Education Department renegotiates contracts with student loan servicers
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Bankruptcy
NCBRC Protects the Integrity of the Bankruptcy System
Posted below is a brief snippet from Legal Ink Magazine that recently featured the National Consumer Bankruptcy Rights Center (NCBRC). Legal Ink Magazine is collaboration effort spearheaded by Attorney Credits and is distributed to over 160,000 attorneys. NACBA Attorneys could visit Attorney Credits for on-demand CLE and a special member benefit.
Each year, millions of individuals and families across the country struggle to pay their bills. Often financial distress follows on the heels of other unanticipated events such as job loss, divorce, substantial out-of-pocket medical expenses and natural disasters. Bankruptcy may provide these debtors with the opportunity for a fresh start. The Bankruptcy Code grants financially distressed debtors certain rights that are critical to the proper functioning of the bankruptcy system as a whole. However, bankruptcy debtors, lacking both financial resources and exposure to the bankruptcy system, often do not have the ability to protect the integrity of the bankruptcy system and preserve the bankruptcy rights of consumer debtors more generally. The National Association of Consumer Bankruptcy Attorneys’ Amicus Project was created to fill that vacuum, and in 2010 the NACBA Board founded the National Consumer Bankruptcy Rights Center (NCBRC) to further the mission.
NCBRC provides assistance either by working directly with debtors’ attorneys or by filing amicus briefs in courts throughout the country. In cases with the potential to affect consumer debtors throughout the county, NCBRC’s amicus curiae briefs address broader issues so that the legal effects of courts’ decisions do not depend solely on the parties directly involved in the case. Since its founding NCBRC has filed more the 40 amicus briefs in courts throughout the country. Recent examples of NCBRC Amicus Briefs:
Bankruptcy Briefs 8/29/14
NACBA Member Featured on Fox Business
NACBA Member Joshua Cohen was featured on Fox Business “The Willis Report.”
Attorney Cohen weighed-in on “More Social Security benefits getting docked for student loan debt?”
Watch Clip: Fox Business The Willis Report with Joshua Cohen
Bankruptcy Briefs 8/28/14
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Bankruptcy Briefs 8/27/14
Student Loan Debt Lasts a Lifetime
NACBA Response by President Ed Boltz to U.S. News Article “Debunking the Student Loan Bankruptcy Myth”
To the Editor:
More proof that if it sounds too good to be true, it usually is: Contrary to what you may read, there are not “a lot” of instances in which students who are savvy enough to ask to discharge their student loan debts are allowed to do so. (“Debunking the Student Loan Bankruptcy Myth,” August 13, 2014)
In reality, the United States is crippled with what has been termed a “student loan debt bomb.” Americans have accumulated more than $1.2 trillion in student loan debt, exceeding even the level of credit card debt in our nation. Because federal law treats student debt as non-dischargeable in bankruptcy proceedings, borrowers can be burdened with this debt for a lifetime even if they are unable to repay.
Federal law does provide that bankruptcy discharge is available for student loans in cases of “undue hardship.” But there’s a big gap between what is theoretically possible and what happens in the real world. The path to an undue hardship discharge is often blocked by U.S. Department of Education contractors, which aggressively challenge debtors’ efforts to show undue hardship. Too often, what we see in bankruptcy courts is federal education contractors using their legal muscle and ability to drag things out in order to crush hardship cases.
The U.S. Department of Education needs to take charge of the situation and make it clear that the over-the-top hardball tactics of its contractors are out of line. Students, parents, educators, lawmakers and other concerned citizens should encourage Congress to restore meaningful and workable bankruptcy protections for student loans, so that those in real need are able to get a fresh start, rather than being devastated for life by insurmountable student loan debt.
Edward Boltz
President, National Association of Consumer Bankruptcy Attorneys
Raleigh, North Carolina
Bankruptcy Briefs 8/26/14
Bankruptcy Briefs 8/25/14
Attorneys File Complaints Against Bankruptcy Trustee
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Are Student Loans Dischargeable in Bankruptcy? Only if You Can Prove Undue Hardship
Bankruptcy Declared in “The Office”
As you’ll see from the clip below, one cannot just “declare bankruptcy” by shouting from the rooftops. On a nationally televised episode of The Office, Michael Scott (Steve Carell) was given this advice by his staff accountants Oscar Martinez (Oscar Nunez). However, Michael received this advice only after announcing to all his co-workers his intent to “declare bankruptcy.” Individuals filing for bankruptcy typically aren’t required to disclose their intent to file or make a public announcement concerning their bankruptcy. (some exceptions to this may exist)
Corporations and partnerships must have an attorney to file a bankruptcy case. Individuals, however, may represent themselves in federal bankruptcy court. While individuals can file a bankruptcy case without an attorney or “pro se,” it is extremely difficult to do it successfully. This is just one of the reasons why the National Association of Consumer Bankruptcy Attorneys (NACBA) exists.
NACBA is the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors in bankruptcy. Formed in 1992, NACBA now has more than 4,000 members located in all 50 states and Puerto Rico.
“Pro se, NO WAY,” especially not when it comes to increasing your success rate of discharging many of your financial stress points. Declaring for bankruptcy isn’t quite that simple! Get the facts and find an attorney via the NACBA Attorney Finder.
Do not follow Michael Scott’s lead, declare bankruptcy only after having secured legal representation by a NACBA member attorney.
NACBA Now 