When the Bankruptcy laws were overhauled in 2005, the new law mandated that all individual debtors (with certain limited exceptions) complete two counseling sessions - one prior to filing (Pre-Bankruptcy Credit Counseling) and a Debtor Education Session prior to the issuance of a discharge.
Legend has it that Bush 43 thought that if someone spoke to a credit counselor prior to filing bankruptcy, it would dissuade them from filing - NOT!
All this has done is to lay on another expense (usually between $45-75 per case) and filled the pockets of about 100 companies throughout the country that won the lottery with the DOJ.
Any amendment ...
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Student Loan Relief Belongs in Bankruptcy Court
Let's stop the nonsense about absolute student loan forgiveness.
I think we can all agree that if a student who never got a degree after incurring student loan debt, and is in a low paying job, that student should be afforded some relief as long as they can prove that they do not have the ability to pay the debt. As noted in last week's WSJ, this would level the playing field between the haves and have nots. The place to do this is in Bankruptcy Court. The mechanisms are already in place and have worked fairly well for the LAST 15 YEARS. Between exemptions that are allowed with respect to property that can be protected and the means test ...
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Taxi Drivers Will Not Be Getting Any Relief From NYC
From time to time, this issue comes up in discussions with the NYC Taxi Drivers that I have worked with over the past four years.
Unfortunately taxi drivers comprise too small a population to even be considered for any pandemic relief other than unemployment and PUA.
You have to take a close look at the numbers. There are roughly 13,000 medallions issued by the NYC TLC. When you take into account the owners of large fleets, at the peak of the market in 2015-6, there were well less than 10,000 "owners" of NYC medallions. Of the 10,000 individual medallions owners, at least 3-4,000 have already surrendered their medallions to lenders ...
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How Inquiries Can Affect Your Credit Score
If you have checked your credit report lately, you may have noticed an "inquiries" section. An inquiry refers to a request to look at your credit file and falls into one of two camps: hard or soft.
A credit inquiry occurs when you apply for a credit card or loan and permit the issuer or lender to check your credit. Some inquiries have no effect on your credit, but others can lower your credit score.
Knowing the difference between the two types of credit inquiries and how inquiries affect your score is a must.
What Is a Credit Inquiry?
A record of a request for your credit report is called a credit inquiry. You'll see an inquiry on ...
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Credit Card Companies Not Seeing Economic Reality – Too Much Debt Is A Bad Thing
Americans are projected to fall seriously behind on their credit card bills at the highest rate in a decade as banks push a record number of people to get plastic.
The share of credit card borrowers who are at least 90 days past due on their accounts will probably tick up to 2% next year, the highest level since 2010, according to a forecast by TransUnion. Still, the credit-rating company said the increase isn’t a cause for concern, noting that bad card debt still remains much lower than the level seen during the last recession.
The number of people with access to revolving credit reached a record 200.5 million in the third quarter. That ...
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Brookings Reports That The Economy Is Not Necessarily Strong
On the face of it, the economy seems to be doing pretty well, with unemployment rates near or at record lows, but that's far from the full story. The truth is there remains a vast segment of workers today who are earning low wages that leaves them and their families at risk.
When I speak with economic researchers, which I do periodically, this is something that seldom comes up. We habitually underestimate how prevalent this truly is.
A new report from the Brookings Institute shows that 53 million Americans - 44% of all workers aged 18-64-- have low-wage jobs. This significant portion of the nation’s labor force is earning median hourly ...
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How to Correct An Error on Your TransUnion Credit Report
Did you know that one in every five Americans has an error on their credit report, according to the Federal Trade Commission? If you're one of the unlucky ones with an error, you could be denied credit when you apply, pay more for loans, or face other problems with employer background checks, utility companies, or cell phone service providers who check your credit.
You don't want omissions or inaccuracies on your credit report to cost you financial opportunities or to make your loans more expensive. To avoid this, you need to keep tabs on your credit. If you spot a problem, such as inaccurate information on your TransUnion credit report, ...
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What is a Sub-Prime Loan?
To understand what a subprime loan is, it is first important to understand the details of a prime loan. A prime loan, also known as a conventional loan, is offered by lending institutions to borrowers they see as ideal, less risky candidates. These preferred borrowers are typically in good financial standing and have good credit. Essentially, lenders like to make deals with these people because they believe them to be more capable of eventually paying back the loan.
You don't have to be a linguist to know that "sub" means under, below, or in some cases, less than. Thus, a subprime loan is a tier below a prime loan. In the case of auto ...
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Consumer Debt On Pace to Hit $4 Trillion by December 31st
Here’s an unsettling number as you gear up for holiday shopping: consumer debt is on pace to hit $4 trillion by the end of 2018. In fact, in just the past five years, consumer debt has gone up by $1 trillion.
Taking a closer look at the breakdown for borrowers: $1.04 trillion is revolving or credit card debt, which has jumped 22% since 2013, and $2.9 trillion in non-revolving debt, which includes student and auto loans, jumping 30% in the past five years. (Mortgage debt is not included in this number.
Based on the rate of holiday spending reported in these past few weeks alone, LendingTree analysts expect credit card balances to grow by at ...
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Four Dangers of Debt Consolidation
Debt consolidation can be a great way to lower your monthly payments, reduce your interest cost, and simplify the process of paying back what you owe. But, consolidation isn't always the right choice -- and it isn't necessarily a risk-free process.
To make sure debt consolidation doesn't make your situation worse, it's important to understand the dangers so you can make an informed choice about whether consolidating your outstanding debt makes sense for you. Here are four major risks associated with the process that you'll want to mitigate if you plan to take this approach.
1. Going deeper into debt
One of the biggest risks of ...
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