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01/11/2022 - Defaulted Student Loan Wage Garnishment Pause Extended Through May 1, 2022.
In general, Pennsylvania has greater protections against wage garnishments than many other states. However, Federal Student Loan Agencies can use a special procedure called "Administrative Garnishment."
Using this procedure, the United States Department of Education does not need to obtain a Judgment in a Pennsylvania Court to establish a wage garnishment. In other words, they can bypass Pennsylvania's normal court procedure when setting-up a wage garnishment. This brings up the question, how widespread is "Administrative Garnishment" for people who have defaulted on Federal Student Loan? I've recently read a news article that stated approximately 8 million people are in student loan default, and 390,000 of them are experiencing Federal Student Loan wage garnishments. Therefore, less than 5% of the people in student loan default have their wages garnished.
Using this procedure, the United States Department of Education does not need to obtain a Judgment in a Pennsylvania Court to establish a wage garnishment. In other words, they can bypass Pennsylvania's normal court procedure when setting-up a wage garnishment. This brings up the question, how widespread is "Administrative Garnishment" for people who have defaulted on Federal Student Loan? I've recently read a news article that stated approximately 8 million people are in student loan default, and 390,000 of them are experiencing Federal Student Loan wage garnishments. Therefore, less than 5% of the people in student loan default have their wages garnished.
07/21/2021 - The CARES Act Bankruptcy Provisions have been extended.
The President has signed into law H.R. 1651, which is the Covid - 19 Bankruptcy Relief Extension Act of 2021. This Act provides for a one year extension to all bankruptcy provisions that were included in the CARES Act . These bankruptcy provisions were originially set to expire on March 27, 2021, and will now expire on March 27, 2022.
The most noteable bankruptcy provision is the ability for a bankruptcy filer to extend a Chapter 13 Plan from a maximum term of 5 years, to a maximum term of 7 years. This allows filers to abate plan payment arrears, and enhances filers ability to pay off secured debts, such as mortgage arrears and vehicle loan arrears.
01/31/2021 - The CARES Act is helping prevent Chapter 13 Bankruptcy Plans from being dismissed.
During the Pandemic many individuals in Chapter 13 Bankruptcy are finding it difficult to continue their plan payments. This is due to many filers experiencing reduction of work hours, layoffs, and furloughs, leading to a decrease in their overall household income. A Chapter 13 Bankruptcy is analogous to a court ordered debt consolidation plan typically lasting 60 Months. In Chapter 13 Individuals make a monthly payment to the bankruptcy plan. That payment is then split among creditors.
Abatement of Missed Plan Payments:
If a Bankruptcy filer misses plan payments then their case will eventually be dismissed. To help prevent dismissal, under the CARES Act filers are able to extend their Chapter 13 Bankruptcy Plans from the prior maximum commitment period of 60 months to a longer period of 84 months. This can help filers to abate missed payments through extending length of their plans. This will allow the missed payments to be added on at the end . . .
12/14/2020 - Eviction and Bankruptcy
There are several bankruptcy options for tenants who are facing eviction. These options sometimes depend upon which type of bankruptcy you file. The most common type of bankruptcy is Chapter 7 which discharges most unsecured creditors, and generally last 4 1/2 months. The other type of Bankruptcy is Chapter 13, which is a payment plan bankruptcy which typical last 5 years.
Landlord has not obtained an eviction judgment yet:
If a landlord has not obtained an eviction judgment prior to your bankruptcy, then the automatic stay prevents the landlord from moving forward with an eviction lawsuit. The stay can last until your Chapter 7 Bankruptcy case is closed in 4 to 6 months from filing.
Landlord has been awarded an eviction judgment:
If the landlord has already obtained a judgment for possession in an eviction lawsuit, then the only way to prevent an eviction is to deposit the total arrears with the bankruptcy clerk. In other words, depositing your back owed rent in an . . .
Landlord has not obtained an eviction judgment yet:
If a landlord has not obtained an eviction judgment prior to your bankruptcy, then the automatic stay prevents the landlord from moving forward with an eviction lawsuit. The stay can last until your Chapter 7 Bankruptcy case is closed in 4 to 6 months from filing.
Landlord has been awarded an eviction judgment:
If the landlord has already obtained a judgment for possession in an eviction lawsuit, then the only way to prevent an eviction is to deposit the total arrears with the bankruptcy clerk. In other words, depositing your back owed rent in an . . .
10/02/2020 - Should you Sign-up with a Debt Consolidation Company?
The assistance that a Debt Consolidation (or Debt Relief) companies offer generally comes in two flavors. The first flavor is Debt Management, and the second is Debt Settlement. Before signing-up with a Debt Consolidation Company, I recommend reviewing your bankruptcy options with us first.
Debt Management Plans:
In a Debt Management plan, the Debt Relief company offers to help you manage your payments to creditors. You make one monthly payment to the Debt Relief Company, and they in turn make payments to your creditors. The Debt Relief company will attempt to decrease interest rates, reduce minimum payments, and waive penalties.
Here are several reasons why Debt Management Plans may not be successful. There is no legal obligation for your creditors to work with the Debt Relief companies. Many creditors will voluntarily work with the consolidator, but many creditors will not. Therefore, you may not be able to consolidate all of your debts in the Debt . . .