Sader Law Firm Blog - Kansas City Bankruptcy Attorney Blog

Bankruptcies Increasing Among Gen X and Millennials Potential Signal of Debt Crisis

Posted on March 1, 2024 by Sader Law Firm

Despite recent positive data regarding consumer confidence, LegalShield saw a concerning rise in financial constraints in the December Consumer Stress Legal Index (CSLI). The result was a peak in consumers seeking out bankruptcy help and other legal assistance. The data for the index draws from more than 35 million legal service requests and is forecasting a dip in the previously optimistic consumer confidence. This trend of consumers seeking help filing for bankruptcy showed a disproportionate impact on younger generations and reflects a potential credit crisis. A report from Newsweek stated that this is reflected in the broader U.S. economy, as household debt rose 1.3% in the third quarter of 2023. The Federal Reserve Bank of New York attributes this to increases in mortgages, auto loans, credit cards and student loan balances. As consumers take on more debt, they are beginning to look into options to relieve this financial burden. LegalShield…
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Navient Announces Plan to Exit Student Loan Servicing Market

Posted on February 26, 2024 by Sader Law Firm

Navient Corporation recently announced to shareholders plans to end its current student loan servicing business following a number of scandals and government lawsuits. The one-time leader in the market plans to transfer millions of student loan borrower accounts to the Missouri Higher Education Loan Authority (MOHELA). In 2014, Navient was the largest student loan company in the world, managing more than 12 million accounts of student loan borrowers. The organization has since faced numerous consumer protection lawsuits from state and federal regulators and continues to defend itself against allegations of cheating millions of customers out of their rights to affordable loan payments. Despite exiting the market, the company still collects on roughly $40 billion in government-regulated loans, which originated under a federal student loan program and $17 billion in private education loans. The organization has a track record of scandal and alleged abuse, including attorneys general of six states suing…
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Americans Starting to Feel Inflation Cooling

Posted on February 2, 2024 by Sader Law Firm

Inflation rates are now lower than they were a year ago, according to the U.S. Department of Labor (DOL). Consumer inflation expectations are also moving lower. A recent report from the DOL showed that consumer prices rose a seasonally adjusted 0.3% in December from November, resulting in prices being up 3.4% from 2022. Price increases were up 3.1% year over year in November. However, the main difference comes when looking at core prices, which exclude food and energy products that are more unpredictable. Looking at the changes for core prices show that for the first time since May 2021 prices rose less than 4% year over year, with prices rising 3.9% YOY in December. This trend of inflation easing up is likely to continue, especially when considering housing costs for both renters and owners. Rent prices have been cooling, based on new data from sources such as Zillow as well…
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