
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: February 27, 2014
Partner
201-896-7095 jglucksman@sh-law.comMoreover, student loan debt is essentially like an incurable illness – – it can never be “fixed” in Bankruptcy Court. Now, evidence is emerging that this one trillion dollar debt is impeding the recovery from the Great Recession’s housing collapse
An April, 2013 study from the Federal Reserve Bank of New York noted that the “aggregate student loan balance” had reached over nine hundred billion dollars by the end of 2012. Moreover, the bank noted that the percentage of 25 year olds carrying student loan debt had gone from just 25% in 2003 to 43% in 2012, and that the average debt balance was $20,326 in 2012.
Although most debt can be erased in bankruptcy, the 2005 changes to the Bankruptcy Code excepted from bankruptcy discharge any educational loans, made by or insured by governmental units, unless doing so would impose an undue hardship on the debtor and the debtor’s dependents. In order to fit within the “undue hardship” test, a student loan debtor must establish that, based upon his current income and expenses, (i) he cannot maintain a “minimal” standard of living for himself and his dependents if he is forced to repay the loan, (ii) these circumstances will persist for a significant portion of the loan repayment period, and that he made a good faith effort to repay the loan anyway.
Now, as reported in a recent article in The Washington Post, experts are wondering whether the growing student loan burden is undermining the nation’s attempt to recover from the housing crash of 2008. Although the housing market has improved recently, the demand for housing is now waning as the price of homes and mortgage rates have both gone up. Indeed, the Mortgage Bankers Association reports that, for the past four months, loan applications for home purchases have declined by nearly 20% as compared to the same period a year ago.
This is hardly surprising. First time buyers are clearly not entering the housing market in large numbers, due in part to the soaring level of student loan debt they are carrying. This is a worrisome trend for the future. Unless a way is found to ease the student loan debt burden, it will not simply be twenty-somethings who face difficulty in building secure financial futures. Rather, everyone who owns a house and counts on being able to sell it – – whether for retirement or to move up the housing ladder – – will be impacted. Without first-time buyers entering the “conveyor belt” of home ownership, the entire process will stall.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Author: Bryce S. Robins
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!