Tag: Miami bankruptcy attorney

Debt Relief, student loan debt, Student Loans

President Trump Vetoes Student Loan Forgiveness Bill

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A recent move by President Trump has student loan borrowers, as well as Veteran’s and Consumer groups, concerned and disheartened after he sided with Education Secretary Betsy DeVos and vetoed the bipartisan Borrower Defense to Repayment legislation.

The Borrower Defense to Repayment program is a student loan forgiveness program that was created during the Obama administration as part of an effort to provide debt relief for students who were taken advantage of by predatory colleges and for-profit universities.  Many of the borrowers who fell prey to these predatory tactics were veterans.

student loan debt

The Hidden Cost of Student Loan Debt

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According to a recent report from the Student Borrower Protection Center (SBPC), student loan debt may lead to additional interest paid on other forms of debt, including credit cards and mortgages. Borrowers may not realize just how much their debt can influence these other payments and may be paying higher prices without even realizing it.

The effects of student loan debt are far-reaching. Approximately 44 million Americans carry a collective $1.6 trillion in student loan debt. Most of these individuals also carry other forms of debt, the most common of these being mortgages and credit card debt. According to this SBPC study, these individuals are also forced to pay up to tens of thousands more in extra costs when purchasing a home or car or even using their credit card.

Bankruptcy Law, Coronavirus, COVID-19

Bankruptcy and the Coronavirus: Help for Florida Small Businesses

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The coronavirus (COVID-19) pandemic has been hard on businesses. During the shutdown, countless South Florida businesses were forced to shutter or adjust to a new normal, bringing in significantly less income than before. Many of these business owners have also been compelled to make some tough decisions, including the decision on whether to proceed with bankruptcy.

Bankruptcy can be beneficial for businesses that are struggling during this difficult time. The bankruptcy framework and the automatic stay that occurs immediately upon filing for bankruptcy offers relief that individuals and business owners desperately need.

Bankruptcy Law

Bankruptcy Explained: The Qualifications and How to File

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Filing for bankruptcy can be an emotional and sometimes stressful process. However, enlisting the help of an experienced bankruptcy attorney can make the process painless and worry-free.  Many clients have little understanding about what is involved when they file for bankruptcy.  Bankruptcy is a legal proceeding where a judge and bankruptcy trustee review the financial situation of individuals or businesses who are not able to pay their financial obligations and discharge qualifying debts that they are no longer able to pay.

The Purpose of Bankruptcy

Bankruptcy is meant to give an individual a fresh financial start, allowing that person to wipe the slate clean. It also serves as a way to give the filer some sense of relief through the protection of the automatic stay, which means creditors are prohibited from continuing collection actions against the filer. This allows the person time to regroup, protect valuable assets and work with the bankruptcy trustee to eliminate their debts.

Coronavirus, COVID-19, student loan debt

Tips for Keeping Student Loan Debt Under Control During Covid-19

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Student loan debt was already a financial burden for many Americans, but the COVID-19 crisis has made it worse. It helps to understand what options are available for borrowers who are struggling to keep up with their student loan debt during this time of crisis.   

Federal Assistance and Forbearance

In March 2020, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act in light of the growing pandemic. The CARES Act includes certain provisions that lighten the burden carried by student loan borrowers. As of March 13, 2020, most federal student loans were put on administrative forbearance which means no payments were due, beginning March 13, 2020 and ending September 30, 2020.

Coronavirus, COVID-19, Credit Card Debt, Debt Relief

Nearly Half of U.S. Adults Now Carrying Credit Card Debt Amid Pandemic

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Credit card debt has dramatically increased since the coronavirus (COVID-19) pandemic, according to recent data from CreditCards.com. Their data reports that 120 million U.S. consumers, or 47 percent of all consumers, had credit card debt as of April 2020, which is a 43 percent increase from March.

Millennials were hit the hardest with 34 percent of them reporting that they used credit regularly. Experian, one of the three main credit reporting agencies, reported in March that U.S. consumer debt reached a staggering $14.1 trillion with credit cards making up $829 billion of this debt. This level is the highest seen since the Great Recession.

Bankruptcy Law, Coronavirus, COVID-19, Debt Relief

How Has the Coronavirus Affected Bankruptcy Filings?

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Even though unemployment filings have skyrocketed, and countless businesses have been struggling during the coronavirus pandemic, bankruptcy courts have not been flooded with new cases- yet.

When compared to bankruptcy filings in April 2019, there were 47 percent fewer consumer bankruptcy filings in April 2020, according to the American Bankruptcy Institute (ABI).

Bankruptcy Law, Coronavirus, COVID-19, Debt Relief

Coronavirus and the Changes it has had to the U.S. Bankruptcy Code

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The coronavirus pandemic has affected our country in so many ways. It has also affected the U.S. Bankruptcy Code, specifically through the recently passed $2.2 trillion Coronavirus Aid, Relief and Economic Security Act (CARES Act).

Within the CARES Act were revisions to parts of the U.S. Bankruptcy Code, meant to help small businesses and consumers during this difficult time. The CARES Act amended the Small Business Reorganization Act of 2019 (SBRA), which temporarily increased the debt threshold for filing for Chapter 11 Bankruptcy relief. The debt threshold increased from $2,725,625 to $7,500,000. After one year, the threshold will go back down to the original amount.

Credit Card Debt, Debt Collection, Debt Relief

What Happens to Unpaid Debt When A Person Dies?

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Given the amount of debt consumers carry during their lifetime, it comes as no surprise that for many people this debt will remain unpaid after death.  What happens to that debt when the person who was originally responsible for the debt passes away?

Ultimately, how that debt is handled depends largely on the type of debt owed. After someone dies, anything that person owned at the time of his or her death and anything he or she owed is all a part of the deceased individual’s estate.  Essentially everyone has some type of debt when they die, even if it is just payment for funeral and last medical expenses. All this debt will need to be handled in the person’s estate by the personal representative, either appointed in a Last Will and Testament or appointed by the probate court.

Coronavirus, COVID-19, Debt Relief, student loan debt

New Legislation Provides Student Loan Forgiveness to Frontline Healthcare Workers

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Healthcare workers on the frontlines are putting their lives at risk every day during the coronavirus (COVID-19) pandemic, which has many asking what can be done to financially help these dedicated individuals.

Rep. Carolyn Maloney (D-NY) plans to introduce new legislation that will do just that by forgiving outstanding student loan debt carried by these frontline healthcare workers. The legislation is titled The Student Debt Forgiveness for Frontline Health Care Workers Act. The hope behind this new legislation is that by forgiving student loan debt for these workers, a large financial burden will be lifted. Additionally, this incentive could possibly drive others to join the healthcare industry and continue the fight against COVID-19.