Fleysher Law Blog

Student Loan

Will Student Loans once again be Dischargeable in Bankruptcy?

In May 2011, a U.S. Representative from Tennessee introduced a bill called the Private Student Loan Bankruptcy Fairness Act of 2011. The bill proposes to make private student loans generally dischargeable in bankruptcy (like they were before the revisions in 2005) as a way of addressing the mounting student loan crisis. The bill proposes to strike subpart B of Section 523(a)(8) of the Bankruptcy Code which makes general education-purpose loans

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New York’s Attorney General Files Fraud Suit Against Banks

New York’s attorney general is accusing some of the nation’s largest banks of deceit and fraud. That is because they were using an electronic mortgage registry that he claims puts homeowners at a disadvantage in foreclosures. He claims the banks submitted court documents containing false and misleading information. It appeared to provide the authority for foreclosures when there were none. Further, the Mortgage Electronis Registration System (MERS) has eliminated homeowners’

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Student Loan Debt

Will Student Loan Debt be the Next Bubble?

With student loan debt now topping U.S. credit card debt and few or no options available for distressed borrowers, America faces the very real possibility of another major economic threat. The threat that is on a par with the devastating home mortgage crisis. As bankruptcy attorneys, we have seen an increase in the last three-four years. That is an increase of potential bankruptcy clients with student loan debt. Further, few

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States Attorneys General Agree to Foreclosure Settlement

More than 40 states have signed on to a draft settlement with the nation’s largest banks. It aims at helping homeowners struggling with loans bigger than the value of their homes. However, several states including California, New York, Nevada, Florida, and Delaware remain undecided. Attorneys general from these states have issues with the deal but are still talking with negotiators. Some attorneys general feel the settlement is not enough for

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Obama Administration Expands Foreclosure Prevention Program

The Obama administration is expanding eligibility for its Home Affordable Modification Program (HAMP). They are expanding it to borrowers with higher debt loads and tripling the incentives it pays banks that reduce the principal on loans. It will also offer incentives to Fannie Mae and Freddie Mac to reduce the principal on loans; which it had previously only offered to private lenders and banks. The program was initially set to

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