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I previously blogged about the issues that led ITT Technical Institute to close its doors and file for bankruptcy. Now, five former ITT students have filed a class action complaint against ITT in its bankruptcy proceeding. The class action is filed on behalf ITT students who were harmed by ITT’s conduct.
According to “Student Debt and the Class of 2015’” the latest report from the Project on Student Debt, about seven in 10 (68%) college seniors who graduated from public and private nonprofit colleges in 2015 had student loan debt. The average graduate owed $30,100, which is up 4% from the 2014 report.
After sitting down with your bankruptcy attorney and discussing the pros and cons of filing either a Chapter 7 or Chapter 13, you have decided that it is in your best interest to file a Chapter 7 bankruptcy. You have given your attorneys all the information they need, and you have reviewed and signed your bankruptcy petition.
Navy Federal Credit Union is a Virginia based credit union that limits its membership to people who have been or are currently serving in the U.S. military, Department of Defense employees and contractors, and their immediate family members. It is currently the largest credit union in the United States. Navy Federal has recently been penalized for using improper debt collection practices.
ITT Technical Institute closed down in early September, leaving more than 35,000 students without a school, and leaving thousands of employees without a job. Following the closure, the company filed for Chapter 7 bankruptcy in Indiana. ITT Tech is the second major for-profit college that has filed for bankruptcy in the past two years. Corinthian College filed in May 2015.
One of the world’s largest container shipping companies, Hanjin Shipping Co., has filed for bankruptcy. Hanjin is a South Korean company and filed for bankruptcy protection under Chapter 15 of the Bankruptcy Code. Chapter 15 Bankruptcy and Model Law Chapter 15 is a newer chapter of the Bankruptcy Code. It was added by the Bankruptcy Abuse Prevention and Protection Act of 2005.
Boston Grand Prix Files for Bankruptcy Posted on Jul 26, 2016 By Kathryn Davis July 26, 2016 by Kathryn Davis The Grand Prix of Boston has filed for Chapter 7 bankruptcy. The Grand Prix was scheduled to debut as an IndyCar Series race on September 4, 2016 and was to run each year through 2020. The race would run along the South Boston Seaport, and the city of Boston and the ...
When Can Student Loans be Discharged in Bankruptcy? Posted on Jul 07, 2016 By Kathryn Davis July 7, 2016 by Kathryn Davis As we have noted on the blog before, student loan debt is a huge problem among consumers. Most of the time, student loan debts cannot be discharged in bankruptcy. However, if you can prove an undue hardship, the student loan debt can be discharged.
Rare Bipartisanship Could Lead to Financial Relief for Puerto Rico Posted on Jun 14, 2016 By Kathryn Davis June 14, 2016 by Kathryn Davis I previously discussed Puerto Rico’s current debt crisis and the possible solutions to it. As an update, last week the United States House of Representatives passed H.R.
Aeropostale Files for Bankruptcy Posted on May 24, 2016 By Kathryn Davis May 24, 2016 by Kathryn Davis Earlier this month, clothing retailer Aeropostale filed for Chapter 11 bankruptcy. Aeropostale has also announced that it will be closing 113 stores in the United States, as well as all of its 41 stores in Canada.
Supreme Court to Decide What Congress Meant by “Actual Fraud” in the Bankruptcy Code Posted on May 03, 2016 By Kathryn Davis May 3, 2016 by Kathryn Davis A discharge is one of the most important functions of bankruptcy. It is what releases a debtor from personal responsibility for his debts and helps provide a debtor with a “fresh start.
Retailers Filing for Chapter 11 Bankrutpcy Posted on Apr 12, 2016 By Kathryn Davis April 12, 2016 by Kathryn Davis Many big name retailers have filed Chapter 11 bankruptcies over the last several months. Among them are names like City Sports, Sports Authority, Quicksilver, and most recently Pacific Sunwear, also known as PacSun.
What is an Involuntary Bankruptcy? Posted on Mar 01, 2016 By Kathryn Davis March 1, 2016 by Kathryn Davis Almost all bankruptcies that are filed are voluntary bankruptcies. That is, the debtor decides to file for bankruptcy on behalf of him or herself. In addition to a voluntary bankruptcy, the law also allows for creditors to file an involuntary bankruptcy.
Puerto Rico and Chapter 9 Bankruptcy Posted on Feb 09, 2016 By Kathryn Davis February 9, 2016 by Kathryn Davis I have previously discussed the basics of a Chapter 9 bankruptcy as well as two Chapter 9 bankruptcies that occurred in Alabama. In this post, I’ll examine a current event that involves a discussion of Chapter 9- Puerto Rico’s current debt crisis.
Local Chapter 9 Bankruptcy Filings Posted on Jan 19, 2016 By Kathryn Davis January 19, 2016 by Kathryn Davis My last blog post gave a brief overview of a Chapter 9 bankruptcy. In this post, I will discuss a couple of “local” Chapter 9 filings and some noteworthy issues that arose in those cases.
Charitable Giving and Tax Deductions Posted on Dec 08, 2015 By Kathryn Davis December 8, 2015 by Kathryn Davis The holiday season is upon us once again. This time of year, many people are motivated to give to charities. While there are many obvious benefits to charitable giving, one additional benefit to the giver is that their contribution might entitle them to a charitabl ...
Am I Eligible for Innocent Spouse Relief? Posted on Oct 06, 2015 By Kathryn Davis October 6, 2015 by Kathryn Davis Many married couples file their federal income taxes jointly. When they file jointly, both spouses are jointly and individually liable for any taxes due on the joint return even if they later divorce.
Can You Buy a Car While in Chapter 13 Bankruptcy? Posted on Sep 15, 2015 By Kathryn Davis September 15, 2015 by Kathryn Davis A question that we get asked from time to time is whether a debtor can purchase a vehicle on credit while in a Chapter 13 bankruptcy. The answer to that question is yes! Though most people are trying to get out of debt while in their bankruptcy, not ...
Every person who files bankruptcy must take a financial management course before he will receive a discharge. This course must be taken in order to receive a discharge in both a Chapter 7 and a Chapter 13 bankruptcy. The financial management course is different from the credit counseling that a person takes before he files for bankruptcy.
US Bankruptcy Filings Down, Lowest in Seven Years Posted on Aug 04, 2015 By Kathryn Davis August 4, 2015 by Kathryn Davis The Administrative Office of United States Courts reports that bankruptcy filings fell significantly in the past fiscal year that ended on June 30, 2015. The Administrative Office reported that there were 879,736 bankruptcy filings nationally during that ...