Lots of fighting over student loan forgiveness right now. One of the big things we were (and still are) looking forward to is a change of law allowing bankruptcy debtors to obtain IDR credit for their plan payments.  Previously, many debtors did not receive such credit because the Department of Education automatically placed student loans in forbearance.  We called that the “False Start” instead of Fresh Start because while a bankruptcy could offer solutions for car loans, foreclosures, and credit card debt, there was not much available for those with student loans.  Instead the ..read more

The 10th Circuit came out with a ruling a couple days after the Missouri and Kansas rulings modifying the stay/injunction on the SAVE plan and student loan forgiveness.  It will allow the Department of Education to implement SAVE’s 5% payment calculation for undergraduate loans starting July 1.  The rest of SAVE – the ability to file separate tax returns, the 100% interest subsidy, the lower payment overall will still apply as well.  You can also get into SAVE if you weren’t already in before July 1.  Anyone in bankruptcy, will now receive IDR credit for their plan payments ..read more

Just when we thought all things student loan related couldn’t get more complicated.  The Department of Education (“ED”) has been trucking along with its plans to get everyone on SAVE, correct prior problems with PSLF and the heavily used forbearance option that only caused balances to increase dramatically. Now, on June 24, 2024, federal judges in Kansas and Missouri issued rulings that partially blocked key elements of President Biden’s SAVE plan nationwide. What exactly has been blocked?  Two federal judges have issued preliminary injunctions that prevent ED from proceeding with ce ..read more

Do you see a debt on your credit report that is not yours? Did a relative (mother, child etc.) sign your name to obtain a loan? This is a typical fact pattern we see for our Fair Credit Reporting Act cases.  Some unauthorized person signed for a debt and now our client is the one whose credit is being dinged or worse. The post Is a Police Report Required for Claim that a Loan is Not Yours? appeared first on Reboot Your Life: Tampa Student Loan and Bankruptcy Attorney Blog ..read more

The debt limits of a Chapter 13 bankruptcy are dropping considerably tomorrow, June 21, 2024.  The Bankruptcy Courts are reverting back to a two part test that limits eligibility to a maximum of $465,275 for unsecured debt and $1,395,875 for secured debt.  Importantly, there is no talk of an extension for this federal mandate. What will this mean?  Well, many with high debt will be forced into a much more expensive Chapter 11 bankruptcy if they cannot swing a Chapter 7.  Also, there will be a few who are presently in a Chapter 13 bankruptcy who do not want to dismiss becaus ..read more

We will be speaking at the Orlando Student Loan and Bankruptcy Workshop on June 7, 2024 along with Laurie K. Weatherford, Chapter 13 Trustee, Orlando Division, and Robert and Tammy Branson.  For our fellow attorneys who practice bankruptcy, this is not one to miss.  The cost to attend is only $350 for an attorney and will offer 6.0 CLE credits. The 2022 guidelines from the Department of Justice on federal student loan adversaries are working. Don’t be left behind! Debtors are receiving discharges. The post Orlando Student Loan and Bankruptcy Workshop — June 7, 2024 appeared first o ..read more

We’ve confirmed through the NCLC that the new regulation allowing credit for IDR for anyone in bankruptcy will NOT apply to FFEL loans.  Or Perkins loans, or unconsolidated Parent Plus loans.  So it’s best to consolidate to Direct Loans before filing, but now that the 4/30 deadline has passed, it’s best to wait until 7/1 to obtain the IDR credit through the IDR Audit which will average the credit between all of your loans.  If you consolidate in the next two months – 5/1 through 7/1, you may not receive any former IDR credit that you’ve built up, nor any through forbearances and ..read more

While we try to get the most information out there through our blogs, monthly newsletters and You Tube Channel Student Loan Sidebar please remember that the information in our videos and this blog does not and is not intended to constitute legal advice.  Instead, all information and content are for general informational purposes – and may not be the most up to date – see the date we produce the video for example. Please contact us for a strategy session where we review your particular loans and how best to position yourself to create the life that you want with as little debt as possible ..read more

Bankruptcy is finally working for people with student loans — I expect to have a series up shortly about all the ways a bankruptcy can help now with both federal and private student loans.  This didn’t used to be true, and you may find people out there who follow those old rules and say that bankruptcy cannot help with student loans.  I’m afraid that after the IDR audit expires (deadline next Tues – 4/30), bankruptcy will in fact be one of the best – and often overlooked options to reduce crazy student loan debt. Total and Permanent Disability discharges are also going strong — and n ..read more

Don’t forget, next Tues the 30th, is the consolidation application deadline for the IDR account adjustment – often referred to as the IDR Audit.  It’s also the last day before the PSLF processing pause goes into effect, so you may wish to download your payment tracking data from MOHELA before that date. For more info on the PSLF processing pause:  https://studentloanborrowerassistance.org/the-pslf-processing-pause-what-you-should-know/ For more info on the IDR Audit and how it can help you obtain forgiveness by consolidating before 4/30:  https://studentloanborrowerassistance.or ..read more