Can I Be Sued for Not Paying a Student Loan?

When it comes to student loan debt, borrowers are used to being told that their wages can be garnished if the loan goes into default. This is true if the educational loan is federally guaranteed.  It’s called an Administrative Wage Garnishment, and the Department of Education can go straight to your employer and start collecting…

Protecting Against Default Judgments

Has a debt collector contacted you and asked how you are going to pay a debt, and then informed you that the creditor already has a judgment against you? This sometimes happens if you were served papers but never filed a written response. It’s also possible that you never knew about the lawsuit because the…

What Repayment Plans are Available for your Student Loans?

If you aren’t able to make your current student loan payments, or if you won’t be able to very soon, there are various repayment plans offered by the Department of Education. For an IBR Calculator, click here. Why do you need a lawyer? Because the debt collector who keeps calling you or your loan servicer…

Top 5 Reasons that Student Loans should be Dischargeable in Bankruptcy

what obama should do for student loan debt relief

President Obama’s executive order with regard to student loan debt relief doesn’t go far enough. Here are five reasons why the President and the Congress should go further: 1. Even the IRS Doesn’t Get the Protection that the Student Loan Creditors Enjoy. When most people think of a creditor that is going to get its…

What is Pay As You Earn (“PAYE”) ?

obama executive order on student loans

On October 26, 2011, President Obama gave a speech in which he announced that he would be implementing a new Student Loan Relief Program. There is understandably some confusion about what this actually means. Here’s what it is: President Obama signed an executive order which modifies the features of the existing Income-Based Repayment (IBR) Program,…

Debt Settlement? Look out for Tax Liability!

debt settlement look out for tax liability

I have been receiving calls from people who are looking into settling debts with creditors for less than the complete amount owed. This is sometimes possible, and sometimes a good idea. However, people are surprised to find out that they may be creating income tax liability by doing this. Yes, it’s true: debt forgiveness is…

Debt Relief for Student Loan Borrowers

Girl worried about paying student loans

What are Debt Relief options for student loans? Here is the run-down for people who live in the San Francisco Bay Area: 1. Income-Based Repayment (IBR) Fortunately, there is a federal program called Income-Based Repayment. This is one form of debt relief available for many borrowers who have federally-guaranteed student loans. However, you can’t do…

Celebrating Independence Part III: Bankruptcy is as American as Sam Adams & Apple Pie!

Samuel Adams Public Domain

Over the Fourth of July weekend, many Americans enjoyed a beer named after Patriot Samuel Adams. But in addition to being a famous Patriot, and a leader of the Boston Tea Party in 1773, Samuel Adams was also famous for something many other Americans have experienced, being broke. His business, making malt for brewers, didn’t…

Celebrating Independence, Part II: Thomas Jefferson, from Declaration to Debtor

Thomas Jefferson, Debtor

It is widely known that Thomas Jefferson wrote the Declaration of Independence and became the Third President of the United States. His financial problems are perhaps less well known. During his presidency, Jefferson went into debt to pay for state dinners at the White House.  Uncle Sam never reimbursed him.* After Jefferson left the White…

Celebrating Independence Part I: Did Bankruptcy Cause the American Revolution?

Ben Franklin

Okay, so there were probably a few other reasons for the American Revolution – democratic ideals, self-governance, yadda, yadda, yadda. But would you be surprised to find out that American Debt Relief was one of the factors motivating the Colonists to declare independence? The British Parliament imposed taxes on the Colonies to pay for Britain’s…

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