student loans
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Student Loans: The Only Type of Risk-Free Lending
The only type of risk-free lending in the United States is student lending. Student loans cannot be discharged in bankruptcy and can even survive your death. No other type of lender in America is afforded the same protections as student loan lenders. Student loans are not dischargeable in bankruptcy Lots of different types of debts…
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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…
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Lee Legal Can Diagnose Your Financial Condition
If you have a medical problem, seek advice from a doctor. If you have an architectural problem, seek advice from an engineer. But if you have a financial problem, you should seek the advice of an attorney. Lee Legal can diagnose your financial condition. Every client receives a free consultation. Debt Collection. If you have…
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When You Should NOT File for Bankruptcy
Only bankruptcy will solve certain financial problems. Bankruptcy remains the first and best choice for many common cash-flow and debt issues. Avoiding bankruptcy when it is the smart course of action often does nothing more than make for more difficult outcomes. But there are certain circumstances under which you should NOT file for bankruptcy. If…
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Student Loans and the Means Test in Chapter 7 Bankruptcy
The Chapter 7 “means test” determines whether your income qualifies you for a Chapter 7 bankruptcy. Otherwise known as the Chapter 7 Statement of Your Current Monthly Income, the means test prevents debtors with higher-than-median income from filing Chapter 7 bankruptcy. The interaction of student loans and the means test often requires careful consideration to…
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Top 4 Tax Problems in Bankruptcy
The top 4 tax problems in bankruptcy are not particularly easy to avoid. For those facing money problems, taxes are often an afterthought. After all, paying taxes means less money in your paycheck. But the tax problems that most frequently occur in bankruptcy are actually violations of intuitive rules. Tax Problems in Bankruptcy: Chapter 7…
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What Happens to Student Loans in Chapter 13 Bankruptcy?
Student loans remain valid debts after discharge in either Chapter 7 bankruptcy or Chapter 13 bankruptcy. However, paying your student loans in Chapter 13 bankruptcy allows you some breathing room to pay your other debts. What Is Chapter 13? Chapter 13 bankruptcy is sometimes called the “wage-earner’s bankruptcy.” Many people who do not qualify for Chapter…
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Student Loans are Holding Back Home Ownership
America’s student-loan debt grows by $2,726 every second. Total student loan debt in the United States has topped $1.3 trillion, second only to mortgage debt. Nearly one-third (30%) of Americans know someone who has delayed the purchase of a home because of student loan debt. And more than half of those expect that delay to last longer…
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Tuition is Dischargeable in Bankruptcy
Section 523 of the Bankruptcy Code provides that student loans are not dischargeable in bankruptcy. But unpaid tuition is not a student loan. While it is extremely difficult to discharge student loans in bankruptcy, unpaid tuition is dischargeable in bankruptcy. 11 U.S.C. 523(a)(8) provides that, absent undue hardship, a debtor cannot discharge student loans. The…
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Student Loan Forgiveness Could Narrow the Racial Wealth Gap
The racial wage gap is wider today than in it was in 1979. And according to this recent Washington Post article, student debt is exacerbating the gap. Student loans make it more difficult for to save money and accumulate assets. Targeted student loan forgiveness could narrow the racial wealth gap. Education levels directly influence both economic opportunity and…
