Credit Repair News and Discussion

Credit Repair, Equifax, TransUnion ,collection agency, creditors, fix credit bad, credit bankruptcy News and Discussion

Monday, July 17, 2006

If I file for Bankruptcy will my student loans get discharged?

If I file for Bankruptcy will my student loans get discharged?
Tim
Bankruptcy Home
Dallas, tx


So are student loans able to be discharged? In short, probably not. Student loan debts are non-dischargeable in Chapter 7 Bankruptcy cases unless paying the debt would cause the debtor "undue hardship." This basic rule also applies to Chapter 13 Bankruptcy cases.

Discharge of student loans received popularity in the 1970's. Many individuals would file for bankruptcy shortly after completing their expensive education. The goal was to discharge these student loans before they began earning money

The wording of the exception of a "hardship discharge" and what is considered a student loan has recently been broadened so that most student loans made by nonprofit groups or the government are now considered student loans. This only applies to the actual student and not a co-signor. So a parent signing for one of their children could not have this debt discharged. In addition, this exception does not include debts to an educational institution for tuition. If the loan is non-dischargeable then the petition on the loan is also not going to be discharged.

So we turn to "undue hardship." Most published court opinions agree that "undue hardship" means more than garden variety hardships that come with the costs of future payments. Several circuit courts of appeals have developed a three-prong test.

In summation, the debtor cannot maintain a minimal standard of living and his dependents are left with the debt, some additional circumstances in regard to the standard of living would extend over the life of the repayment of the loan, and the debtor has tried to the best of their ability to pay off the loan according to the plan.

The ideal debtor who will successfully discharge student loans are the low-income debtors. The debtor has the burden of proving their hardships. Any reason that makes this loan impossible for the debtor should be made known to your attorney. For example, unemployable debtors, underprivileged debtors, a total lack of available jobs suited for the debtor's skills, certain disabilities, etc. If any of these situations exist, your attorney will strive to prove any extenuating circumstances to the court to get these student loans discharged.Read more about bankruptcy at www.bankruptcyhome.com />
Original content from bankruptcyhome.com


Tuesday, July 11, 2006

Credit Repair - What is Credit Repair?

WHAT IS CREDIT REPAIR?
Even though we have a few websites that deal with credit repair and dealing with creditors etc, I still get the question, "What is Credit Repair?". Many times people aren't sure what the concept of credit repair is all about.

CREDIT REPAIR IS RELEVANT TO EVERY ONE WITH CREDIT
Fundamentally, credit repair is about making sure that all of your credit items reported to Equifax and TransUnion (credit bureaus) are accurate, complete and verifiable.

If you've got credit cards, lines of credit, or any other type of personal credit, chances are that these items are being reported to the credit bureau, or will be if you don't make your payments.

THE LAW - ACCURATE, COMPLETE AND VERIFIABLE.
The law states that all items reported on your credit reports must be accurate, complete and verifiable. All items that are being reported about your must be true and correct. This is reasonable.

This is such a serious topic that there are laws dedicated to the regulation of credit bureaus such as Equifax and TransUnion.

MOST CREDIT REPORTS AREN'T ACCURATE
While most credit items are reported routinely and correctly to the credit bureaus, some definitely aren't. This is true for people who have good credit and bad credit. I have met very few people who have a credit report that is 100% accurate, complete and verifiable.

The reality is that credit bureaus are managers of information. They receive millions of credit items from creditors, collection agencies, government departments, etc to manage each month.

Problems usually occur when credit items are handled by many employees.

I've seen people with good credit, denied more credit because their name was spelled wrong, or because their address was spelled incorrectly etc. I've also seen collection items, judgements, repossessions, bankruptcies that are recorded incorrectly. THIS HAPPENS ALOT!

The first step in credit repair is knowing about credit report problems. In order to know about problems with your credit report you need to get copies of your credit reports from BOTH Equifax and TransUnion

The second is to learn about what is being reported and which creditors are reporting on your credit reports. Equifax and TransUnion are similar, however they do report a little differently.

Once you have studied your credit reports thoroughly you'll probably pick up on some errors that have occured.

HOW DO I START DOING CREDIT REPAIR?
If you've determined that some items on your credit reports are NOT accurate, complete or verifiable, it's time to start disputing these items. Keep in mind, you've got the law on your side. The credit bureaus are regulated and must answer your disputes.

For a guide to DIY Credit Repair for Canadians, please visit www.express-credit-repair.com. This easy to read 40 page ebook will explain the laws and how you can dispute credit items with credit bureaus, creditors, collection agencies and more. Check it out today!
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