Newsletters

How to Stay on Top of Your Federal Student Loans

Federal student loans are held by millions of people in the United States. However, the default rates on these loans continue to increase. In fact, the Brookings Institution argues that nearly 40 percent of federal loan borrowers could default by 2023. What many borrowers may not realize is that federal student loans have multiple repayment programs and tools that can prevent default. There are also loan forgiveness options for federal student loans. When attorneys Neil Sader and Michael Wambolt penned an article for Primerus Paradigm on federal loans, they emphasized that “what you owe is less important than what you know.” You must know which types of federal loans you carry to take advantage of these programs. Using the National Student Loan Data System The Department of Education’s Federal Student Aid Office (FSA) maintains the National Student Loan Data System (NSLDS). You can access your federal student loan data by…
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Older Americans Turn to Bankruptcy in Kansas City

Bankruptcy can relieve debtors from liability for some unsecured debts and prevent creditors from taking collection actions. According to a July 2009 Bloomberg report, there were 675,351 consumer bankruptcy filings in the first half of 2009, a 36.5 percent increase over 2008 numbers. Older Americans have experienced the sharpest increase in bankruptcy filings, jumping from 8.2 percent of debtors in 1991 to 22.3 percent in 2007, according to a study by the Consumer Bankruptcy Project, as reported by The Associated Press. The study found that Americans 55 and older accounted for approximately 8 percent of bankruptcies filed in 2001. But by 2007 Americans 55 and older represented 22 percent of bankruptcy filings. The increase was also found by the Public Policy Institute of the AARP (American Association of Retired Persons). Harvard Law Professor Elizabeth Warren, author of the study, also found that the median age for bankruptcy filers had increased…
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A Car Loan Cram Down in a Missouri Bankruptcy

A Kansas City Bankruptcy Lawyer Provides Advice The first question many people ask when they are considering consumer bankruptcy is the likelihood of being able to keep their vehicle. The state of Missouri allows a person to exempt up to $3,000 of vehicle equity when they file for a Chapter 7 or Chapter 13 case. However, this may not be enough to cover all vehicles. Thankfully, in a Chapter 13 case, there exists what is called a cram down car loan. An interesting note about the term “cram down” is that it got its name because the bankruptcy court can metaphorically “cram” a new loan “down” the throats of objecting creditors! Your Car Loan Options When You File Chapter 13 Bankruptcy It is well-known that vehicles lose value quickly, particularly if they were purchased new. A vehicle that cost $40,000 on the lot can easily be worth only $20,000 within…
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Converting a Chapter 13 Bankruptcy into a Chapter 7 Bankruptcy

Sometimes, people who file for a Chapter 13 bankruptcy find it difficult to meet the terms of their repayment plan. If a major life change, such as the loss of a job or death of a spouse, has made it difficult to meet the repayment terms of a Chapter 13 bankruptcy, it may be appropriate to convert the Chapter 13 bankruptcy into a Chapter 7 liquidation bankruptcy. If the terms of your Chapter 13 bankruptcy repayment have become too difficult to meet, a Kansas City bankruptcy lawyer can help you evaluate your options. Pros of Converting to a Chapter 7 Bankruptcy A Chapter 13 bankruptcy and repayment plan may no longer be feasible if you have had a change in circumstances such as a job loss, medical condition, new child or the passing of a spouse that renders repayment exceedingly difficult. Even if you have not had a major life…
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