Sader Law Firm Blog

Recent Case Highlights Collection Harassment Issues During Bankruptcy

Posted on April 26, 2017 by The Sader Law Firm

Filing for bankruptcy provides certain protections from debt collectors. An automatic stay is issued after a debtor files for bankruptcy. Once the automatic stay is issued, most creditors cannot resume attempts to collect debts. However, some creditors may violate the automatic stay and commit collection harassment. A recent case that made its way through the 3rd Circuit Court of Appeals involved multiple stay violations that went far beyond phone calls. The 3rd Circuit Court of Appeals recently upheld a $50,000 emotional distress award stemming from a business bankruptcy. In the case, a husband and wife were terrorized by their landlord after their daycare center filed for bankruptcy. The couple accused the landlord of the following: Entering the daycare uninvited and backing one of the owners (the wife) against the wall. She claims the landlord began asking, “do you want to hit me?” multiple times. Returning to the business after hours…
Read More »

What Should You Know About Recertifying Income-Drive Repayment Plans for Student Loans?

Posted on April 24, 2017 by The Sader Law Firm

One of the major downsides to income-driven repayment plans (IDR plans) for federal student loans is that you must recertify with the Department of Education each year. Your loan servicer should notify you four to five months before the recertification deadline if you are enrolled in one of these programs (IBR, PAYE, REPAYE). Recertifying may require you to send the Education Department your tax return information from the past year. Fortunately, the Education Department’s website links directly to the IRS and your most recent tax return. Many borrowers forget to recertify or their paperwork is not processed by their loan servicers before the deadline. The consequences are severe if you fail to recertify on time. IDR plans set monthly payments to a percentage of your discretionary income. If you fail to recertify, your payments increase to what they would have been under a standard 10-year repayment plan. Failing to recertify…
Read More »

What Are Smart Ways to Use Your Tax Refund?

Posted on April 19, 2017 by The Sader Law Firm

Statistics released by the IRS show the average tax refund is $3,120. Even if you receive less than $1,000, there are still ways to use your tax refund to improve your finances. Save for an emergency: You can use your tax refund to save for emergency situations, such as losing a job or paying for vehicle repairs. Tax refunds can be the first step to building an emergency fund that can cushion damage from worst-case scenarios. Pay off your debts: Tax refunds are an excellent way to get a head start on paying down student loans, medical bills and credit card debts. Depending on the situation, this may help improve your credit score and help you avoid paying interest. If you are going to finish paying off a debt, check with your creditor beforehand to ensure you will not be charged early payment fees. Put it into your retirement fund:…
Read More »