chapter 11 is a major decision with long-term implications for your business, so it is vital to thoroughly explore all potential avenues when determining whether Chapter 11 is truly the most effective and most appropriate option. Depending on factors like how the business entity is structured, how much debt you have incurred, and your vision for the future of the company, it may be more cost-efficient to file Chapter 7, file Chapter 13, or even weigh alternatives to bankruptcy for businesses, such as arranging an out-of-court “workout” with your creditors.
At The Bankruptcy Group, our trusted legal team includes not only Sacramento Chapter 11 attorneys, but also Sacramento Chapter 7 lawyers and Sacramento Chapter 13 attorneys, enabling us to give you a detailed comparison of the potential outcomes that could result from each approach. While it is impossible to say which type of bankruptcy is best for your business without first discussing your company’s financial situation, Chapter 11 might be right for your company if…

  1. You aren’t a sole proprietor. Federal bankruptcy regulations prohibit business entities like corporations and limited liability companies (LLCs) from filing Chapter 13 bankruptcy, leaving Chapter 7 and Chapter 11 as the primary bankruptcy options for business owners who are not sole proprietors. If you are a sole proprietor, contact our Folsom Chapter 13 lawyers to talk about whether filing Chapter 13 is the right option.
  2. Lawsuits are costing your company money. It is common for businesses to file Chapter 11 after litigation has been threatened or initiated. If the cost of defending your company is placing a financial strain on the business, Chapter 11, which generally stops pending litigation due to a federal provision called the “automatic stay,” could provide relief, provided avoiding litigation is not your only reason for filing, which could potentially lead to dismissal of your case for dealing in bad faith. While other types of bankruptcy also afford debtors the benefits of the automatic stay, which pauses debt collection – including the repossession of industrial equipment and foreclosure on commercial property – you may want to rule out Chapter 7 and focus on Chapter 11 if…
  3. You want to continue operating the business. Whether used for a business or an individual, Chapter 7 is a liquidation bankruptcy. However, unlike individual debtors who can protect their property from liquidation with bankruptcy exemptions, businesses do not have this option. If you file Chapter 7 for your business, the company’s assets will be liquidated, resulting in closure of the business. If you wish to put an end to the business, Chapter 7 may be a suitable option. However, if your intent is to keep the business running, Chapter 11 is a more appropriate approach. Chapter 11 is a complicated and rigorous process, but if you manage your bankruptcy carefully and effectively, your business can emerge from Chapter 11 successfully and go on to become profitable again.

bankruptcy lawyer roseville ca
Sacramento Business Bankruptcy Attorneys for Corporations, LLCs, Partnerships, and Sole Proprietorships
Whether your California business is structured as an S corporation, C corporation, limited liability company, general partnership, limited partnership, limited liability partnership, or sole proprietorship, the Sacramento business bankruptcy lawyers and Roseville small business bankruptcy lawyers of The Bankruptcy Group can help you evaluate your financial options for saving a failing or unprofitable business. Equipped with years of experience representing businesses across a broad spectrum of industries, our attorneys understand the unique challenges and opportunities that can arise in Chapter 11 cases. We are ready to help you navigate the laws as we work diligently to protect your best interests throughout the California bankruptcy process. Our goal is to help your business get the relief it needs to continue growing and succeeding again.
To learn more about whether Chapter 11 or other bankruptcy options are right for your company, call The Bankruptcy Group today at (800) 920-5351 for a free legal consultation. We proudly serve businesses in Roseville, Sacramento, Folsom, and other communities in the region.
The post 3 of the Most Common Reasons Companies File Chapter 11 in California appeared first on The Bankruptcy Group, P.C..


1 week 1 day ago

The two most common types of bankruptcy in California are Chapter 7 bankruptcy, a fast process that involves liquidation of property, and Chapter 13 bankruptcy, a longer procedure where debtors make monthly payments to keep their property while reducing or eliminating various debts. Chapter 13 bankruptcy can have negative short-term effects on your credit score, but for many Californians, the long-term benefits outweigh the initial credit score drop. Sacramento bankruptcy attorneys explain how much Chapter 13 bankruptcy affects your credit score, and how long Chapter13 bankruptcy stays on your credit report.

sacramento bankruptcy lawyer
How Much Does Chapter 13 Lower Your Credit Score?
Your credit report is a collection of personal information and financial data about you. Your credit report displays a number called your “credit score,” which is calculated based on how often you made full and timely payments on your utility bills, student loans, car loans, or other payments. Other factors that impact your credit score include lawsuits, foreclosures, liens, and – as our Sacramento Chapter 13 attorneys will be discussing in this article – bankruptcy.
There are a few different systems for rating credit scores, such as the FICO score range scale and the VantageScore range scale. However, speaking generally, credit scores are divided into the following categories:

  • Excellent – 720 or higher
  • Good – 690-719
  • Fair – 630-689
  • Poor – 629 or lower

Lenders use your credit report and credit score to assess the risk of giving you a loan, which means your credit score affects the types of loans you can qualify for. The more payments you make in full and on time, the higher your credit score will be, and the easier it will be to obtain a loan with a competitive interest rate. On the other hand, a history of delinquent or partial payments will chip away at your credit score, making it harder to qualify for desirable loans.
Like a string of delinquent payments, a bankruptcy case will also have a negative effect on your credit score – at least in the short term. Depending on what your credit score was before you filed bankruptcy, your score might temporarily drop anywhere from about 130 to 240 points. Generally speaking, the higher your score was prior to bankruptcy, the more it will drop when you file Chapter 13 in Sacramento.
However, that does not necessarily mean all lenders will be unwilling to offer you a loan. Unlike Chapter 7 bankruptcy, which is meant for debtors who have limited financial resources, Chapter 13 is meant for high-income debtors who have the financial means to direct their disposable income into monthly payments for a period of up to five years. Because Chapter 13 requires commitment to a long-term repayment plan, lenders may look more favorably upon Chapter 13 debtors than Chapter 7 debtors.
bankruptcy lawyer sacramento
How Long Does Chapter 13 Stay on Your Credit Report in California?
A Chapter 13 bankruptcy will remain on your credit report for seven years. The seven-year clock starts counting down from the date you file bankruptcy, not the date your case is discharged. This distinction is significant for Chapter 13 debtors, because Chapter 13 bankruptcy requires a period of either three or five years for discharge, depending on your financial circumstances and the structure of your “reorganization” (repayment) plan.
After seven years, the record of the bankruptcy should be removed automatically, without you needing to take any action. However, it is still a good idea to periodically check your credit report in case there are any mistakes or inaccuracies. Checking your credit report can also help you detect identity theft, and help you manage your finances more effectively. You are entitled by federal law to receive one free annual copy of your credit report from each of the three major credit reporting bureaus: Experian, TransUnion, and Equifax.
Chapter 7 bankruptcy takes longer to come off your credit report than Chapter 13, because unlike Chapter 13 debtors, Chapter 7 debtors are not required to make monthly payments. Chapter 7 bankruptcy will stay on your credit report for 10 years before it is removed. Nonetheless, there are many debtors who would benefit more from Chapter 7 than they would from Chapter 13. Our Sacramento Chapter 7 bankruptcy lawyers can help you determine which chapter of bankruptcy is right for you.
Sacramento Bankruptcy Lawyers Can Help
Filing bankruptcy in California will temporarily have a negative effect on your credit score. However, if you are considering bankruptcy, it is likely due to excessive debt, which means you likely have a low credit score already. By wiping out many of your debts, bankruptcy can free up your finances and give you a fresh start, which positions you to build better credit going forward.
To learn more about filing Chapter 13 or filing Chapter 7 in Sacramento, Roseville, Folsom, or the surrounding area, call the California bankruptcy attorneys of The Bankruptcy Group at (800) 920-5351 for a free bankruptcy consultation. Your information will be kept confidential.
The post How Does Chapter 13 Bankruptcy Affect Your Credit in California? appeared first on The Bankruptcy Group, P.C..


1 week 3 days ago

From Bloomberg: Student Loan Giant Faces Trial over US Claim it Duped Borrowers.
illegal activities
Lawsuits brought by  Consumer Financial Protection Bureau and state attorneys general of Washington and Illinois allege that Navient mistreated hundreds of thousands of student debtors by taking shortcuts to minimize its own costs, while adding what the CFPB said was as much as $4 billion in interest charges to borrower loan balances.
Navient remains under investigation by other state authorities while it seeks to land a lucrative Trump administration contract to continue collecting payments from borrowers with federal student loans.
A CFPB analysis earlier this year found that Navient was the nation’s most-complained about financial company.
Navient illegally steered struggling borrowers facing long-term hardship into payment plans that temporarily postponed bills (while interest continued to accrue), the officials alleged, rather than helping them enroll in federal programs that cap payments relative to their earnings and offer the promise of loan forgiveness. Navient has denied the allegations.
Navient Illegal activities

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About the Author:
Diane L. DrainDiane L. Drain is a well known and respected Arizona bankruptcy attorney. She is an expert in both consumer bankruptcy and Arizona foreclosure. Since 1985 she has been a dedicated advocate for her clients and spokesperson for Arizona citizens. Diane is a retired professor of law teaching bankruptcy for more than 20 years. As a teacher she believes in offering everyone, not just her clients, advice about the Arizona bankruptcy laws. She is also a mentor to hundreds of Arizona attorneys.
I would be flattered if you connected with me on GOOGLE+
*Important Note from Diane: Nothing on this website should be construed as establishing a lawyer-client relationship between you, me, the author of any page or the website owner (me) who happens to be a lawyer.  Everything on this web site is available for educational purposes only, is not intended to provide legal advice nor create an attorney client relationship between you, me, or the author of any article.  You may pick up some information about bankruptcy, foreclosure or the practice of law written by myself or others.  Any information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state.*

The post Did Navient Illegally Over-charge Student Loan Borrowers? appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.


1 week 5 days ago

Contempt bankruptcy court order ends in prison time:
contempt bankruptcy court orderContempt of bankruptcy court order results in prison time, plus $1,000 day fine.
In re Kenny G. Enterprises  16-55007 (9th Cir 7/26/2017)  Kenneth Gharib refused to comply with a bankruptcy court order to turn over $1,420,000 belonging to a chapter 7 estate.  The judge imposed sanctions for the contempt: civil contempt sanctions of $1,420,000, $1,000 a day until he complied, plus incarceration until he complied (that was May of 2015 and as of this writing he is still in prison).  The District Court of California affirmed the order, except the $1,000 a day. The 9th Circuit reverses on the issue of daily sanctions, finding that such daily sanction is permitted if it is “properly coercive” to comply with the turnover order, but not if it becomes punitive.

In the face of a § 542 violation the bankruptcy court may invoke its contempt power under § 105, which allows the court to “issue any order, process, or judgment that is necessary or appropriate to carry out the provisions of this title.” 11 U.S.C . § 105(a)  Such sanctions include incarceration for more than two years

Contempt of bankruptcy court order results in unexpected consequences.
contempt bankruptcy court order
Trying to ignore or play games in bankruptcy will result in losing more than a home, business or money.  It can result in losing your freedom by being sentenced to prison (not great on your resume’).  So many people believe that filing for bankruptcy is like playing “hide and seek”.  If you are really good at hiding you will win.  Mr. Kenneth Gharib now knows better.  He has been in prison for two years and counting.

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Diane L. DrainDiane L. Drain is a well known and respected Arizona bankruptcy attorney. She is an expert in both consumer bankruptcy and Arizona foreclosure. Since 1985 she has been a dedicated advocate for her clients and spokesperson for Arizona citizens. Diane is a retired professor of law teaching bankruptcy for more than 20 years. As a teacher she believes in offering everyone, not just her clients, advice about the Arizona bankruptcy laws. She is also a mentor to hundreds of Arizona attorneys.
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2 weeks 1 day ago

A 2017 ruling by the Georgia Supreme Court most likely represents a significant weakening to a consumer protection provision contained in Georgia’s home foreclosure law.Georgia law allows what is known as a non-judicial foreclosure. This means that if you fall behind on your mortgage payments, your mortgage company does not have to go to court to seize possession of your home.Instead, buried deep in the fine print of your mortgage paperwork is language that allows your lender to foreclose on your property simply by giving you written notice and thereafter advertising a foreclosure sale in the legal newspaper of the county where the property is located.In Georgia, a lender can seize your house in less than 40 days if you are in default. Compare this to a home foreclosure process that typically lasts a year in a judicial foreclosure state like Florida.Despite this extremely short foreclosure process, Georgia law does contain one small bit of consumer protection in the form of the deficiency confirmation process. If your lender foreclosures, they can take your home quickly but you would most likely not be liable for any deficiency claim if the foreclosure sale nets less than the balance due on the loan.This is because Georgia law says that before a lender can sue on a deficiency it has to first go to a Superior Court judge within 30 days of the foreclosure and convince the judge that the foreclosure sale was “reasonable.” Since most foreclosure sales result in the lender “buying” the property back for the balance due on the loan, very few lenders even tried to argue that the foreclosure sale price represented the fair market value of the home. Therefore we almost never saw lenders suing (former) homeowners for a deficiency balance after foreclosure.Enter the Supreme Court of Georgia with the case of York vs. Res-GA, LJY, LLC. In this case, Res-GA, LJY was the lender, having purchased York’s mortgage from The Community Bank. The Community Bank had included in its loan documents a waiver provision whereby York agreed that in the event of foreclosure, the lender (Community Bank or whoever owned the note) did not have to go through the confirmation process before suing the borrower (York) for any deficiency.By allowing this waiver the Supreme Court of Georgia is basically giving a green light to mortgage lenders in the state to include waiver provisions in all mortgage documents from this point forward.The problem with this, of course, is twofold. First, when a borrower is at a closing, signing dozens of pages, he is most likely not thinking about potential foreclosure problems or that he has just given his lender the right to sue for tens of thousands of dollars and bypassing any court protection. Further, even if the borrower knows about this waiver issue, he is not in a very strong negotiating position. If the borrower refuses to sign the waiver the lender can refuse to loan the money and the borrower won’t get his new house.Given Georgia’s incredibly fast foreclosure process I find it absurd that the Georgia Supreme Court would hand the banking industry the power to extract even more money from borrowers, but that is exactly what has happened.Until this point I have generally counseled recently foreclosed homeowners to hold off on filing bankruptcy following a foreclosure because further financial claims arising from the foreclosure sale were so unlikely. Now, I suspect that aggressive lenders will drive more struggling borrowers into bankruptcy. We will see if that happens.The post Georgia Supreme Court Rules in Favor of Mortgage Lenders Over Homeowners in Important Decision appeared first on theBKBlog.


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