Blogs

8 years 9 months ago

In the wake of the collapse of Corinthian Colleges, tens of thousands of student loan borrowers have faced what can best be described as an uphill battle in their quest for student loan debt relief.
This led to the Corinthian 100 (now the Corinthian Collective), a group of former students who flat out refused to pay their student loans.
They got a lot of flack from the mainstream media, but they sure got the attention of the right people.
On June 8, 2014 the US Department of Education announced new plans to ensure that students who have been defrauded by their college, or because their school closed down, receive every penny of the debt relief they are entitled to, as efficiently and easily as possible.
Students who were enrolled at Corinthian schools that closed can now choose between discharging their student loans (called a “closed school discharge”) and transferring their credits to another school.
That’s nothing new – federal student loan borrowers have had the ability to obtain a closed loan discharge for quite some time.
What is new, however, is the Department’s stance towards borrower defense to repayment. This rule has been in place as well, but it’s not something used often. Procedures were murky and seemingly shrouded in secrecy, likely because most people in the Department had never used it.
Now, according to the Department:

Borrowers can make a claim for debt relief because of fraud under a legal rule called “borrower defense to repayment.” This rule requires students to show that they were defrauded by their college under a state’s laws, and we are committed to working with students to make that the simplest, fastest process possible.
In order to ensure that students do not fall behind on payments or default on their loans before claims can be resolved, we will offer all applicants for debt relief the option to go into loan forbearance (a special permission to stop payments), and for students in default, to halt collection activity.
In order to promote efficiency in the resolution of claims and to minimize the burden on students, wherever possible, we will work to use legal findings applicable to groups of students (for example, an entire academic program at a specific campus) to resolve students’ claims. As a first step, in this particular case, the Department has already established that Corinthian misrepresented job placement rates for a majority of programs at its Heald College campuses between 2010 and 2014. Today, we are announcing that these serious findings entitle the defrauded students enrolled in these programs to a discharge of their Federal Direct Student loans, based on a simple attestation that they relied on those fraudulent rates. And we are providing a simple form that will allow students to quickly give us the information we need to give them debt relief.
Going forward, the Department will appoint a special master to oversee borrower defense issues and charge that person with ensuring our process is clear and fair, including a simple, streamlined application for debt relief.

If you’re looking at a closed school discharge you can check out Next Steps EDU to talk with a volunteer counselor. Or you can get in touch with me if you’d prefer to work with a lawyer. Either way, help’s available.
All in all, a good day for Corinthian students.

The post Department of Education Announces Debt Relief For Corinthian Colleges Students appeared first on Bankruptcy and Student Loan Lawyers - 866.787.8078.


8 years 9 months ago

On August 26, 2014 the Securities and Exchange Commission approved final rules cracking down on credit rating agencies and asset-backed securities — two areas that SEC Chairwoman Mary Jo White said were “at the center of the financial crisis,” according to an article in ThinkAdvisor.

In her opening remarks at the SEC open meeting at the agency’s Washington headquarters, White said that the final rules in the “two closely related areas” give investors “powerful new tools” for independently evaluating the quality of asset-backed securities and credit ratings. “ABS issuers and rating agencies will be held accountable under significant new rules governing their activities,” said White, adding that the issuance of “flawed credit ratings by certain credit rating agencies was a key contributor to the financial crisis.” Since 2011, SEC staffers have annually examined each of the nationally recognized statistical rating organizations (NRSROs) registered with the SEC, as required by the Dodd-Frank Act. “While the reports from these reviews have cataloged a number of improvements, they have also identified concerns that persist, including ones related to the management of conflicts of interest, internal supervisory controls, and post-employment activities of former staff of NRSROs,” White said.

Read the full article.

The post SEC Cracks Down on Credit Reporting Agencies appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.


8 years 9 months ago

Piggy Bank, PigAs a consumer bankruptcy attorney it amazes me how very smart people make some very poor business decisions.  Now don’t get me wrong – at least fifty percent of my clients are in financial distress because of challenges they faced from outside forces such as medical, divorce, changing real estate, employment, business demands, aging, and many more reasons.
Welcome to Feed the Pig!
We’re here to help you do just that, feed your piggy bank. Here, you’ll find helpful tools, articles, tons of tips and other resources to help you on your path to financial stability. We’ll help you think through your spending and saving habits, identify ways you can start saving and commit to making changes that will reduce your debt and grow your savings.
Your time here could include:

  1. Creating a savings plan to help get you on track to reach your financial goals.
  2. Getting free savings tips.
  3. Watching and listening to Feed the Pig TV and radio ads.
  4. Learning a ton more about saving through our friends and our companion site, 360financialliteracy.org, which has financial helpers for all stages of life.
  5. And much more!

The post Feed the Pig – How to Manage Your Money. Let’s Teach Our Young appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.


8 years 9 months ago

Did You Get a Mortgage Deficiency Letter From Dyke O’Neal? Lots of people in Virginia, whose houses were foreclosed three, four, or five years ago, are getting collection letters from Dyke O’Neal. Dyke O’Neal is a collection agency and debt buyer, specializing in foreclosed real estate.  They try to collect on mortgage deficiencies. What’s a […]The post What’s this Letter From Dyke O’Neal? by Robert Weed appeared first on Robert Weed.


8 years 9 months ago

Lincoln-pencil drawingOf all the lawyers that came before me – Abraham Lincoln is my role model.  Early in his life he faced financial ruin, but preserved.  Hence the “honest Abe” moniker.  Abe was truly a spokesperson and advocate for the people.  He represented 4,000 to 5, 000 clients; the majority of which were debt related issues.

“Discourage litigation.  Persuade your neighbors to compromise whenever you can. Point out to them how the nominal winner is often a real loser — in fees, expenses, and waste of time.”  Abraham Lincoln

Here is a wonderful article by Joel M. Aresty about our 16th president’s professional and private life before the White House.  This article is also a great summary of the early development of the bankruptcy laws.
Bankruptcy laws have gone through significant changes since our national Constitution became law in 1783.  The Constitution provided that Congress was to create laws relating to bankruptcy (Article I, section 8), but Congress did not pass a bankruptcy law until the Bankruptcy Act of 1800.  This law was very creditor friendly and only provided for involuntary bankruptcies of business debtors.  In  1841, in response to the financial crisis gripping the nation, Congress passed the Bankruptcy Act of 1841.   Unlike the prior law which was limited to business debtors, this new law opened up bankruptcy as an option individuals to file voluntary bankruptcies and receive a discharge of their debts.
The bankruptcy laws have gone through other changes, but none as significant as the change to allow individuals to file voluntary bankruptcies.  I am often asked “what type of people file for bankruptcy?”  My reply – “people like you, your neighbors, family and friends”.  Bankruptcy is never a goal, it is usually the best choice of several bad options.
I laughed aloud when I read Lincoln partner’s description of his style of office and paper organization.  “Lincoln had always on the top of our desk a bundle of papers into which he slipped anything he wished to keep and afterwards refer to. It was a receptacle of general information. Some years ago, on removing the furniture from the office, I took down the bundle and blew from the top the liberal coat of dust that had accumulated thereon. Immediately underneath the string was a slip bearing this endorsement, in his hand: ‘When you can’t find it anywhere else, look in this.” 

I looked to the side of my desk at a similar stack and thought about leaving the same note at the bottom of the stack.  Diane

The post Abraham Lincoln – Bankruptcy Lawyer appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.


8 years 9 months ago

 
Two of the largest banks, Chase and Bank of America, have finally agreed to update consumers’ credit reports within the next three months to properly depict debts as being discharged in bankruptcy. This long overdue move is a win for Oregon debtors whose have been living with inaccurate credit reports, sometimes for years after bankruptcy.
While this change is obviously welcome, it hardly arose out of the kindness of the banks’ hearts. Both banks along with Citigroup, GE Capital and Synchrony are in litigation right now with plaintiff debtors accusing them of purposefully ignoring bankruptcy discharges in order to make more money when they sell off pools of debt to third parties.
Litigation initiated by private parties is not the only impetus for the banks’ credit reporting policy change. Attorneys with the United States Trustee Program, a branch of the Justice Department, charged with policing the bankruptcy law violations, are apparently investigating the banks to determine whether the banks are deliberately violating federal bankruptcy law. Seems difficult to imagine that they are not doing so, but, hey, maybe I am a little biased.

The original post is titled Banks Agree to Report Debts as Discharged in Bankruptcy , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .


8 years 9 months ago

A new study from the Consumer Financial Protection Bureau (CFPB) found that reverse mortgage advertising can be confusing and misleading, and issued a warning to older Americans to be on the lookout for potentially deceptive reverse mortgage advertisements.  CFPB reports that borrowers have “false impressions’ that reverse mortgages are a government benefit or that getting a reverse mortgage would ensure consumers could stay in their homes for the rest of their lives.
“According to the CFPB, the number of reverse mortgage originations is likely to increase in the coming years with the retirement of the “baby boom”generation. The CFPB says that members of this group have more home equity than retirement savings. Studies have estimated that among Americans nearing retirement, 41 percent have no retirement savings account. But a majority of them, about 74 percent, own their homes and have built up good equity, the CFPB said.”
Reverse mortgage ads don’t always tell the whole story, so consider these facts when you see advertisements:
1. A reverse mortgage is a home loan, not a government benefit
Reverse mortgages have fees and compounding interest that must be repaid, just like other home loans. With most reverse mortgages, federal insurance guarantees that borrowers will receive their loan funds if their lender has financial difficulty or if their loan balance exceeds the value of their home. However, borrowers pay for this insurance and it’s not a government benefit.
2. You can lose your home with a reverse mortgage
When a reverse mortgage ad says you’ll retain ownership of your home, or that you can live there as long as you want to, don’t take these messages at face value. These statements are true only if you continue to meet all requirements of the reverse mortgage. If you fall behind on your property taxes or homeowners insurance, are absent from your home for longer than six months, or fail to satisfy other requirements, you can trigger a loan default. If you don’t take care of the default in time, the lender can foreclose on your home. Sometimes these requirements are listed in fine print, but not always. If you have a question about reverse mortgage requirements, contact a HUD-approved housing counselor near you.
3. Without a good plan, you could outlive your loan money
Read more

The post CFPB Warns Reverse Mortgage Advertising is Misleading appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.


8 years 9 months ago

Filing of the Case - Automatic Stay Upon the filing of your bankruptcy case, you are immediately protected from most collection actions against you and your property. The automatic stay is an injunction against thereditors from proceeding wit heir collection actions.
Creditors MeetingAbout 6 weeks after the bankruptcy case is filed, a "creditors' meeting" (34l meeting) is held. This is normally just a short meeting among you, your bankruptcy lawyer, the bankruptcy trustee, and any creditors who choose to attend.  In most cases, no creditors bother to attend. 

Length of Chapter 13 Plan Chapter 13 plan are usually for a period of 3 to 5 years. This length of the plan depends on various facts, including, whether your income is below or above median income, the amount of your non-exempt property, and what you are trying to achieve in chapter 13 plan.

Discharge OrderAfter you complete your chapter 13 plan, the trustee will issue a report of your plan completion. Shortly thereafter, your chapter 13 discharge will be entered and your case closed.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com


8 years 9 months ago

Section 329 of title 11 United States Code is entitled debtor’s transaction with attorneys. This section gives the court oversight in financial as well as transactional relationships between debtors and their attorneys. It basically states that any attorney representing the debtor in bankruptcy shall file with the court a statement of the compensation paid for+ Read More
The post Bankruptcy Attorneys Need To Be Aware Of Section 329 appeared first on David M. Siegel.


8 years 9 months ago

Student Debt - National DebtStudent loan debt is at 1.2 trillion dollars; which is the largest national debt, second to only mortgage debt. The Consumer Financial Protection Bureau estimates there is an additional $150 billion in banks and private loans.
According to an article in Bloomberg Business many lenders are finding that their suits are marred by missing documents and procedural errors – such as the same problems we saw with robosigning scandals in mortgage loans. “This is robosigning 2.0 with student loans,” says Robyn Smith, a lawyer with the National Consumer Law Center, a nonprofit advocacy group. “You have securitized loans in these large pools; you have the sloppy record keeping,” as in the mortgage crisis.
Read more…
The post Student Loan Lawsuits – Is This “Robosigning 2.0″? appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.


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