The federal government offers Parent PLUS loans to parents of college students to help pay for the students’ educations, but they are notoriously difficult for struggling parent-debtors to deal with because they have high interest rates and aren’t protected by as many of the student-loan innovations that keep regular direct-loan borrowers afloat, e.g. Income-Based Repayment …
Many people, usually in the banking industry, regularly assert that better financial literacy will keep people out of New York bankruptcy. The empirical evidence for this isn’t remarkably great. Researchers have found that the Bankruptcy Code’s pre-filing financial education requirement doesn’t deter unnecessary bankruptcies, and many debtors have said the pre-discharge financial management course was …
New York Fares Well in National ‘Financial Capability’ Survey Read More »
I recently wrote about executory contracts in New York bankruptcy in the context of private licenses, but one issue that debtors (and creditors) might have is recognizing when a contract is not executory but some other unusual category. Sometimes the confusion comes down to misunderstanding an at-will contract for an executory agreement, but there can …
At-Will Contracts and Other Non-Executory Contracts in Bankruptcy Read More »
Real estate in bankruptcy generally concerns debtors, creditors, the trustee, and maybe some tenants. But when that real estate is environmentally contaminated for some reason, then the number of participants swells to include nearby parties who might be affected and environmental regulators. Bankruptcies involving environmental laws are almost always long, complex, and business related. So …
Environmentally Contaminated Property in New York Bankruptcy Read More »
“Loss Mitigation” sounds like an intimidating term, but it’s really just a mechanism within New York bankruptcy to help parties resolve foreclosure issues to debtors’ and creditors’ benefits. That is, its objective is to keep debtors’ principal residences out of foreclosure or reduce needless costs to creditors. It involves negotiations between the parties, possibly including …
In early June the Consumer Financial Protection Bureau (CFPB) announced its proposed rule for regulating the payday lending industry—and what it calls “debt traps” in particular. According to the bureau, one in five consumers default on payday loans due to the fees and penalties that accrue when the loans are rolled over. Often, payday loans …
CFPB Payday Lending Rule Takes Shape, May Reduce Bankruptcies Read More »
Discharging tax debts can be difficult but not impossible in New York bankruptcy, but what about more mundane debts to the government, like traffic tickets? Are these subject to the same rules as tax debts or are they nondischargeable because they’re unsecured debts? It’s a common concern by debtors. The answer is, it mostly depends …
The Washington Post ran an opinion column by an author explaining why she believed people should not co-sign loans for others. Indeed, co-signing loans can frequently get co-signers into trouble, particularly when principal debtors run into difficulties repaying the loans. You can read about the New York bankruptcy implications of co-signing a loan here. The …
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