Category Archives: Consumer Credit

Filing for a bankruptcy can clear consumer credit such as credit cards and payday loans.

Emergency Rental Assistance program available to distressed renters

The widespread economic impact of the COVID-19 pandemic has affected both individuals and families who have fallen behind on rent, as well as landlords who rely on rental income to meet their own expenses. As federal and state eviction moratoria expire, millions of American households could face displacement from their homes in the coming months. This could potentially spur an increase in bankruptcy filings. Through funding from the Department of the Treasury’s Emergency Rental Assistance (ERA) program, there are a wide variety of state, territorial, tribal, and local government programs that have been tailored to address the special needs of communities during these difficult times. The U.S. Trustee Program (USTP) has partnered with the Treasury Department to help raise awareness about ERA in the hopes of helping individuals to avoid bankruptcy altogether or, at a minimum, better position debtors to exit bankruptcy successfully. To assist in this effort and ensure…
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The Upcoming Student Loan Discharge?

If you were to ask a person on the street about bankruptcy, one of the most well-known rules is “you cannot discharge student loans.” In 2005, the Bankruptcy Code was amended under a law called the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). In that law, student loan debt was categorized as non-dischargeable under federal statute. The only silver lining for individuals hoping to discharge student loans was that the section said the loans could not be discharged “unless it would impose an undue hardship.” Like many laws written by Congress, this language was left for Courts to interpret. Some courts have been favorable to students and have discharged student loan debt in certain circumstances; some have not. The one unifying factor for all courts has been that if you want to attempt to discharge your student loans, it will take time and money and there are no guarantees….
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The Top 5 Powers That Chapter 13 Has That Chapter 7 Lacks

By STEVEN LONG Many people seeking the relief afforded by bankruptcy want to file a Chapter 7 bankruptcy. I have heard initial disappointment from some in discovering that they do not actually qualify for a Chapter 7. They filed too recently, their income is too high to qualify or because they had property that they wanted to keep. In truth, Chapter 13 bankruptcy is not a compromise. It is often the case that everything Chapter 7 can do, Chapter 13 can do better. Power 1: Saving the House  If an individual is behind on mortgage payments, a Chapter 7 bankruptcy is a bad solution for that problem. A Chapter 7 can cancel a foreclosure sale but does effectively nothing to bring the account current. What is often seen as a strength of Chapter 7 is its weakness here – Chapter 7 cases are brief. As is the protection they afford….
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