• Do Not Lose Sight of Financial Obligations during Divorce

    A divorce is a very troubling and trying time for couples, financially and emotionally. Unfortunately, persons going through a divorce can lose sight of long term finances and just try to get the divorce finalized as quickly as possible. Financial hardship is often cited as a reason couples divorce, but that does not mean that once your divorce is finalized you no longer have an obligation to creditors you borrowed from during your marriage-at least your share of it.

    Creditors typically do not care how the bills are paid, simply that they are paid. If you and your spouse signed up for a credit card or financed a home or a vehicle together, you are both still on the hook if the bill is not paid.

    An agreement in a divorce for one or both parties to pay these debts is legally binding and collectable. Any and all debt you agreed to pay while married will still hold true following your divorce, additionally, if your divorce decree says that you must pay certain debts, you may or may not be able to get rid of those debts in bankruptcy. That is why talking to a bankruptcy attorney with experience is so important.

    If you are going through a divorce and are concerned about financial obligations, it is wise to contact a bankruptcy attorney in addition to a divorce attorney.

    Benjamin Brand Services- Chicago bankruptcy attorneys .

  • Obama Tweaks ‘Pay as You Earn’ Program

    On November 1, President Barack Obama put the final touches on the Pay As You Earn program for the repayment of student loans. It is an Income-Based Repayment (IBR) that is applicable for federal student loans and those who are struggling to make monthly payments in a sluggish economy.

    The program actually began in 2007, but student loan debt has continued to rise. Historically, the program has not been popular with students-only slightly over 1 million borrowers were enrolled this year. The Obama administration is hoping the recent tweaks will make the program more popular. The cap on loan payments was reduced from 15 percent of the borrower’s total income to 10 percent. Loan forgiveness is accelerated from 25 years to 20 years.

    If a borrower implements all of these changes, they can capitalize on a 33 percent reduction in their monthly payments. These changes could be valuable in reducing the number of persons filing bankruptcy due to student loan debt. This will allow young professionals to establish their careers and pay off their loans in full. Getting rid of other debt through a bankruptcy can also help individuals pay back student loans faster.

    Please visit our site for more information on student loan debt and bankruptcy , and contact our firm for a free consultation.

    Benjamin Brand Services- Chicago bankruptcy lawyers .