New Student Aid Bill of Rights: 2015
New Student Aid Bill of Rights: 2015 President Obama recently announced a new Student Aid Bill of Rights for all Americans. This new Bill of Rights could make it easier for people owing federal student loans to deal with their loans- specifically, how they may be more able to get rid of/discharge them in a bankruptcy. Most of the announced changes are geared toward getting rid of payment red tape and making federal student loan repayment options easier. However, one section in particular shows that the government is looking closely at changes to bankruptcy laws that could help student loan...
Read MoreChapter 13 Bankruptcy: Creditor Claims
Creditor Claims in Chapter 13 Bankruptcy In a Chapter 13 bankruptcy, all creditor claims are put into one of three classes: Secured, priority, or unsecured. Read on for a quick lesson on how to know which type of claim is which. Secured Claims are held by creditors who hold a lien on collateral, such as a car or furniture, to secure payment of their loan. Even the IRS can be secured if they have recorded a lien. Secured claims get paid 100% on a dollar plus 10% interest on an amount equal to the fair value of equity in the collateral. If the creditor is undersecured (i.e., their claim...
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