On March 20, 2019, the Supreme Court’s unanimous decision in Obduskey v. McCarthy & Holthus L.L.P. examined liability for violations of the Fair Debt Collection Practices Act (FDCPA) that are committed in non-judicial foreclosures. This article considers which FDCPA claims arising from foreclosures are viable post-Obduskey.
On April 14, 2016 the Federal Housing Finance Agency (FHFA) announced what it described as its final loss mitigation initiative of the foreclosure crisis, a “Principal Reduction Modification Program.” The Program will apply to a limited number of loans owned or insured by Freddie Mac or Fannie Mae. Borrowers will not be able to apply for these modifications.
Unpaid criminal justice debt can have draconian consequences, and this article explains how a bankruptcy filing can sometimes be effective in reducing that debt. Although criminal fines and restitution orders are not dischargeable in bankruptcy, other portions of a filer’s criminal justice debt may be dischargeable. The article also links to several resources covering this topic: a free May 13 webinar, a recent report, and NCLC treatises.
This article describes new major relief for student loan borrowers: $10,000 or $20,000 for millions of borrowers, and added relief for those in public service, in default, with disabilities, attending specific schools, with private loans, or with IDR plans. New loan servicers and no more private debt collectors. The article links to more detail and sets out steps borrowers should take now to make the most of the offered relief.
This article provides practical tips for advising clients with debt incurred by an abusive partner through coercion and fraud—developing a safety plan, documenting the coerced debt, protecting bank accounts, dealing with unauthorized credit card use, preventing an abuser from opening new accounts in the victimized partner’s name, addressing coerced debt on a credit report, and dealing with home mortgages.
Forty-five million borrowers are scrambling to figure out options for managing their federal student loans before repayments resume this fall. This article sets out new student loan rights: fresh starts for those in default; the SAVE repayment plan; lower interest charges; avoidance of school arbitration provisions; and easier paths to public service loan forgiveness, bankruptcy discharges, and five types of statutory loan cancellations.
As explained in this article, February legislation provides important tax relief to homeowners who faced foreclosure, short sales, or loan modifications in 2017. The Qualified Principal Residence Indebtedness exclusion that had expired after 2016 has been extended, allowing homeowners to continue excluding certain forgiven mortgage debt from taxable income.
On June 3, the Supreme Court set the standard for consumer recovery of damages, punitive damages, and attorney fees for collection of debts discharged in bankruptcy. This article also explains that judgments on discharged debts are void, describes the advantages of FDCPA remedies, and provides a comparison between remedies for automatic stay violations and discharge violations.
This article helps practitioners advise clients whether they should file bankruptcy, with the top 7 reasons to file and not to file bankruptcy, the proper time to file bankruptcy, and the cost of filing. The article details 6 surprising bankruptcy facts that dispel client reluctance to file a chapter 7 bankruptcy and lists sources for finding a bankruptcy attorney and more bankruptcy resources.
As the name suggests, zombie mortgages can be terrifying. They rise from the dead, appear without warning, and seize homes. And they are appearing now more than ever. A new NCLC Digital Library article explains what they are, why they are now such a problem, and fifteen ways homeowners can stop foreclosures of zombie mortgages. The article also links to additional resources.
