As most people who have invested in their education are already painfully aware, the ability to discharge student loans under the U.S. Bankruptcy Code is extremely difficult. That's because in order to eliminate this type of debt, it must be shown that the loan poses an "undue hardship" to the borrower.
Bankruptcy is often a good thing
Bankruptcy often receives bad press. Let's look at one of the most common criticisms. Individuals are warned that it will play havoc with their credit. Of course, a bankruptcy filing will be reflected on your credit reports and your credit score. But this is unlikely to be the catastrophic event it is often made out to be.
Breaking down some of the more popular bankruptcy myths
As we've touched on in the past, there are an unfortunate number of stubbornly persistent myths circulating among the general public concerning bankruptcy. Indeed, our blog spent some time debunking a popular myth about bankruptcy and the affect it has on one's credit score this past fall.
Some tips for staying in the black after getting a pink slip
Now that the economy is back on firm ground and the long-term employment numbers appear relatively strong, a person could be forgiven for thinking that their job is largely safe. The unfortunate reality, however, is that things can still happen behind the scenes that force employers to make tough decisions, including terminating part of their workforce.
How exactly is debt discharged via Chapter 7 bankruptcy? - II
In our previous post, we examined some of the differences between secured debt and unsecured debt. To recap, the former is one in which the borrower provides collateral for the loan, such that the lender has the option of seizing and selling it to recover the money owed in case of default, while the latter is one in which no collateral is provided, but the borrower typically pays a higher interest rate.
How exactly is debt discharged under Chapter 7 bankruptcy?
As we've made abundantly clear on our blog, one of the biggest advantages of filing for Chapter 7 bankruptcy outside of stopping collection efforts is that it can discharge debt, providing the filer with a much-needed fresh financial start.
Federal foreclosure aid available, but Florida fails to act
Some people might reasonably be scratching their heads in wonderment as to why Florida state officials failed to apply for federal foreclosure funding that could have brought an infusion of $250 million into the state for distressed homeowners.
