Legal Articles, Workout

Discharge of Student Loans in Bankruptcy

Student loans are difficult but not impossible to discharge in bankruptcy. While courts are reluctant to discharge student debt a student burdened by his student loan has options. For more information on this subject contact the law office of Mitchell Reed Sussman & Associates at 800 - 233 - 8521

Student Loan Forgiveness : Fact or Fiction?

It is a common misconception that student loans can not be wiped out or eliminate. The truth is there are many ways to resolve student debt. This article discusses one of them. For more information on this subject contact the law offices of Mitchell Reed Sussman & Assoc. 800 - 233 - 8521

As of January 1, 2019, California Provided You the Homeowner More Rights to Avoid Foreclosure

Beginning January 1, 2019, additional protections were added under the Homeowner Bill of Rights, giving borrowers and homeowners added rights and protections to allow additional workout options to save their homes from foreclosure.

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.

Things Not to Say During Debt Negotiations

There are certain things that should never be said during debt negotiations. These “banned phrases” are bad because they put you in a position of weakness during the negotiations or may cause you to give up certain rights. Some of the more egregious “banned phrases” include:

Getting Skin in the Game: How to Provide Stock Compensation to Employees

Providing common stock to employees is likely to raise their loyalty to the company because, as a stockholder, they have skin in the game and should want to see the company succeed and their investment grow.

You Violated a Loan Covenant, Now What?

How to deal with your bank when you just can't pay them.

All Debt is Not Created Equal

When filing for bankruptcy protection, not all debt is created equally. Regardless of whether you are filing under chapter 7 or chapter 13 of the bankruptcy code, whether a debt is secured or unsecured makes a huge difference in how that debt is treated by the bankruptcy court.

Bankruptcy vs Debt Settlement

Sometimes bankruptcy is the best course of action and other times debt settlement may be a better solution. Below is a basic comparison of Chapter 7 and Chapter 13 bankruptcy and debt settlement.

Drafting Workout Agreements

Workout agreements have to address a number of bankruptcy and foreclosure issues, as well as transactional ones. Many workout agreements don't address all of the consequences of what liabilities and procedures apply if the workout fails.

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