Articles Tagged with Student debt

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Bankruptcy Lawyer Bryan W. Stone answers the question: “What are the pros and cons of bankruptcy?”

A recent article by Money Magazine walked through some of the most common myths associated with the bankruptcy process, exposing them as the fictions they really are. Though deciding to file bankruptcy can be difficult under the best of circumstances, it’s made unnecessarily harder due to commonly held misconceptions. These myths can intimidate and frighten people away from a process that might actually prove helpful, freeing them from mountains of burdensome debt. Now, let’s demystify some of these myths.

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Bankruptcy Lawyer Bryan W. Stone answers the question: “What are North Carolina’s exemptions?”

We’ve previously discussed the difficult road that individuals have when trying to escape crushing student loan debt. Frustratingly, bankruptcy laws have been written to make it nearly impossible to get out from under educational debt. Despite the difficulty, many creative bankruptcy attorneys are exploring loopholes and other untested strategies, some of which have met with success.

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Bankruptcy Lawyer Bryan W. Stone answers the question: “Can I get rid of student loans by declaring bankruptcy?”

In one of the more ironic bankruptcy stories of the year, the filing by the parent company for ITT Technical Institutes has devolved into one of the most paper-heavy affairs imaginable.

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Bankruptcy Lawyer Bryan W. Stone answers the question: “Can I get rid of student loans by declaring bankruptcy?”

A single mother with two young boys was only briefly able to imagine a future free of her crushing debt burden. Against all odds, the woman won her case before a bankruptcy court in Alabama. This victory, though short-lived, was a big accomplishment given how skeptical bankruptcy courts are when it comes to granting relief for student loan debt. Sadly, the educational lender appealed the decision and a district court reversed, meaning the single mother will again assume responsibility for her six figures in educational debt.

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Bankruptcy Lawyer Bryan W. Stone answers the question “Can I get rid of student loans by declaring bankruptcy?”

It’s long been understood that bankruptcy protections do not apply to the vast majority of student loan debt. The decision was made years ago to shield student lending companies from loss, meaning students are often locked into a lifetime of struggling to pay mounting school-related debts. A recent case out of a bankruptcy court in New York appears to chip away at that protection, at least in one rather limited circumstance.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Do I need an attorney to file bankruptcy?”

A recent bankruptcy case out the Seventh Circuit Court of Appeals dealt with the increasingly thorny issue of student loan debt. Sadly, the Court ultimately ruled against the debtor in this case, holding that he had failed to make a good faith effort to repay his debt under the Brunner test. So what is the Brunner test and what impact does it have on a bankruptcy case? To find out more, keep reading.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Can I get rid of student loans by declaring bankruptcy?”

 

The Obama Administration unveiled on Tuesday what it dubbed a “Student Aid Bill of Rights.” Among the proposals the administration is considering is a push for legislation that could enable borrowers to discharge student-loan debt through personal bankruptcy.

President Obama meeting Charlotte Bankruptcy Lawyer North Carolina Student Debt AttorneyCurrently student-loan debt can be discharged in bankruptcy, it’s just really hard to do.

According to the Wall Street Journal, at least 713 people tried to discharge their student-loan debt last year. The Journal knows that because in order to discharge student-loan debt, a debtor has to file a lawsuit. Lawyers taking on a student-loan discharge attempts “typically charge several thousands [of] dollars” up front for an uncertain result, according to the Journal.

In order to succeed at getting student-loan debt discharged, a lawyer must convince a judge that the debtor will never be able to afford one’s monthly payments. Bankruptcy lawyers told the Journal that bankruptcy judges have issued a wide range of rulings in student-loan debt discharge actions, muddying the legal landscape with uncertainty.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Can I get rid of student loans by declaring bankruptcy?”

 

For-profit colleges and universities have aggressively sought to brand themselves as hip alternatives to traditional institutions of higher learning, with a range of television and other advertisements featuring young people breaking away from the pack and pursuing their own dreams.

College graduate Charlotte Debt Lawyer North Carolina Bankruptcy AttorneyAt least 264 of those dreams shattered last week when Anthem College shut down its Beaverton, Oregon campus. The Beaverton location was just one of many campuses shuttered after Anthem’s Florida-based parent company—Education Training Corp.—declared Chapter 11 bankruptcy.

The closure of Anthem campuses hurts more than students, said Chris Ebersole of SkanlanKemperBard Companies, Anthem’s landlord at The Round office and retail complex in Beaverton, where Anthem leased 30,000 square feet of space. The college did not pay its August rent, Ebersole said, and his company will likely be looking for a new tenant.

Anthem’s Beaverton branch offered one-year programs to train medical and dental assistants, medical records clerks and massage therapists. Tuition and fees for the programs cost students $15,000 or more. For-profit colleges have been criticized for aggressively recruiting students who are required to pay expensive tuitions for low-quality educational offerings.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Can I get rid of student loans by declaring bankruptcy?”

 

So often in life we limit what we can achieve by self-limiting the possibilities of what we might achieve. The same may be true in a bankruptcy. If a person limits the range of debts one seeks to discharge in a bankruptcy, one may sell oneself short.

Net Cost FY 2006 Charlotte Student Loan Lawyer North Carolina Student Debt AttorneyThe blame isn’t entirely on the individual. Society plays its part. We are told the rules, told what to expect and told what is expected of us. But what happens if what we are told is wrong? So often in bankruptcy—as in life—we should live by the rule of “Buyer Beware.” We should educate ourselves on our options and choose for ourselves the best course in light of our circumstances.

No one is buying anything in bankruptcy, unless purchasing the discharge of debts and, potentially, a new lease on life, is seen as something for which one is willing to pay. No one says going through bankruptcy is easy, but there is an end to it, and whatever leads people into bankruptcy may be worse.

One common elephant in the bankruptcy room is student-loan debt. It weighs heavy because most people believe it is not dischargeable in bankruptcy. Perhaps that is why just .1 percent of consumers with student loans try to seek their discharge through bankruptcy proceedings. This may be a case in which the 99.9 percent are truly to blame.

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