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With $1 trillion in outstanding student loans, the landscape is looking just like the mortgage mess that brought down the economy.
Take a report to Congress from the Consumer Financial Protection Bureau and add research from the Federal Reserve Bank of St. Louis showing a stunning growth in student loans.
Combine together and add a dose of securitization and a stagnant job market for college graduates.
Now you’ve got a powder keg just waiting to explode, wrecking the economy.
Student loans threaten the financial future of younger Americans. At the same time, a college degree in unattainable for most without student loans.
Is there a better way?
What’s working with student loans, and what’s not?
What can be done?
The St. Louis Fed is holding a half-day symposium to explore the reality and future of student loans on Monday, November 18, 2013.
The keynote speaker will be Rohit Chopra, who oversees student loans on behalf of the Consumer Financial Protection Bureau in his role as assistant director and student loan ombudsman.
A nominal cost of $50 per participant ($15 for students) is required for attendance. Early registration is encouraged as space is limited, and advance registration is required by Wednesday, Nov. 13, 2013. Registration includes lunch and a reception.
Presented by the Center for Household Financial Stability at the Federal Reserve Bank of St. Louis, in partnership with the Center for Social Development at Washington University in St. Louis.
If you’re in the St. Louis area, consider going down and letting your voice be heard. Click here for details.
Earl Simmons, aka hip hop rapper DMX, filed for Chapter 11 bankruptcy protection back in July of this year. But it seems that actions related to his filing are now being questioned by federal authorities. Along with a new lawsuit against the rapper, his legal team has their hands full in trying to get the [...]
Bankruptcy Lawyer - Chapter 13 Bankruptcy Lawyer Jordan E. Bublick has an office in Miami and has over 25 years of experience in filing chapter 13 and chapter 7 bankruptcy cases. His office is located in Miami at 1221 Brickell Ave., 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
An "exemption" in Florida is a right or privilege provided by law to allow a person to retain certain property free from judicial seizure by his creditors. The purpose of exemption laws is to prevent a person from falling into destitution and to allow a person to maintain a means of earning a livelihood. Exemption law though are intended for the "honest debtor" so the law does not apply them to make them instruments of fraud on creditors.
Florida statutes section 222.29 provides that an exemption provided by chapter 222, which provides many of Florida's statutory exemptions, is not effective it is results from a fraudulent transfer or conveyance as provided in chapter 726 of Florida statutes.
Florida statutes section 222.30 provides for various avenues of relief for a creditor against a debtor who has made a "fraudulent asset conversion". A fraudulent asset conversion is generally any change or disposition of an asset so that proceeds of the asset become immune or exempt from claims of a person's creditors and the proceeds of the assets remain the person's property. The conversion is a fraudulent asset conversion as to a creditor whether the creditor's claim arose before or after the conversion if it was done with the intent to hinder, delay, or defraud the creditor.
In the event of a fraudulent asset conversion, a creditor may generally avoid the fraudulent asset conversion, obtain an attachment or other provisional remedy necessary to satisfy its claim, obtain an injunction against further conversion, or execute on the asset converted or its proceeds. against further conversion by the debtor of the asset or of other property. A cause of action for a fraudulent asset conversion must be brought within 4 years after the fraudulent asset conversion was made.
If an asset is converted into an exempt asset and the converted asset is subsequently transferred to another party, the provisions of chapter 726 apply to the transfer to the other party.Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Eight Catholic Dioceses have Filed For Bankruptcy Protection In 2002, the Catholic diocese in Boston faced an enormous sex abuse scandal, during which its clergy were accused of countless instances of abuse. The allegations have forced the diocese into bankruptcy. Through the bankruptcy process, we have learned about the sheer number of allegations against the […]The post Approximately 550 Claims Filed Against Archdiocese in Milwaukee Bankruptcy appeared first on Tucson Bankruptcy Attorney.
Miami bankruptcy lawyer Jordan E. Bublick has over 25 years of experience in filing chapter 13 and chapter 7 bankruptcy cases. He has filed over 8,000 cases. Office: 1221 Brickell Ave., 9th Fl., Miami, Florida Tel.: (305) 891-4055 www.bublicklaw.com
Divorce Obligations and Chapter 7 and Chapter 13 Bankruptcy
Many issues are presented with respect to the treatment of divorce obligations in chapter 7 and chapter 13 bankruptcy. Certain changes were made to the bankruptcy code in 2005 by the
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”) with regard to issues related to the dischargeability of marital debt and support obligations, as well as to the effect of the automatic stay on collection and enforcement proceedings out of divorce and family law litigation.
Domestic Support Obligations
Under section 104(14A) of the bankruptcy code, a domestic support obligation ("DSO") is defined as any debt that accrues before, on, or after the bankruptcy filing, including interest on the debt, that is
A. owed to or recoverable by a spouse, former spouse, or child of the debtor or such child's parent legal guardian or responsible relative or a governmental unit
B. that is in the "nature of alimony, maintenance, or support" of such spouse, former spouse or child of the debtor or the child's parent
C. established by a separation agreement, divorce decree or property settlement agreement
Under case law, the labels put on obligations in the state court are not binding and the determination of whether debts are in the nature of alimony, maintenance or support" is a determination made under federal bankruptcy law. The 11th Circuit Court of Appeals has held that a debt is in the nature of support or alimony if at the time of its creation, the parties intended the obligation to function as support or alimony. Cummings v. Cummings, 244 F. 3d 1263, 1265 (11th Cir. 2001). This is a case-specific factual determination based on an examination of all relevant facts and circumstances. The court examines the underlying purpose of the obligation to determine the function which the parties intended the award to serve.
Chapter 7 Bankruptcy
Under chapter 7 bankruptcy, a debtor receives a discharge of all his debt with certain exceptions. In Chapter 7 bankruptcy, all marital and domestic relations obligations are not dischargeable, regardless of whether they are in the nature of support, property divisions or “hold harmless” agreements, provided they were incurred by the debtor in the course of a matrimonial proceeding or a divorce action which resulted in a separation agreement, divorce decree, court order or administrative determination.
Property divisions are excepted from discharge in chapter 7. A debtor’s obligation to pay marital debts directly to a third party ("hold harmless" obligation) such as to pay the mortgage on a former marital residence and to hold the former spouse harmless on this debt is also deemed to be non-dischargeable if the obligation has the effect of providing support to the former spouse. Furthermore the following expenses are usually deemed to be in the "nature" of support and therefore not dischargeable:
- educational expenses of a minor child
- medical insurance coverage for a minor child
- life insurance, with the minor children as beneficiaries
Attorney’s fees owed by debtor to his own lawyer are generally dischargeable in bankruptcy, but as a general rule, attorney’s fees owed by debtor to a former spouse’s attorney are not dischargeable, if the underlying legal proceeding resulted in the entry of an order or judgment directing payment of maintenance or spousal support to the former spouse.
The division of a debtor’s pension benefits during the divorce action is usually accomplished by entering a Qualified Domestic Relations Order (“QDRO”). Since division of a pension is considered to be a transfer by debtor of a present interest in his pension, and as such, it is not a debt that can be discharged in bankruptcy.
Chapter 13 Bankruptcy
The rules under chapter 13 are partly different from those under chapter 7.
Under chapter 13 bankruptcy (like chapter 7 bankruptcy) domestic support obligations are not dischargeable and are usually paid in full over the term of the chapter 13 plan. Arrearages in support obligations may usually be paid over the term of the chapter 13 plan.
In contrast to chapter 7, in chapter 13 obligations to a former spouse that is not a domestic support obligation incurred by the debtor in the course of a divorce or separation or in connection with a separation agreement, divorce decree or other order of a court" are dischargeable. created by a separation agreement or judgment of divorce are dischargeable.
In order for a chapter 13 plan to be approved by the bankruptcy court the plan must
- pay in full to the former spouse all domestic support obligations owed by debtor at the time of the bankruptcy filing
- be current on all domestic support obligations incurred after the bankruptcy filing.
A chapter 13 case is subject to dismissal if the debtor fails to pay any post-petition domestic support obligations and a chapter 13 discharge will not be entered by the bankruptcy court unless the debtor certifies that all domestic support obligations have been paid and that the debtor is current on these obligations.
Automatic Stay
The automatic stay created by a bankruptcy filing bars the commencement or continuation of most legal proceedings, but it has no effect on a proceeding to establish paternity; to establish or modify a child support order, determine child custody or visitation issues, or dissolve a marriage, except to the extent that such proceeding may seek to determine a division of marital property in which the bankruptcy estate also has an interest. In those situations, the divorce can be granted without first obtaining relief from the automatic stay, but the marital property cannot be divided without obtaining relief from the automatic stay.Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Miami Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing Chapter 13 and Chapter 7 bankruptcy cases. 1221 Brickell Avenue, 9th Fl., Miami. Tel.: (305) 891-4055. www.bublicklaw.com
The Bankruptcy Code provides in section 522(b)(3)(B) in general for the exemption of property held as a tenant by the entirety or joint tenant to the extent that it is exempt from process under state law.
Property held in a tenancy by the entireties is generally exempt from the claim of individual creditors under Florida common law but is not exempt to the extent of joint debts of both spouses or to the extent of a fraudulent conveyance into the property. Havoco of America, Ltd. v. Hill, 197 F.3d 1135 (11th Cir. 1999).
Under Florida law, property held by a husband and wife as tenants by the entireties belongs to neither individual spouse, but to a separate entity referred to as the "unity" or "the marriage." Florida law recognizes that entireties estates can exist in both real and personal property. Property held as tenancy by the entireties generally possesses six characteristics: 1. unity of joint ownership and control (unity of possession), 2. unity of interest, 3. the interests must have originated in the same instrument (unity of title), 4. the interests must have commenced simultaneously (unity of time) 5. survivorship, and 6. the parties must be married at the time they took joint title (unity of marriage).
Florida law provides that real property held by a husband and wife in joint names is held in a tenancy by the entireties absent some express indication to the contrary. Beal Bank, SSB v. Almand and Associates, 780 So. 2d 45 (Fla. 2001). Florida law also provides a presumption that a bank account titled in the names of both spouses is held as a tenancy by the entireties as long as the unities of possession, interest, title, and time are met. Various court decisions extend the presumption in favor of a tenancy by the entireties to personal property in various manners. Some courts extend the presumption to all personal property.
The Court in In re Kossow, Case No. 03-27115-BKC-PGH (S.D. Fla. 2007)(Hyman, J.) allowed the tenancy by the entireties exemption of certain household furnishings acquired during the marriage as there was no evidence to rebut the presumption. The Court also allowed the tenancy by the entireties exemption of other household furnished acquired prior to the marriage as it found that it was subsequently assigned to the marriage. The Court further found the joint federal income tax refund as exempt tenancy by the entireties property.
The case of In re Schwarz, III, Case No. 06-13348-BKC-JKO (S.D. Fla. 2006)(Olson, J.) illustrates that a debtor may be able to exempt property held as tenants by the the entireties even though he is required to claim another state's exemptions and not able to utilize the Florida homestead exemption.Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Bankruptcy Lawyer - Chapter 13 Bankruptcy Lawyer Jordan E. Bublick has an office in Miami and has over 25 years of experience in filing chapter 13 and chapter 7 bankruptcy cases. His office is located in Miami at 1221 Brickell Ave., 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
Bankruptcy section 522(p) which was added in 2005 provides a cap of $155,675.00 (originally $125,000.00 but is subject to increases) in value (equity) on homestead property acquired within 1,215 days of the petition date.
Courts though have held that this limitation only applies to the Florida homestead exemption that the debtor could claim under the Florida Constitution and not the separate exemption available for property held as tenants by the entireties.
One Court noted that while its ruling would appear to provide a way for a debtor to "end run" the $125,000 cap contained in section 522(p), that its ruling is consistent with the legislative history of new section 522(p) which was directed to close the "mansion loophole" and not against a state's common law exemption for tenancy by the entireties property.Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Bankruptcy Lawyer - Chapter 13 and 7 Bankruptcy Lawyer Jordan E. Bublick has an office in Miami and has over 25 years of experience in filing chapter 13 and chapter 7 bankruptcy cases. His office is located in Miami at 1221 Brickell Ave., 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
Florida law provides certain defined exemptions for property in the following categories:
Homestead - unlimited in value, l/2 acre in municipality, 160 acres outside municipality, Art. X, Section 4, Florida Constitution
Personal Property - to extent of $1,000, Art. X, Section 4, Florida Constitution and a further $4,000 in certain circumstances
Earnings of Head of Family - section 222.11(2)(a), Fla. Stat.
Motor Vehicles - to extent of $1,000, section 222.25, Fla. Stat.
Health Aides Professionally Prescribed - section 222.25, Fla. Stat.
Proceeds of Life Insurance on Florida Resident - section 222.13(1), Fla. Stat.
Cash Surrender Value of Life Insurance on Life of Florida Resident - section 222.14
Annuity Contracts - section 222.14, Fla. Stat.
Disability Income Benefits - section 222.18, Fla. Stat.
Workers' Compensation Benefits - section 444.22, Fla. Stat.
Qualified Tuition Programs, Prepaid College Trust Funds - section 222.22(1), Fla. Stat.
Health or Medical Savings Accounts - section 222.22(2), Fla. Stat.
Educational IRA - section 222.22(3), Fla. Stat.
Property Held as Tenants by Entireties for debts of only one spouseJordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for October 31, 2013 New York City Opera Files for Bankruptcy California pension fund appeals San Bernardino bankruptcy Foreclosure on Property After Bankruptcy?
So, you have decided to file bankruptcy. While this option may be a difficult decision to make, it is significant as you have gotten even closer to establishing the fresh start and financial control you deserve. But, filing does include several processes including filling out forms, completing credit counseling, and appearing before a judge. It [...]
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