bankruptcy court

What you need to know

What you need to know

Key takeaways

  • To get student loans discharged, you’ll need to prove that they cause you “undue hardship.”

  • Borrowers can choose between Chapter 7 and Chapter 13 bankruptcy, but they must file a separate adversary proceeding for student loans.

  • The new processes established by the Department of Justice in 2022 has made it easier for borrowers to discharge student loans through bankruptcy.

Filing for student loan bankruptcy is never ideal, but sometimes, having debt discharged is the only way forward. This is especially true if you’ve been struggling financially and cannot repay your debts while still maintaining a minimal standard of living.

Many people believe it’s impossible to get student loans discharged in bankruptcy. That’s not the case — though you have to prove paying down the loans is causing you “undue hardship,” historically a complicated process.

The U.S. Department of Justice and Department of Education recently announced that the new guidelines for discharging student loans in bankruptcy have led to an increase in borrowers applying for and qualifying for debt relief.

How to file for student loan bankruptcy

Declaring bankruptcy on student loans is not easy. And it will affect more than just your college debt. Here are

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January 11, 2024 by ATTORNEY

Lights out? Vision Solar files for Chapter 7 bankruptcy

CAMDEN – A Gloucester Township solar-power firm under fire from its customers and regulators has filed to liquidate its assets in bankruptcy.

The move by Vision Solar LLC will likely leave its creditors unhappy, too.

Vision Solar LLC, which uses telemarketers to sell solar panels and installations to a residential market. listed assets of $8 million.

But it has liabilities of $119 million, including $96 million in unsecured claims.

The company said it does not expect to have enough money to satisfy unsecured creditors.

Vision Solar can’t pay its debts or “feasibly address litigation” against it in courts across the country, the company said in a Dec. 28 filing in U.S. Bankruptcy Court here.

A court filing listed more than 50 legal actions against Vision Solar, with many involving claims of consumer fraud. Suits also allege telemarketing violations, unfair termination of employees and lease disputes.

Among other cases, Vision Solar and a South Jersey telemarketing firm agreed to pay $135,000 in July to resolve allegations of misconduct by the U.S. Justice Department and Arizona’s Attorney General.

Among other claims, a suit filed by the agencies said telemarketers repeatedly violated the Do Not Call registry while trying to sell Solar Vision’s

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January 2, 2024 by ATTORNEY

What is Chapter 7 bankruptcy?

Filing Chapter 7 bankruptcy is a serious financial decision for individuals who have large amounts of debt they likely won’t ever be able to repay. 

Though filing for Chapter 7 ultimately gives you a fresh financial start by eliminating debt, it may come with serious consequences, including negatively impacting your long-term personal credit health and the loss of valued personal possessions.

What is Chapter 7 bankruptcy? 

Chapter 7 bankruptcy is liquidation bankruptcy that will discharge most of your unsecured debts. 

“Among other actions, a bankruptcy court will issue a temporary stay on collection activities, so collectors will stop calling and wage garnishments will cease,” said Derek Jacques, bankruptcy attorney with The Mitten Law Firm in Southgate, MI.

Types of collection activities that may be halted temporarily include evictions, garnishments and repossessions.

“With Chapter 7, the court will take ownership of your assets, and assign a trustee to oversee the proceedings,” Jacques said. “The trustee will review your finances, debts, income, and assets.”

The court may sell non-exempt property to help pay back your creditors and also run a meeting between you and your creditors where you’ll answer questions about your filing. 

Certain types of debts can be discharged In Chapter

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November 23, 2023 by ATTORNEY

Bankruptcy Court OKs Terminating Santa Barbara News-Press Employee Retirement Plan | Local News

In another blow to former Santa Barbara News-Press employees, the bankruptcy trustee is terminating the company’s 401(k) retirement plan and will pay the fees out of their accounts.

When Ampersand Publishing owner Wendy McCaw filed for bankruptcy in July, the News-Press stopped publication, and Managing Editor Dave Mason told employees their jobs were eliminated.

McCaw claims in court documents that the parent company has about $5 million in debts, including payments to former employees and vendors, and much less in assets.

Last month, U.S. Bankruptcy Court Judge Ronald A. Clifford III approved terminating the Nationwide Financial 401(k) employee benefit plan because the business no longer exists.

Bankruptcy trustee Jerry Namba and his attorneys said former News-Press employees “have apparently been contacting (plan administrator Latitude Retirement) to inquire about the status of their 401(k) accounts and how the funds will be distributed.”

Requests to distribute the money couldn’t be processed because of the bankruptcy filing, bankruptcy attorneys wrote in court documents.

Former News-Press sports writer Mark Patton said he’s been trying to roll over his 401(k) into an IRA account “and have been getting nothing but a total run around from everybody,” including Nationwide, Latitude, and the bankruptcy attorneys.

“I’m

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November 17, 2023 by ATTORNEY

Top Texas Firm Entangled in Bankruptcy Judge’s Ethics Trouble

A Texas law firm tied to a prominent bankruptcy judge’s alleged ethical misconduct is seeking to keep its status as a go-to firm in one of the country’s busiest bankruptcy courts.

The Justice Department’s bankruptcy watchdog has accused Jackson Walker of failing to disclose potential conflicts of interest after a onetime partner at the firm, Elizabeth Freeman, was alleged to be in a romantic relationship with bankruptcy Judge David R. Jones, who regularly oversaw the firm’s cases. The allegations have put Jackson Walker in an unusual position for a firm that’s known in bankruptcy circles for its role as the right hand of corporate restructuring powerhouse Kirkland & Ellis for its Houston-based cases.

The US Trustee late last week challenged at least $13 million in fees the firm earned while representing clients before Jones in the US Bankruptcy Court for the Southern District of Texas.

Jones presided in at least 26 cases where Jackson Walker was awarded compensation and expenses while Freeman worked at the firm and lived with Jones in an intimate relationship, the US Trustee said in court filings. The firm has said it made sure that Freeman wouldn’t work on or bill for any cases Jones was

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November 11, 2023 by ATTORNEY
December 2024
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