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What’s New in Debtor-Creditor?

Private Student Loans continue to be discharged in bankruptcy

In yet another decision by a bankruptcy court, a private loan by Navient, a popular student loan lender, was discharged in Chapter 13.   While government loans cannot be discharged, the recent COVID-19 legislation has now implemented the debt forgiveness previously promised to those working in the non-profit sector.  This is a good sign for student…

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Employees Entitled to Bankruptcy Heads Up & Job Security

Employees in California are newly entitled to a 15-day heads up of a utility’s bankruptcy filing, as well as job security for at least 6 months after the filing.  PG&E Corp. was prompted to disclose its intent to file for chapter 11 by a new California law that includes this novel provision requiring a 15 day warning to employees…

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New Student Loan Consumer Group is Taking Initiative

A new student loan consumer watchdog group is taking initiative to help and protect student borrowers in the absence of government action.  This non-profit consumer group is led by people who quit the Trump administration Consumer Financial Protection Bureau and hope to serve as a check on the student loan industry.  Known as the Student Borrower Protection…

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ITT Tech Student Loans Settle in Bankruptcy versus other Government Loans

ITT Tech student loans settle in bankruptcy and will be paid out assuming that ITT’s bankruptcy estate has sufficient funds. The settlement that will erase nearly $600 million that 750,000 students owed ITT Technical Institute. The agreement will also refund $3 million that students paid the for-profit chain. The students asserted a $1.5 billion claim…

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Bitcoin Mining Pioneer GigaWatt Seeks Bankruptcy Protection

Bitcoin mining pioneer, GigaWatt, seeks Chapter 11 bankruptcy protection in Spokane, Washington.  The filing is the latest twist in an entrepreneurial saga stretching back to the early days of bitcoin and may be connected to efforts by three of the company’s majority shareholders to sell GigaWatt.  One of its co-founders, David Carlson, a former Microsoft…

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Is it legal for Banking Guidelines to be considered actual law by Regulators? No.

The Bank Policy Institute and American Bankers Association has filed a petition asking the Trump administration to write a rule stating that bank examiners won’t punish firms for violating informal voluntary policies known as “guidance.”  The petition is a gambit in a yearlong fight over guidance documents used by regulators to punish or threaten to…

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Student debt now taken on by TV show – winners’ debt is paid!

For those seeking a way to have their student debt paid off, you now have the opportunity to participate in a game show that will pay off the student debt of the winner.  The founders of this show are seeking to bring awareness to the student debt crisis.  For more information, please see the following…

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Beware of Phantom Debt Collectors!

 A payday-loan mogul was indicted on federal charges that he made up millions of fake debts and sold them to bill collectors, victimizing people across the country.  “Tucker defrauded third-party debt collectors and millions of individuals listed as debtors through the sale of falsified debt portfolios,” according to the indictment. “These portfolios were false in that…

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