Up until 2005, there were many more options for students who decided to declare bankruptcy in order to avoid repayment of their student debt. However, borrower's bankruptcy options on student loans have been cut to very few. Changes in the Bankruptcy Code in late 1998 made most student loans non-dischargeable, which means that even if a student filed for bankruptcy, he/she would retain the loan and have to repay. This is regardless of the age of the loan unless the borrower can prove "substantial hardship".
Hardship means that repayment will create undue hardship the repayment of the loan will create an undue hardship on the debtor/borrower and his family. This is defined as the debtor cannot maintain a minimally adequate standard of living and repay the loan with proof being the conditions are such that repayment and living at the minimum standard are impossible and that this situation is unlikely to improve substantially over time. Many undue hardship cases are compared to the 1987 case argued before the U.S. Supreme of Marie BRUNNER, Appellant, v. the New York State Higher Education Services Corp., Appellee.
There are less drastic methods besides student loan bankruptcy when you run into problems financially. Aside from bankruptcy, a defaulted student loan can be rehabilitated, consolidated, stretched out or discharged if the default is because of disability. If it is not defaulted, then ask for a forbearance or deferment.
If the borrower does reach the "wage garnishment" stage, some small comfort can be taken in the fact that federal regulations limit the amount of the student/borrowers garnishment to 10% of the total amount borrowed. Before reaching that stage, other options are available including contacting various agencies who can offer information on workouts and student loan consolidation programs for loans in trouble, including a program of repayment based on income. Nolo Press and EdFund have information on student loans. Carreon & Associates provides information defaulted loans and Consumer reports provides facts on graduated payments.
While there are many reasons why student loan bankruptcy might seem a viable option, in today's world, it should be the last and not the first resort. In point of fact, the only thing that it will affect in terms of debt reduction and the student loan is that it will reduce the borrowers other debts making it easier to repay the student loan. As a result, unless there is no other option available, student loan bankruptcy is not a good way to go unless all other bills and creditors involved need to be held off. If the sole purpose of filing bankruptcy is to avoid repayment of student loan debt, it is not the correct course of action.
Article Source: http://EzineArticles.com/?expert=Rob_Hickey
Monday, November 12, 2007
7 Scams To Avoid When Recovering From Bankruptcy
Any bankruptcy lawyer worth his fee and weight in gold, knowledgeable and experienced in the field, application, specialty sector of the market, will tell you that the intricacies and complexities of the personal bankruptcy filing process, business bankruptcy or chapter 7 or 13 bankruptcy procedures, are nothing to tangle with lightly. It is not a welcoming, inviting world for newbies and novices, or those who are going the journey and challenges alone. Not only that, it is made more perilous by criminal elements taking advantage of fraud, scams and crime, to exploit, steal, lie and get what is not rightfully their to ask or take, by some scam or scheme.
Bankruptcy law requires a fair amount of scrutiny, scruples and wise discernment, especially during the recovery phases, when there are many unscrupulous elements and exploiters out to make a quick buck, off the misfortunes, desperation and angst of those who have faltered, fallen and could not successfully stave off or avoid bankruptcy. To them any straw or glimmer of hope seems worth embracing, even if it means taking a risk, against all odds, believing in something so ludicrous that someone in different circumstances might just see right through it, without any difficulty, but they do, can not or do not want to, do not care or have no choice and are taken advantage of, lied to, stolen from and left devastated with and by yet another setback.
Utilizing the specialty services on offer in the realms and arena of the big league bankruptcy attorney California talent-pool or bankruptcy Los Angeles specialist practitioners, might cost you some disbursements and fees down the line, when assets are liquidated, bills settled for quality and comprehensive bankruptcy services rendered and delivered. However, it will be totally worth it to protect you against some of the scams, fraudulent practices and outright misleading out there.
Do not be merely one more or another statistic, be taken advantage of, sign anything until you know and verify whom you are dealing with, what is at stake, check them with the better business bureau. If you have to and retain a qualified, licensed and experienced attorney bankruptcy law expert and insider, to handle all aspects of your filing, case and recovery, do so. You will not regret it.
Home equity loan bankruptcy candidates and prospects are especially vulnerable, as they are hooked into signing away their most prized possession and asset, their home!
Many online, fly-by-night, fronts and criminal rings tap into this ‘hidden’ market to take advantage of exploiting those desperate for a bankruptcy loan, look for financing for cars, homes and other ventures, in the post-filing bankruptcy phases and stages. (These can typically last up to 7-10 years on a credit report, affecting access and credit ratings, scores negatively. They then step in, looking like the ‘heroes that save the day, at exorbitant rates and terms, getting people to sign away their life savings, pensions, equity rights and assets, from a position of powerless, hopeless, despair and desperation, turning out to be the would-be thieves, loan-sharks and criminal wolves in sheep’s-clothing that they really are, just out to make a quick buck and take what does not legally belong to them.
One of the most common bankruptcy form offenses and misleading out there, is the purchase of a falsified, fraudulent, inaccurate, or false credit score. This is actually breaking the law and a crime that you can be prosecuted for, so avoid this practice in its entirety.
If you are an unfortunate candidate for filing bankruptcy, or you have gone through the process, protect your interests and well-being, not falling victim to identity thieves, loan sharks and unscrupulous opportunistic lenders, who want to exploit your circumstances and unfortunate fate, turn of events and slow, painstaking recovery.
In the current realty markets, with all the foreclosures, some markets are especially vulnerable, think of the seniors in Florida bankruptcy processes, at risk to lose their homes and life savings. Those after hurricane season, natural disaster left with nothing but bad debt and no options, or those with simply too much credit card debt, who opt to get representation in the sunny state from a reputable Florida bankruptcy lawyer, to handle all aspects of it, only to find that they have been sold down the river, by someone posing to be what they are not.
There are lots of money to be made in the cadres and halls of after bankruptcy recovery type markets, especially now in this downturn type economy that we are facing.
#1: There are bankruptcy car loan schemes, after bankruptcy car loan financing at exorbitant rates, that promises the world, for an arm and a leg and then some, making the real market for car loan after bankruptcy more complex than it has to be, for those recovering from bankruptcy themselves, making debt relief seem even more unrealistic than ever.
#2: There are emails and spam that enter your mailbox, (spammers), enticing you to consolidate your bills into one monthly payment without borrowing; stopping all credit harassment, foreclosures, repossessions, tax levies and garnishments; or wipe out your debts. These are then offered through the means of declaring bankruptcy, without the candidate or prospect being told that’s what it is. It is a last resort, not a quick fix strategy for everyone. Take care and be cautioned to pay special attention to all the long-term negative impact on your creditworthiness of these types of steps, filings and processes. There might also even be attorney fees that you will end up being responsible for and footing the bill. Read the fine print before signing anything and know whom you are dealing with.
# 3: Home equity, home collateral type loans are also being exploited right now in the uncertain, downturn, foreclosure, over-extended mortgage market we are in. This leads to making some extremely gullible, desperate and an open target to be taken advantage of, by criminals that approach them with ‘creative’ short-term financing, that only digs the hole of debt deeper. This results in owners losing the equity or deeds to their homes, being taken advantage, especially true and sad of those facing the challenges and obstacles so common surrounding this financial situation. No real solutions, just more heartache, debt and ruined credit, stolen identity and worse.
#4: Then there are the companies offering bankruptcy credit repair services under the guise to get your information, financial details, to ruin your credit, steal, conduct crime and leave you to sort out the mess and aftermath. There are no quick and easy ways to clean or wipe out a bad credit report; delete your bankruptcy record or create a new identity using a TIN or business tax number for example. These are all fraudulent practices. Remember, if an offer sounds too good to be true, in all likelihood it is or will prove to be down the line.
#5: Offering solutions that are downright criminal, but does not sound that bad. Getting a fake identity, effectively concealing any/your bankruptcy is against the law. It is a crime for which you can be prosecuted. Getting an Employer Identification Number (EIN) that you will use in your credit application instead of your social security number actually proposes fraudulent intent, which the dress up as a great way to get your life and finances, debt, credit rating back on par – they forget to mention that you might go to jail in the process (as this is a crime)
#6: Bankruptcy foreclosure fraud scams, taking advantage of yet another loophole in the system identified as many as five different kinds and rings of bankruptcy fore-closer type scams, in the L.A. area. This is but one and a recent example of how opportunistic these types of practices can be. There are trends in the market to file for bankruptcy to delay or defraud creditors, home lenders, without the clear intention and purpose to actually see it through and adhere to the requirements for obtaining a bankruptcy discharge or completing a repayment plan.
#7: Other scams to look out for are ways others get you to part with the little that you do have, pay off creditors that do not matter (taking the money, never paying your bills). NEVER pay anyone upfront money, or funds in advance. Do not give out any personal or financial information with which you do not feel 100% confident and comfortable.
There are exploiters and abusers of the processes too, both debtors and creditors trying to obtain more than they are entitled to under the Bankruptcy Code. Do not get roped into this by so-called professionals professing and advocating maximizing the retention of assets in bankruptcy, conceal earlier crimes, maximize profit, while leaving town with your riches and precious little recourse that you had left, taking with them means, opportunity, reputation and hope.
Article Source: http://EzineArticles.com/?expert=Alexander_Wennstrom
Bankruptcy law requires a fair amount of scrutiny, scruples and wise discernment, especially during the recovery phases, when there are many unscrupulous elements and exploiters out to make a quick buck, off the misfortunes, desperation and angst of those who have faltered, fallen and could not successfully stave off or avoid bankruptcy. To them any straw or glimmer of hope seems worth embracing, even if it means taking a risk, against all odds, believing in something so ludicrous that someone in different circumstances might just see right through it, without any difficulty, but they do, can not or do not want to, do not care or have no choice and are taken advantage of, lied to, stolen from and left devastated with and by yet another setback.
Utilizing the specialty services on offer in the realms and arena of the big league bankruptcy attorney California talent-pool or bankruptcy Los Angeles specialist practitioners, might cost you some disbursements and fees down the line, when assets are liquidated, bills settled for quality and comprehensive bankruptcy services rendered and delivered. However, it will be totally worth it to protect you against some of the scams, fraudulent practices and outright misleading out there.
Do not be merely one more or another statistic, be taken advantage of, sign anything until you know and verify whom you are dealing with, what is at stake, check them with the better business bureau. If you have to and retain a qualified, licensed and experienced attorney bankruptcy law expert and insider, to handle all aspects of your filing, case and recovery, do so. You will not regret it.
Home equity loan bankruptcy candidates and prospects are especially vulnerable, as they are hooked into signing away their most prized possession and asset, their home!
Many online, fly-by-night, fronts and criminal rings tap into this ‘hidden’ market to take advantage of exploiting those desperate for a bankruptcy loan, look for financing for cars, homes and other ventures, in the post-filing bankruptcy phases and stages. (These can typically last up to 7-10 years on a credit report, affecting access and credit ratings, scores negatively. They then step in, looking like the ‘heroes that save the day, at exorbitant rates and terms, getting people to sign away their life savings, pensions, equity rights and assets, from a position of powerless, hopeless, despair and desperation, turning out to be the would-be thieves, loan-sharks and criminal wolves in sheep’s-clothing that they really are, just out to make a quick buck and take what does not legally belong to them.
One of the most common bankruptcy form offenses and misleading out there, is the purchase of a falsified, fraudulent, inaccurate, or false credit score. This is actually breaking the law and a crime that you can be prosecuted for, so avoid this practice in its entirety.
If you are an unfortunate candidate for filing bankruptcy, or you have gone through the process, protect your interests and well-being, not falling victim to identity thieves, loan sharks and unscrupulous opportunistic lenders, who want to exploit your circumstances and unfortunate fate, turn of events and slow, painstaking recovery.
In the current realty markets, with all the foreclosures, some markets are especially vulnerable, think of the seniors in Florida bankruptcy processes, at risk to lose their homes and life savings. Those after hurricane season, natural disaster left with nothing but bad debt and no options, or those with simply too much credit card debt, who opt to get representation in the sunny state from a reputable Florida bankruptcy lawyer, to handle all aspects of it, only to find that they have been sold down the river, by someone posing to be what they are not.
There are lots of money to be made in the cadres and halls of after bankruptcy recovery type markets, especially now in this downturn type economy that we are facing.
#1: There are bankruptcy car loan schemes, after bankruptcy car loan financing at exorbitant rates, that promises the world, for an arm and a leg and then some, making the real market for car loan after bankruptcy more complex than it has to be, for those recovering from bankruptcy themselves, making debt relief seem even more unrealistic than ever.
#2: There are emails and spam that enter your mailbox, (spammers), enticing you to consolidate your bills into one monthly payment without borrowing; stopping all credit harassment, foreclosures, repossessions, tax levies and garnishments; or wipe out your debts. These are then offered through the means of declaring bankruptcy, without the candidate or prospect being told that’s what it is. It is a last resort, not a quick fix strategy for everyone. Take care and be cautioned to pay special attention to all the long-term negative impact on your creditworthiness of these types of steps, filings and processes. There might also even be attorney fees that you will end up being responsible for and footing the bill. Read the fine print before signing anything and know whom you are dealing with.
# 3: Home equity, home collateral type loans are also being exploited right now in the uncertain, downturn, foreclosure, over-extended mortgage market we are in. This leads to making some extremely gullible, desperate and an open target to be taken advantage of, by criminals that approach them with ‘creative’ short-term financing, that only digs the hole of debt deeper. This results in owners losing the equity or deeds to their homes, being taken advantage, especially true and sad of those facing the challenges and obstacles so common surrounding this financial situation. No real solutions, just more heartache, debt and ruined credit, stolen identity and worse.
#4: Then there are the companies offering bankruptcy credit repair services under the guise to get your information, financial details, to ruin your credit, steal, conduct crime and leave you to sort out the mess and aftermath. There are no quick and easy ways to clean or wipe out a bad credit report; delete your bankruptcy record or create a new identity using a TIN or business tax number for example. These are all fraudulent practices. Remember, if an offer sounds too good to be true, in all likelihood it is or will prove to be down the line.
#5: Offering solutions that are downright criminal, but does not sound that bad. Getting a fake identity, effectively concealing any/your bankruptcy is against the law. It is a crime for which you can be prosecuted. Getting an Employer Identification Number (EIN) that you will use in your credit application instead of your social security number actually proposes fraudulent intent, which the dress up as a great way to get your life and finances, debt, credit rating back on par – they forget to mention that you might go to jail in the process (as this is a crime)
#6: Bankruptcy foreclosure fraud scams, taking advantage of yet another loophole in the system identified as many as five different kinds and rings of bankruptcy fore-closer type scams, in the L.A. area. This is but one and a recent example of how opportunistic these types of practices can be. There are trends in the market to file for bankruptcy to delay or defraud creditors, home lenders, without the clear intention and purpose to actually see it through and adhere to the requirements for obtaining a bankruptcy discharge or completing a repayment plan.
#7: Other scams to look out for are ways others get you to part with the little that you do have, pay off creditors that do not matter (taking the money, never paying your bills). NEVER pay anyone upfront money, or funds in advance. Do not give out any personal or financial information with which you do not feel 100% confident and comfortable.
There are exploiters and abusers of the processes too, both debtors and creditors trying to obtain more than they are entitled to under the Bankruptcy Code. Do not get roped into this by so-called professionals professing and advocating maximizing the retention of assets in bankruptcy, conceal earlier crimes, maximize profit, while leaving town with your riches and precious little recourse that you had left, taking with them means, opportunity, reputation and hope.
Article Source: http://EzineArticles.com/?expert=Alexander_Wennstrom
How To Avoid Bankruptcy
In many cases, bankruptcy can be avoided if the habits that lead to one filing bankruptcy are curbed early on in life. It is never too soon for individuals to learn how to avoid bankruptcy.
People in the United States tend to live on credit quite a bit. Many individuals feel pressured to keep up with neighbors, friends and family and end up overextending themselves on their credit cards. Unfortunately, credit card lenders are pretty indiscriminate as to who they issue credit. There are hundreds of thousands of credit card companies in the United States today. And once someone gets one credit card, chances are they will begin to see many offers coming through the mail for more credit.
This can be tempting, especially for younger people. A good percentage of people who file bankruptcy in the United States each year are young people recently graduated from college. In addition to student loans, college students often use credit cards for everything from pizza to books, with the intent to pay off the debt once they graduate and get a job. Hard reality sets in when they realize how long it will take to pay off the debt mounted on their credit cards, especially as it continues to accumulate interest at a high rate. Still, college students are a prime target of credit card lenders. And many of these young people are handling credit for the first time in their lives. It is very easy to let it get out of hand.
How to avoid bankruptcy? Individuals must learn, early on, to live within their means. This is especially true for young people. Parents should teach children early on how to use credit in a responsible way. College students should limit themselves to one credit card with a low balance, to be used just for emergencies.
Another way how to avoid bankruptcy is to use debit cards instead of credit cards. Debit cards are usually offered by banks and the money is taken directly from your checking account. Because most debit cards usually have a VISA or MASTERCARD logo, they can usually be used in the same places as a credit card. Only the funds are available in the account, not owed.
Individuals who want to learn how to avoid bankruptcy can also take seminars and classes on financial management. Here they can learn which items are wise to buy on credit (real estate) and which items to avoid buying on credit (vacations) as well as investment strategies.
Living within your means and only buying things you can afford is one way how to avoid bankruptcy.
You're about to discover secret underground free online movies website that the movie companies DON'T want you to see! Stop the big movie companies from fleecing you of your hard earned money, and discover free movies online with free tv on pc to see the latest movies for free!
Article Source: http://EzineArticles.com/?expert=George_Wood
People in the United States tend to live on credit quite a bit. Many individuals feel pressured to keep up with neighbors, friends and family and end up overextending themselves on their credit cards. Unfortunately, credit card lenders are pretty indiscriminate as to who they issue credit. There are hundreds of thousands of credit card companies in the United States today. And once someone gets one credit card, chances are they will begin to see many offers coming through the mail for more credit.
This can be tempting, especially for younger people. A good percentage of people who file bankruptcy in the United States each year are young people recently graduated from college. In addition to student loans, college students often use credit cards for everything from pizza to books, with the intent to pay off the debt once they graduate and get a job. Hard reality sets in when they realize how long it will take to pay off the debt mounted on their credit cards, especially as it continues to accumulate interest at a high rate. Still, college students are a prime target of credit card lenders. And many of these young people are handling credit for the first time in their lives. It is very easy to let it get out of hand.
How to avoid bankruptcy? Individuals must learn, early on, to live within their means. This is especially true for young people. Parents should teach children early on how to use credit in a responsible way. College students should limit themselves to one credit card with a low balance, to be used just for emergencies.
Another way how to avoid bankruptcy is to use debit cards instead of credit cards. Debit cards are usually offered by banks and the money is taken directly from your checking account. Because most debit cards usually have a VISA or MASTERCARD logo, they can usually be used in the same places as a credit card. Only the funds are available in the account, not owed.
Individuals who want to learn how to avoid bankruptcy can also take seminars and classes on financial management. Here they can learn which items are wise to buy on credit (real estate) and which items to avoid buying on credit (vacations) as well as investment strategies.
Living within your means and only buying things you can afford is one way how to avoid bankruptcy.
You're about to discover secret underground free online movies website that the movie companies DON'T want you to see! Stop the big movie companies from fleecing you of your hard earned money, and discover free movies online with free tv on pc to see the latest movies for free!
Article Source: http://EzineArticles.com/?expert=George_Wood
Subscribe to:
Posts (Atom)