student loans
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Non-Qualified Student Loans Can Be Discharged in Bankruptcy
You can discharge your non-qualified student loans in bankruptcy. Most student loans are “qualified” student loans and cannot be discharged in bankruptcy. But not so for non-qualified student loans. What are non-qualified student loans? Student loans are generally excepted from the bankruptcy discharge in 11 U.S.C. 523(a)(8). That section of the Bankruptcy Code prevents discharge…
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Student Loan Forgiveness Provides Relief
44.7 million Americans carry student loan debt totaling $1.56 trillion, second only to mortgage debt. The average student loan payment for borrowers 20 to 30 years old is $393 per month. Student loan forgiveness would provide relief to these distressed borrowers. In the last quarter of 2018, U.S. student loan delinquencies reached a record of…
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Bankruptcy Discharge of Student Loans Would Boost U.S. Economy
When the Great Recession officially ended in June 2009, the total outstanding amount of student loan debt in the U.S. was $675 billion. Today, total U.S. student loan debt has more than doubled to $1.465 trillion. If allowed to do so, not every student will declare bankruptcy to discharge student loans. But for those who…
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Will Unpaid Student Loans Affect My Credit Score?
As of 2024, total student loan debt in the U.S. has reached $1.75 trillion in total student loan debt, including federal and private loans. The average student borrower graduates with about $29,000 in student loans on average. The number of college students taking out loans has tripled in just the last decade. Yet most students…
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How Student Loan Debt Prevents Homeownership
Perhaps it’s no surprise, but student loan debt prevents homeownership. In just the third quarter of 2018, total outstanding student loan debt increased by a whopping $37 billion. The amount of student loan debt in the United States now stands at an eye-popping $1.56 trillion. Out of necessity, student borrowers must delay homeownership while attempting to…
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What Happens to My Debts When I Die?
When planning a future for your loved ones, you do not want your legacy to include a mountain of debt. Many people are unaware that their debts can continue to haunt those they leave behind. Whoever you select to manage your estate will serve as the “executor,” and that person is responsible for probate, the…
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Top 7 Reasons People Declare Bankruptcy
People don’t declare bankruptcy for the fun of it. Bankruptcy results from a financial hardship from which a person cannot recover within a reasonable amount of time. Lots of circumstances can lead to personal bankruptcy. Here are the top 7 reasons people declare bankruptcy. Job loss Unemployment benefits simply do not cover living expenses. Losing…
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Repay Your Student Loans in Chapter 13 Bankruptcy
If you file Chapter 13 bankruptcy and choose not to repay your student loans, you could end up in a worse condition than before you filed. To be sure, you can defer repayment of your student loans during the entire duration of your bankruptcy case. But interest will continue to accrue on any unpaid balances,…
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Reinstate the Bankruptcy Discharge for Student Loans
Jerome Powell, the new Federal Reserve Chairman, believes that we should bring back the bankruptcy discharge for student loans. For years, Lee Legal has advocated for the bankruptcy discharge for student loans. Before 1976, federal student loans could be discharged just like any other unsecured debts. And up until 2005, private student loans could be…
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6 Reasons Why the IRS May Keep Your Tax Refund
On Friday, the Internal Revenue Service (IRS) sent a gentle reminder to the nearly 40 million taxpayers who have yet to file their tax returns: do it now. Many people consider their tax refunds to be a sort of annual bonus. Here are the top 6 reasons why the IRS may keep your tax refund.…
