Blogs
If your federal student loan is in default, there are ways to get things back on track.
A defaulted federal student loan can leave you open to collection activities, not to mention that it can seriously impact your credit score.
Luckily, the federal government gives you some very good options for rehabilitating your student loans and getting your life back on track.
Here are the two major ways of rehabilitating.
Federal Student Loan Rehabilitation
You can rehabilitate your federal student loans by making 9 consecutive monthly payments over a 10 month period of time.
Your payment amount will be what is considered, “reasonable and affordable,” but that figure is largely up to your negotiations with the collection agency handling your federal student loan account. We’ve been successful in getting some excellent deals for our clients, but I’ve heard about lots of people who go it alone and end up with payments that are too high.
Once you’ve finished making your monthly payments, your loan will be considered in good standing.
Direct Loan Consolidation
You may also decide to consolidate your federal student loans as a way to rehabilitate them. You can do so if you agree to repay the loans under either the Income Contingent or Income Based Repayment Plan, OR make satisfactory repayment arrangements with the current loan holder.
Which Is Better, Rehabilitation Or Consolidation?
Both rehabilitation and consolidation will yield the same end result – a loan in good standing.
That said, there are benefits and drawbacks to going either way.
Credit Report Issue: If you consolidate a defaulted federal student loan, your credit report will show that the loan was in default before being paid in full. If you rehabilitate, however, the negative notation will be removed once you make your final rehabilitation payment.
Timing: Rehabilitation requires that you make at least nine (9) full payments of an agreed amount within twenty (20) days of their monthly due dates over a ten (10) month period. Consolidation, on the other hand, takes about 30-60 days to complete.
Which is more important to you, the speed of the process or the hit on your credit report? Best to sit down and figure it out together.
Every year there seems to be more cases of people concealing details about their assets in bankruptcy. Too many people are under the impression they will lose what they have to creditors when they file, and feel the need to hide it in order to protect it. Such actions are considered unlawful and you can [...]
Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for September 24, 2013 Four years after bankruptcy, Chrysler files for IPO Atari’s Bankruptcy Plan Leaves Most Lenders Out of Credits Detroit’s bankruptcy may make it more difficult for other cities to borrow
A bankruptcy trustee helps administer the case while it proceeds through the court process. The trustee is actually a part of a U.S. Trustee program developed through the Bankruptcy Reform Act of 1978 under the Department of Justice through the Attorney General. Depending on which chapter is filed, the role of the trustee varies. In [...]
If one or more of the below circumstances is true for you, it may be time to talk to a professional about the best option for you to resolve your debts. You owe it to yourself to explore your options for a better financial future. We offer free consultations to discuss Chapter 13 debt consolidation, [...]The post 11 Signs That You May Need to Consider Filing Bankruptcy in Michigan appeared first on Acclaim Legal Services, PLLC.
If the private student loan lender waits too long to sue you, it could be out of luck. But how long is too long?
Private student loans are no different than any other loan given by a bank. They aren’t covered by the federal laws regarding student loans and are afforded no extra protections.
So let’s be clear:
A private student loan is no different than a regular loan. Period.
That means there’s a limited amount of time during which the lender can sue you for nonpayment. This statute of limitations may make the difference between payment and getting off free and clear.
Here’s the rule on statute of limitations for people who live in California.
Four Years From The Date Of Accrual
Under California Code of Civil Procedure Section 337 (1) spells out the basic statute of limitations for contracts. It sats that an action upon any contract, obligation or liability founded upon an instrument in writing must be brought within four (4) years of the date on which the claim accrues.
The claim accrues when the contract for payment is breached – in other words, once the first payment is not made under the contract.
So … they have a four year statute of limitations. Right?
Maybe.
Make That Six Years
California Commercial Code Section 3118(a) provides a different statute of limitations for promissory notes. This law states:
an action to enforce the obligation of a party to pay a note payable at a definite time shall be commenced within six years after the due date or dates stated in the note or, if a due date is accelerated, within six years after the accelerated due date.
This may be a problem, and not only because the private student loan lender gets an additional four years to sue you for nonpayment.
If you read the law carefully, it says that the lender gets a statute of limitations of six years from the due date or dates stated in the note.
That means each month represents a new beginning to the six year clock. If you’ve got a 30 year Note, theoretically the lender may be able to sue you for 36 years (for at least the last payment due, that is).
The saving grace, however, is in the acceleration portion of the law. If the private student loan lender calls the entire debt due, they get six years from that date as the applicable statute of limitations.
Do You Use The California Statute of Limitations?
When you sign the promissory note for the private student loan, it may state that a different state’s statute of limitations applies to disputes.
If you’re in California, that’s good news.
California courts will apply another state’s statute of limitations only if it is shorter than the one being applied under California law.
For example, Idaho apparently has a statute of limitations of five years on promissory notes – this is in contrast to California’s six year time limitation. If your private student loan says that Idaho law applies, then your lender gives up one year.
If You’re Sued, A Phone Call Gives Peace Of Mind
You don’t want to get sued for a private student loan and make a decision based on false information.
Maybe the debt’s not enforceable anymore.
Maybe the amount being claimed is incorrect.
Maybe you’re being sued by an entity that doesn’t have the legal right to collect.
The lawsuit is probably for a large enough amount of money that it makes sense to talk with a lawyer. After all, you could end up spending a lot of money on a settlement that is completely unnecessary.
How Long Can You Be Sued On A Private Student Loan In California? was originally published on Consumer Help Central. If you're seeing this message on another site, it has been stolen and is being used without permission. That's illegal, a violation of copyright, and just plain awful.
.jpg)
Most folks I meet want to file a Chapter 7 Bankruptcy. Many do not know what it means, but they have had friends file a Chapter 7 Bankruptcy and keep everything they own. Therefore, they want to file bankruptcy the same way. Filing a Chapter 7 bankruptcy requires navigating through a couple of obstacles. The first is a means test. Second, is having qualified exemptions.
A Means Test You Say?
Most individual debtors filing for bankruptcy relief are required to complete a Statement of Current Monthly Income and calculations. Around the water cooler, we call this requirement “means testing”.
A debtor must enter income and expense information onto the appropriate form and then make calculations using the information entered. Some of the information needed to complete these forms, such as a debtor's current monthly income, comes from the debtor's own personal records. However, other information needed to complete the forms comes from the IRS.
After inputting this information we come up with a family's income. A family qualifies for a chapter 7 bankruptcy if they make less than the following: Single person: $48,415; couple: $63,030; three people $67,401; four people: $75,656.
If you make more than this amount, a chapter 13 bankruptcy might be the best fit, which is called the repayment bankruptcy option.
Exemptions You Say?
Chapter 7 is a liquidating bankruptcy. This means all non exempt property is sold by the trustee and disbursed to your creditors.
The good news is that most assets are protected. Homes, cars, tools of the trade, guns, household furnitre are protected to a certain degree. The point is to provide a fresh start. That means you will likely be able to exempt the Honda Accord, but have to surrender the Tesla. There are also exemptions for cars, retirement accounts, wedding rings, household goods, etc.
Ken Jorgensen, California Attorneywww.fresnobankruptcylawgroup.com
Photo Credit: http://www.flickr.com/photos/soldiersmediacenter/
Chapter 13 bankruptcy is a repayment approved by the bankruptcy court based on your income. While student loans are almost impossible to get discharged in bankruptcy, you can use the filing to help you reduce the amount you pay or you can delay making payments during the Chapter 13 repayment period. Students loans can be [...]
Here is an accurate article about what you can expect to pay when filing bankruptcy in Utah:
The Cost of Filing Chapter 7 Bankruptcy in Utah
Adam Brown is a bankruptcy attorney for Dexter & Dexter, a debt relief agency helping people file for bankruptcy.
National Collegiate Student Loan Trust is suing people in California, New York and elsewhere for past due private student loans. Who are they, and what should you do when confronted by this company?
Over the past year or so I’ve been a significant increase in the number of people calling me because they’ve gotten legal papers from National Collegiate Student Loan Trust.
These folks seem to have crept out of the shadows, and are filing lawsuits left and right.
In order to deal with the situation, here’s what you need to know.
National Collegiate Student Loan Trust Is Not A Lender
National Collegiate Student Loan Trust is a Delaware Trust that holds private student loans guaranteed by TERI rather than by the federal government.
All of the student loans in the trust were originated from several different banks under different loan programs that were structured with the assistance of The First Marblehead Corporation, which is an education loan finance company that also owns TERI.
National Collegiate Student Loan Trust Must Prove Ownership Of The Loan
Given the fact you didn’t borrow the money from that National Collegiate Student Loan Trust, they must have gotten the loan from another bank.
In order to sue on the balance due, they need to prove that they have the Promissory Note and are legally able to prove ownership.
In addition, they must prove that the amount claimed to be due is actually properly due.
A Lawsuit Against You Isn’t The Same As A Judgment
When someone files a lawsuit against you, all they’re doing is making a claim that you owe money.
It’s up to you to decide whether to do nothing or make them prove the case. If you do nothing, then a judgment will be entered against you.
But if you fight, you’ve got a chance of winning or settling the case on more favorable terms.
National Collegiate Student Loan Trust is counting on you doing nothing so that they can get a default judgment against you. After all, more than 90% of all collection lawsuits – including those for private student loans – end up with a default judgment. That means most people get lawsuit papers do simply do nothing.
Fight The Lawsuit To Get A Better Deal
If National Collegiate Student Loan Trust is suing you, there’s a good chance that it’s for a big dollar amount.
Sitting idly by will result in a default judgment being taken against you. Once that happens, you may be subject to wage garnishment, bank account freezes, or liens on your property.
Fighting the lawsuit, however, will force their attorneys to prove you owe them the money. They’ll have to account for the debt, as well as the fact that you are legally liable to them for payment.
It’s amazing at how often those simple facts can’t be proven. There may not be any documented proof that you owe the debt.
Other times, the debt is beyond the collection period.
Maybe you can get the lawsuit dropped. More often, you can get them to settle the case for either a lump-sum dollar figure or a reasonable monthly payment.
It’s worth having me take a look at the lawsuit to see if it makes sense to fight back.
What You Need To Know If You’re Being Sued By National Collegiate Student Loan Trust was originally published on Consumer Help Central. If you're seeing this message on another site, it has been stolen and is being used without permission. That's illegal, a violation of copyright, and just plain awful.
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.