… we highlighted a Chapter 13 bankruptcy case where student loan debt was partially discharged. The bankruptcy discharge was challenged by the creditor and has made its way to the Supreme Court.  Here is an overview of the decision made by lower courts last year:

In the case of ( Espinosa v. United Student Aid Funds Inc., No. 06-16421, 9th Cir. 10/02/08) the court stated:

“Our long-standing circuit law holds that student loan debts can be discharged by way of a Chapter 13 plan …

Tags: Bankruptcy Supreme Court of the United States

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According to an article in Forbes, the U.S. Supreme Court will listen to oral arguments for and against the discharge of student loans in bankruptcy.  The debate will center around the Chapter 13 bankruptcy case of Francisco Espinosa who was able to obtain a partial discharge of his student loans in bankruptcy. That discharge was later challenged by the student loan lender.

The article said:

“Espinosa was working as a …

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According to an article in the Star-Telegram, The Supreme Court will consider the facts in the bankruptcy case United Student Aid Funds vs. Espinosa, 08-1134 to determine if a bankruptcy court can discharge student loans in bankruptcy with just a notice to the lender instead of requiring the debtor to prove “undue hardship” in a hearing.

In the bankruptcy case United Student Aid Funds vs. Espinosa, 08-1134 …

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President Obama just sent his legislative package to Congress to create the new Consumer Financial Protection Agency.  The new agency’s purpose will be to protect consumers from deceptive or confusing practices by financial institutions.  Chances are, however, that many consumers who are currently struggling with financial stress are not likely to see the immediate effects of this program.  In the mean time, some bankruptcy courts are looking for alternatives to …

Tags: bankruptcy law Lawyers and Law Firms United States United States bankruptcy court United States District Court for the Southern District of New York

The U.S. Supreme Court has agreed to review and determine the constitutionality of two key provisions in the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA).

This fall the court will determine:

Who qualifies as a “debt relief agency”?

Under §526 of the statute, a debt relief agency is defined as “any person who provides any bankruptcy assistance to an assisted …

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According to an article in the Dallas Morning News, the most recent U.S. Census Bureau figures states that Texas leads the nation in the percentage of residents without health insurance.  More than 1 out of every 4 Texans are without health insurance, a total of 6 million residents and Texas leads the nation in the numbers of children who go without health insurance.

The article said:

“…Texas had the nation’s …

Comment by Jacob Decker: … expenses is one of the most substantial reasons many …

Tags: Bankruptcy Health Uninsured in the United States

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Most people have at least passing knowledge of wage garnishment–the process of deducting money from an employee’s monetary compensation (including salary) as a result of a court order.  Fortunately for those who find themselves in the unfortunate position of having their wages garnished, these payments are limited by federal law to 25 percent of the employee’s disposable income.  Unfortunately, those payments will continue until …

Tags: Bankruptcy Chapter 13 Title 11 United States Code Garnishment Internal Revenue Service tax

The Consumer Law & Policy blog has a very revealing article about a judge in Indiana that took it upon herself to give indigent debtors a choice–”pay up” or “go to jail.”

The blog writer provided the transcript of an exchange between the debtor and the judge:

The Court: “So we’re here today for you to explain what you’re going to do to pay this off.”

Mr. Button: …

Tags: Bankruptcy Chapter 7 Title 11 United States Code Court Indiana Law

… through a “credit counselor”, explore working through an attorney instead.

You hire the attorney to work on YOUR BEHALF.  And you can be sure the attorney will work within the law.

Bankruptcy is a federal law written specifically to PROTECT YOU from creditors.  The law is racked with extensive code detailing its parameters and is heavily regulated to ensure that mistakes and violations are prevented.

While there may be credit counselors who have honorable intentions, the …

Tags: Bankruptcy Better Business Bureau Business Credit history Credit score Federal Trade Commission Law United States

U.S. Circuit Court of Appeals ruled in Hersh v. United States, No. 07-10226 that attorneys are included in the bankruptcy section 101(12A)’s definition of “debt relief agency” and that Section 527(b)’s disclosure require­ments regarding advice to incur debt before bankruptcy are constitutional. The court’s recent action reversed a lower court’s ruling that the bankruptcy section was …

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Over 21 percent of student loan borrowers who attended a for-profit college default on their student loans within 3 years, according to a report released by the U.S. Department of Education.  For-profit colleges claim that the high numbers of low-income students attending their institutions are inflating their default rates.  So does being a low-income student increase your chances of defaulting on your …

Tags: Chapter 13 Bankruptcy Default Student Loans Supreme Court

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In the bankruptcy case of Hartline, James M. and Heather K.; In re the bankruptcy court ruled against the bankruptcy trustee who wanted to avoid a credit’s lien due to administrative errors.

The details of the bankruptcy case:

The debtor-husband purchased a motor vehicle on Nov. 18, 2006. The purchase was financed by the defendant who applied for a certificate of title noting the debtor …

Tags: bankruptcy law Court United States