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When I tell people that I’m a student loan lawyer, I usually get a strange look. That’s followed by something like, “I didn’t think you could do anything about student loans.”
It’s as if people are reading from a script, over and over again.
Josh Cohen and I spend a lot of time training lawyers how to practice in the field of student loan law. But a lot more attorneys wonder whether there’s anything they can do to help people.
There are lots of companies promising to help student loan borrowers. Why then, my lawyer friends wonder, would someone would hire an attorney instead of one of those companies?
After all, it doesn’t seem as if a lawyer is worth the money. Better to spend less and hire one of those “student loan consultants” instead, right?
Unless you know exactly what you need and are dealing with only a single federal loan, that’s half right. You may not need a lawyer – then again, you probably don’t need to hire anyone at all.
But before you make the move to hire a consultant rather than a student loan lawyer, consider these points.
A Student Loan Lawyer Can Be Cheaper
Many consultants charge $1,000 or more for a federal student loan consolidation. Getting you into income-based repayment often costs about the same, if not more.
Compare that with my fees for helping you do the same thing. For consolidation I usually charge somewhere in the $500 range. Same for income-based repayment.
The Right Advice Can Save You Thousands
When you’re dealing with a consultant, you don’t get the benefit of legal advice. And without legal advice, you’re trusting your financial future to someone without formal training.
Let me give you an example: I was talking with a woman who had over $100,000 in federal student loans, all in default. A student loan consultant was trying to sell her on consolidation and income-based repayment. This woman was ready to shell out over $1,500 to this consultant (he was offering her a discount, no less).
Instead of sending her money to the consultant, she called me.
We discussed how rehabilitation would preserve her rights in case she defaulted again. I told her how it would also repair her credit score fast. We outlined her steps, and worked through the process before she committed to anything.
My fee? Far less than the consultant. Plus she got the benefit of a deep analysis from someone who has formal training in the field of student loan law.
A Student Loan Lawyer Can Deal With Private Loans
Consultants don’t understand the complexities of National Collegiate Student Loan Trust and other private student loan entities.
If a private student loan company sues you, the consultants can’t defend the case. They can’t give you legal advice, and aren’t allowed to talk to you about what happens if there’s a judgment against you.
Student loan consultants can help you work out a settlement, but they can’t give you help when it comes to the tax consequences (the link is for settlement of credit card debts, but it’s the same thing for student loans). They don’t understand how to protect your assets, and the law is a mystery to them.
A lawyer who helps with student loan problems will understand state and federal laws. He’s going to be able to tell you how to protect your assets, and help you decide whether to defend a student loan lawsuit.
Looking to settle a student loan? A lawyer’s going to pack a lot more firepower than a consultant because we know how the collection game works. We understand how student loans are bought and sold, and we know it’s different than how credit card collections work.
Student Loan Lawyers Can Show You How To Do It For Free
Want to know a secret? You can do a federal student loan consolidation on your own – and there’s no charge.
You can get yourself out of default without any help, too.
Same goes for getting into income-based repayment. Do it on your own, no charge.
A student loan lawyer will tell you that, but a consultant usually won’t.
Know why? Because the consultant makes money if you use their services to process your paperwork. That’s the only thing they can offer – no advice, no guidance, and no training.
The lawyer earns a living based on advice and helping you figure out which solution is best for you. It may be a smart idea to hire an attorney can help you process your application, but that’s up to you once you know your best move.
Is it worth your money to work with a student loan lawyer?
If you’re looking to waste your money on someone to process a free application then you should work with a consultant.
Do you want guidance, advice, a full analysis of your options, and a broader range of services at a lower price? If so, then you owe it to yourself to consider hiring a student loan lawyer.
The post Are Student Loan Lawyers Worth The Money? appeared first on Bankruptcy and Student Loan Lawyers - 866.787.8078.
Once you opt to surrender you home in your Oregon Bankruptcy, you will probably want to stay in the house for as long as you can. All too often we have seen Oregon Bankruptcy clients move out of homes in bankruptcy, thinking the foreclosure would soon follow. But lenders often change course. The rapid foreclosure that was on track for sale prior to the bankruptcy may now languish for months and sometimes years on end. So why not stay in the house for as long as you can. Moreover, if you live in a condo, HOA fees start to accrue after your case until the foreclosure is completed, so why not get something for your money.
Once the foreclosure sale is completed, it’s time to contact the lender to make a “cash for keys” deal. Fulfilling your end of this deal may enable you to walk away with several thousand dollars to secure your first rental. Make sure the bank puts your deal in writing. The Department of Housing and Urban Development offers free counseling to help you negotiate and evaluate cash for keys offers. Take advantage of this service.
The downside is that these deals usually require that you leave the house in “broom clean” condition. You must treat your move out as you would if you were moving out of an apartment and were looking to get your deposit back. You really need to remove all furniture and clean up the home. You also must turn in all house keys and garage door openers or remotes. The bank will normally inspect the home after you move out.
If you have any questions about whether to stay in the house after bankruptcy, please give us a call. Remember that surrendering your home in bankruptcy will eliminate your personal liability, but the bank will still need to go through the foreclosure process. You will still get notices in the mail regarding the foreclosure.
The original post is titled Cash for Keys: Getting More Value Out of Home Surrender in Oregon Bankruptcy , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
For years, we have referred our bankruptcy clients to Mario Puglise, Bankruptcy Specialist at Jefferson Chevrolet in Detroit, for vehicle financing during or after a bankruptcy filing. He specializes in car financing for Michigan families who filed for bankruptcy protection. We sat down for an interview to discuss: How he is able to help bankruptcy […]
The post Purchasing a Vehicle During or After Filing for Bankruptcy: The Facts Directly from a Detroit Car Salesman appeared first on Acclaim Legal Services, PLLC.
Vancouver bankruptcy filers will be happy to hear that the U.S. Bankruptcy Court for the Western District of Washington is now offering debtors the ability to receive court notices and orders via email through a program called “Debtor Electronic Bankruptcy Noticing” or “DeBN.” Registering for DeBN is free and enables debtors to receive and view notices sent to you by email. A Washington debtor must file a written request with the bankruptcy court in order to participate in the DeBN program. Our firm is happy to file these requests for any Vancouver client looking for quicker access to their bankruptcy records.
The original post is titled Vancouver Bankruptcy Filers Get Real Time Notice from Court , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
There has been much discussion in the media in the past year about the massive amount of professional fees that have been wracked up during the City of Detroit's Chapter 9 bankruptcy. There is always great interest - and debate - about such fees due to the nature of the process: insolvent individuals or companies with no place left to turn file for bankruptcy, creditors take a "haircut" on their claims, and the lawyers get paid. Or so the story goes. As with any complex process, though, there is plenty of nuance that gets lost in the wash, and often is more to the story. Read More ›
Tags: Chapter 13, Chapter 7, Western District of Michigan
Good riddance to several debt collectors that seemed hellbent on sending all Oregon student loan debtors into bankruptcy. Pioneer Credit Recovery, Enterprise Recovery Systems, National Recoveries, and Coast Professional had all sued earlier this year once the Education Department said it would no longer send them any more accounts under their current contracts. A federal judge on Tuesday has now dismissed all their claims.
The Department of Education had previously stated that these collectors had mislead distressed borrowers “at unacceptably high rates.” With roughly 7 million Americans in default on more than a $100 billion on their student loans, having the Department of Education actively paying unscrupulous debt collectors to collect on them was a recipe for disaster.
It is probably fair for Oregon and Washington consumers with defaulted student loans to question why the Department of Education did not take this action years ago before thousands of them were sent reeling into bankruptcy.
The original post is titled Student Loan Debt Collectors Denied , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
The Consumer Financial Protection Bureau (CFPB) (4/15/15) issued a final interpretive rule on how to provide mortgage applicants with a list of local homeownership counseling organizations. The interpretive rule restates guidance the CFPB issued in 2013, and provides further guidance for lenders who are building their own lists of housing counselors. The rule also includes guidance on the qualifications for providing high-cost mortgage counseling and for lender participation in such counseling.
“Buying a home is often the largest financial decision in a consumer’s lifetime, and we want to ensure that consumers can access the independent and informed advice they deserve before making that decision,” said CFPB Director Richard Cordray. “Housing counselors are a crucial source of that helpful advice. We will continue to work to improve the home-buying experience for consumers, and today’s interpretive rule will help industry comply with these important protections.”
Housing counselors can provide advice on buying a home, renting, defaults, foreclosures, and credit issues. Advice from housing counselors can be provided at little or no cost to consumers. The Dodd-Frank Wall Street Reform and Consumer Protection Act included a requirement that mortgage lenders provide applicants with a list of local housing counselors. Consumers will receive the list shortly after they apply for a mortgage so they know where to get help when deciding what loan is best for them. Lenders may fulfill the requirement by using CFPB-developed housing counseling lists, which are available through an online tool the Bureau created in 2013, or by generating their own lists using the same Department of Housing and Urban Development (HUD) data that the CFPB uses to build its lists.
Lenders choosing to build their own lists can look to today’s interpretive rule for instructions. Today’s interpretive rule restates the detailed guidance from 2013. It also includes new instructions about: how to provide applicants abroad with homeownership counseling lists; permissible geolocation tools; combining the homeownership counseling list with other disclosures; use of a consumer’s mailing address to provide the list; and high-cost mortgage counseling qualifications and lender participation in such counseling.
The online tool can be accessed here.
Today’s interpretive rule is available here
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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.
CONTACT: Office of Communications Tel: (202) 435-7170
NOTE from Diane – I love to see a plan come together. The establishment and support of the CFPB is the beginning of the pendulum swinging back toward consumer protection. This pendulum takes about 18 years to swing to and fro. It is a good time to be a consumer.
The post CFPB Issues Guidance on Housing Counselor Requirements appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
April 15 is not only tax day, but it’s a great day to look at your financial situation to see if you need to make any adjustments. This is the time when you can analyze how you did financially in the past year. This is the time when you’re required to have your income tax+ Read More
The post With Tax Day Upon Us, Is Your Financial House In Order? appeared first on David M. Siegel.
It seems with ever increasing regularity, there is a chapter 13 emergency filing that my office has to complete. It used to be that a Sheriff sale was the main reason for an emergency filing. As long as the case was filed before the actual Sheriff sale took place, the homeowner had the right to+ Read More
The post Emergency Chapter 13 Filing: From Consultation To Filing In Two Hours appeared first on David M. Siegel.
Falling behind on your federal student loans is like walking down a long, dark hallway.
You have no idea where you’re headed, and there’s no way to know what’s in your way.
Today’s episode of The Student Loan Show helps shine a light, banishing the darkness so you have a better understanding of what’s going on.
In this 19 minute episode we talk about:
- The difference between delinquency and default
- What the government can do to make you pay once you go into default on your federal student loans
- How to avoid default
- Ways to get out of default and back into good shape with your student loans
http://media.blubrry.com/studentloanshow/p/www.studentloanshow.com/wp-content/uploads/2015/04/150414.mp3
Podcast: Play in new window | Download
Like what you hear? Subscribe in iTunes by clicking here.
The post What Happens When You Default On Federal Student Loans appeared first on Bankruptcy and Student Loan Lawyers - 866.787.8078.
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