The Department of Education recently launched the IDR Waiver, a program enabling federal student loan borrowers to receive credit toward loan forgiveness. If you’ve been repaying your federal student loans for over 20 years, your remaining balance will be automatically forgiven on or after July 1, 2024. For graduate school borrowers or parents of students, the forgiveness period extends to 25 years. Even if you’ve had periods of non-payment, those can still count toward loan forgiveness. This program is expected to aid millions of federal student loan borrowers in ..read more

If you are one of the approximately 7.5 million federal student loan borrowers with defaulted loans, you will want to take full advantage of the Fresh Start Program being offered by the Department of Education.  If properly utilized, this program will allow you to rehabilitate your loans, get them back on a regular payment schedule, and can also help lower your payments. What is the Fresh Start Program? The Fresh Start Program is a one-time temporary program, offered by the Department of Education, that allows borrowers with defaulted federal student loans to get temporary relief from col ..read more

Student loans are the second largest portion of all consumer debt in the United States, behind only mortgages.  But, because of the special legal protections granted to student loans, they are notoriously difficult to reduce or eliminate, unlike almost any other type of debt.  Still, even though student loans are more difficult to deal with than other debt, borrowers who are overwhelmed with student loan debt have many options available to them for reducing or eliminating student loans. In this guide, we provide a detailed review of student loans and your options in managing and ulti ..read more

Today I want to talk about reaffirmation agreements because it is a topic that is likely to come up if you are researching your bankruptcy options, and can be confusing. What Is A Reaffirmation Agreement? A reaffirmation agreement is a type of agreement that is unique to bankruptcy.  In fact, reaffirmation agreements are generally only used in Chapter 7 bankruptcy.  Put simply, it is an agreement by which you “reaffirm” a debt, or agree to be responsible for a debt after bankruptcy. Normally, bankruptcy eliminates your personal liability for many debts, such as credit cards, medical ..read more

These are answers to some of the most frequent questions I hear from my Tucson and Mesa clients considering Chapter 7 bankruptcy.  For a general overview of the Chapter 7 process, see our Chapter 7 Overview page. What is a Chapter 7 Bankruptcy? A Chapter 7 bankruptcy is a legal process by which you can eliminate debt.  It is one of several types of bankruptcy available to individuals (others being Chapter 11, Chapter 12, and Chapter 13).  But, because it is faster, simpler, and less expensive than the other types of bankruptcy, it is the most common type of bankruptc ..read more

If you are being sued for a debt, such as a credit card, personal loan, or a medical bill, one of the most important factors in determining how you should defend the lawsuit is whether or not you are being sued by the original creditor or a junk debt buyer.  This article explains the differences between these two types of debt collectors.   What is an Original Creditor? An original creditor is the creditor than originally issued the loan or credit card, or which originally provided the services for which you owe money.  For example, if you have a credit card with Wells Fargo, th ..read more

There is a lot of misinformation out there about whether a person can file multiple bankruptcies, and when successive bankruptcies can be filed in relation to each other.  Some people even have the mistaken belief that they cannot file more than one bankruptcy in a lifetime.  The truth is that there are normally no limits on how many bankruptcies a person can file, but there are restrictions on the timing of multiple bankruptcies in relation to each other.  It is important to comply with the timing restrictions for two reasons: (1) to obtain the full benefits of bankruptcy, and ..read more

Credit scores have become an omnipresent part of our lives—your credit score can affect whether you can get a credit card, rent an apartment, qualify for a mortgage, or even get a job. It is understandable, then, that most people will want to know how a particular financial decision will affect their credit score. This is also true when it comes to bankruptcy. The impact of bankruptcy on your credit score can sometimes be an important factor in the decision to file for bankruptcy. The short answer to the question “Will bankruptcy affect my credit score?” is “Yes.” However, how your credit scor ..read more

If you are considering filing for bankruptcy in Tucson or Phoenix, Arizona, the process can seem intimidating and overwhelming.  And because most people filing for bankruptcy are already overwhelmed with debt and need immediate relief, trying to figure out all the requirements for debt relief can be particularly stressful.  Luckily, every consumer bankruptcy can be broken down into a series of discrete steps, which are described below. Planning The first and most important step of any bankruptcy is the planning.  This is the step at which you, and your attorney if you have one ..read more

One of the effects of the COVID pandemic has been that many more people became reliant on unemployment compensation and benefits.  At the same time, the unemployment benefits significantly increased due to the passage of the CARES Act and other similar laws.  It was a surprise to many recipients of unemployment benefits to find out that unemployment compensation is taxable.  In other words, unemployment compensation is considered income, and is taxed the same way as other income, both by the federal government and by the state. Moreover, before the pandemic, unemployment compens ..read more