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Tampa Bankruptcy Law Blog

Extensions on Paying Back Student Loans: Forbearances

In last week's blog we discussed ways to get extensions on paying off student loans, one way being deferments. This week we will discuss another solution to extending payments: forbearance. Forbearance, just like a deferment allows a borrower to temporally postpone payments on student loans and/or reduce the amount one pays monthly on those loans.

Inherited IRAs are Not Considered "Retirement" Accounts

When a person sets up an Individual retirement account for themselves they usually are thinking that if something should happen to them, then their account is under the possession of the beneficiary of their choice. Which is true, however, when a person sets up an IRA with a chosen beneficiary do they think about if this account can be affected financially, such as through a bankruptcy. No, most IRA owners do not. This is because too many people who do have IRAs or have inherited those from an original owner never realize that if faced with bankruptcy their inherited IRA is at risk.

Medical debt on a credit report can be like a lingering illness

Just about everyone in the Tampa area, or anywhere else in the United States, carries some kind of debt. Debt is typically not a good thing to have and in some cases it can lead to greater financial problems, like foreclosures and bankruptcies. There are many kinds of debt that affect people from all walks of life, but one of the most common forms that people are dealing with these days is medical debt.

Not only is having medical debt damaging to a person’s financial status, but medical debt can also be damaging to a person’s credit score. In fact, according to reports once a person has been hit with unpaid medical debt on his or her credit report, it can be very difficult to remove it from a credit report. One of the biggest problems with medical debt is that many people aren’t even aware that have it, until it gets sent to a collection agency.

Could the private sector ease the burden of student loan debt?

Many people want to live the “American dream,” which often includes time spent earning a degree at a college or university. Having a degree can be very beneficial for those who want to carve out a path of financial prosperity. However, paying for a college education is often very expensive and many students in the Tampa area, and elsewhere, graduate in serious debt. So what if the private sector helped students overcome this debt?

According to reports, the amount of student loan debt in America is in the neighborhood of $1.3 trillion. For many students getting out of debt is nearly impossible, which means long-term financial troubles are almost inevitable. However, what would happen if the private sector started an Adopt-a-Student Loan program to help ease the burden of student loan debt?

Paying for College Does Not Mean Taking out Student Loans

Today many students when thinking of applying to college they ask themselves, "How can I afford tuition?" From there they see taking out Student Loans as the only solution to achieve their dreams of gaining a college degree. Taking out loans could lead to borrowers being overwhelmed by debt; therefore they become unable to repay their loans in time, and are forced to deal with default. For debtors who feel like they have no way out they seek to file for bankruptcy. However, student loans are not the only way affording college is possible.

What happens when a loved one leaves you with credit card debt?

Although having a large credit card bill is common among most Americans, sometimes people get stuck with credit card debt that is not even their own. So how does that happen? Because just about everyone has unpaid credit card bills, those bills are still around after a person dies. Just because a person in the Tampa area dies, that doesn’t mean his or her credit card debt gets buried with him or her.

One of the reasons some people get stuck with paying off their loved one’s credit card debts is that many wills include language that in effect directs the executor to pay off the person’s debts before paying his or her beneficiaries. However, there are some measures one can take if he or she has been left in this position. Although most banks wouldn’t publicize it, according to several attorneys their clients have found banks to be more willing to settle when a person has died.

Student Loan Payment Options

Student loans can be overwhelming, especially in today's economy where there are over $1 trillion of student loan debt in America. Borrowers who are just out of school and need to begin to think about paying off their loans should keep in mind that there are multiple payment options out there. Many people are in different financial situations and along with the right payment plan one can find loan payments less stressful.

With a Direct Loan a borrower can qualify for Income Contingent Repayment (ICR). This option considers payments based off of income and balance of loan. Parent PLUS loans cannot use the ICR repayment plan; however a consolidated loan that contains Parent PLUS is eligible for ICR.

Rebuilding Credit after Bankruptcy: Thinking about Refinancing

The longer someone recovering from a recent bankrupcty waits to refinance a mortgage, the easier the process of refinancing becomes. This is because it is important to rebuild a credit score before applying to refinance a home. If one tries to do so before a year has passed since they declared bankruptcy they could potentially see themselves facing high interest charges. Giving yourself time to recoup from a recent bankruptcy will be more beneficial in the long run. Usually one to two years after a bankruptcy is a decent amount of time to rebuild one's credit score. Having a better credit score when looking to refinance, will make interest rates much more affordable.

Mortgage refinance companies do not only look at how much time has passed since a borrower's bankruptcy, they also need to see proof of re-established credit. This can be represented through a safe and secure credit card, and a loan taken out on a car. Safely rebuilding your credit before opting to refinance puts you in a good position, that when you meet with refinance companies they see you as a good credit risk for them. To keep a clean and responsible credit report, use a credit card for small purchases; when you do so the payments each month on the card won't be overwhelming.

Obama announces efforts to create more student loan relief

There are many people in the Tampa area and elsewhere who use student loans in order to get through college. Although getting a degree can be very useful in life, the cost of studying at a university can be very high. Unfortunately, finding a good-paying job after graduation can also be difficult. That means that many people who earn their degrees have a very difficult time paying off their student loans on time and this can lead to long-term financial problems.

There is some good news from the Obama Administration for many who are struggling with student loan debt. In order to help ease the burden of the millions of people who owe significant student loan debt, President Obama recently signed a bill that will allow individuals to pay no more than 10 percent of their monthly income to their student loan payments.

Student Loan Law Series: The Trouble with Joint Consolidation Loans

Student loans can get overwhelming to handle on your own, and many couples who get married think it is a good idea to consolidate their student loans to make paying off the loans less of a burden. It's not.

Married couples have the potential to get divorced due to financial hardships, however once they are divorced from each other it doesn't mean their financial ties disappear, such as Federal Joint Consolidation loans. A Federal Joint Consolidation loan that was made while married cannot be reversed.

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