Consumer Debt

A Wholly Unsecured Lien May Be Stripped Off Even if It Predated Ownership

Bankruptcy Judge Michelle Harner held that a wholly unsecured, subordinate lien may be stripped off in chapter 13 even if the lien arose before the debtor owned the property.

Sales at Stores Are Suddenly Surging in the U.S. Economy’s Latest Show of Strength

The backbone of America’s economy remains solid, despite a slowing job market, elevated interest rates and still-high inflation, CNN reported. Sales at U.S. retailers unexpectedly surged in July, the Commerce Department said, rising by a solid 1% from the prior month, up from June’s downwardly revised 0.2% decline. That trounced economists’ expectations of a 0.3% gain. Retail sales, which are adjusted for seasonal swings but not inflation, make up a sizable chunk of overall spending. July’s reading is a boon for the U.S. economy because the country’s economic growth hinges on Americans spending their dollars. It is the economy’s latest show of strength in the face of several economic hurdles squeezing the U.S. consumer. The Dow closed 555 points, or 1.4% higher, as investors cheered the retail sales report. The S&P 500 gained 1.6%, and the Nasdaq Composite added 2.3%. Sales jumped across most categories last month, rising the most at car dealerships. Those sales spiked by 3.6% in July. Excluding that category, retail sales were up by a still-strong 0.4% in July from June.
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Biden Administration Urges Supreme Court to Reinstate Student Loan Relief Plan in Emergency Appeal

The Biden administration has filed an emergency appeal at the Supreme Court urging the justices to reinstate the president’s latest student loan relief plan, The Hill reported. The appeal asks to temporarily lift a lower court ruling that currently prevents President Biden from implementing his Saving on a Valuable Education (SAVE) Plan, which would lower student loan payments for millions of borrowers. If the Supreme Court is not inclined to intervene on their emergency docket, U.S. Solicitor General Elizabeth Prelogar alternatively requested the justices take up the legality of the plan on the merits and expedite consideration so oral arguments can be held this fall. The court ordered the SAVE Plan’s challengers to respond by Monday afternoon. The posture mimics how the Biden administration handled challenges to its earlier student debt plan, which would’ve forgiven at least $10,000 in debt relief to individual borrowers. Last year, the Supreme Court struck down that plan in a 6-3 vote along ideological lines after agreeing to take up the matter in full once it received a demand for emergency action from the Justice Department. The SAVE plan was first introduced after the Supreme Court’s decision.
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