Help Center

ABI Blog Exchange

student loan door opening

A small opening in the legal barrier to discharging student loans in bankruptcy has appeared in a case called Roth.

To discharge a student loan in bankruptcy, the borrower must show that repayment of the loan would cause he and his dependents undue hardship.

The test for what constitutes “undue hardship”  is many circuits the Brunner test:

1 day 2 hours ago
Posted by Kathy Bazoian Phelps

    Below is a summary of the activity reported for September 2016. The reported stories reflect: 4 guilty pleas or convictions in pending cases; over 56 years of newly imposed sentences for people involved in Ponzi schemes; at least 4 new Ponzi schemes worldwide; and an average age of approximately 51 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. And please remember that I am just relaying what’s in the news, not writing or verifying it.

    Eric Aronson, 48, was sentenced to 10 years and 4 months in prison in connection with a $19 million Ponzi scheme that defrauded more than 200 people. Aronson founded Permapave Industries and Permapave USA Corp. and promised returns of up to 400% for buying promissory notes that paid for the importation of stones.

Read More from: The Ponzi Blog

1 day 3 hours ago

Restoring consumer confidence in financial services won't be easy after the latest banking brouhaha, but the Consumer Financial Protection Bureau can help by proactively holding all mortgage loan officers to the same federal licensing standard.

Read More from: BankThink

1 day 5 hours ago


Bankruptcy Decatur Amy TannerMany folks who come into our office are carrying mountains of long term student loan debt. The good news is a lot of people are in the new income based repayment plans that are being offered. I previously wrote about some of these plan here. There are also some circumstances where student loans can be discharged in bankruptcy, although the requirements to prove hardship are very stringent and, therefore, it is very difficult to attain a hardship discharge of Student loan debt, whether public or private. Robert Reese recently wrote about some hardship options. The current precedent that sets the standard for hardship discharge, called the Brunner test is now being challenged and we hope that will bring some changes to allow more folks to discharge their student loans when they have become too burdensome.

Read More from: Bonds & Botes, P.C.

1 day 6 hours ago

Strategies include developing formal agreements with partners defining the anti-money-laundering requirements and responsibilities that are expected of them.

Read More from: BankThink

1 day 7 hours ago

Receiving Wide Coverage ...

Run on Deutsche?: Deutsche Bank shares were under pressure again Friday morning as several large, influential hedge funds moved to pull their money out of the bank, creating what some fear is a Lehman Brothers-type run. But CEO John Cryan told staff the bank has "strong foundations" and urged them not to be distracted by "distorted perception from outside." He said there are "currently some forces at play in the market that...

Read More from: BankThink

1 day 8 hours ago

The rankings of the Most Powerful Women in Banking and Finance include some familiar faces but also plenty of newcomers. We also look at the courage women demonstrate balancing work with their personal lives and a call to action from SEC chair Mary Jo White.

Read More from: BankThink

2 days 1 hour ago

The Consumer Financial Protection Bureau's proposal not only requires lenders to determine a borrower's ability to repay, but also forces creditors to follow the bureau's approach to making that determination.

Read More from: BankThink

2 days 3 hours ago

As the Wells Fargo story has played out, pundits have been quick to blame "sales culture" for improper behavior, but that's like blaming automobiles for reckless drivers.

Read More from: BankThink

2 days 5 hours ago

Don Lawson KnoxvilleWells Fargo has been in crisis mode since it acknowledged last month that its employees had, over the course of several years, opened as many as 1.5 million bank accounts and 565,000 credit card accounts that may not have been approved by customers. The company agreed to pay $185 million in penalties and fines to settle cases brought by federal regulators and the Los Angeles city attorney, and said it had fired 5,300 employees for ethics violations.

California Treasurer Cut Ties

Today, delivered even more bad news for Wells Fargo. According to The New York Times, California’s treasurer took the unusual step on Wednesday of suspending many of its ties with the bank as it continues to reel from the scandal over the creation of as many as two million unauthorized bank and credit card accounts, citing Wells Fargo’s “venal abuse of its customers,”.

Read More from: Bonds & Botes, P.C.

2 days 7 hours ago

It’s not always the most expensive bankruptcy lawyers that are the best or the cheapest that are the worst. In most areas, the prices for filing bankruptcy are determined by the market. The filing fees and credit counseling fees are set fees. The attorney fee, in most cases can vary. (The exception is Chapter 13 where, in most jurisdictions, the price is set by the court)

One of the most important things to look for, other than price, is the experience of the lawyer. How many bankruptcy cases do they usually handle per month? How many cases have they filed in the last year ?

Is the lawyer a member of any bankruptcy attorney professional associations ? The National Association of Consumer Bankruptcy Attorneys is the largest professional association of consumer bankruptcy attorneys representing folks filing bankruptcy. If a lawyer is a member, chances are good that they stay current on the law and ways to help you.

2 days 7 hours ago

It's time that financial institutions in America recognize the value that women can bring to the executive suite and boardroom.

Read More from: BankThink

2 days 7 hours ago

Receiving Wide Coverage ...

Call in the SEC: Three Democratic senators, led by Sen. Elizabeth Warren, D-Mass., asked the Securities and Exchange Commission to investigate whether Wells Fargo "violated laws by misleading investors and firing whistleblowers while the bank oversaw the creation of millions of unauthorized, fraudulent accounts," according to the Wall Street Journal. The situation at Wells does "justify an investigation into at least three types of securities law violations," according to the letter the...

Read More from: BankThink

2 days 8 hours ago

Upcoming Committee Formation Meeting: Wednesday, October 5, 2016, 10:00 a.m.

Case Name: Verengo, Inc.
Case Number: 16-12098 (BLS)

Location:Delaware State Bar Association 405 N. King Street, 2nd Floor Wilmington, DE 19801

The petition (including the consolidated list of top 20 creditors), the first day declaration and the docket are available through Upshot Services LLC.

Notice of Formation Meeting for Official Committee of Unsecured Creditors can be found here.

Contact Norman L. Pernick and  Nicholas J. Brannick for more information.

2 days 8 hours ago

Bankruptcy Mediation-FINAL-SM

By: Donald L. Swanson                                                                             
C. Edward Dobbs
, Partner at Parker Hudson Rainer & Dobbs, is a leading expert on ethics rules for bankruptcy mediation. I’ve heard him speak a number of times on the subject. And every time I hear him speak about mediation, I come away a bit scared.

Here’s why:

“A mediator of a dispute arising in a bankruptcy case will find little in the way of definitive guidance on the standards of conduct to govern his or her service.”
“A violation of a standard” may result in “the mediator being disciplined” or “the voiding” of a settlement agreement or “malpractice” or “other liability.”

So says Dobbs in his “Standards of Professional Conduct for Mediators” chapter of “Bankruptcy Mediation,” a book recently published by the American Bankruptcy

Read More from: Mediatbankry

2 days 10 hours ago

Chapter 13 bankruptcy  is a payment plan bankruptcy for

student overburdened with student loan debt
student overburdened with student loan debt


Not necessarily a 100% payment plan.

Student Loans In Chapter 13 Bankruptcy

In Chapter 13, creditors in the same class must be treated, that is, paid, the same percentage of its claim.

Read More from: Discharge Student Loan

2 days 16 hours ago

Lawyer Nick GajewskiFor a large portion of people in America, a home is the most valuable asset they own.  It’s only natural, therefore, that one of the main concerns of potential clients is how the Bankruptcy Court deals with mortgage debts.

Bankruptcy Court Won’t Get Involved in Your Mortgage

The good news is that for the vast majority of Chapter 7 and Chapter 13 cases, the Court will not get involved in your mortgage.  You can usually continue to make your normal mortgage payments as though a bankruptcy case never happened.  In fact, the Bankruptcy Court does not have the authority to alter your monthly mortgage payments.  The amount of your payments is controlled by the original mortgage contract you signed when you bought your house.  The Court will only become involved in a few situations.

Read More from: Bonds & Botes, P.C.

3 days 5 hours ago

If stories like the Wells Fargo scandal are repeated at other institutions, U.S. banks could soon experience the same reputational and regulatory fate of their cousins in the United Kingdom.

Read More from: BankThink

3 days 6 hours ago

A new wave of exciting innovation is presenting businesses with opportunities to improve processes and the consumer experience.

Read More from: BankThink

3 days 7 hours ago