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Published on: September 18, 2024

Interest Rate Expected to Drop by .25-.50 today!

The Federal Reserve is meeting today and widely expected to start to reduce interest rates. I last heard that there was a 55% likelihood for a .50 cut. Frankly, I’d expect a .25 cut. But if they want to reach a goal of 100 basis points cut by year end, they almost have to do a .50 cut today.

So one big question: how much and how quickly will that trickle down to ordinary consumer debt?

A lot of people would like to avoid bankruptcy. I get it. The Wall Street Journal published an article yesterday that while consumer credit debt is up 11% over last year, other sources of credit are drying up and no reasonable alternatives exist.

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Published on: August 26, 2024

Double Consolidations Still Working for Those with Parent Plus Loans?

By Christie D. Arkovich, P.A.

So you may have heard by now that all consolidation applications are being processed by Aidvantage. The online system is completely frozen. And that most people are being placed into forbearance while the system is frozen. Just last week, the Department of Ed asked one of the courts for clarification of its injunction order and was told that no clarification would be forthcoming. So we wait. The U.S. Supreme Court will have to rule on all this.

It’s important to still move forward however. If SAVE survives the court challenges, you want to have your Parent Plus loans in place ready to be placed into SAVE. Even if SAVE doesn’t survive, perhaps one of the other IDR plans is better than ICR. How do you move forward with the online system stuck, and only one servicer processing paper consolidation applications?

The key is to use snail mail – send half to Aidvantage, wait 45 days until the consolidation is done. Then send the second half to Aidvantage to consolidate using snail mail. Wait 45 days. Then recombine all the Parent Plus loans in a final consolidation application sent to – you guessed it – Aidvantage.

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Published on: August 7, 2024

Have you Checked out our YouTube Channel for Free Help with your Student Loans?

By Christie D. Arkovich, P.A.

Here’s a review posted recently about our student loan videos:

I wish the views on this channel were much higher. Christie is both thorough and concise. It’s the best channel on YouTube regarding student loans.

I know that it’s more confusing than normal now with all the litigation and holds put on federal student loans right now. Processing of IDRs have been slowed considerably – and while you wait, your loans are placed into forbearance. This forbearance may ultimately count toward IDR but it’s a mixed bag whether it will count if you ask now.

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Published on: August 6, 2024

Filing Bankruptcy? Don’t Forget to Disclose any Potential Consumer Claims or Risk Loss

By Christie D. Arkovich, P.A.

Bankruptcy is all about full disclosure. Tell the trustee or court whatever assets you have and in return you receive a full discharge of most debt. The reason I say most debt is because there are rules re: IRS debt, student loan debt and secured debt such as vehicles, 401k loans, etc.

One thing that is often overlooked is potential consumer claims that a debtor may have in bankruptcy. Things like claims against credit furnishers, debt collectors etc. Not only should you disclose these potential claims in order to receive the discharge in bankruptcy, but by failing to disclose the claims you will face hurdles in pursuing them later.

Often a bankruptcy trustee doesn’t want to pursue the claim and simply abandons it. Then you are free to pursue either during the bankruptcy or thereafter. You also may have unused exemptions to protect such a claim in case you want to raise it later.

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Published on: July 30, 2024

The 8th Circuit Just Put a Halt to SAVE

By Christie D. Arkovich, P.A.

I had this ready to go last week, but just noticed it didn’t go out as planned.

Still reviewing the impact of this Order, but it appears to block ED from implementation or action under the 2023 IDR regs that created SAVE and several other improvements to IDR while the appeal is pending.

ED has issued a statement that borrowers presently enrolled in SAVE will be placed in an interest-free forbearance while the appeal is pending.

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Published on: January 2, 2024

Vocational Student Loan Debt Can Be Discharged in a Bankruptcy

By Christie D. Arkovich, P.A.

Despite lots of changes in the landscape allowing the discharge of both federal and private student loan debt under the right circumstances, many people still believe that student debt survives a bankruptcy.

Private loans follow very different rules then federal as you probably know.

One thing I haven’t written much about are private loans for these vocational schools such as those for coding, helicopter, cosmetology etc. If the school is NOT on the federal Title IV list for the years of attendance, those are dischargeable in a bankruptcy.

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Published on: December 21, 2023

Self Certify Income

By Christie D. Arkovich, P.A.

Are you having trouble with your federal student loan servicer who is asking for income documentation? You can avoid all that for now, by simply self-certifying your income. You can self certify through February 29, 2024 and here is how:

https://studentaid.gov/help-center/answers/article/report-income-in-the-income-driven-repayment-application

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Published on: December 11, 2023

Has Someone Signed Your Name to a Debt?

By Christie D. Arkovich, P.A.

What should you do if you are being harassed for a debt that you did not sign for? Here are some ideas:

If you acted as a power of attorney (POA) for another, the creditor is likely violating several consumer statutes for unlawfully collecting a debt against you. We can help with that!
Most identify theft cases stem from a family member. Depending upon the circumstances, you may want to file a police report, and send a copy of it to the creditor.

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Published on: November 28, 2023

Zombie Second Mortgages: What are Your Options?

By Christie D. Arkovich, P.A.

Now that the real property market is at it’s high, we are seeing many more second mortgages seemingly coming out of the woodwork. Despite years of inactivity, including no communications with a borrower, second mortgages are now threatening foreclosure if payments aren’t resumed to them. What can you do if you hear from a second mortgage which you thought was charged off, included in a government settlement back during the foreclosure/financial crisis, discharged in bankruptcy or maybe included in a prior loan mod?

Besides filing a Consumer Financial Protection Bureau complaint, which we recommend, there are a number of defenses that we utilize to prevent a foreclosure. The first involves raising federal statutory protections which require notice to the borrower of transfer of ownership, transfer of servicing and periodic statements. Failure to comply with any of those requirements under the Truth in Lending Act (“TILA”), and the Real Estate Settlement Procedure Act (“RESPA”) can create statutory and actual damages.

Bankruptcy may present options to either pay off the second mortgage under terms you can afford, or even strip it off the property in the right circumstances. You can challenge the amounts owed by objecting to any proofs of claim filed in a bankruptcy. You can also surrender the house and discharge any remaining debt.

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Published on: November 7, 2023

WeWork Filed Bankruptcy – Looking for Office Shared Workspaces in South Tampa?

By Christie D. Arkovich, P.A.

I saw today that WeWork filed bankruptcy and is terminating many of its leases. If you or anyone you know is in need of a new “home” we have new and professional office shares in South Tampa for attorneys or other professionals. Our space is a little different from most in that all of our offices have doors, and we understand what legal professionals need. For instance, there is someone at the office to greet clients – and we are owner occupied.More photos and information is available on our website www.southtampaworkspaces.com. You can also email us at info@southtampaworkspaces.com.