Tag Archives: BankruptcyAttorney

Neil Sader’s Reddit AMA Shows Why Student Loans Are a National Crisis

Bankruptcy attorney Neil Sader recently hosted an AMA on Reddit, drawing in thousands of people to comment on their experiences with student loans. The AMA, which made it to the front page of Reddit and in the top 10 posts, received 5,000 comments that tell us a lot about the student loan crisis. As Neil said, “bankruptcy is for the honest debtor.” For millions of former students and graduates, they do not have access to normal bankruptcy protections, even with honest intentions. While it is difficult to file for bankruptcy on student loans, it is not impossible. Under certain circumstances, debtors can receive hardship discharges (see totality of circumstances test). For others, the chances of discharging student loans will be slim. Politicians, academics and other bankruptcy attorneys should skim through this AMA, read some of the stories Reddit users have posted, and ask if it is fair to deny these…
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3 Things You Should Never Do Before Filing for Bankruptcy

Filing for bankruptcy requires honesty, precision and a commitment to financial responsibility. Mistakes, whether unintentional or willful, can result in your bankruptcy case being tossed by a judge or criminal charges. We can use real and hypothetical examples to show what you should never do before filing for bankruptcy. Be dishonest: Filing for bankruptcy requires a listing of current and past financial information. This includes debts you have accrued, current assets, income and expenses. Several months back, we wrote about the star of the series Dance Moms and how she failed to disclose $755,492 of income. The judge presiding over her Chapter 11 bankruptcy case was channel surfing and saw her appear on American Idol. Shortly thereafter, the judge realized it was possible the television star had committed bankruptcy fraud. The Dance Moms star now faces $250,000 in fines for each count of fraud and five years in prison. Take…
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Bankruptcy Scammers Target Consumers by Pretending to Be Attorneys

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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