The bankruptcy case terminates your legal liability on the secured debt as in a car loan or house loan but it does not remove the lien that was posted against the property when the loan was given. This is a difficult legal concept for many people to understand. A bankruptcy wipes out unsecured debt, any debt that is not a loan against a tangible asset, as in a car or house. A bankruptcy discharge bars future enforcement of the debtor’s pre-petition, personal obligations on the debtor’s property; liens however generally survive bankruptcy and can be enforced after the bankruptcy ends.
Consumers quite often file a chapter 7 bankruptcy case and forget to list a creditor due to the fact that they are going through a very stressful period in their life and they are not thinking clearly. More often than not, there is a medical debt that had not been reported to the three major credit bureaus so there was no way the consumer could have known of the debt. For anyone in this situation, I would advise you to Fugeddaboutit! (“forget about it”). Why? Well, the issue has been addressed and resolved in JUDD v. WOLFE, No. 95-5141 (1996). The
The Perkins Loan Forgiveness Program was the first to provide for cancellation of loans for teachers in low-income school districts. A 2005 Second Circuit decision broadened the Perkins Loan Forgiveness Program to include numerous occupations related to teaching, public interest law and social work. Since the Second Circuit decision, the Department of Education has clarified its position in a “Dear Colleague letter” explaining that the program has indeed expanded to include numerous occupations that are considered socially desirable professions. A short list of covered occupations include: Full-time nurses or medical technicians; Full-time law enforcement or correction officers; Full-time staff members
Teachers who are full time and work five (5) consecutive years in certain schools that serve low income families are eligible to erase $5,000.00 of their federal student loans. Math or Science teachers in eligible secondary schools and special education teachers in eligible elementary or secondary schools are allowed to erase up to $17,500.00 of their student loans in return for five (5) consecutive years of employment in certain schools that serve low income families. The Teacher Loan Forgiveness Program under the FFEL Program and the Direct Loan Program apply only to borrowers with no outstanding loan balances as of
This program is available to all borrowers who work in public service jobs for ten (10) years and participate in a eligible repayment plan (IBR or ICR). The remaining balance of the student loan (principal and interest) is forgiven after ten years of public service is completed. The program applies only to Direct Loans which encompasses Stafford, Plus, and Consolidation loans. Some borrowers may find it advantageous to consolidate their direct loans with their non-direct federal government loans in order to take advantage of this benefit. Borrowers with non-direct loans should consolidate with direct loans as soon as possible because