Feds Sue the Nation’s Largest Debt Settlement Company
On November 8, 2017, the Consumer Financial Protection Bureau (CFPB) sued the nation’s largest debt settlement company, Freedom Debt Relief, part of the Freedom Financial Network. According to the CFPB, Freedom deceives consumers by charging them without without settling their debts as promised. Freedom instead expects its customers negotiate their own settlements, misleads them about […]
Student Loan Debt in DC, Virginia, and Maryland
In October 2017 the Consumer Financial Protection Bureau (CFPB) published a 50 State Snapshot of Student Debt. Since its formation, the CFPB has handled tens of thousands of complaints related to student loan lenders, servicers, and debt collectors. Student loan debt in DC, Virginia, and Maryland is truly enormous. Total outstanding student loan debt in DC is $6.76 […]
9 Options When You Can’t Afford Your Mortgage Anymore
Owning a home comes with a lot of responsibility. But the toughest part of owning a home may be realizing that you you can’t afford your mortgage anymore. Lots of different circumstances can lead to an unaffordable mortgage payment. But you have options if you take a proactive approach. 9 Options When You Can’t Afford […]
New Chapter 7 Means Test Numbers Take Effect
New Chapter 7 means test numbers take effect November 1, 2017. The means test numbers purport to state the median income per family size based on jurisdiction. To file a Chapter 7 bankruptcy, you must qualify under the Chapter 7 bankruptcy means test. In most cases, your income must be less than or equal to the […]
Foreclosure Non-Retention Options
If you have a property in foreclosure, your mortgage lender will likely send you all sorts of correspondence. You may have modification or reinstatement options, which is great if you want to retain the property. But for a variety of reasons, the bank or servicer may not be willing to entertain modification or refinance. In […]
No Discharging Student Loans in Bankruptcy
Currently working its way through House of Representatives committees is H.R. 2366, the Discharge Student Loans in Bankruptcy Act of 2017. It’s always good to hope, but forget about discharging student loans in bankruptcy in the near future. On October 20, 2017, as the D.C. Chair of the National Association of Consumer Bankruptcy Attorneys, I […]
The Key to Saving is Living Below Your Means
Have you ever heard of Parkinson’s Law? It was first articulated by C. Northcote Parkinson in an article in The Economist in 1955. Parkinson’s Law is the adage that “work expands so as to fill the time available for its completion.” Parkinson’s Law has many corollaries, including: Expenses rise to meet income. In other words, people spend […]
Preparing for a Deposition
A deposition is basically out-of-court testimony, made under oath, and recorded by a court reporter. Depositions are taken during litigation for later use in pleadings or during trial. Preparing for a deposition can be nerve-wracking, but it is far preferable to going into a deposition unprepared. While depositions are usually held in a lawyer’s office […]
Protecting Assets in Bankruptcy: Property Exemptions and Planning
Protecting assets in bankruptcy requires a combination of foresight and expertise. Chapter 13 bankruptcy generally allows you to keep all your property. But in Chapter 7 bankruptcy, your nonexempt assets may be “liquidated,” or seized and sold. If you do not protect your assets in Chapter 7, the trustee will convert them to cash and […]