Blogs
The Chapter 13 bankruptcy trustee appointed to your case oversees the administration of the plan. In this article, we’ll list down the tasks of a trustee and how payment is carried out.
Chapter 13 in Brief
Among the different types of bankruptcy, Chapter 13 is also known as reorganization bankruptcy, or the wage earner’s plan. Under this bankruptcy chapter, you can keep your property and prevent foreclosure.
Individuals with regular income develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. When you file for bankruptcy, bankruptcy court places an automatic stay, preventing further collection attempts. After the payment plan, dischargeable debts will be discharged.
To help in your decision to declare bankruptcy, it’s best to consult with bankruptcy lawyers.
Duties of a Chapter 13 trustee
Review the paperwork and repayment plan
One of the trustee’s tasks is to ensure that the repayment plan is fair to your creditors.
The trustee will require you to submit certain documents like bank statements, paycheck stubs, and tax returns to confirm your financial disclosures. They will review these documents along with your bankruptcy petition.
Conduct the Meeting of Creditors
The Chapter 13 trustee administers a meeting of creditors around a month after the bankruptcy filing.
The trustee will be asking questions regarding the plan and the paperwork, your assets, income, and other relevant information. The creditors may also ask questions.
Attend the Confirmation Hearing
If a lender or trustee takes issue with your plan, you’ll have a period to correct it or draft an opposition supporting the plan.
The trustee attends the confirmation hearing to tell the judge if they believe that the plan is possible. It’s the judge who rejects or approves the plan.
Administer the Bankruptcy Repayment Plan
Within 30 days from your bankruptcy filing, you must start paying the bankruptcy trustee according to the proposed plan. It remains a proposal until court approval. In the meantime, the trustee holds the funds for the debtor. When it’s approved, the trustee distributes it to your creditors.
During the time of your repayment plan, the trustee will keep making the payments and distributing them to pay off the amount owed. They must take account of all the payments made.
Object to Improper Creditor Claims
Creditors must provide proof of claim if they want to receive Chapter 13 funds. The proof must state the amount owed and documentation of the agreement.
How to Pay the Chapter 13 Trustee
As mentioned, even before approval, you must make payments to your trustee after filing for bankruptcy.
Once you know the trustee’s name, check their website for payment instructions. If the creditor’s meeting is scheduled for less than a month after filing, the trustee will probably explain how payments work then.
Continuing Payments
Once the plan is approved, you’ll be making payments as stated in the plan. You are to continue to mail the payments. Alternatively, a wage deduction order may be made to deduct from your paycheck to pay off your plan. Discuss with a bankruptcy lawyer to know exactly what will happen.
How the Chapter 13 Trustee Pays Your Creditors
Initial payments are usually just the attorney fees and secured claims, like car loans and mortgage payments, until the court signs the confirmation.
After the approval, payments made will include unsecured creditors – medical bills, credit card balances, and personal loans.
Ensure that Creditors Receive Trustee Bankruptcy Payments
Most trustees have a website where you can keep track of the accounting of payments you make to the trustee and its distribution to lenders.
Bankruptcy can impact your credit score. Our bankruptcy attorneys work with you using our proven credit repair system. Get the fresh start you and your family deserve and seek help from lawyers knowledgeable about bankruptcy law. Contact Vancouver WA Chapter 13 bankruptcy attorney Tom McAvity today by calling Northwest Debt Relief Law Firm to file bankruptcy.
.fusion-body .fusion-builder-column-0{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-0 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:850px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-1{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}
The post What Does the Chapter 13 Trustee Do? appeared first on Vancouver Bankruptcy Attorney | Northwest Debt Relief Law Firm.
People have some expectations and questions when they file for bankruptcy in California. On the top of a debtor’s list is whether they can keep their house or their car. However, outside of their residence and vehicle, one of the most expensive items people own is in their pocket. A cell phone or smartphone is […]
The post Do I Keep My Cell Phone if I File for Bankruptcy in California? appeared first on The Bankruptcy Group, P.C..
This article originally appeared on Forbes on February 16, 2021 the article can be found at:
https://www.forbes.com/sites/markkantrowitz/2021/02/16/student-loan-forg...
Student Loan Forgiveness Myths
Borrowers and policymakers have been urging President Joe Biden and Congress to forgive student loan debt. Student loans are complicated and confusing. This has contributed to many misconceptions about student loan forgiveness. Some of these myths support student loan forgiveness and some oppose it.
Let’s debunk some of the more common student loan forgiveness myths.
There are many misconceptions and myths about student loan forgiveness. GETTY
President Biden Will Forgive All Student Loans
This myth asserts that President Biden will forgive all student loans.
Senator Bernie Sanders proposed forgiving all student loans, not President Joe Biden.
Even if Congress were to pass legislation forgiving student loans, it is likely to fall short of forgiving all student loans. The Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act), which passed the U.S. House of Representatives but did not pass the U.S. Senate, proposed forgiving up to $10,000 in student loans per borrower. President Biden has said that he supports $10,000 in student loan forgiveness per borrower.
Due to the cost, Congress is likely to limit the forgiveness in various ways, such as limiting it to borrowers who are experiencing economic distress, borrowers who owe less than $10,000 and borrowers who earn less than $125,000.
The President Can Forgive All Student Loans
This myth claims that the President can forgive all student loans through executive order.
A few policymakers have stated that the President (actually, the Secretary of Education) has the legal authority to forgive all student loans.
MORE FOR YOU
Student Loan Cancellation Less Likely If Stimulus Checks Get Cut
3 Reasons Why Biden Excluded Student Loan Relief From Stimulus – And What It Means For Borrowers
Biden Comes Out Against $50,000 In Student Loan Forgiveness - But Supports This Amount, Instead
This false assertion is based on a misreading of the waiver authority in the Higher Education Act of 1965 [20 USC 1082(a)(6)], taken out of context. The waiver authority, which applies only to loans made under the Federal Family Education Loan (FFEL) and Federal Perkins Loan programs, is limited to operating within the scope of the statute. Specifically, when Congress authorizes a loan forgiveness program, such as Public Service Loan Forgiveness, Teacher Loan Forgiveness or the Total and Permanent Disability Discharge, the U.S. Department of Education has the authority to forgive student loans as authorized under the terms of these loan forgiveness programs.
Also, the parallel terms clause in the Higher Education Act of 1965, which requires Direct Loan program loans to have the same terms and conditions as FFEL program loans, does not apply to waiver authority, which is not part of the terms and conditions of the loans.
Only Congress has the power of the purse. The executive branch cannot spend money that has not been appropriated by Congress. Congress can pass legislation to forgive student loans, but without this legislation, the President does not have the legal authority to issue blanket student loan forgiveness.
The waiver authority also does not apply to private student loans.
The Legal Authority for the Payment Pause and Interest Waiver Can Be Used to Forgive Student Loans
Some people claim that President Trump used the waiver authority to implement the payment pause and interest waiver, setting a precedent that could be used to forgive student loans.
President Trump did not identify the legal authority used to implement the payment pause and interest waiver in his executive memo, but there are three possibilities that do not rely on a misreading of the general waiver authority.
The statutory definition of the economic hardship deferment provides the Secretary of Education with the authority to create other eligibility criteria for the economic hardship deferment. [20 USC 1085(o)(1)(B)]
The regulations for the Direct Loan program allow the Secretary of Education to provide administrative forbearance “due to a national military mobilization or other local or national emergency.” [34 CFR 685.205(b)(8)]
The Heroes Act of 2003 authorizes the Secretary of Education to ensure that “recipients of student financial assistance under Title IV of the Act who are affected individuals are not placed in a worse position financially in relation to that financial assistance because of their status as affected individuals” in connection with a war or other military operation or national emergency. Affected individuals include individuals who “suffered direct economic hardship as a direct result of a war or other military operation or national emergency.” [20 USC 1098bb(a)(2)(A)]
Student Loan Forgiveness Will Stimulate the Economy
This myth claims that “student debt cancellation can … give a boost to our struggling economy through a consumer-driven economic stimulus that can result in greater home-buying rates and housing stability.”
Forgiving student loan debt yields an annual financial impact that is about 6% of the amount forgiven, corresponding to the amount borrowers are actually paying on their student loans.
Student loan payments total about $100 billion a year, approximately 0.4% of GDP. (For comparison, the cost of the payment pause and interest waiver is about $60 billion a year.) Forgiving all student loan debt will yield a smaller positive impact on the economy in the short term than other stimulus efforts.
Student loan forgiveness will also not have a big impact on home-buying rates.
According to research by Federal Reserve economists, a $1,000 increase in student loan debt before age 23 causes “a decrease of about 1.5 percentage points in the homeownership rate,” which is the “equivalent to a delay of 2.5 months in attaining homeownership.” This effect, however, disappears by the time borrowers enter their early thirties. Thus, student loan debt affects only the timing of homeownership, not the attainment of homeownership.
Student loan debt outstanding is one-sixth of mortgage debt outstanding. A similar ratio applies to comparisons of student loan and mortgage balances and loan payment amounts.
Based on data from 2017 follow-up to the 2016 Baccalaureate and Beyond longitudinal study (B&B:16/17), the average student loan payment among Bachelor’s degree recipients is $306, compared with an average car payment of $392 and an average mortgage payment of $1,254. The average rent payment for borrowers who don’t own homes is $875, yielding a difference of $379, which is greater than the average student loan payment.
Student Loan Forgiveness Will Provide Immediate Financial Relief
This myth claims that student loan forgiveness will provide immediate financial relief to millions of student loan borrowers who are experiencing economic distress because of the pandemic and recession.
Forgiving less than the full amount owed might not yield much of an immediate impact because it will change the remaining time in repayment but not the monthly payment amount. This is especially true of borrowers in income-driven repayment plans, where the loan payments are based on the borrowers’ income and not the amount they owe. Even with $50,000 in student loan forgiveness, more than 40% of borrowers in income-driven repayment plans will still owe some student loan debt.
Thus, student loan forgiveness provides long-term financial relief but not necessarily short-term financial relief.
The payment pause and interest waiver, on the other hand, provides immediate financial relief.
Student Loan Forgiveness Will Solve the Student Loan Problem
This myth claims that student loan forgiveness is a solution to the student loan problem.
There really isn’t a student loan problem, so much as a college completion problem. Students who drop out of college are four times more likely to default on their federal student loans than borrowers who graduate, and represent more than two-thirds of the defaults. Borrowers who drop out of college have the debt, but not the degree that can help them repay the debt.
Most borrowers who graduate are able to repay their student loans. Only 0.1% of Bachelor’s degree recipients and 1.1% of Associate’s degree recipients default on their federal student loans.
Forgiving student loans will not increase the number of students enrolling in college. It will not increase the number of students graduating from college. It will not make college more affordable.
The average federal student loan debt of borrowers who are in default on their federal student loans is about $22,000.
Student Loan Forgiveness Will Close the Racial Debt Gap
This myth claims that student loan forgiveness is the best way to address racial disparities in student loan debt.
Students who attend Historically Black Colleges and Universities (HBCUs) are twice as likely to borrow to pay for college. They also graduate with 25% more student loan debt. Their student loan payments represent a greater share of income.
But, forgiving $50,000 in student loan debt per borrower is not the most effective way of closing the racial debt gap. Only 18% of the financial benefit from blanket student loan forgiveness will go to Black or African-American borrowers. Instead, why not just forgive the student loan debt of all borrowers who attended HBCUs? This student loan debt was caused, in part, by chronic underfunding of these institutions. The cost of this forgiveness is about $30 billion.
The Federal Government Can’t Forgive Private Student Loans
This myth asserts that the federal government can’t forgive private student loans, just federal education loans.
The Truth in Lending Act [15 USC 1650(e)] bans prepayment penalties on private education loans. The Higher Education Act of 1965 [20 USC 1083(a)(14)] bans prepayment penalties on federal education loans, including those held by private lenders.
So, Congress could pass a law to forgive private student loans by appropriating funds to pay off the loan balances.
This would cause losses for the lenders and investors in student loan securitizations, since they would not receive the future interest revenue they were expecting, just par value for the loans.
Lenders might respond by no longer offering private student loans or by charging higher interest rates.
All Student Loan Forgiveness Is Tax-Free
This myth claims that all student loan forgiveness is tax-free.
Some student loan forgiveness is tax-free and some is taxable.
Generally, if student loan forgiveness is provided by the loan program, it is tax-free if the loan forgiveness requires the recipient to work in certain professions for a specified period of time. Examples include Public Service Loan Forgiveness and Teacher Loan Forgiveness.
Certain student loan discharges are also tax-free. These include the death and disability discharges (through December 31, 2025), closed school discharges, false certification discharges, unpaid refund discharges and the borrower defense to repayment discharge.
Employer-paid student loan repayment assistance programs, or LRAPs, are also tax-free through the end of 2025.
Otherwise, the cancellation of debt is treated like taxable income to the borrower under current law. It is as though someone provided the borrower with income to pay off the debt. Thus, the forgiveness after 20 or 25 years in an income-driven repayment plan is taxable.
The IRS will forgive tax debts when the taxpayer is insolvent (total debt exceeds total assets). A borrower who has been in an income-driven repayment plan for two decades is likely to be insolvent. But, there are no guarantees that the tax debt will be forgiven.
Student Loans Can Be Discharged in Bankruptcy
This myth asserts that student loan forgiveness is not necessary because student loans can be discharged in bankruptcy.
Bankruptcy discharge of student loans is very rare.
There is an exception to bankruptcy discharge of student loans unless the debt imposes an “undue hardship” on the borrower and the borrower’s dependents. This is a very harsh standard, requiring a current and future inability to repay the debt while maintaining a minimal standard of living. One bankruptcy court judge referred to it as requiring “a certainty of hopelessness.”
Certain other types of student loans, such as bar study loans and residency/relocation loans, can also be discharged because they are not considered to be qualified education loans.
The Federal Government Has Never Previously Forgiven Student Loans
This myth asserts that the federal government generally does not forgive student loans.
The source of this myth is the very low approval rates for public service loan forgiveness and borrower defense to repayment discharges. Only about 3% of borrowers who applied for public service loan forgiveness have been approved. Some of those borrowers were not eligible for loan forgiveness (yet) and the loan servicer miscounted the number of qualifying payments for other borrowers. A similarly low percentage of borrower defense to repayment claims were approved by the Trump Administration.
But, borrowers do qualify for other types of loan forgiveness. About 37,000 teachers qualify for teacher loan forgiveness each year. About 4,700 borrowers qualify for an automatic closed school discharge each year.
Student Loan Forgiveness Creates A Moral Hazard
This myth asserts that student loan forgiveness creates a risk of moral hazard.
Moral hazard occurs when a student borrows to the limit because they expect their student loans to be forgiven.
Most student loan forgiveness programs cap the amount of forgiveness per borrower, thereby limiting the potential for moral hazard.
The main exceptions are public service loan forgiveness and income-driven repayment plans. Public service loan forgiveness cancels the remaining debt after the borrower has made 120 qualifying payments. The income-driven repayment plans cancel the remaining debt after 240 or 300 loan payments. A borrower must have very low income for a decade or longer to qualify for some loan forgiveness.
Blanket student loan forgiveness is likely to be a one-time event and the amount of loan forgiveness is likely to be limited.
Obama Student Loan Forgiveness
This myth claims that borrowers are eligible for Obama Student Loan Forgiveness after paying down 10% of their student loan debt or satisfying other easy criteria.
There is no such thing as “Obama Student Loan Forgiveness.” This is a name used by some student loan scams who say that they will help you apply for student loan forgiveness, if you pay them an up-front fee. The promised loan forgiveness never materializes. Changing an up-front fee for credit repair, including student loan forgiveness, violates federal and state consumer protection laws. The Federal Trace Commission (FTC) and several state attorneys general cracked down on such advance-fee loan scams in Operation Game of Loans.
Often, these scams describe a fictional loan forgiveness program that garbles characteristics of Public Service Loan Forgiveness (PSLF) and certain income-driven repayment plans.
Public Service Loan Forgiveness was created by the College Cost Reduction and Access Act of 2007, during the Bush Administration, not the Obama Administration. The loan forgiveness program became effective on October 1, 2007, before President Obama took office. This law also created income-based repayment, which became available starting on July 1, 2009. Neither of these programs were ever called Obama Student Loan Forgiveness.
Private student loans are not eligible for Public Service Loan Forgiveness or income-driven repayment.
Follow me on Twitter. Check out my website or some of my other work here.
Mark Kantrowitz
I am Publisher of PrivateStudentLoans.guru, a free web site about borrowing to pay for college. I am an expert on student financial aid, the FAFSA, scholarships, 529…
Read More
It can be tough to get back on your feet after a bankruptcy. This harms your credit score and makes it hard to apply for new loans. However, it’s not impossible! With discipline and patience, you can surely get on the way to rebuilding your credit score. The following tips will help you improve your credit bit by bit
1. Keep Your Balances Low
Use only a small amount of your available credit. According to experts, it’s best to keep your total balance below 30% of your credit limit. A low credit utilization indicates that you’ll pay whatever amount you borrow, which is a good sign for creditors.
2. Pay On Time
Your non-bankruptcy accounts do not get discharged. Some examples of these are debts like student loans or alimony, which are non-dischargeable.
These accounts continue to be active and continually impact your score. Paying them all in time helps repair your credit by lowering your debt-to-income ratio.
3. Review your Credit Report for Inaccuracies
Bankruptcy appears on your credit report for years after, damaging your score. Still, it’s much better than showing delinquent and outstanding balances.
When your debts get discharged, make sure that it shows as such. It should appear as $0 on the respective accounts.
When you spot any errors, file a dispute as soon as possible. Unfair credit reporting and inaccuracies are not uncommon. Take note of the time that bankruptcy chapters should appear on your credit report. After 10 years (Chapter 7) or 7 years (Chapter 13), your bankruptcy shouldn’t be on your credit report.
Be sure to regularly check your credit reports. You may ask a credit repair service to help you find these errors early and dispute them.
4. Get New Credit
We know that it’s hard to get credit after bankruptcy. However, if you manage to get one and pay it promptly, this builds up a history of on-time payments, improving your credit score.
Here are some ways you can easily apply for new credit:
Credit builder loan: This type of loan helps you improve your credit. Here you have to fully pay off the lender before they release the money.
Secured credit cards: It’s much easier to get a secured credit card than an unsecured one. This is because a secured credit card requires a cash security deposit. After a period of regular payment, credit card issuers will usually convert you to an unsecured credit card or increase your credit limit after a period of regular timely payments.
Retail and gas cards: These typically have lower qualification standards than other unsecured cards.
5. Have Your Payments be Reported to the Credit Bureaus
You may assume that your creditors are reporting your activity to the three major credit bureaus – namely, Equifax, TransUnion, and Experian. Sadly, lenders don’t have such an obligation. Thus, you should make sure that your creditors capture your positive credit activity and that they report it to these bureaus to raise your credit score.
6. Be Careful when Applying for Credit
A portion of your credit score is calculated based on how many new credits you apply for. Multiple credit applications over a short time can hurt your score because it may be taken as risky behavior. This is especially true if you keep being denied.
Be sure that your credit profile fits the requirements before applying. If you’re getting rejected from getting new credit cards, try improving your credit history through other means to increase the chances of your application getting approved the next time around. The following two tips will help you with this, too.
7. Become an authorized user
If you can’t get a credit card, you could ask a close friend or family to add you as an authorized user on theirs. Just by being on the account, your credit improves. If the credit card issuer reports to the credit bureaus, your payments will show up on your credit.
8. Get a Co-Signer
If you can get someone to co-sign for you, your chances of approval for credit increases. Mortgages, rental agreements, and auto loans do take cosigners. If you pay successfully, this boosts your creditworthiness.
Consult with a credible and experienced bankruptcy attorney to help you on your path to financial freedom. Call us at the Northwest Debt Relief Law Firm for legal help and assistance.
.fusion-body .fusion-builder-column-0{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-0 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:850px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-1{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}
The post 8 TIPS ON HOW TO REBUILD YOUR CREDIT appeared first on Vancouver Bankruptcy Attorney | Northwest Debt Relief Law Firm.
FTC Bans Payday Lender and Forgive Illegal Debt – Lead Express, Inc.; Camel Coins, Inc.; Sea Mirror, Inc,; Naito Corp.; Kotobuki Marketing, Inc.; Ebisu Marketing, Inc.; Hotei Marketing, Inc.; and Daikoku Marketing, Inc.From Industry
Owners, operators of tribal payday lending scheme settle charges they defrauded millions of dollars from consumers
The owners and operators of a vast payday lending scheme that overcharged consumers millions of dollars will be permanently banned from the lending industry under the terms of a settlement with the Federal Trade Commission. The settlement also provides that nearly all outstanding debt—made up entirely of illegal finance charges—held by the company will be deemed as paid in full.
The scheme, which was operated online under the names Harvest Moon Financial, Gentle Breeze Online, and Green Stream Lending, used deceptive marketing to convince consumers that their loans would be repaid in a fixed number of payments. The FTC’s complaint alleged that the company instead continued to draw millions of dollars in payments from consumers’ bank accounts long after the loans’ original principal amount and stated repayment cost had been repaid, and would do so until consumers completely closed their bank accounts or found some other way to cut off payments.
We expect payday lenders to honor their deal, and not take never-ending series of unexpected withdrawals from customers’ bank accounts.
Payday loan trap
“These defendants hoodwinked people in financial need by charging much more than promised for payday loans,” said Daniel Kaufman, Acting Director of the FTC’s Bureau of Consumer Protection. “We expect payday lenders to not only honor the terms of their deal, but also to refrain from making a never-ending series of unexpected withdrawals from customers’ bank accounts, as these companies did.”
Permanently prohibited from making loans
Under the terms of the settlement, Takehisa Naito and Keishi Ikeda, along with their companies Lead Express, Inc.; Camel Coins, Inc.; Sea Mirror, Inc,; Naito Corp.; Kotobuki Marketing, Inc.; Ebisu Marketing, Inc.; Hotei Marketing, Inc.; and Daikoku Marketing, Inc. will be permanently prohibited from making loans or extending credit of any kind.
The settlement includes a monetary judgment of $114.3 million, which is partially suspended based on an inability to pay. The defendants will be required to turn over all corporate assets and almost all domestic personal assets along with a number of vehicles to a receiver. The receiver will wind down and liquidate the business and provide all proceeds to the FTC.
Debt paid in full if the original amount of the loan and one finance charge have been paid
Any consumer loan made by the company before it was temporarily shut down as part of the case will be considered to be paid in full if the original amount of the loan and one finance charge have been paid. The settlement also prohibits the defendants from making any misrepresentations related to collecting on any debt, as well as prohibiting them from making unauthorized withdrawals from bank accounts.
If the defendants are found to have misrepresented their financial status, the full amount of the monetary judgment would be immediately due.
The FTC’s case against defendant La Posta Tribal Lending Enterprise will continue.
The Commission vote approving the stipulated final order was 5-0. The FTC filed the proposed order in the U.S. District Court for the District of Nevada.
.fusion-body .fusion-builder-column-1{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-1 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-1{width:100% !important;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-1{width:100% !important;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:980px) {.fusion-title.fusion-title-1{margin-top:15px!important;margin-bottom:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-1{margin-top:10px!important;margin-bottom:10px!important;}}MUSINGS BY DIANE:
Fact – anyone under financial stress will usually make decisions based on emotion and not logic. Read this article: Debt Makes you Stupid. These decisions will get that person into more financial hot water than then before. Payday lenders, vehicle title lenders and other “hard money” lenders are counting on your fear and desperation. They know you cannot afford the loan and, eventually they will be able to garnish your wages or seize your vehicle. Call it extortion because that is what these lenders do. Don’t fall for their lies.
You are a good person, just someone in a bad situation. Never take a loan on your vehicle, unless you don’t need it. Never take a payday loan, unless you are positive you can pay back three to five times the loan (that is usually the amount of interest you will pay).
Ask for help and don’t be embarrassed by your situation. There are very few people in this world who have never had financial problems, some more than others.
@media only screen and (max-width:980px) {.fusion-title.fusion-title-2{margin-top:0px!important;margin-bottom:6px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-2{margin-top:10px!important;margin-bottom:10px!important;}}– Diane L. Drain.fusion-body .fusion-builder-column-2{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-2 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 30px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 45px !important;margin-left : 1.92%;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-2{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}.fusion-button.button-1 {border-radius:10px;}.fusion-button.button-1.button-3d{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);}.button-1.button-3d:active{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);}Click here for steps to your free bankruptcy consultation
.fusion-body .fusion-builder-column-4{width:25% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-4 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 10px;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 10px;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-4{width:100% !important;order : 0;}.fusion-builder-column-4 > .fusion-column-wrapper {margin-right : 10px;margin-left : 10px;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-4{width:100% !important;order : 0;}.fusion-builder-column-4 > .fusion-column-wrapper {margin-right : 10px;margin-left : 10px;}}
- Payday lender or loan shark: is there really a difference?
- Abuses in Online Payday Lending are Widespread
- CFPB Finds Payday & Deposit Advance Loans a Trap for Consumers
- Are you financially stressed right now? What to know about options, from debt negotiation to bankruptcy
.fusion-body .fusion-builder-column-5{width:75% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-5 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 15px !important;margin-right : 10px;padding-bottom : 0px !important;padding-left : 15px !important;margin-left : 10px;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-5{width:100% !important;order : 0;}.fusion-builder-column-5 > .fusion-column-wrapper {margin-right : 10px;margin-left : 10px;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-5{width:100% !important;order : 0;}.fusion-builder-column-5 > .fusion-column-wrapper {margin-right : 10px;margin-left : 10px;}}.fusion-body .fusion-flex-container.fusion-builder-row-4{ padding-top : 0px;margin-top : 5;padding-right : 0px;padding-bottom : 0px;margin-bottom : 20px;padding-left : 0px;}
The post FTC Bans Payday Lenders: Harvest Moon, Gentle Breeze and Green Stream. Forgives Illegal Debt appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.
A bankruptcy filing is a legal proceeding that enables a debtor to repay debts from his or her creditors. For individuals who are struggling with debt and financial problems, filing bankruptcy would be beneficial. It allows them to have a fresh start and to improve their lives through proper financial management.
There are different bankruptcy options that you may choose from. The choice depends on the types of debt you owe, your monthly income, and living expenses, among other factors. Bankruptcy lawyers can help you understand the advantages and disadvantages of each chapter. It is also important that you understand the basics of bankruptcy law and the bankruptcy process before you proceed with filing a bankruptcy petition.
The two most common types of bankruptcy are Chapter 7, which is also called liquidation bankruptcy, and Chapter 13, which is also called a reorganization bankruptcy. A bankruptcy means test is also used to determine the right bankruptcy option for your specific circumstance.
A bankruptcy proceeding begins when an individual files a bankruptcy petition. This is done by submitting relevant papers and supporting documents to the bankruptcy court. Once the court has approved the petition in bankruptcy, an automatic stay will take effect. An automatic stay protects a debtor from creditor harassment. It prohibits any collection activities from debt collectors, including phone calls, emails, wage garnishment, and foreclosure.
What are the advantages when you file for bankruptcy?
Chapter 7 and Chapter 13 bankruptcy work differently. When filing Chapter 7, it would only take up to three to four months for you to wipe out your debts. On the other hand, a Chapter 13 bankruptcy will take up to three to five years, or the time needed to complete the agreed debt repayment plan. However, all the remaining unsecured debt after the completion of your payment plan will be discharged.
Chapter 7 Bankruptcy
In declaring bankruptcy, you must be aware of the qualifications for the different bankruptcy forms. Liquidation bankruptcy is primarily for those individuals who do not have a large amount of income. In Chapter 7, a debtor must surrender his or her nonexempt assets to be able to pay back loans. The bankruptcy trustee will liquidate properties and distribute the funds to the creditors. If you have enough revenue to repay your creditors, you will be able to take full advantage of the additional benefits given by a reorganization bankruptcy instead.
Chapter 13 Bankruptcy
When filing bankruptcy Chapter 13, you may be able to secure your assets while paying your debts. This chapter would stop foreclosure and compel the creditor to approve a debt repayment plan that would enable you to keep up for unpaid payments. In this case, you must prove that you have sufficient income to pay off loans and make timely monthly payments in the future.
Chapter 13 bankruptcy also allows an individual to keep his or her assets that are not included in the bankruptcy exemption. Another advantage of filing Chapter 13 is the fact that you may be able to “cramdown” secured debts if the asset is worth less than the value owed. Bankruptcy Chapter 13 has a proceeding that allows filers to reduce the liability to the current value. However, the cramdown clause may not be used by filers to decrease the mortgage of a residential home.
Bankruptcy filings provide relief from an overwhelming amount of debt. However, there are obligations that a bankruptcy filing cannot eliminate:
- In itself, a bankruptcy filing cannot magically stop a secured creditor from foreclosing or repossessing property. A bankruptcy discharge can wipe out debts, but it cannot eliminate liens. A lien enables the creditor to take assets, sell them and incorporate the proceeds into the balance of a debt. Until the loan is repaid, the lien gets to stay on the property. The lender may pursue his lien rights for foreclosure as long as the mortgage remains unpaid. A repayment plan can instead allow you to make current missed payments for a longer period.
- Filing for bankruptcy cannot discharge child support and alimony. These obligations must be paid in full.
- When you file bankruptcy, student loan debt may only be forgiven if you can demonstrate that paying back the debt would cause you “undue hardship”. You must prove that you are not capable of paying your debts and that your capacity to pay in the future has very little probability.
- Bankruptcy proceedings cannot wipe-out tax debt. It is not easy to eliminate tax debt. However, for older unpaid tax loans, it can sometimes be possible.
- Bankruptcy cannot eliminate non-dischargeable debts such as criminal fines and penalties, debts you have missed to include in your paperwork, and debts involving personal injury and death. These debts will stay until your bankruptcy case is closed if you chose to file under Chapter 7. In Chapter 13, by the time you finish your proposed repayment plan, you are likely already able to pay back these debts in full.
A bankruptcy attorney will help you decide on the right bankruptcy chapter for you and assist with the actual filing.
Consulting an experienced bankruptcy lawyer is important to prevent any legal issues during the proceeding. Contact us at the Northwest Debt Relief Law Firm for legal help and assistance.
.fusion-body .fusion-builder-column-9{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-9 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-9{width:100% !important;order : 0;}.fusion-builder-column-9 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:850px) {.fusion-body .fusion-builder-column-9{width:100% !important;order : 0;}.fusion-builder-column-9 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-10{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}
The post What are the Advantages When You File Bankruptcy? appeared first on Vancouver Bankruptcy Attorney | Northwest Debt Relief Law Firm.
“Diane is the most knowledgeable and committed bankruptcy attorney I know – and I know a few!” Theo Mathews
Diane Drain was my bankruptcy professor in law school. I now practice bankruptcy. Diane is the most knowledgeable and committed bankruptcy attorney I know – and I know a few! She is still a great teacher to me and always made time to discuss bankruptcy law. I know she is this way with her Clients as well. She has genuine concern for their legal well being. Her staff are excellent as well. Thank you Diane!
.fusion-body .fusion-builder-column-0{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-0 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-1{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}
The post ATTORNEY REVIEWS – Diane is the most knowledgeable and committed bankruptcy attorney I know – and I know a few! appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.
There are things you should consider before filing bankruptcy. It includes your eligibility to file bankruptcy, the types of debt you owe to your creditor, your monthly income, and living expenses. Bankruptcy enables a debtor to virtually pay all of his or her debts to creditors. You should take the opportunity to look into the specifics of each bankruptcy chapter. Doing so will enable you to decide on what would be the best option for you as you work on your bankruptcy case.
Hiring a bankruptcy attorney is important for you to understand relevant bankruptcy laws. Bankruptcy rules may be complicated. To avoid any issues during the bankruptcy process, it is beneficial for you to consult a reliable bankruptcy lawyer before you gather relevant documents and file for bankruptcy.
A bankruptcy proceeding starts when a filer submits a petition for bankruptcy to court. The bankruptcy court would evaluate your case and once they approve your bankruptcy petition, an automatic stay will be effective immediately. An automatic stay prohibits any collection activities from debt collectors. This would also stop phone calls, wage garnishment, foreclosure, and creditor harassment.
Struggling with debt is not easy. This is why declaring bankruptcy is important: it can help you have a fresh start with your finances. Filing a petition in bankruptcy has a lot of advantages. One of the main objectives of a bankruptcy filing, however, is for you to obtain a bankruptcy discharge. This will release you from the obligation of making payments for your debts.
It is difficult to repay debts while trying to meet your current needs. Understanding pertinent bankruptcy law will help you maximize the chance to rebuild your financial future. When filing bankruptcy, you need to provide financial statements and paperwork where you disclose all your assets and all the debts you owe.
Different types of debt can be discharged (in contrast to those that cannot be wiped-out). Dischargeable debts include unsecured debts like credit card bills and medical bills. Non-dischargeable debts, meanwhile, are secured debts, child support, alimony, student loan debt, and certain tax debt. You should know which types of debt are dischargeable and which are not when considering bankruptcy.
Bankruptcy lawyers can assist you on how to file a bankruptcy petition and will help you understand the advantages of available bankruptcy options for you.
What are the types of bankruptcy?
There are different types of bankruptcy. The most commonly used are Chapter 7 (liquidation bankruptcy) and Chapter 13 (reorganization bankruptcy). The usefulness of bankruptcy filings under each chapter will depend on your situation.
Filing Chapter 7 bankruptcy
When filing under Chapter 7, a bankruptcy trustee will be the one to liquidate and manage the sales of your nonexempt assets. The funds will then be distributed to your debt collectors.
A trustee is assigned for each bankruptcy case, who is tasked to manage transactions and evaluate claims. This is to prevent any interaction between the debtor and any creditor involved. This is helpful if you want to avoid any issues during the entire bankruptcy procedure.
At the end of the proceeding, a bankruptcy discharge can be obtained. This is usually after all your non-exempt assets have been sold.
It is important to be honest when providing information regarding your debts and financial statements to the bankruptcy court. If the court finds out that you did not fully disclose certain information, you may be sued for fraud and may be sentenced with fines and penalties.
Bankruptcy filing under Chapter 13
If you want to secure your properties while paying your debts, Chapter 13 is the best option for you. You may be able to save your home and vehicle while making payments to your creditors.
In Chapter 13, you will have to make a payment plan that will give you enough time to repay your debts. The debt-repayment plan would usually take three to five years. It would take longer than a Chapter 7 bankruptcy declaration but you will not be required to surrender any of your properties. Note, however, that the debt repayment plan must be realistic and is within your budget or ability to pay debts.
Failure to make regular payments would affect your bankruptcy filing and may cause a denial when obtaining a bankruptcy discharge.
What are the requirements for filing bankruptcy?
If you have decided to file for consumer bankruptcy, you must meet certain qualifications. A bankruptcy means test is used to determine the level of your monthly income, whether it qualifies for bankruptcy under Chapter 7 or Chapter 13. If you pass the means test, you must gather all documents regarding your properties and finances. You are required to fill out bankruptcy forms and then file a bankruptcy petition to the court.
Dealing with debt and financial problems is not easy. It is highly recommended to ask for legal help and assistance regarding your bankruptcy case. Contact us at Northwest Debt Relief Law Firm and have a fresh start with your finances.
.fusion-body .fusion-builder-column-1{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-1 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-1{width:100% !important;order : 0;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:850px) {.fusion-body .fusion-builder-column-1{width:100% !important;order : 0;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-2{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}
The post A Quick Guide on How to File Bankruptcy appeared first on Vancouver Bankruptcy Attorney | Northwest Debt Relief Law Firm.
The three toughest questions at your bankruptcy hearing. The three toughest bankruptcy hearing questions are NOT what most people expect. The bankruptcy trustee does NOT ask you to explain how you got into this mess. They are not asking about your plans for the future. And the creditors are NOT there demanding their money. Have […]
The post The three toughest questions at your bankruptcy hearing by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.