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Fleysher Law Blog

Tax Refunds

Using Tax Refunds to Pay for Bankruptcy Fees

While saving up to declare bankruptcy sounds odd, that’s exactly what many people have had to do. Ever since the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act was passed. Many families wait for their tax refund to file for bankruptcy. This trend has been increasing as costs related to the filing have gone up. Researchers have looked at the relationship between tax refunds and bankruptcy filings in 2001 and

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Private Student Loan

Senator Durbin Targets Private Student Loan Defaults

A top Senate Democrat took aim at the private student-loan industry, calling for new rules that would allow wiping away of educational debts during bankruptcy. Majority Whip Richard J. Durbin (D-Ill.) convened a Senate judiciary subcommittee hearing Tuesday to address what one consumer group has called the nation’s next potential “debt bomb.” Research by the Federal Reserve Bank of New York found that Americans owe about $870 billion in student

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Pride may be a Bad Reason to Avoid Bankruptcy

For years economists and financial advisers have scratched their heads and wondered how so many Americans wound up in bankruptcy. The numbers show that total U.S. bankruptcies are in decline. U.S. bankruptcies dropped by 12% from November 2010 to November 2011. The total number of U.S. consumer bankruptcies should come in lower than 1.4 million. Research has shown that Americans tend to wait far too long to look into bankruptcy

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Are Fewer People Benefitting from Bankruptcy?

Consumer debt, which drove almost 1.37 million consumers into bankruptcy during 2011, is on the rise. Yet, consumer bankruptcies slowed down last year from the 1.55 million bankruptcy filings in 2010, a decline of 12 percent. Some experts attribute it to more cautious consumer spending and a decline in credit card debt. Others say that we’re just running out of people who can benefit from filing. Despite the drop in

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Student Loan Delinquency Reached $85 billion in the 3rd quarter of 2011

The Federal Reserve Bank of New York posted a report on their website recently regarding student loans. The following is some of their findings: About $85 billion in US student loan debt, or 10 percent of the outstanding balance, was delinquent; in the third quarter of 2011. Of the 37 million borrowers who have student-loan balances, 14%, or about 5.4 million people, have at least one past due student-loan account.

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High-End Mortgages Not Immune from Foreclosure

It has been five years since the housing market first began to crash and with many middle and working-class Americans still facing foreclosure; it may come as a surprise to know they’re not alone. Over 36,000 homes valued at $1,000,000 or more have been foreclosed on in 2011 alone. While this accounts for less than 2% of the foreclosures nationwide, it represents a historically huge increase in “upper class” foreclosures.

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CFPB Proposes to Add Greater Restrictions on Debt Collection Firms

The Consumer Financial Protection Bureau (CFPB) proposed rules to supervise large debt collectors and credit reporting agencies. The rule covers consumer debt collectors, including law firms, earning more than $10 million from the activity. This works out to 4 percent of consumer debt collectors; but about 63 percent of annual receipts from the debt collection market. Consumer credit reporting agencies with more than $7 million in annual receipts are subject

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2nd Mortgage Holders and HELOC Investors will Benefit from the AG Foreclosure Settlement

The banks that settled a nationwide probe of foreclosure practices last month will get a bonus from the deal. The bonus is protection for $308 billion of home-equity loans they hold. The banks that service about half the nation’s mortgages on behalf of investors will be able to share losses on their junior loans with bondholders. And, they will get credit toward the cash they pledged to spend in the

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Student Loan Volume is a Drag on the Housing Market

As outstanding student debt approaches $1 trillion, it’s one more reason record-low interest rates aren’t doing more to boost housing. The tighter lending standards that have emerged in the wake of the recession weigh particularly on younger, first-time home buyers. 9 percent of 29 to 34-year-olds got a first-time mortgage between 2009 and 2011; compared with 17 percent 10 years earlier. These data suggest a large decline in mortgage borrowing

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Foreclosures to Climb before Settlement with Banks can Help

The $25 billion settlement with banks over foreclosure abuses may result in a wave of home seizures; inflicting short-term pain on delinquent U.S. borrowers while making a long-term housing recovery more likely. Lenders slowed the pace of foreclosures as they negotiate the $25 billion settlement. With an agreement reached, banks are likely to resume property seizures. A surge of home seizures may drive down values, at least for a while,

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