Student loans can account for a significant portion of a person's debt load, and many have trouble repaying the debt. Fortunately, despite popular belief, it's not quite true that a person in Arkansas or any other state cannot discharge a student loan obligation in bankruptcy. In fact, if one files for bankruptcy, it may be advisable to list the student loan as a dischargeable debt and try to get it wiped out. The rule that the court will use to decide the issue is called the undue hardship test.
Bankruptcy is not for people who are having some inconveniences in paying their monthly bills. It is a surgical remedy that brings consumers back from the brink of the darkest financial disaster into the bright light of day. Bankruptcy is a powerful tool for those in Arkansas and elsewhere who have reached a point where virtually nothing else will work to provide meaningful debt relief.
Assault and battery are criminal violations in Arkansas that in general involve the threat of force or the infliction of force against another person. There are several degrees of assault and also of battery, which are graded based on the severity of the harm or the risk of harm that is involved. In a recent incident in Fort Smith, police have charged a 29-year-old man with second degree battery for allegedly stabbing another man in the abdomen in an altercation.
Being saddled with unmanageable debt is a hard position to be in. The Arkansas consumer who is burdened with overwhelming debt is sometimes led into believing that filing a bankruptcy will be the virtual closing out of one's life. Nothing could be further from the truth. The consumer may do well to remember that these myths about bankruptcy are false and that they are largely the product of the credit card companies and other big credit interests.
Can an out-of-state creditor come into a consumer's bankruptcy case and file a proof of claim for a stale debt that has gone over the maximum time limit for the statute of limitations? A federal district court judge answered yes to that question. However, on appeal, the Eleventh Circuit Court of Appeals reversed and held 3-0 that filing of an out-of-state stale claim in bankruptcy court is a violation of the Fair Debt Collection Practices Act. The ruling is likely to be accepted in Arkansas bankruptcy courts as legal precedent.
There are many considerations that go into the decision of whether to file for bankruptcy relief in Arkansas. The best way to make a determination is to consult with an experienced consumer bankruptcy attorney. The attorney will review all of the pertinent bills, claims, judgments, lawsuits, if any, and will compare the debt load in the context of the current income. The attorney will also consider the nature of the assets owned and the type of debt that may apply specifically, as a lien or security interest, on any of those assets.
If a consumer is overloaded with unsecured debt and unable to pay that amount off in a reasonable payment plan over the next five years, bankruptcy may be the best option available. When consumer debt overload spirals that far out of control, the truth is that strong and forceful measures must be taken for the sake of survival. A Chapter 7 bankruptcy will wipe out all unsecured consumer debt within a few months and allow for the individual or family to get a true fresh start. Arkansas residents will file the case here but the U.S. Bankruptcy Code will apply to processing and resolution of the matter.
Despite all of the student loan defaults by economically pressed graduates, federal lenders made about $66 billion on loans for the federal government between 2007 and 2012. The industry is not suffering and would not suffer if Congress amended the law to liberalize the current standards for discharging such loans in bankruptcy. Arkansas residents stand with the rest of the country in hoping to see reform with respect to the dischargeability of student loans.
Just like others nationwide, Arkansas consumers may also find it difficult to resist deals that look too good to pass up. It is often reported that credit card debt is the cause of many bankruptcy filings, and when looking at the devious ways in which retailers get consumers to spend their hard-earned money, it is not surprising. While many people think twice before falling for obvious tricks, such as "buy two for the price of one" offers, it is often the sneaky perks offered by stores that trick them into buying unnecessary items.
Many hard-working American families find themselves in a repetitive cycle of overwhelming debt that has spiraled out of control. This is related in part to a poor job market, low hourly wages, health care insurance that refuses to pay for essential services and consumer over-use of credit cards to purchase inflation-ridden consumer necessities. One industry that has taken advantage of the struggles of these families is the predatory payday loan industry. The companies have in effect forced many consumers in Arkansas and throughout the country into filing bankruptcy to eliminate harassing debt collections from the companies and their assignees.