College students, especially those at the University of Colorado at Colorado Springs, have it difficult these days because they are thrust into debt with job prospects looking bleak.
The cost of higher education in this country has continued to rise, even as more and more students are seeking education after high school than decades earlier. And because of the recession, there are fewer jobs available for students while they're in school and after they graduate.
But filing for bankruptcy in Colorado Springs may be an option worth exploring for some students. While bankruptcy laws currently don't allow for student loans to be discharged during bankruptcy proceedings -- though some lawmakers are trying to change that -- it can allow students the financial freedom to pay off those loans. Our Colorado Springs bankruptcy lawyersrecognize that bankruptcy is a big step and one that shouldn't be taken lightly, but there are some advantages.
For one, let's look at the recent program put into place by the Obama administration that allows students to make income-based payments and if income changes, they can modify the loans. After two decades, the balance of the loan can be forgiven.
As a recent USA Today article points out, this program doesn't do anything for students who have private loans, only those who have federal-backed loans. And experts say that private lenders aren't nearly as forgiving as federal lenders. Sources quoted in the article state that they are rarely able to get a loan modification or any type of help for people who are struggling with debt.
This is where bankruptcy may be a strong option. While it may be difficult to get the actual student loan debt discharged through bankruptcy, all other unsecured loan debt likely can be wiped clean. This would then allow the student, or recent graduate, to cancel making payments on other loans, which frees them up to continue making payments on their college loans.
In some rare cases, a Colorado Springs bankruptcy lawyer may be able to find a way for those student loans to be discharged, but it depends on special circumstances. Either way, this can be an option to consider, especially if finding a job proves difficult and debt stacks up.
If you are struggling with debt and need to speak with an experienced Colorado Springs bankruptcy lawyer, contact attorney Stephen H. Swift at 866-893-2440 or 719-359-8179 for a free initial consultation.
Foreclosure numbers in Colorado fell in 2011. But most experts believe this has less to do with the real estate market recovering and more to do with a delay in filings by the country's biggest banks.
Some people believe they can fight back against banks by attempting to show that the bank filing the foreclosure doesn't actually own the note. But our Colorado Springs bankruptcy attorneys believe there is another option that is more beneficial to Colorado Springs homeowners.
That option is filing for bankruptcy in Colorado Springs.
Did you know that filing for bankruptcy immediately stops a foreclosure? Whether your home has just received its first default notice or is slated to be sold at auction, filing for bankruptcy halts the process.
This can buy homeowners valuable time while they attempt to get their finances in order. Through the bankruptcy process, consumers can discharge their outstanding debt, such as from credit cards, medical bills and other loans, which can enable them to again make house payments.
Or, perhaps homeowners are currently in a house that has an underwater mortgage, meaning they are paying more on the loan than the house is worth. Many people are in that position. Filing for bankruptcy may allow the homeowner to get rid of their debt and their house after the foreclosure process has gone through.
The Denver Business Journal recently reported that Colorado saw a 28.6 percent dip in properties with foreclosure filings from 2010 to 2011, but the state still had one of the top 10 highest foreclosure rates nationwide, foreclosure tracking company RealtyTrac.
One out of every 56 houses had a foreclosure notice last year, totaling 38,557 properties. In December, one in every 620 properties went into foreclosure, a 7.29 percent drop from November.
Most analysts believe that foreclosure numbers dropped in 2011 because big banks in 2010 halted their foreclosure practices after investigators found out they were using "robo-signing" tactics and other unlawful means to take away people's homes.
If you are struggling with debt and need to speak with an experienced Southern Colorado bankruptcy lawyer, contact attorney Stephen H. Swift at 719-520-0164 for a free initial consultation.
As our nation's economy continues to struggle to recover, it's obvious that bankruptcy in Colorado is helping people with debt relief as the numbers continue to rise for people who are unemployed, struggling with credit card debt or those hit hard with major medical bills.
Our Colorado Springs bankruptcy lawyers recognize that there is some misinformation out there about bankruptcy and that many people look down upon these consumer based laws. But we would point out that bankruptcy in Colorado Springs allows consumers to get a fresh start to their financial situation by eliminating debts.
Many people are struggling to get by without a job right now. In many cases, they are relying upon credit cards as a way to pay bills, while their income level drops. Late or missed payments can lead to hidden fees and higher interest rates, which keep consumers mired in debt.
But filing for bankruptcy is designed to benefit consumers who are in a bad position with their finances. These laws were designed with good people in mind. They were written so that consumers can get rid of debt and create a plan to move forward.
And more and more people are using bankruptcy laws as our country deals with the effects of the Great Recession.
In the third quarter of 2011, according to the American Bankruptcy Institute, more than 7,600 people in Colorado filed for bankruptcy protection. That was down slightly from the second quarter, when 8,714 people filed. But the number is on par with the spike in filings going back to the second quarter of 2009. Since then, more than 7,000 people have filed for bankruptcy protection in Colorado each quarter.
This shows that more and more people are considering bankruptcy in Colorado Springs and nationwide at a time when they want to put an end to the debt in their lives. This is a better solution than adding credit cards and hoping that the government turns its struggles around. Take matters into your own hands and use bankruptcy laws to your advantage in getting out of debt today.
If you are struggling with debt and need to speak with an experienced Colorado Springs bankruptcy lawyer, contact attorney Stephen H. Swift at 719-520-0164 for a free initial consultation.
Our Colorado Springs bankruptcy attorneysknow that one of the main culprits for out-of-control debt is the overgrown mountains of student loans.
Colorado Springs bankruptcies are on the rise as students are graduating with enormous loans and little opportunity for jobs that will help them pay it off. It begins a vicious cycle of debt.
So how can you help a new college graduate, hoping to avoid drowning as they wade into this murky economy? MSN Money touched on this issue recently, with an article detailing five do's and don'ts to helping out new graduates.
The first thing that new college graduates really need is health insurance. Hopefully, they are lucky enough to land a job that can provide this for them. However, oftentimes, even if they land a new gig, it may not be accompanied by full benefits. As of right now, parents are allowed to keep their children on their own health insurance plans until they reach the age of 26. This is important because if an unexpected medical issue arises, a graduate could quickly find themselves buried in debt.
Secondly, help them get a head start on retirement savings. Roth IRAs may be a good way to go, depending on how much you can afford to help. Having this available is going to mean a more secure future - and you'll know they'll be taken care of, even if you're not around.
Thirdly, make sure they are staying up-to-date with their student loans. They have to start paying within six months. If not, the penalties start piling up fast.
The two things you really want to avoid are co-signing for a car loan or co-signing for an unsecured credit card. With a car loan, if he or she misses a payment, you are automatically on the hook for it. What's more, that will dent your own credit. And with regard to an unsecured credit card, if he or she fails to pay up, again, you could be hounded by creditors, nagging you to pay up.
At the end of the day, you want to make sure that your new college graduate has the best start possible as they embark on his or her new career - but you shouldn't put yourself at risk of snowballing debt in the process.
Now that the holidays are mostly over, it’s time for many to consider where they stand, financially. The holidays have historically been a time when many people buy gifts for friends, loved ones, or co-workers not just because they’re caught up in the spirit of giving, but also because they feel pressured to buy gifts that they can’t necessarily afford.
Have you been guilted, pressured, or shamed into buying extra gifts this season? Have your finances been stretched far beyond their limits? If so, it may be time to consider filing for bankruptcy.
For many, the new year is a time of renewed hope and optimism for the coming year, and it can be for you, too, even if your debts are weighing you down.
Bankruptcy, which has traditionally been looked at as some sort of failing, is actually quite the opposite. Filing for bankruptcy is a way for you to take control of your financial situation back from the predatory creditors who have taken that control away.
What better gift to give yourself this holiday season, than the renewed hope and freedom that comes with a well-timed and properly-filed bankruptcy?
In bankruptcy, many, if not all, of your debts can be forgiven, and you can create a financial plan that works for you and your family. For once, you can make the creditors work for you, instead of making you work for them.
Consider starting the new year off right, with a relieving, well-filed bankruptcy!