• Creditors of Student Loans Go after Co-Signers

    Katy Stech of the Wall Street Journal recently wrote an editorial about Kristina Pietras, a student who became burdened with student loan debt before dropping out of the University of Toledo. Various lenders lent Pietras $132,000 in loans. Pietras’ parents had co-signed her loans.

    Lenders took Pietras and her co-signers to court, where they argued that she was paying $150  month for a cable television package and recently had new carpet installed instead of paying back the loans. Her parents were paying her cell phone bill at $70 a month while she worked at an Arby’s restaurant.

    “The court is, thus, confronted with this dichotomy: the debtors, when incurring obligations on behalf of their daughter, find the means to pay for one obligation but not the other,” wrote Judge Richard Speer of the U.S. Bankruptcy Court in Toledo.

    As more and more students find themselves unable to repay loans, the creditors are going after the co-signers. More than 90 percent of student loans require a co-signer. More and more co-signers may find themselves in bankruptcy court if this trend continues. Contact our firm for a free consultation.

    Benjamin Brand Services- Chicago bankruptcy lawyers .

  • Mayor Emanuel Critical of Governor Quinn Appointee Who Filed Bankruptcy

    This Illinois Statehouse News video features Governor’s Office of Management and Budget spokeswoman Kelly Kraft, who Governor Pat Quinn chose to be executive director of the Illinois Sports Facilities Authority-the state agency that operates US Cellular Field. Chicago Mayor Rahm Emanuel, however, said he wants a person with experience in managing finances to run the agency, the Chicago Tribune reported. Kraft’s personal history with finances became an issue when the Tribune reported on October 5, 2012, that Kraft filed for bankruptcy after owing more than $102,500, mainly in credit card debt .

    Kraft is a former reporter for WFLD-TV who joined the Quinn administration as a budget office spokeswoman in 2009. She was later promoted to assistant budget director before being named Quinn’s top spokeswoman in July with an annual salary of $111,000, the Tribune reported.

    “That board and that staff is the thin blue line protecting the taxpayers of the city of Chicago from paying, in case there’s something’s mismanaged,” Emanuel told WBBM-AM. “And I think we should find the best-qualified people for that, which is why I – given the board I inherited – replaced them, put in place a whole new board with backgrounds in financial management, and expect the staff to meet that standard.”

    “I think we have a good person, a strong person, a strong woman who knows how to manage the budget, find economies and efficiencies, knows how to work with people,” Quinn told WBBM. “There’s a lot to be said with someone who can work with all kinds of folks, make sure we have diversity and fairness, and also a person who understands the world of finance and bonds and things like that, and I think that’s Kelly Kraft. … I think it’s time for the mayor to recognize that.”

    Tribune columnist Eric Zorn correctly asked with the title of an October 10 blog post, “When, if ever, is personal bankruptcy a disqualifying entry on a job application?” As we have noted before in our blog posts about famous bankruptcies , many notable modern and historical figures also had to file bankruptcy before they became successful. The truth is that Chapter 7 and Chapter 13 bankruptcy are legal ways for people to reorganize debt when life delivers unexpected changes. Contact our firm at (866) 930-7482 or complete the form on this page to have our Chicago bankruptcy lawyers see if Chapter 7 or Chapter 13 bankruptcy might be able to help you turn your own situation around.

    Benjamin Brand Services – Chicago bankruptcy lawyers