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How Can You Lower Student Loan Payments?

The Consumer Financial Protection Bureau (CFPB) has accused student loan servicers of failing to enroll borrowers into income-based repayment programs. As a result, borrowers are paying more than they have to and defaults have increased. You may have multiple options to lower student loan payments. Income-driven repayment programs tie monthly payments to a percentage of your discretionary income. Your options for participating in these programs vary depending on the types of loans you have and when they were dispersed. The first step to seeking lower payments is to use the Department of Education’s National Student Loan Data System (also known as the NSLDS). After logging in, you should see the types of loans you carry and information on your loan servicers. More details may be available on the top portion of your Master Promissory Note (MPN) for your loans. What Are the Eligibility Requirements for the IBR Program? There are…
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What are the Benefits of Chapter 11 Bankruptcy?

Business Bankruptcy Attorneys on Advantages of Filing Chapter 11 What do the clothing stores dELiA*s, Wet Seal and Deb Shops have in common? Other than being popular with teenage girls, these stores have recently gone public about their debt troubles. While Deb Shops and dELiA*s have already sought protection under Chapter 11 bankruptcy, Wet Seal may be next to file if its plan to resolve cash flow problems does not succeed. Why Would a Business File Chapter 11? A corporate entity will typically file Chapter 11 when the long-term profits it would make staying in business and reorganizing its debts through bankruptcy will benefit creditors more than the revenue gained from selling its current assets. Using the business bankruptcy case of dELiA*s as an example, dELiA*s plans to liquidate its merchandise, stocked inventory, some store furnishing and equipment as approved by the bankruptcy court to meet its debt obligations. Similar…
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Want to Get Your Student Loans Out of Default? Our Guide Can Help

More than 44 million Americans owe more than $1.3 trillion in student loans. Unfortunately, some of these borrowers are going to default. According to the Department of Education, the default rate for borrowers who entered repayment between 2012 and 2013 is 11.3 percent. Default is considered as being more than 270 days behind on student loan payments. Borrowers in default face several devastating consequences, such as wage garnishments, loss of eligibility for helpful repayment plans, and the interest and principal balance becoming immediately due. If this story sounds familiar, do not give up hope, because there are ways to bring your loans back into good standing. Get Your Student Loans Out of Default with A Loan Rehabilitation Program The first option for bringing your student loans back into good standing is to use the Education Department’s loan rehabilitation program. Requirements for rehabilitation vary depending on whether you have Direct, FFEL,…
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How a Personal Bankruptcy Can Save Your Home in Kansas City

It comes as news to many during these tough economic times that by filing for bankruptcy, individuals can be released from liability for most unsecured debts, prevent creditors from taking collection actions, and save a home from foreclosure as well. While Chapter 7 bankruptcy discharges your legal obligation to pay most unsecured debts, Chapter 13 bankruptcy allows repayment of past due debts over time, preventing creditors from repossessing secured property on which payments are being made. Under the present laws, filing either a Chapter 7 or a Chapter 13 bankruptcy stops a home foreclosure, and allows the homeowner time to cure the mortgage arrearage. An experienced Kansas City bankruptcy attorney can explain how, under either Chapter 7 or 13, bankruptcy can help save your home. Chapter 7 is a temporary stop to the foreclosure, but might give the individual or family a short time to cure the past due balance,…
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