NC Bankruptcy Blog

When a Student Loan is Too Much to Pay

Student loans are a significant category of debt for many consumers. This is particularly true in the Raleigh-Durham area, home of numerous leading universities. With outrageous educational price inflation over the last decade and continued weak job markets, many former students are left with student loan balances far exceeding their ability to repay. Unlike almost every other consumer debt, bankruptcy is seldom effective at getting rid of student loan debt. Instead, for borrowers of federally backed student loans, an alternative repayment plan is often the best option.

Avoiding Judgment Liens with Bankruptcy

A judgment is effective as a lien against all of the judgment debtor's real property in the county of the judgment or any other county where the judgment has been transcribed into the official records. The lien is effective both with respect to property owned at the time of the judgment, as well as property acquired after the judgment. A bankruptcy discharge will void the future application of a judgment, preventing it from attaching to property acquired after bankruptcy. However, a discharge does not itself get rid of an existing judgment lien.

Get Out of Debt: A Resolution You Can Keep

Exercising more and eating healthier are without a doubt the most popular new year's resolutions. Also common is a resolution to get out of debt. Like with many resolutions, there are multiple ways to achieve the goal of debt relief. Unfortunately, there also many ways to fall behind, and a resolution to improve one's finances is also one of the most often broken resolutions. A key to accomplishing a goal, such as a new year's resolution, is having having help and support along the way. This is true for improving one's health, and it is true for getting out of debt.

Options When Facing A Collections Lawsuit

Whether it involves a credit card, a hospital bill or other medical bill, or another personal loan, collections lawsuits against consumers have one thing in common: a creditor is demanding money from a person who is unable or unwilling to pay. By filing suit, the creditor seeks a judgment which will entitle them to use certain legal processes to obtain money or property from the defendant consumer. A summons and complaint, served on the defendant, starts the process for the lawsuit. Often, receipt of these documents leads the consumer to ask what they should do?

8 Things You Might Not Realize Are Assets

Earlier, we listed several reasons why it is important to disclose your assets in bankruptcy. Fortunately, most people filing bankruptcy are honest hard working people who have no interest in cheating the system. They just want the relief they are entitled to under the law, with a minimum of fuss. Most asset non-disclosures are accidental, sometimes because it did not occur to the debtor that the item was actually an asset.

Spouses Without Income, The CARD Act, and Bankruptcy

Non-working spouses and others without their own source of income are finding new difficultly when applying to open credit card accounts. This difficultly arises from regulatory amendments that went into effect on October 1, 2011 as a result of the recent CARD Act, requiring only independent ability to pay be considered in credit card applications. The change will likely have consequences in bankruptcy cases down the road, some positive and some negative.

The Bankruptcy Code and Charitable Contributions

Millions of Americans support charitable and religious organizations with financial gifts every year. For some time, Congress has articulated a public policy in favor of charitable giving. The best known example is the charitable income tax deduction, which has been around since the War Revenue Act of 1917. This public policy also led to the adoption of the Religious Liberty and Charitable Donation Act of 1998 and a follow-on Religious Liberty and Charitable Donation Clarification Act of 2006.

When Family Gets Involved in Bankruptcy

There is nothing unusual about a debtor having a parent, brother, sister, son, daughter, aunt, uncle, niece, nephew, grandparent, or grandchild in a family role and financial role. For some, involvement becomes deeper when hard times come. Here is a list of some common roles in which family members are seen in a bankruptcy proceeding:

Behind on the Mortgage: The Math of a Chapter 13 Cure

A significant power of chapter 13 bankruptcy is the ability to propose a plan that cures a default associated with a long-term debt, i.e. to catch up a delinquent mortgage so that it is once again current. Due to this, chapter 13 is an option frequently considered by families who have fallen behind on their home mortgage payments. Understanding the basics of how a cure payment is calculated is important for appreciating the value and constraints of chapter 13.

What Exactly is a Student Loan in Bankruptcy?

Student loans are not generally discharged (i.e. wiped out) in a bankruptcy proceeding. But what exactly is a student loan?


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