Sader Law Firm Blog

Recent Attempts at Legislation that Could Help Student Loan Borrowers

Posted on February 10, 2016 by The Sader Law Firm

Both Democrats and Republicans are eager to resolve the student loan crisis, even if the two parties cannot agree on solutions. Recent attempts at legislation might have helped student loan borrowers have an easier time repaying debt. Other attempts at legislation have not been voted on. In the Senate: The Reducing Educational Debt Act (RED Act) proposed by Senate Democrats would make two years of community college free and allow former students and graduates with private or federal higher education debt to refinance their loans at lower interest rates. Senate Republicans also had some ideas for higher education debt reform. Senator Marco Rubio recently helped introduce the Dynamic Repayment Act, which would have allowed debtors to pay 10 percent of their income towards student loan repayments. The bill would have also forgiven up $57,500 of student loans after debtors made 20 years of consecutive payments. For students with more than…
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Bankruptcy Scammers Target Consumers by Pretending to Be Attorneys

Posted on February 8, 2016 by The Sader Law Firm

Bankruptcy scams are obnoxious attempts to defraud borrowers who are desperate for financial help. According to the National Association of Consumer Bankruptcy Attorneys (NACBA), people who have recently filed for bankruptcy or are just starting the process are being targeted by scammers who are posing as bankruptcy attorneys over the phone. Here’s how the scam works and some information on how people can protect themselves. The scammers are using Caller ID spoofers to make it appear like phone calls are coming from the law offices of bankruptcy attorneys. Scammers then instruct their targets to wire money for charges relating to their bankruptcy cases. Some people are given the choice to pay up or face arrest. Bankruptcy scammers are using public filing information to sound legitimate. Many people filing for bankruptcy might be unaware some electronic court information exists on record, making the phone call sound extra serious and scary. In…
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Can Filing for Bankruptcy Discharge IRS Back Taxes?

Posted on February 3, 2016 by The Sader Law Firm

IRS back taxes (or past due taxes) can create serious financial distress. Back taxes can become costlier over time by accumulating interest and penalties. Fortunately, some income tax debts that meet specific criteria are dischargeable by filing for Chapter 7 or 13 bankruptcy. To qualify for a discharge, tax returns must have been due for a minimum of three years. Only tax returns that were filed approximately two years before filing for bankruptcy are eligible for discharge. Debtors cannot be guilty of fraud or tax evasion. The taxes in question must have been assessed by the IRS 240 days before filing for bankruptcy. Chapter 7 bankruptcy: After filing for Chapter 7 bankruptcy, debtors are no longer liable to pay back taxes debts that were discharged. Non-dischargeable priority debts, such as tax liens or tax returns with errors, will still be due after bankruptcy. Chapter 13 bankruptcy: Filing for Chapter 13…
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