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Tag Archives: bankruptcy

Excessive Consumer Spending Versus Economic Stimulus

Bankruptcy presents somewhat of a paradox. It is a deterrent to excessive consumer spending but can also serve as an economic stimulus. On a personal level, people understand that spending more than they earn results in financial problems. However, sometimes for a business to get off the ground, some investment risk is necessary. This is… Read More »

Proposed Legislation to Deal with the Growing Problem of Student Loan Debt

A Senate judiciary subcommittee is looking into the nation’s growing student loan debt problem. Government data revealed that there was a 15 percent loan default rate at private institutions in 2009. Senate Majority Whip Richard J. Durbin convened the judiciary subcommittee and sponsored legislation to allow individuals to discharge private student loan debts through bankruptcy…. Read More »

A Slice of World Bankruptcy History

The idea of canceling debts is not a new one. In Biblical times, debts were also overwhelming. People virtually had no recourse and when facing insurmountable debt, sold themselves into slavery. During these times, the Old Testament records Mosaic laws that required the Israelites to forgive debtors their debts every seven years. However, this law… Read More »

Undue Hardship and Student Loans

Prior to the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005, private student loans were dischargeable. However the BAPCPA changed that. It is a general fact that under the Bankruptcy Code, student loans are not dischargeable. However, under certain circumstances debtors strapped with student loans can discharge them through bankruptcy. The exception falls… Read More »

How Unperfected and Perfected Liens Work in Bankruptcy

Liens refer to secured property where the property is used as collateral for loans. To perfect a lien, the lender must file it with the correct legal authority. For example, a car dealership must file the lien with the Department of Motor Vehicles or whichever authority in the dealership’s particular state handles the filing of… Read More »

Advantages of Using a Loan Modification Lawyer

Many people today have mortgage loans they can no longer afford, and worry about avoiding foreclosure and filing for bankruptcy. Loan modification may be an alternative to bankruptcy in some cases; however, trying to deal with a lender on your own can be difficult. Many bankruptcy attorneys negotiate with lenders on behalf of individuals who… Read More »

What Happens to Cosigners When You File for Bankruptcy?

When your credit is not good enough to qualify for a loan, the lender may require a co-signer.  This practice is common with young people who have not established credit but want to buy a car or a home, and their parents help them out by co-signing. Unfortunately, you cannot usually foresee tough economic times,… Read More »

What Are Motions from Relief of Stay?

Filing bankruptcy triggers an automatic stay, which is a court order called an injunction that prevents creditors from further debt collection efforts.  The stay usually halts foreclosure, repossession, wage garnishment, lawsuits, and other creditor actions against you. A motion for relief from stay is a motion that a creditor files with the court to relieve… Read More »

What is a Subordination Agreement and How Does It Apply to Bankruptcy?

Like other specialized fields, bankruptcy contains many terms and financial concepts that can be confusing or unfamiliar.  Subordination agreement is often one of these terms. To subordinate something means to place it lower in rank or importance.  In bankruptcy, creditors are subject to subordination, meaning some creditors take priority for payment over others. A subordination… Read More »

Rights and Protections after Bankruptcy

Feeling hunted and hounded by creditors is definitely something debtors want to put behind them—even after bankruptcy is over.  During bankruptcy, an automatic stay prevents credit collection activities.  Similarly, a discharge relieves debtors from further debt liability and also prohibits creditor collection attempts after bankruptcy.  However, what can debtors do if a creditor continues to… Read More »