STUDENT LOAN FORGIVENESS

The average student loan debt is $53,000. Students, whose parents’ household earned $60,000 or less and were eligible for Pell grants, may have up to $20,000 in student loan debt forgiven. Those who were not eligible for Pell grants may have up to $10,000 in student loan debt forgiven. The average student loan borrower will still owe $43,000 in student loans after the forgiveness and the student loan repayment pause ends in December. According to Public Broadcasting System, 20 million students woke up last week owing no student loan debt and 20 million students woke up owing at least $10,000 less.

THE COST OF EDUCATION HAS SKYROCKETED

Fun fact: When my parents attended college in the 60s, the cost per credit hour was under $50.00. WOW! They could take 12 credit hours each for less than $600.00! Their jobs at the sweet shoppe and gas station paid for school tuition, housing and a baby (me). Needless to say, we were poor. But poverty and the hope of an affordable education can be exhilarating; and so it was for my parents. They went on to get teaching degrees and venture out to teach in California. They continued their educations even as they worked and ultimately we moved back to Indiana so my Dad could go to dental school while my Mother taught. During dental school my Dad would eat dinner with us and then go up to his homemade desk in our apartment to study until he went to bed. He did that for 4 years. He graduated at the end of my 5th grade year. After graduation he joined a dental practice in northern Indiana where I worked all my high school summers. As anyone who has ever owned a business knows, it takes time to build, so my parents did not own their first home until I was a sophomore in high school. I am grateful for the experience of watching my parents work hard to get an education. It taught me to work hard and it taught me that life is hard too. On my journey I have met all kinds of people in a myriad of situations. Many of them too came from poverty with the hope of an affordable education. Some reaped the benefits of their educations that afforded them jobs to allow student loan repayment and some did not. In my practice I have learned that there are an infinite number of reasons why student loans have become unaffordable for a lot of people, not the least of which is the way the system works that loans them money. My experience with people that I represent keeps me humble and empathetic. That’s the kind of lawyer I aspire to remain.

PRIORTIZE YOUR NON-DISCHARGEABLE STUDENT LOANS

In my next blog I will explain why most student loans are non-dischargeable in bankruptcy and my experience discharging $100,000 in student loans at trial. If you have student loans that unaffordable in your budget, come talk to me. You may want to consider discharging your dischargeable debts, like medicals and credit cards, to allow you to pay off your non-dischargeable student loans. You don’t want to avoid your student loans because they will never go away. The federal government can take money out of your social security when you retire.

FOR HELP, CALL THE BANKRUPTCY LEGAL SERVICES OF PORTIA DOUGLAS AT 317-581-9590.

The U.S. Treasury can garnish your Social Security benefits for …. a federal student loan that’s in default

If you owe for A DEFAULTED STUDENT LOAN, a court order is not required to garnish your social security benefits. At one time, the government was limited to collecting defaulted student loans, whether by garnishment, offset or other collection action, to those loans in default less than 10 years. However, in 1991, Congress enacted the Higher Education Technical Amendments, which eliminated the 10 year limitations period. Five years later when Congress added the offset of Social Security Benefits as a collection remedy, the result was to ensure borrowers could not avoid the consequences of having benefits offset for unpaid student loans.The federal government doesn’t forgive student loans at age 50, 65, or when borrowers retire and start drawing Social Security benefits. So, for example, you’ll still owe Parent PLUS Loans, FFEL Loans, and Direct Loans after you retire. Social Security can withhold up to 15% of your benefit if you’re behind on student loans. However, the first $750 a month of benefits is off limits.

STUDENT LOAN CASE IN INDIANAPOLIS

In 2017, I worked on a BANKRUPTCY ADVERSARIAL resulting in a discharge of $100,000 in student loans for a 64 year old woman earning $27,600.00 per year. She met all the criteria required for discharge:

1. She could not maintain, based on current income and expenses, a minimal standard of living for herself if forced to repay the loans, and
2. Additional Circumstances existed indicating that her state of affairs were likely to persist for a significant portion of the repayment period of the student loans, and
3. She had made a good faith effort to repay the loans.

IF YOU CAN’T DISCHARGE YOUR STUDENT LOANS, PRIORTIZE THEM …

by discharging your NON-STUDENT LOAN debts in Chapter 7 bankruptcy, so you CAN pay the non-dischargeable student loans. Chapter 7 eliminates credit cards, medical debt, loans and some tax liabilities.

I can help you figure out an affordable budget. If your student loans are pushing you in the “red” every month, call The Bankruptcy Legal Services of Portia Douglas @ 317-581-9590.

The U.S. Treasury can garnish your Social Security benefits for …. a federal student loan that’s in default

If you owe for A DEFAULTED STUDENT LOAN, a court order is not required to garnish your social security benefits. At one time, the government was limited to collecting defaulted student loans, whether by garnishment, offset or other collection action, to those loans in default less than 10 years. However, in 1991, Congress enacted the Higher Education Technical Amendments, which eliminated the 10 year limitations period. Five years later when Congress added the offset of Social Security Benefits as a collection remedy, the result was to ensure borrowers could not avoid the consequences of having benefits offset for unpaid student loans.The federal government doesn’t forgive student loans at age 50, 65, or when borrowers retire and start drawing Social Security benefits. So, for example, you’ll still owe Parent PLUS Loans, FFEL Loans, and Direct Loans after you retire. Social Security can withhold up to 15% of your benefit if you’re behind on student loans. However, the first $750 a month of benefits is off limits.

STUDENT LOAN CASE IN INDIANAPOLIS

In 2017, I worked on a BANKRUPTCY ADVERSARIAL resulting in a discharge of $100,000 in student loans for a 64 year old woman earning $27,600.00 per year. She met all the criteria required for discharge:

1. She could not maintain, based on current income and expenses, a minimal standard of living for herself if forced to repay the loans, and
2. Additional Circumstances existed indicating that her state of affairs were likely to persist for a significant portion of the repayment period of the student loans, and
3. She had made a good faith effort to repay the loans.

IF YOU CAN’T DISCHARGE YOUR STUDENT LOANS, PRIORTIZE THEM …

by discharging your NON-STUDENT LOAN debts in Chapter 7 bankruptcy, so you CAN pay the non-dischargeable student loans. Chapter 7 eliminates credit cards, medical debt, loans and some tax liabilities.

I can help you figure out an affordable budget. If your student loans are pushing you in the “red” every month, call The Bankruptcy Legal Services of Portia Douglas @ 317-581-9590.

COLLECTION OF FEDERAL STUDENT LOANS FROM SOCIAL SECURITY BENEFITS

The U.S. Treasury can garnish your Social Security benefits for …. a federal student loan that’s in default. If you owe for A DEFAULTED STUDENT LOAN, a court order is not required to garnish your social security benefits. At one time, the government was limited to collecting defaulted student loans, whether by garnishment, offset or other collection action, to those loans in default less than 10 years. However, in 1991, Congress enacted the Higher Education Technical Amendments, which eliminated the 10 year limitations period. Five years later when Congress added the offset of Social Security Benefits as a collection remedy, the result was to ensure borrowers could not avoid the consequences of having benefits offset for unpaid student loans.The federal government doesn’t forgive student loans at age 50, 65, or when borrowers retire and start drawing Social Security benefits. So, for example, you’ll still owe Parent PLUS Loans, FFEL Loans, and Direct Loans after you retire. Social Security can withhold up to 15% of your benefit if you’re behind on student loans. However, the first $750 a month of benefits is off limits.

In 2017, I worked on an adversarial resulting in a discharge of $100,000 in student loans for a 64 year old woman earning $27,600.00 per year. She met all the criteria required for discharge:

1. She could not maintain, based on current income and expenses, a minimal standard of living for herself if forced to repay the loans, and
2. Additional Circumstances existed indicating that her state of affairs were likely to persist for a significant portion of the repayment period of the student loans, and
3. She had made a good faith effort to repay the loans.

FILE BANKRUPTCY QUICKLY BEFORE THERE IS A JUDGMENT AGAINST YOU!

Creditors are suing again!

COVID-19 affected public health practices, and required restriction of judicial operations preventing Courts from holding-in person hearings as outlined by the Indiana Supreme Court @ https://www.in.gov/courts/files/order-other-2020-20S-CB-123i.pdf.

But, Collection Courts have reopened the doors and are holding in-person hearings again. In response, lawyers have increased the filing of collection cases. Almost everyone who is calling me now is being sued by a creditor. Lawsuits push people into bankruptcy.

YOUR REAL ESTATE

If you are buying your house, a judgment against you becomes a lien on your real estate. Depending on how much equity you have acquired in your real estate, you may not be able to erase that judgment lien, even in bankruptcy. So, file bankruptcy before judgment is entered to avoid losing the equity in your house.

YOUR BANK ACCOUNT

Even if you aren’t buying real estate, your bank account can be frozen. The creditor can send judgment paperwork to your bank, without any hearing, and take all the money you have in your bank account. If you have a direct deposit from your employer and a judgment order is in place, your next pay may evaporate as soon as it enters your account. You will have no warning; no court hearing is required and your bank does not have to notify you before it happens. So, file bankruptcy before judgment is entered.

YOUR WAGES

When a judgment is entered, after a proceeding supplemental hearing, garnishment paperwork is sent to your employer to garnish up to 25 percent of your wages. Because most people live pay check to pay check, you cannot afford to lose one-fourth of your income; you need that money to pay your rent, your food, your utilities and your car.

IF YOU WAIT TO FILE BANKRUPTCY, IT CAN COST YOU MONEY

After the lien attaches to your real estate, after the bank account is frozen, after the wages are garnished, the money is gone; money you could have used TO FILE FOR BANKRUPTCY, TO PAY RENT, TO PAY UTILITIES, AND TO BUY FOOD.

BE PROACTIVE

Call now 317-581-9590. We can file your bankruptcy and stop the collection process immediately. Protect your needed funds!

ITT Student Loan Discharge

Closed School Discharge

If you are a former ITT student and you did not complete the program of study for which your student loan was made because the school closed, the Secretary of Education can discharge your obligation.

There is a process that you must follow to qualify for discharge.

If you qualify, the discharge relieves you of any past or present obligation to repay the loan, the discharge qualifies you for reimbursement of amounts paid and all adverse credit history assigned to the loan will be deleted pursuant to 34 CFR 685.214.

You may qualify for this student loan discharge without filing a bankruptcy.

If you are considering bankruptcy on otherwise dischargeable debt, we can help you make the necessary application for discharge of your ITT student loan debt, also. If you qualify, we can help you with the process.

One of the requirements for qualification is that the student did not complete the program of study through a teach-out at another school or by transferring academic credits or hours earned at the closed school to another school.

Student Loan Discharge in Bankruptcy

Guaranteed student loans are an exception to discharge in bankruptcy unless the person filing bankruptcy can prove undue hardship by a preponderance of the evidence (more than 50%). So, if you find yourself the victim of a school closing, the closed school discharge process is the first process that you want to consider.

Discharge Second Mortgage in Chapter 13 Bankruptcy

Make Your House More Affordable

Most people are not aware that Chapter 13 bankruptcy is a legal tool that may make your house more affordable.

Are you buying your house and you have two mortgages?  You may be able to eliminate the second mortgage altogether. For many people, the complete discharge of a second mortgage can help a person afford to stay in his/her home.

Requirements

The requirements to eliminate a second mortgage are as follows:

1. You must have at least two mortgages. (This can not be done if there is only one mortgage on your house.)

2. The fair market value of your house must be less than the principal balance owed on your first mortgage. For example, if you owe $155,000.00 on your first mortgage, but the value of your house is only $150,000.00; you qualify to eliminate your second mortgage.

3. You must be eligible to file a Chapter 13 bankruptcy.

Chapter 13 Addresses All Your Debts

FYI, Chapter 13 addresses all of your debts, just like a Chapter 7. While one of your goals may be to eliminate your second mortgage, there will be a plan to address all of your debt issues, including repayment of non-dischargeable taxes and even child support.

Debts that you would otherwise choose to be dischargeable in Chapter 7 are typically paid cents on the dollar (in the event there is any money left to pay them.)

If you are struggling to maintain your lifestyle, please visit http://www.bankruptcyhappens.com/practice-areas/chapter-13-bankruptcy/ to learn more about Chapter 13. We like to help people learn about their options to keep otherwise unaffordable cars and houses, while discharging credit card debts and medical bills.  Chapter 13 bankruptcy is commonly filed. In the last quarter through March 31, 2016, approximately 47% of the consumer bankruptcies filed were Chapter 13. For the statistics, please visit: http://www.uscourts.gov/statistics/table/f-2/bankruptcy-filings/2016/03/31.

Indianapolis Bankruptcy Attorneys Can Lower Your House Payment

Would you feel relief if you could stop making the payment on your second mortgage? Many people are substantially under water on their homes because of a second mortgage.

If you have two mortgages on your residence and the balance owed on your first mortgage is equal to or greater than the value of your home, Portia Douglas, an Indianapolis bankruptcy attorney, may be able to help you.
http://www.bankruptcyhappens.com/indianapolis-bankruptcy-attorneys-can-lower-house-payment-2/

Seek Help With Child Support From Bankruptcy Attorney Indianapolis

Many years ago, while practicing divorce law, I would occasionally have someone come in for relief from a county court back child support order that was leaving them financially unable to pay for their basic necessities. I remember one, in particular, who was living out of his car because he could not afford rent. Sometimes, a divorce lawyer can’t get your back child support and regular child support order to a level of affordability. A bankruptcy court can help a person facing child support delinquency to reorganize the amount over 60 months, if needed.
Bankruptcy Lawyers in Indianapolis

If you are in a position where your child support and/or other financial obligations are making it impossible to make ends meet, please contact us for a free phone consultation. The Bankruptcy Legal Services of Portia Douglas wants to help you afford to live. bankruptcy lawyers Indianapolis
http://www.bankruptcyhappens.com/seek-help-child-support-bankruptcy-attorney-indianapolis/

Indianapolis Bankruptcy Attorneys’ Take on Chapter 7 Bankruptcy and Credit

In first-time discussions with a potential client, the question, “”How will bankruptcy affect my credit?”” almost always arises ─ an experience that most Indianapolis bankruptcy attorneys can relate to. People fear and assume that the result of filing bankruptcy will be negative.

First, it is important to remember that if you have substantial debts and they are in default, it is likely that your credit history is already poor. In this situation, the elimination of your debt almost always results in giving your credit score a boost because you no longer owe that money.
http://www.bankruptcyhappens.com/indianapolis-bankruptcy-attorneys-take-chapter-7-bankruptcy-credit/