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What happens to funds held by a Chapter 13 trustee (the “Trustee”) in the event that a Chapter 13 debtor dismisses her case voluntarily? That’s the question that was addressed by the United States Bankruptcy Court for the Eastern District of Michigan (the “Court”) in a recent opinion.[i] Read More ›
Tags: Chapter 13

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 P.C..

The Department of Labor has finalized new overtime laws. The new federal law, which includes Wisconsin, will take effect on December 1, 2016. The Fair Labor Standards Act (FLSA), 29 U.S.C. §§ 201-219, requires employers to pay workers an overtime rate for hours worked in excess of 40 hours per week. With so many Americans working longer hours and not being fairly compensated for that time, the new employment law will benefit many individuals.
If you are in an executive or managerial position, you may be jumping up and down about the new revisions. The good news is that the wage threshold for salaried workers has changed. This means more salaried employees will be eligible for overtime pay. Previously, the salary threshold was set at $23,600 a year or $455 a week, low numbers that employers were using to take advantage of employees. The new revision increases the salary threshold to $47,476 a year or $913 a week to qualify for an executive, administrative, or computer employee exemption. The new salary threshold aims to reduce the number of salaried employees who are not receiving overtime pay for additional hours worked.
If you are earning less than $47,476 a year and are not being paid overtime, speak with your employer immediately. Employers are required to pay all non-exempt employees overtime pay when they work more than 40 hours per week or increase the salary of their non-exempt workers to meet the threshold requirement. This means that you may be getting a raise.
The bad news…
If you are a non-exempt employee and you also earn commissions and bonuses, you may not want to celebrate too soon. Employers can include your bonuses and commissions with your current salary in order to meet the threshold requirement.
The other piece of bad news is that the language which dictates who falls under an executive, administrative, or computer employee is not clear. This gives employers an opportunity to “file” your job title under something other than executive, administrative, or computer in order to bypass paying you overtime. If your job title changes, but your duties and salary do not, you may want to contact our Walworth County employment law attorney.
 
Contact Our Walworth County Employment Law Attorney
If you feel you are being taken advantage of in the workplace, contact our Walworth County employment law attorney. As a non-exempt employee, you legally deserve compensation for the overtime hours you work, even if you are a salaried employee. You can contact our Walworth County employment law attorney by phone at 262-725-0175 or by email via our website’s contact page. Wynn at Law, LLC has employment law offices located in Delavan, Lake Geneva, Salem, and Muskego, Wisconsin.
 

Schedule an appointment with our Walworth County Employment Law Attorney.

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*The content and material on this web page is for informational purposes only and does not constitute legal advice.
 

From Diane: In line with our firm’s commitment to financial education I suggest reading this short article about the CFPB’s focus on helping manage money, achieve financial goals and attain greater financial stability.  The following are some very helpful tips on rebuilding credit, plus lots more.

The following is a reprint of: Prepared Remarks of Richard Cordray Director of the Consumer Financial Protection Bureau “CFPB”
Financial Literacy and Education Commission Meeting Washington, D.C. June 29, 2016
Over the past five years, the Bureau has focused on helping to create a financial marketplace that works for consumers, not against them. We try to do this by both protecting and supporting consumers. Our work to protect consumers involves making the rules governing the marketplace more effective, consistently and fairly enforcing those rules, and engaging in evenhanded oversight of financial institutions. Our work to support consumers includes creating resources and information directly for the public to use and engaging in foundational research to spread effective approaches to financial education.
As is true of the Financial Literacy and Education Commission itself, we recognize that promoting financial education depends on creating and fostering a diverse array of partnerships and collaborations. Currently, we are engaged around the country with libraries, social service providers, community groups, state and local policymakers, and various other partners.
All of these groups share our interest in helping the people we serve better achieve their financial goals and attain greater financial stability in their lives. In particular, we have come to value our partnerships with legal aid groups. They have helped us reach out to low-income consumers and those who are economically vulnerable. They play crucial front-line roles to ensure access to justice and promote financial security for consumers who may be unbanked, under-banked, or credit invisible.
With our Your Money, Your Goals initiative:
Nearly two years ago, we partnered with social service providers and trained them to provide financial education and tools to their clients. We then expanded on this work to offer the same resources to legal aid groups. The toolkit we have developed as part of the Your Money, Your Goals initiative addresses topics such as emergency savings; building credit history; managing debt; cash flow budgeting; and identifying financial products that consumers can use to pursue various financial and life goals.
The toolkit also includes templates for organizations that are interested in developing a resource and referral network so their clients know how to access help from specialized providers in their local communities. Since we launched the initiative, we have reached more than 450 legal aid staff and volunteer lawyers with in-person and webinar trainings.
Another resource that legal aid organizations may find useful is our Managing Someone Else’s Money guides. The guides are aimed at lay fiduciaries who have been named to manage money or property for a relative or friend who is unable to pay bills or make financial decisions. These financial caregivers include agents under a power of attorney, court-appointed guardians and conservators, trustees, and government benefit fiduciaries.
The guides are written in plain language to explain the duties and responsibilities of people who are acting in each of these fiduciary roles. They also describe how to watch out for scams and what to do if a family member or friend is a victim of financial exploitation. The guides can be distributed to low-income populations by legal services programs; they also can be distributed to adults aged 60 and older by legal services programs funded under the Older Americans Act. They can be shared with older adults who are deciding whom to name as their fiduciaries as well as with individuals who will themselves act as fiduciaries. Since the program launched nearly two years ago, we have distributed over 600,000 printed copies of the guides nationwide.
The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.
The post Need Help Managing Your Money and Planning for Your Future? Read further…. appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.