Blogs
What’s the Legal Fee for Chapter 13 in Virginia? People ask all the time, what’s the legal fee for Chapter 13? That should be easy, but it’s tough. Here’s my attempt at a straight answer. The fee I charge you in chapter 13 is set in two ways. By agreement between you and me, and […]The post Overtime Charges and the Legal Fee for Chapter 13 by Robert Weed appeared first on Robert Weed.
Three years after bankruptcy–from the depths of despair to building a retirement home. I love being a bankruptcy lawyer, because I can help almost everyone I see. Just before the July 4 Holiday, while I was rushing to wrap up some work, this email came from a a friend I’ll call John Blackstone. He encouraged […]The post A New Start In Life–Out of the Depths of Dispair by Robert Weed appeared first on Robert Weed.
Corinthian Colleges, a for-profit institution with 72,000 students spread over 100 campuses, is closing down. If you have student loans for your education at Corinthian Colleges, you may find that relief isn’t too far off.
One of the largest for-profit colleges in the nation, Corinthian Colleges owns the following colleges:
- Everest College
- Everest College of Business, Technology and Health Care (Canada)
- Everest Institute
- Everest University
- Everest University
- Everest College
- WyoTech
- Heald College
- QuickStart Intelligence
The company has been the subject of multiple investigations in various states as well as from the Consumer Financial Protection Bureau and U.S. Department of Education. As a result of these investigations into Corinthian’s marketing claims and allegations of altered grades and attendance, attendance has plummeted over the past year.
The U.S. Department of Education announced that it was temporarily withholding federal student aid money, which left Corinthian Colleges in dire financial straits. Last week, the company negotiated a settlement with the federal government that will lead to a complete dissolution of the company.
Discharge Of Federal Student Loans For Attendance At Corinthian
If you’re currently a student at any of the campuses owned by Corinthian Colleges and have federal student loans, you may be eligible for a discharge of those federal student loans if the college closes.
Under the School Closure Loan Discharge may qualify to get your Corinthian Colleges federal student loan wiped out. In order to qualify, you must meet these two simple criteria:
Your school closed while you were enrolled and you could not complete the program of study for which the loan was intended; OR
You were attending school within 120 days of the closure date or on an approved leave of absence when the school closed.
If the college campus is purchased by another college or university and transfers your credits or hours then you would not qualify for the Closed School Loan Discharge. So, too, if you are completing a comparable educational program at another school or completed all of the course work for the program while at a Corinthian Colleges campus (even if you didn’t get your diploma).
If You Don’t Qualify For School Closure Loan Discharge
Some of the campuses owned by Corinthian Colleges will undoubtedly be sold to other entities, and credits may be transferred. Other students may not qualify for a discharge for various reasons.
If you find yourself saddled with federal student loans and no ability to discharge the debt, you should look into income-based repayment or Pay-As-You-Earn to lower your monthly payments. Though this isn’t a perfect solution to your Corinthian Colleges federal student loan problem, it’s a way to keep your debt repayment manageable.
Private Student Loans For Corinthian Colleges
Private student loans do not come with a discharge provision, nor can you lower monthly payments unless the lender agrees to do so.
For these private student loans, you may want to investigate other options such as bankruptcy or strategic default to bring the lender to the negotiation table. These options can come with serious credit and tax implications, so talk with a lawyer.
It’s Never Too Soon
Some Corinthian Colleges campuses will be closing, and others will be sold. Whatever happens, it will likely shake out in the coming weeks as the federal government moves in and starts taking action.
It’s a good idea to investigate your options and put together a plan of attack so that you’re prepared for all possibilities.
Note: The picture at the top of this article is a screenshot of the Corinthian Colleges home page, taken from my computer.
Filing for bankruptcy is complicated and stressful. You may be confused about what you are asked, or the state of your finances. This may lead you to be inaccurate or not thorough. And rumors and misconceptions about bankruptcy lead people to hide assets and not be upfront with their attorneys. All of this can lead to huge problems down the road. Below are the five biggest mistakes bankruptcy filers make when they file for Chapter 7 or Chapter 13 bankruptcy.The post The Top 5 Mistakes Bankruptcy Filers Make appeared first on Tucson Bankruptcy Attorney.
Filing for bankruptcy is complicated and stressful. You may be confused about what you are asked, or the state of your finances. This may lead you to be inaccurate or not thorough. And rumors and misconceptions about bankruptcy lead people to hide assets and not be upfront with their attorneys. All of this can lead to huge problems down the road. Below are the five biggest mistakes bankruptcy filers make when they file for Chapter 7 or Chapter 13 bankruptcy.The post The Top 5 Mistakes Bankruptcy Filers Make appeared first on Tucson Bankruptcy Attorney.
Central Valley California -- There are primarily two types of personal bankruptcy that you can file under the Code: Chapter 7 and Chapter 13. Chapter 7 is a great tool to get rid of credit card debt. But if you are behind on house payments, Chapter 13 is the best tool to save your house from foreclosure.
Chapter 13 bankruptcy is considered the repayment plan. The goal is to create a plan that is approved by the bankruptcy court to repay creditors over 36 or 60 months.
Let's say that you are $10,000 behind on mortgage payments. Your lender sends out a foreclosure notice saying that you have 90 days to cure the default. In other words, you have to pay the lender $10,000 in 90 days. If you do not, then the lender can foreclose on your ownership interest in the house.
Chapter 13 bankruptcy protects homeowners from the 90 day pay, or be foreclosed scenario. By filing Chapter 13, you can propose a plan to the court that extends the 3 months foreclosure to 60 months. It works out that instead of paying an additional $3,333.33 to catch up on payments, you can lengthen payments so that you only have to pay $166.66 dollars per month.
You will have to also make your regular monthly mortgage payment. Also, do not forget about attorney fees and trustee fees for advising, preparing and administering the plan. Presently, trustee's command a 6% commission and attorney fees are approximately $4,000. These expenses are incorporated in the plan payment. Expect the extra $166.66 plan payment to increase to about $220 per month.
Chapter 7 bankruptcy will stop a foreclosure sales date, but only temporarily. Chapter 7 bankruptcy in itself does not create a plan to repay past due mortgage. A homeowner will be left with hopes of modifications, but this is not guaranteed and can result in the continuation of the foreclosure shortly after filing chapter 7 bankruptcy.
Here’s what you need to know
Who must attend?
The Trustee, you, and one of our attorneys. The Trustee is the person who runs the hearing and asks you questions.
Who gets invited?
All the creditors listed in your bankruptcy schedules get a notice in the mail. Many times none of the creditors show up. Some may show up to get basic information from you. Ultimately, while creditors may ask questions at the hearing, they rarely show up and the ones that do show up usually keep quiet.
Where is the meeting held:
This depends on where your case was filed. You should receive a piece of paper stating the exact location. They are rarely held in a courtroom. Many districts have specific 341 hearing rooms.
What should you brings:
Photo Id, Social Security Card, your car insurance information (occasionally a creditor may want proof you have it), and a copy of your last filed tax returns (these may have already been provided to your Trustee). You may want to bring copies of any documents requested by our office for the trustee.
What will you be asked:
The Trustee will ask you basic questions such as your name and address. The Trustee will also ask you basic questions to verify that the schedules filed in your case are true and accurate. If you own property, the Trustee will ask you questions pertaining to the property, such as the value of the property.
How long:
An Oregon 341 hearing itself last about 5 to 10 minutes. You will probably be there a little longer. Multiple people’s 341 hearings are scheduled for the same time. There is usually 30 minutes to an hour allowed for all the 341 hearings to be held. You will probably not know beforehand where you are scheduled on the calendar. You should arrive 10 to 15 minutes before the scheduled hearing. If you are feeling uncomfortable about the hearings, I suggest you arrive a little early to watch a few. Your nervousness will dissipate.
Other things to keep in mind:
The hearings are tape recorded. This means you really need to speak loudly and clearly. The Trustee is the one asking the questions. If you have a questions, hold it for after the hearing and ask your attorney.
The original post is titled Getting Ready for an Oregon 341 Meeting of Creditors , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
If you fall behind on your student loan, you may not be in default.
The answer depends on whether the student loan is federal or private. But first, you need to understand the concept of default.
What Is Default?
A default is, technically speaking, a failure to meet the legal obligations of a loan.
The simplest type of default occurs when you fail to make your payments on time. But default can technically happen if there’s any obligation whatsoever in a loan agreement that you fail to make.
For example, mortgage loans may require you to maintain homeowners’ insurance. Fail to keep the policy in place and you’re considered to be in default of your obligations.
When Does A Student Loan Go Into Default?
Federal student loans don’t go into default when you miss a payment. In fact, If you repay your loan monthly, then default occurs when you fail to make a payment for 270 days. For the rare FFEL loan that requires payments to be made more often than once a month, you go into default if you fail to make a payment for 330 days.
Private student loans are different – remember, they’re no different than any other installment loan or consumer debt. You’ll need to look at the loan agreement to determine when default occurs, but it usually happens as soon as you miss a payment.
How To Prevent Default
When it comes to private student loans, you can avoid default only by making your payments on time. If you can’t meet that obligation, you’ve got no legal way to prevent yourself from going into default.
For federal student loans, however, there are programs available to keep you out of default. Consider deferment or one of the extended or income-based repayment options to make it easier financially. Start by calling your student loan servicer to investigate your alternatives. If that doesn’t work, calling a student loan lawyer like me may shed some light on the situation.
If You’re In Default
Default comes with some severe consequences.
For federal student loans, those consequences come without the need for a lawsuit and include tax refund offset, bank account freezes, and wage garnishment. Read more about the consequences of defaulting on your federal student loans here.
Private student loan default triggers collection activity and often a lawsuit. The lawsuit, if you don’t fight it, yields a judgment that can also cause wage garnishment and other enforcement actions.
If you find yourself in student loan default, keep an open line of communication with the lender as well as any collection companies. Work with the lender to come to an agreement on structuring payments, but if that fails then it’s time to talk with a lawyer and protect yourself before it’s too late.
Chicago Bankruptcy Lawyer If you search for a Chicago bankruptcy lawyer, you are going to find a wide range of talent, fees, experience, demeanor and success. You will find everything from the entry-level attorney who is trying to help his first client all the way to the seasoned attorney who is closing in on retirement+ Read More
The post All Chicago Bankruptcy Lawyers Are Not Created Equal! appeared first on David M. Siegel.
Medical Debt There is no question that a chapter 7 bankruptcy case will eliminate medical debt. However, if you only have one debt, you may not need to file bankruptcy at all. This is all going to depend upon the aggressiveness of the debt collector as well as your tolerance for ongoing collection efforts. In+ Read More
The post I Have One Huge Medical Debt. Is Bankruptcy The Answer? appeared first on David M. Siegel.
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.