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 After 25+ years representing hardworking but financially struggling men and women in the Atlanta area, I can report to you that the #1 secret to surviving Chapter 13 is living below your means. This can mean you have to make some difficult choices.Chapter 13 Trustees are Increasingly DemandingWhen you enter Chapter 13, you need to eliminate the “wants” in your life in exchange for the “needs.” I advise my clients that if you find yourself meeting with a bankruptcy lawyer, everything needs to be on the table. And this includes your cars, home, furniture, jewelry and just about any other type of property you are financing. You will also find that your Chapter 13 trustee likely has a much more restrictive view of what constitutes a true “need:”

• if you find yourself paying more than $300 per month for a car or truck, you need to consider giving that vehicle back to the creditor and buying a car for cash or financing a vehicle and keeping the payment below $300 per month
• if you are financing vehicles, furniture or jewelry for your children or other relatives, you should be prepared to surrender that property and let your relative work out a deal on his/her own
• if your budget includes out of pocket payments for your children’s college expenses, expect push back from the trustee. The trustee’s position will generally be that your child needs to use loans and grants to finance his/her own higher education and that your child may need to seek a less expensive education. Trustees generally do not agree with including someone else’s education costs in your budget
• if your budget includes private elementary or high school for a child, you will need to produce evidence that your child has special educational needs that make public school insufficient
• do not plan on keeping time shares or other non-essentials when you file Chapter 13

Currently, my experience has been that Chapter 13 trustees in the Atlanta area are more demanding than ever when it comes to squeezing your budget to extract every penny. Personally, I think that some of these budget demands do not account for the strong likelihood that you will have an emergency or unexpected expense during the course of your Chapter 13. The response I get: file a motion to ask the judge for special consideration if and when that happens.Your Chapter 13 Budget Must Work on Paper and in Real LifeEven if your budget works on paper, I always remind my clients that Chapter 13 cases last 5 years and 5 years can be a very long time. The means test budget figures that we use when preparing your case represent very modest monthly expenditures. If we find ourselves allocating less money than the means test numbers for food, clothing, medical costs, etc, that is a red flag.If you bite off more than you can chew by trying to keep secured property that you really can’t afford, you will eventually find yourself facing the judge in a motion for relief from stay or a motion to dismiss. Judges hate to see bankruptcy debtors lose their homes or cars but if the numbers don’t work and your plan is not feasible, the judge will rule against you.Chapter 13 can be a powerful tool that enables you to “reboot” your financial life and restructure payments on essentials like your house or car. But you can’t expect the judge to do all the heavy lifting – you, and you alone, have to prove that the repayment plan you file in Chapter 13 is feasible.The post What is the Secret to Making Your Chapter 13 Plan Work? appeared first on theBKBlog.

The bankruptcy code requires that an individual seeking to file for bankruptcy relief must take a certain approve credit counseling course during the 180 days prior to the filing of the case. The course must be take from an approved nonprofit budget and credit counseling agency. The course may be taken in person, telephone, or on the internet.

The clerk of the bankruptcy courts maintain a list of the approved credit counseling agencies. The office of the U.S. Trustee approves these agencies pursuant to its criteria.Jordan E. Bublick - Miami Bankruptcy Lawyer - North Miami & Kendall Offices - (305) 891-4055 - www.bublicklaw.com

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}The 2016 Democratic Party’s draft platform has some major wins for those struggling with student loan debt. Whether you end up supporting the Democrats or Republicans in the 2016 presidential election, it’s useful to know where each side stands on the issues of concern to you.
Here’s what the Democrats have to say:

Democrats will allow those who currently have student debt to refinance their loans at the lowest rates possible. We will simplify and expand access to income-based repayment so that no student loan borrowers ever have to pay more than they can afford. And we will significantly cut interest rates for future undergraduates, thereby preventing the federal government from making billions of dollars in profit from student loans. Democrats will also fight for a Student Borrower Bill of Rights to ensure borrowers get adequate information about options to avoid or get out of delinquency or default. We will hold lenders and loan servicers to high standards to help borrowers in default rehabilitate and repay their debts. Finally, Democrats will restore the prior standard in bankruptcy law to allow borrowers with student loans discharge their debts in bankruptcy as a measure of last resort.

In a nutshell, Democrats would allow student loan borrowers to:

1. refinance student loans are lower rates than current exist;
2. cut interest rates on new student loans;
3. expand income-dependent repayment programs;
4. improve student loan education; and
5. bring back the ability to discharge student loans in bankruptcy.

But here’s what I want to know.
Do the Democrats want to allow borrowers to refinance only federal student loans at lower rates, or does the platform include the ability to refinance private student loans under a federal program of some sort?
Regardless of the type of loan permitted to be refinanced, how low of a rate are we talking about? Are the Democrats talking about bringing down the interest rate to 0.9%, which is the rate currently paid in the United Kingdom on student loan debt being paid through an income-dependent repayment plan?
How much expansion of income-dependent repayment programs is expected? Will those who currently have Parent PLUS Loans be allowed to take advantage of income-based repayment and Revised Pay As You Earn, two options currently not available on these loans? Will private student loan borrowers be permitted to opt into income-dependent repayment plans currently applicable only to federal student loan borrowers?
When the Democrats say they want to restore the prior standard in bankruptcy law to allow borrowers with student loans discharge their debts in bankruptcy, does this mean the ability to wipe out private student loans? Or are they proposing the ability to wipe out federal student loans that have been in repayment for a period of time, as was the case prior to 1998?
The Democratic Party Platform looks good for student loan borrowers – the question is whether it’s good enough, or just a first step towards getting people the help they really need.
You can take a look at the draft version of the Democratic Party Platform as of July 1, 2016 by clicking here.

The post What the 2016 Democratic Party Platform Says About Student Loans appeared first on Shaev & Fleischman LLP.

The 2016 Democratic Party's draft platform has some major wins for those struggling with student loan debt. Whether you end up supporting the Democrats or Republicans in the 2016 presidential election, it's useful to know where each side stands on the issues of concern to you.Here's what the Democrats have to say:Democrats will allow those Read the article
The post What the 2016 Democratic Party Platform Says About Student Loans appeared first on Shaev & Fleischman P.C..