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State of Missouri v. Trump, No. 24-2332 (8th Cir. 2025): SAVE Student Loan Plan
The Eighth Circuit Court of Appeals ruled against the Biden administration’s Saving on a Valuable Education (SAVE) plan, declaring that the Department of Education exceeded its authority in implementing broad student loan forgiveness through an income-contingent repayment (ICR) plan.
Legal Basis for Ruling:
- Lack of Statutory Authority: The court found that 20 U.S.C. § 1087e(d)(1)(D), which authorizes ICR plans, does not permit loan forgiveness. Instead, repayment plans must be structured to ensure borrowers eventually repay their full loan balance, not receive forgiveness after a set number of years.
- Comparison to Previous Loan Plans: Other repayment programs, such as Income-Based Repayment (IBR), explicitly include forgiveness provisions in their statutory language. Congress did not provide similar language for ICR plans, meaning the Secretary of Education does not have the authority to create forgiveness within ICR.
- Major Questions Doctrine: The court applied the major questions doctrine, ruling that loan forgiveness on this scale requires clear congressional approval, which was absent.
- Biden v. Nebraska Precedent (2023): Similar to the Supreme Court’s decision striking down the HEROES Act loan forgiveness plan, the court ruled that the executive branch cannot unilaterally cancel debt without explicit legislative authorization.
Said the Court:
On the Lack of Statutory Authority for Loan Forgiveness: “The statute’s text and structure require ICR plans to be designed for a borrower to pay his or her loan balance in full through payments that can fluctuate based on income during the payment term. The Secretary has gone well beyond this authority by designing a plan where loans are largely forgiven rather than repaid.”
On the Application of the Major Questions Doctrine: “We are hard-pressed to conclude that Congress, by directing the Secretary to enact a repayment plan with varying payments based on income over a period not exceeding twenty-five years, believed it authorized the Secretary to wipe out any remaining principal or interest of any borrower in as few as ten years of low or no payments.”
On the Need for Congressional Authorization: “Rather than implying by omission or other ambiguities, Congress has spoken clearly when creating a repayment plan with loan forgiveness or otherwise authorizing it—explicitly stating the Secretary should cancel, discharge, repay, or assume the remaining unpaid balance. The statutory text enabling the creation of an ICR plan provides no comparable language.”
As a result, the court invalidated the SAVE plan in its entirety and blocked efforts to restore previous ICR-based forgiveness provisions.
Image courtesy of Flickr and Brittany Hogan.
Many clients have contacted our law firm asking how to sell a business subject to an SBA EIDL loan. There are two scenarios. In the first, the sales proceeds are sufficient to pay off the SBA loan (the easier scenario). In this case, one is required to contact the SBA and obtain prior approval, pursuant to SBA loan documents. In the second scenario, the sales proceeds are not sufficient to pay off the SBA loan (the more difficult and complex scenario), resulting in a shortfall ("Shortfall"). With respect to the Shortfall scenario, the Borrower/Seller must do the following: 1. Provide the SBA with information about the proposed sale (prior to closing), 2. Submit the required SBA documents for the sale to the SBA, 3. Send the SBA the proposed Sales Agreement, 4. Provide the SBA with a business valuation or appraisal of the business being sold, 5. Provide the SBA with financial statements for the business being sold, and 6. Provide the SBA with a proposal for handling the loan shortfall (an Offer in Compromise, payment by the Guarantor, Loan assumption by the Buyer, etc.).The proposed Sales Agreement should include a contingency clause stating that the sale is subject to SBA approval. Obtaining SBA approval can take months and may require negotiations with the SBA.Clients or their advisors having questions about the sale of a business subject to an SBA loan should contact Jim Shenwick, Esq.
Jim Shenwick, Esq 917 363 3391 [email protected] Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe help individuals & businesses with too much debt!
Callie Glade, File Clerk
Callie Glade is the newest member of our team, She just started with us in January 2025.
Callie is a virtual assistant, an AI. She takes over one of the most important jobs in any law firm. She’s our file clerk. When you send in the required papers, she puts them in your file, where Vanessa and I can see them at any time. Callie comes to us through an artificial intelligence program called Glade.AI. She’ll keep in touch with you to make sure we have the papers we need to have to do what we are planning to do.
Callie doesn’t know anything about bankruptcy. But she is really, really good at keeping files.
Vanessa Hill, Paralegal
Vanessa Hill is my bankruptcy paralegal. She’s been with me for twenty-five years.
Vanessa’s job is to keep your case–and me–on track. If you have a question or problem, you can contact her at [email protected]. Or call her direct line: 703-962-1043.
When you fill in your Be Happy form and send Callie all the required documents, Vanessa will set up another meeting for you and I to talk again. She schedules all my appointments during your case–and for anything that might come up after.
Here are their pictures: Vanessa Hill, bankruptcy paralegal and Callie Glade, AI file clerk.
Callie Glade, virtual assistant and file clerk
Vanessa Hill, bankruptcy paralegal
The post Meet Vanessa, my paralegal, and Callie, my Virtual Assistant appeared first on Robert Weed Bankruptcy Attorney.
The National Law Review reports that the Subchapter V debt limit will increase to $3,424,000 on April 1, 2025. Currently, the Subchapter V debt limit is $3,024,725. The full article can be found at: https://natlawreview.com/article/bankruptcy-dollar-amounts-set-rise-significantly-april-1-2025 Clients or their advisors with questions about Subchapter V Bankruptcy should contact Jim Shenwick, Esq. Jim Shenwick, Esq. 917-363-3391[email protected]Please click the link to schedule a telephone call with me: https://calendly.com/james-shenwick/15minWe help individuals and businesses with excessive debt!
Keeping Your House as a Widow Filing Bankruptcy in Virginia
One of the tragedies of being a widow is this: You lose the protection for your house that Virginia law gives a married couple filing bankruptcy.
After losing her husband, a widow under Virginia law can easily lose her house to her creditors.
Bankruptcy is set up by the Federal government, but each state sets its own rules on keeping your house if you file Chapter 7. Virginia gives great protection for houses owned by a married couple for the debts of only one. That’s called tenants by the entirety. A widow, now single, after losing her spouse, is in danger of losing her house.
Virginia law allows a single person to protect $50,000 in real estate equity. That’s up from $5,000 a few years ago, But it’s still very low compared to most states. It doesn’t go ver far in Northern Virginia.
Can Bankruptcy Law Help a Widow Cleasr Her Debts and Keep Her House?
I’ve had two different widows contact me in January 2025. Through creative use of the bankruptcy law, it looks like both will be ok.
The post Keeping Your House as a Widow in Bankruptcy appeared first on Robert Weed Bankruptcy Attorney.
In Chapter 13, in Virginia, your mortgage payment needs to be on-the-dot current.
Paying your mortgage payment by the 14th of the month (or later) gets your Chapter 13 case thrown out at the goal line. That’s because of a local bankruptcy rule, Rule 3002.1-1 in the Eastern District of Virginia
Why? Your mortgage is due on the first. They may give you a grace period until the 15th, but it’s due on the first. When you make your last Chapter 13 payment, the Chapter 13 trustee is required by Bankruptcy Rules 3002.1 to ask the mortgage company if you are current. That rule was considered a big victory for the consumer when it passed. The mortgage company had to say if they thought you were current or behind.
If you are your mortgage on the 14th instead of the first, your Chapter 13 will be disqualified at the goal line.
In this court, that victory turned into a nightmare, in a case called Evans. Now, if the mortgage company says you haven’t yet made this month’s payment, Thomas Gorman, the Chapter 13 Trustee, tells the Judge that your case should be thrown out. Unless you get caught up–and the mortgage company agrees in writing you are caught up–your case is tossed out. You are disqualified at the goal line.
What Should You Do?
When you are at the third to last payment on your Chapter 13, catch up the house! Make the mortgage payment on the first of the month. Eat oatmeal for a month, borrow from family, stop your 401k contribution, cut expenses everywhere. Get the mortgage payment in on the first of the month. Do what you have to do.
There is a detour
Suppose instead of being two weeks behind, you are three months behind on your mortgage payment. Sometimes that’s better. Why? The mortgage company will likley go to the judge and ask that your house be taken out of the Chapter 13 bankruptcy. That’s called relief from the automatic stay. If your house is taken out of the Chapter 13, then this problem doesn’t come up. The Chapter 13 Trustee won’t ask the mortgage company at the end 0f the case if you are current, and the judge won’t throw your case out.
Of course you do have to catch the house up outside of the bankruptcy.
If you are close to the end of the case and sitting a few months behind, you may want the mortgage company to take your house out of the bankrutpcy by relief from the automatic stay. If you can get close to caught up, they won’t forclose you. And the rest of your Chapter 13 debts can be cleared at discharge.
But if you are only close to caught up and the house is still inside the bankruptcy, your Chapter 13 is thrown out at the goal line. Those other debts you were paying in Chapter 13? They can all come back.
Do We Need to Talk?
Are you close to the end of your case and still struggling with the mortgage? Not sure what to do? Call Vanessa at 703-335-7793 and set up a time for us to talk.
The post Your mortgage payment needs to be on-the-dot current appeared first on Robert Weed Bankruptcy Attorney.
SBA EIDL Loans & the Case of the “Missing Guarantee”Many clients have recently contacted us with a similar issue. They claim they never personally guaranteed their SBA loans. However, after their SBA loans defaulted, the SBA is reaching out to them, stating that they did personally guarantee their business's SBA EIDL loan and are requesting payment.For context, federal law requires a personal guarantee when an SBA loan exceeds $200,000.There appear to be two scenarios where the "Missing Guarantee" issue arises. First, the SBA made a loan to a business exceeding $200,000 and failed to require an individual to sign a guarantee. Second, the SBA initially loaned less than $200,000 to a business, then provided an additional amount exceeding $200,000 by amending the loan documents but did not require the borrower to sign a guarantee.According to SBA records, since the loan exceeded $200,000, it should have been guaranteed.What should one do in this situation?Under New York law, a guaranty must be in writing to be enforceable. In Ashkir v. Wilson, No. 98 Civ. 2632, 1999 WL 710788, at *9 (S.D.N.Y. Sept. 13, 1999), it was stated that an agent is not personally liable for the obligations of his principal unless there is a written and signed personal guarantee.In European American Bank & Trust Co. v. Boyd, 516 N.Y.S.2d 714, 716 (2d Dept 1987), it was affirmed that a guarantee is enforceable as long as it is signed by the guarantor.While each state's law regarding guarantees may vary, most states require that a guarantee be in writing and executed to be enforceable.Our advice to individuals in these situations is: 1. Check your SBA loan documentation to ensure you did not sign a guaranty. 2. Request that the SBA send you a copy of an executed guaranty. 3. If the SBA cannot produce the guaranty, your position should be that you are not personally liable to repay the loan upon default. If the SBA were to litigate this position, we believe you would prevail, especially in New York State.
We advise all SBA borrowers with a case involving a "Missing Guaranty" to discuss their case with an experienced attorney as soon as possible.
Jim Shenwick, Esq 917 363 3391 [email protected] Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe help individuals & businesses with too much debt!
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Discover the Basic Requirements for Chapter 13 Bankruptcy Eligibility
When facing financial difficulties, you might wonder if Chapter 13 bankruptcy could be the right choice for you. If you’re considering this option, our Chapter 13 bankruptcy attorney in Oregon can guide you through the eligibility requirements and assist in filing your case correctly.
Chapter 13 allows you to create a plan to pay off your debts over time while keeping your property. This article will guide you through the basic eligibility requirements and what you must consider before filing. Knowing whether you can file for Chapter 13 is the first step toward finding relief from your financial stress.
Quick Summary:
- Chapter 13 bankruptcy helps you reorganize your debt and create a manageable repayment plan. By filing Chapter 13 bankruptcy in Salem, Oregon, you can keep your property, like your home and car, while paying off your debts over three to five years. This option is suitable for individuals with a steady income who need time to catch up on overdue payments. Unlike Chapter 7, which often eliminates debts, Chapter 13 allows you to keep your assets and repay based on your income and expenses. The court will approve a repayment plan that works for your financial situation.
- To qualify for Chapter 13 bankruptcy in Oregon, you must meet specific eligibility requirements. These include having a regular income, ensuring your total debts are below certain limits, and completing a mandatory credit counseling course. You must also be aware that some debts, like student loans, child support, and alimony, cannot be included in a Chapter 13 repayment plan. Additionally, your previous bankruptcy history can impact your eligibility, as you must wait a set period before filing again after a past discharge. Meeting these requirements will allow you to reorganize your debts and begin working toward financial stability.
- Filing for Chapter 13 bankruptcy in Salem, OR, provides several benefits for those struggling with debt. It allows you to create a repayment plan based on your income and budget, which you pay monthly to a trustee. The automatic stay stops creditors from contacting you or taking legal actions, providing relief from harassment. Additionally, Chapter 13 may help eliminate remaining unsecured debts like credit card and medical bills after the repayment period. It also offers protection against foreclosure or repossession, giving you time to catch up on missed mortgage or car payments.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a way to reorganize your debt and create a repayment plan that fits your financial situation. Filing Chapter 13 bankruptcy in Salem, Oregon, allows you to keep your property, such as your home or car, while paying off your debts over three to five years. This type of bankruptcy is for people who have a steady income and need time to catch up on overdue payments.
Unlike Chapter 7 bankruptcy, which often wipes out debts, Chapter 13 offers a way to manage your debt and avoid losing your assets. The court will approve a plan that makes it possible for you to pay off what you owe based on your income and living expenses.
What are the Basic Eligibility Requirements for Chapter 13 Bankruptcy?
If you’re considering Chapter 13 bankruptcy in Oregon, it’s essential to know if you meet the eligibility requirements. This type of bankruptcy allows you to reorganize your debt and create a repayment plan based on your income. However, not everyone is eligible for Chapter 13. You must meet the following requirements to qualify:
Regular Income
To qualify for Chapter 13, you must have a regular source of income. This could be from your job, self-employment, or other stable sources. The court will want to see that you can make monthly payments toward your debt. Without a consistent income, you may not be able to meet the payment plan requirements. Having a steady income helps prove that you can follow through with the repayment plan.
Debt Limits
Another requirement is that your total debts must be below a certain amount. If your debts are too high, you may not qualify for Chapter 13. The debts are separated into two categories: secured debts (like a mortgage or car loan) and unsecured debts (such as credit card bills or medical bills). The total of both types of debts must stay under the limit set by the court. If your debts exceed this limit, you may need to explore other bankruptcy options.
Credit Counseling
Before filing Chapter 13 bankruptcy in Salem, Oregon, you are required to complete a credit counseling course. This course helps you review your finances and explore other options besides bankruptcy. You must take this course from an approved agency before filing your case. Completing the credit counseling is a step that must be done within 180 days before you file. Without this step, your bankruptcy case may be dismissed.
Non-Dischargeable Debts
Not all debts can be included in a Chapter 13 repayment plan. For example, student loans, child support, and alimony cannot be discharged through Chapter 13. You will still need to pay these debts, even if you’re able to reorganize your other debt. However, most other unsecured debts can be part of the plan, allowing you to repay them over time. It’s essential to know which debts are eligible for discharge under Chapter 13.
Previous Bankruptcy Filings
Your history of bankruptcy can affect your eligibility for Chapter 13. If you have received a discharge in a previous Chapter 7 bankruptcy case, you must wait four years before filing again. If you filed for Chapter 13 before and received a discharge, you must wait two years before filing again. This rule helps ensure that people do not misuse the bankruptcy system. Knowing these time limits can help you plan your next steps.
By meeting these basic eligibility requirements, you can proceed with filing Chapter 13 bankruptcy in Oregon and begin the process of reorganizing your debts. It’s a way to regain control of your financial future and work toward becoming debt-free.
What are the Benefits of Filing Chapter 13 Bankruptcy in Salem, OR?
Filing for Chapter 13 bankruptcy offers several benefits for individuals facing financial difficulties. This option allows you to reorganize your finances and make a plan to repay what you owe over time. Here are some of the advantages of filing Chapter 13:
- Debt Repayment Plan: Chapter 13 allows you to create a repayment plan that fits your income and budget. You make monthly payments to a trustee, who then distributes the money to your creditors.
- Protection from Creditors: Filing for Chapter 13 stops creditors from harassing you. The automatic stay prevents them from calling, sending bills, or taking legal action against you.
- Discharge Unsecured Debts: At the end of your repayment plan, any remaining unsecured debts may be wiped away. This means that debts like credit card bills or medical bills can be eliminated, giving you a fresh start.
- Prevent Foreclosure and Repossession: If you are behind on your mortgage or car payments, filing for Chapter 13 can stop foreclosure and repossession. The court will put a hold on these actions, giving you time to catch up on missed payments.
How Our Chapter 13 Bankruptcy Attorney in Oregon Can Help
When financial troubles weigh you down, finding the right legal help can make all the difference. At Northwest Debt Relief Law Firm, our Chapter 13 bankruptcy attorney in Oregon, offers the support and guidance you need throughout the process. We provide Chapter 13 filing services in Salem, OR, to help you organize your debt into a manageable repayment plan.
By working with our bankruptcy law firm, you can create a plan that works for your budget while keeping your property safe. We will help you fill out all necessary forms, submit the petition to the court, and communicate with creditors. We make sure your repayment plan is fair and realistic so you can make progress without falling further into debt. We will work with you every step of the way, helping to relieve the pressure of overwhelming debt.
Don’t let debt control your life. Filing Chapter 13 bankruptcy in Salem, Oregon, could provide you with the relief you need. Contact us today for a free debt solution consultation and take the first step toward a debt-free future.
Determine If You Qualify for Chapter 7 Bankruptcy in Salem
Are you struggling with debt and feeling hopeless? Chapter 7 bankruptcy might be an option for you. It’s a legal process that can help you eliminate most of your debts. However, before beginning the process, you must meet certain eligibility requirements. Our Chapter 7 bankruptcy attorney in Salem, OR can guide you through the process and ensure you meet all necessary criteria.
This article will explain what you need to qualify for Chapter 7 bankruptcy, including income limits and other important factors. By knowing the eligibility criteria and understanding the requirements, you can decide whether Chapter 7 bankruptcy is right for you.
Quick Summary:
- Chapter 7 bankruptcy is a legal option for people facing overwhelming debt, offering a chance to start over by eliminating most unsecured debts. The court reviews your financial situation and may sell certain assets to pay creditors, while exemptions often allow you to keep essentials like your home or car. This process can relieve financial stress and help you move toward a more stable future.
- To qualify for Chapter 7 bankruptcy in Salem, Oregon, you must meet specific income, residency, and previous filings requirements. Passing the means test is essential, as it compares your income to Oregon’s median and determines if your disposable income qualifies. You must also demonstrate that your financial situation prevents you from repaying debts and meet a 90-day residency requirement in the state. Completing credit counseling within 180 days before filing is mandatory, and any prior bankruptcy filings must fall within legal time limits.
- Filing for Chapter 7 bankruptcy in Oregon is a relatively quick process and allows you to discharge unsecured debts like credit card bills and medical expenses. The automatic stay immediately stops creditor actions, such as collection calls and wage garnishments, relieving financial pressure. Additionally, exemptions under Oregon law protect essential property, such as your home and car, ensuring you can retain important assets while resolving your debts.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a legal process that helps people who are struggling with debt. If you find yourself overwhelmed by bills and unable to pay them, Chapter 7 may be a way to get a fresh start. This type of bankruptcy allows you to eliminate most of your unsecured debts, like credit card bills and medical expenses.
Once you file for Chapter 7, a court will review your situation and may sell some of your assets to pay off creditors. However, you may keep essential belongings, such as your home and car, through exemptions. Chapter 7 bankruptcy can give you relief from financial stress and help you rebuild your life.
What are the Eligibility Requirements for Chapter 7 Bankruptcy in Salem, Oregon?
Chapter 7 bankruptcy can help you eliminate most of your unsecured debts, allowing you to start fresh. However, not everyone can qualify for this type of bankruptcy. You must meet specific criteria regarding your income, residency, and previous bankruptcy filings. Below are the eligibility requirements you should know before deciding to file.
Means Test
To qualify for Chapter 7, you must pass the means test. This test compares your income to the median income for a household of your size in Oregon. If your income is below the median, you can qualify. However, if your income is higher, you must provide details of your expenses. If your income is still too high after applying for the test, you may not qualify for Chapter 7.
Even if you do not pass the means test, other options may be available to help with your financial situation. It’s essential to calculate your disposable income accurately to determine your eligibility.
Income and Expenses
After passing the means test, the court will look at your income and expenses. You must prove that your income is insufficient to pay off your debts. If the court believes you can pay some of your debts, they may deny your Chapter 7 application. However, if you have significant debts and cannot pay them off, this can help you qualify. You may also need to provide documentation of your financial situation.
Residency Requirement
To file for Chapter 7 in Oregon, you must have lived in the state for at least 90 days before filing. This is because bankruptcy rules are tied to your current residence. If you’ve recently moved to Oregon, the court will use your previous state’s laws to determine your eligibility. This rule helps make sure that you are filing under the right jurisdiction.
Credit Counseling
Before filing for Chapter 7, you must complete credit counseling with an approved agency. This counseling session must happen within 180 days before filing your case. The goal is to ensure you understand your options for debt relief and that bankruptcy is the best solution. You must provide proof of completing this counseling as part of your filing.
Previous Bankruptcy Filings
If you have filed for bankruptcy in the past, it can impact your eligibility. There are time limits on how often you can file for Chapter 7 bankruptcy. If you filed Chapter 7 before, you must wait eight years before filing again. If you previously filed Chapter 13, you must wait six years. The court will check your history to ensure you meet the required time limits.
What are the Benefits of Filing Chapter 7 Bankruptcy?
If you feel overwhelmed by bills and collection calls, Chapter 7 might be the solution you need. Below are some key benefits of filing for Chapter 7 bankruptcy that can help you regain control of your finances:
Debt Discharge
One of the biggest benefits of Chapter 7 bankruptcy is the ability to discharge or wipe out most of your unsecured debts. This includes debts like credit card bills, medical expenses, and personal loans. Once your debts are discharged, you no longer have to pay them, which can relieve a lot of financial stress. You can start fresh without the burden of these debts holding you back.
Automatic Stay
When you file for Chapter 7 bankruptcy, an automatic stay is effective immediately. This stay stops most collection actions against you, including lawsuits and wage garnishments. Creditors cannot contact you or try to collect debts while your bankruptcy case is open. This gives you time to breathe and plan your next steps without the pressure from creditors.
Quick Process
Chapter 7 bankruptcy is usually quicker than other types of bankruptcy, like Chapter 13. This means you can quickly eliminate your debts and move on. The speed of this process can bring immediate relief from creditor harassment and collection actions. You will not have to wait long to enjoy the benefits of a debt-free life.
Keep Essential Property
Many people worry about losing their belongings when they file for bankruptcy, but Chapter 7 allows for exemptions that let you keep essential property. In Oregon, certain assets like your home, car, and personal belongings may be protected under state law. This means that filing for Chapter 7 does not mean losing everything you own. You can often keep these items as long as they fall within the exemption limits.
Contact our Chapter 7 Bankruptcy Attorney in Salem, OR!
Filing for Chapter 7 bankruptcy can be life-changing for anyone struggling with debt. It can give you the chance to rebuild your finances and leave behind unmanageable debts. This can also be an overwhelming process for you. Therefore, seeking help or advice from professionals such as our bankruptcy eligibility lawyer in Salem, Oregon can be beneficial. .
Our Chapter 7 bankruptcy attorneys in Northwest Debt Relief Law Firm can help you understand how Chapter 7 works and walk you through the eligibility for bankruptcy in Salem requirements under the law. We can help you protect your assets and get relief from financial stress. We can help you avoid common mistakes and ensure that your case is handled correctly.
Our lawyers at Northwest Debt Relief Law are here to provide the support you need. Let us help you find the right path to financial relief and move forward with confidece. Take the first step toward financial freedom. Contact us today for a free debt solution consultation.
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