Legal Articles, Bankruptcy & Debt

Means Test in chapter 13 and interest to unsecured creditors

The 2005 Bankruptcy Abuse and Consumer Protection Act added a new budget test, called the means test, to determine whether debtors can file chapter 7, and if they file chapter 13, how much needs to be paid to unsecured creditors. One ancillary issue arising from this test is whether interest needs to be paid to unsecured creditors when debtors are paying unsecured creditors in full during the plan but not paying the full amount shown as available in the means test. Courts give conflicting answers on this. One recent decision ruled no interest is required.

Consumer Debt Can Cause Stress, Depression, Divorce

Discussing numbers and statistics on the national scale is important, but if you have fallen heavily into debt, you may not feel like that information helps you out much in terms of your own financial distress.

Student Loan Debt Crisis Spans All Ages

Recent studies show that while younger generations and millennials are having a difficult time with the burden of student loans, so are other age groups like Gen X’ers and Baby Boomers. The student loan crisis is even making an impact on retirement plans.

How Long Will It Take My Court Judgment to Go Away?

The court judgment is a long-term order. In California, the creditor can continue their collections activities for up to ten years in trying to see the debt satisfied. After that, they can also renew the judgment with the court for another ten.

Student Loan Crisis: No Hope in Sight

With interest rates jumping, student loan borrowers are often stretched too thin, both mentally and financially. This is resulting in financial constraints that affect the economy at large, as they are unable to spend on large items like homes and cars.

Have Your Consumer Rights Been Violated Leading Up to A Collections Lawsuit?

Accumulating debt and escalating money problems are often accompanied by a sense of shame. Creditors and debt collectors are usually aware of any typical vulnerability debtors may have and will use that to their advantage.

Student Loan Servicers in Trouble: Navient May Experience Greater Leniency Than Expected

Sued by both the Justice Department and more recently the Consumer Financial Protection Bureau (CFPB), Navient administrators have said that they will fight back against these lawsuits.

No Process of Service: Will the Judge Dismiss My Case?

Generally, if the process server does not hand the summons directly to you or to someone of age who resides in the home with you, it should not be possible to have a default judgment granted against you.

You May Not Be Judgment Proof Forever

You may be safe from enforcement today, but a judgment is usually good for ten years and can then be extended for another ten. In the next twenty years, do you still see yourself without a job, without property, and without a checking account?

Collections Lawsuit Deadlines: Understanding How They Work

There is always the temptation to procrastinate or sweep things under the rug, especially when having to face something as intimidating as a lawsuit. However, a response is highly recommended. In some cases, you may even be able to file a late response if you have a valid excuse.

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