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Levitt & Slafkes, P.C. - Essex County Bankruptcy Attorneys

Get The Fresh Start You Deserve

Levitt & Slafkes, P.C. - Essex County Bankruptcy Attorneys
GET THE FRESH START YOU DESERVE

Bankruptcy &
Debt Relief For
Individuals and
Businesses

Chapters 7, 11
and 13

FIND OUT MORE

Foreclosure
Defense &
Mortgage
Litigation

Saving Homes
Fighting Banks

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Loan
Modifications

Preventing
Foreclosure

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Commercial and 
Bankruptcy
Litigation

State Federal &
Bankruptcy Court

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Bankruptcy & Debt Relief For
Individuals and Businesses

Chapters 7, 11 and 13

Find Out
More

Foreclosure Defense &
Mortgage Litigation

Saving Homes Fighting Banks

Find Out
More

Loan Modifications

Preventing Foreclosure

Find Out
More

Commercial and Bankruptcy
Litigation

State Federal &
Bankruptcy Court

Find Out
More

Could Our Nation Be Saved by Amending the Bankruptcy Code?

| Jul 26, 2013 | News Bankruptcy and Debt |

According to CNBC, there are some people who believe that if the Bankruptcy Code was amended to allow the discharge of student loans, many Americans who are struggling financially would be saved. The CNBC article reports that student loans account for approximately $1 trillion of debt! Between student loans and mortgage debt discharge, most individuals could obtain a true financial fresh start.

Many college graduates have a significant amount of debt and a difficult time finding employment. Currently, bankruptcy law only allows the discharge of student loans after a showing of “undue hardship.” To learn more about this standard, read our blog titled “Will Student Loans in New Jersey Increase?” There are several pieces of legislation pending before Congress seeking to allow the discharge of private or commercial student loans.

Changing how mortgage debt is treated in bankruptcy would provide assistance to homeowners trying to avoid foreclosure. If a homeowner could “cramdown” a mortgage to the current value of the home and pay lower mortgage payments, it could help resolve the real estate crises across our country. Of course, this change would not provide help to debtors who houses are properly valued.

Obviously, debt forgiveness is a controversial topic. If you have questions regarding your mortgage debt or student loans under the current bankruptcy law, contact Levitt & Slafkes, P.C..

If you are interested in learning how filing a bankruptcy case can benefit you, contact Levitt & Slafkes, P.C., at 973-323-2953. You can also reach us by filling out our online form. We represent debtors in Chapter 7, Chapter 13 and Chapter 11 filings. Let us help you get the fresh financial start you need today.

 

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