We believe that everyone deserves a fresh start. There are legal solutions available that can help you achieve that fresh start. Through this monthly newsletter, it is our goal to offer you information, as well as solutions, garnered over 40 years of combined legal experience practicing bankruptcy law and student loan law. If you need assistance with your student loans, our goal is to demystify student loans and put you in control of your options. If you are considering bankruptcy, we understand the seriousness of choosing to file bankruptcy, and we want to give you power through knowledge to help you make that decision. Please contact us for a no-cost consultation.
Sincerely,
Jonathan Leiderman and Zach Shelomithwww.lslawfirm.netlslaw@lslawfirm.net954-920-5355
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Navigating the Student Loan Debt Morass
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Student loan debt is becoming a serious problem for borrowers across the United States. Total student loan debt has now exceeded $1.2 trillion (yes - trillion), which is more than the total amount of credit card debt in America, and second only to mortgage debt. Of that amount, approximately $1 trillion is comprised of federal and state student loans, and the remainder is comprised of private student loans.
At this point, with very limited exceptions, neither federal, state, nor private student loans are dischargeable in bankruptcy (more on the exceptions later). Of all outstanding loans, only 60 percent of borrowers in repayment are actually making their payments on time, and the remaining 40 percent are in deferment, forbearance or default. So, what is a borrower to do?
Unbeknownst to the majority of borrowers, there are numerous options available. More options are becoming available as the federal government attempts to fix the student loan debt problem. Many commentators note that the federal government isn't doing enough.
What is clear is that with all of the programs out there, and all of the different types of loans, borrowers need help navigating the student loan morass.
Earlier this year, Leiderman Shelomith, P.A. expanded its practice areas to include student loan law. Because so many of our clients are struggling financially with their federal, state, and private student loans, we are working with our clients to find the options available to help make our clients' student loan debt more manageable.
We provide our clients with a comprehensive and personalized analysis of their federal and/or state student loan portfolio to determine eligibility for various areas and programs, including: - Administrative discharge
- Loan cancelation or forgiveness
- Loan deferment
- Loan forbearance
- Loan settlement
- Rehabilitation
- Consolidation
- Various other forms of repayment (including Income Contingent Repayment (ICR), Income Based Repayment (IBR), and (Pay As You Earn (PAYE))
These programs are changing all the time. In fact, on June 9, 2014, President Obama expanded the PAYE program to those who borrowed prior to October 2007, capping loan repayments at 10% of a borrower's monthly income. We are constantly keeping up-to-date on all of the new laws, programs, and bills introduced in Congress.
For borrowers with private student loans, we provide our clients with the same analysis, to determine all of their available options, including: - Proactive or reactive settlement
- Eligibility for cancelation
- Eligibility for bankruptcy discharge
- Availability of defenses
While federal student loans remain virtually impossible to discharge in bankruptcy, there are some exceptions available for private student loans, including non-accreditation of the school, and the fact that the loan proceeds were not used for educational purposes.
Not only do we discuss these options, but we implement them too. We also provide direct representation in communications with collection agencies, settlement negotiations, repayment plan negotiations, prevention or elimination of administrative wage garnishments, social security offsets, tax refund intercepts, and other collection activity, including representation in lawsuits brought by student loan lenders.
If you or someone you know are overwhelmed by student loan debt, allow us to demystify your student loans and put you back in control. Please keep in mind that every student loan matter is different. If you would like a shining light to guide you through the student loan debt morass, please contact Leiderman Shelomith, P.A. to schedule a no-cost initial consultation.
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| They Told Me it Couldn't be Done |
| A common scenario we are hearing from our student loan clients is collection agencies giving incorrect information (who would've thought!). For example, a recent student loan client came to see us when her federal student loans fell into default, and were in default for several months. At the time, her wages were not being garnished. However, she was receiving daily calls from a collection agency who was attempting to collect her defaulted federal student loans.
The collection agency told her that the only way out of default was through a loan rehabilitation. The collection agency told her that she could not get out of default through consolidation. This information was wrong. While loan rehabilitation is a great program, and is the only way out of default for borrowers who are having their wages garnished, it was not the best fit for our client's particular circumstances.
By consolidating all of her federal student loans and immediately getting on an Income Based Repayment (IBR) plan, our client was able to save hundreds of dollars every month! On top of that, any balance remaining after 25 years will be forgiven, as part of this program.
Our client was confused by the misinformation she had received prior to meeting with us, and was honestly scared about what would happen next. She wanted someone to guide her through the process and implement the best solution. This is exactly what we did, and our client is ecstatic! |
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| Attorney Spotlight: Zach Shelomith |
It has been a very busy few months for Zach Shelomith. Zach recently spoke at a Chapter 11 seminar in Miami entitled "Business Bankruptcy: Chapter 11 Essentials and More". Zach spoke about his favorite topic, individual Chapter 11 cases (as the majority of Chapter 11 cases handled by Leiderman Shelomith, P.A. are individual cases). The following day, Zach spoke at the University of Miami Bankruptcy Skills Workshop, on the Chapter 7 Panel. Zach spoke from a debtor's attorney's perspective, giving valuable insight into best practices.
Zach was also recently named a Florida Trend Legal Elite, by Florida Trend Magazine, which is an honor bestowed only to 2% of attorneys in the State of Florida. Zach was previously a Florida Trend Legal Elite Up and Comer in 2012.
Finally, Zach was honored to be elected Secretary of the Bankruptcy Bar Association of the Southern District of Florida. This will be Zach's 5th year serving on the Board or Executive Board of the Bankruptcy Bar Association, having completed a 3-year term as Director in 2013, and having recently completed a 1-year term as Treasurer. Zach takes great pride in his contributions to the Bankruptcy Bar Association, and looks forward to continuing to work with his fellow members.
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About Leiderman Shelomith, P.A.
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Leiderman Shelomith, P.A. was founded by Jonathan Leiderman and Zach Shelomith in 2003. The firm quickly built an excellent reputation across South Florida as a boutique bankruptcy law firm, handling both personal and corporate bankruptcy matters, including Chapter 7, Chapter 11 and Chapter 13 bankruptcy cases, as well as state court Assignments for the Benefit of Creditors. Ashley Prager Popowitz joined the firm as an associate attorney in 2009. The firm began representing borrowers with their federal, state, and private student loan matters in 2014, including the defense of student loan lawsuits.
The firm's attorneys have been recognized as a South Florida Legal Guide Up and Comer, a Super Lawyer Rising Star for the State of Florida, a Florida Legal Elite Up and Comer, and a Florida Legal Elite. Our attorneys are members of the National Association of Consumer Bankruptcy Attorneys, the American Bankruptcy Institute, and the Bankruptcy Bar Association for the Southern District of Florida, among other organizations. The firm's attorneys are also frequent lecturers at seminars and community programs, speaking about bankruptcy law to attorneys and the general public.
The firm, Mr. Leiderman, and Mr. Shelomith, are AV® Preeminent Rated Attorney's, awarded by LexisNexis® Martindale-Hubbell®, for having obtained the highest possible peer-review rating for their ethical standards and legal ability.
The firm represents debtors, creditors, and bankruptcy trustees in all aspects of bankruptcy cases, including litigation and appeals, handling both liquidations and reorganizations. The firm also represents borrowers in all aspects of student loan law, including federal, state, and private student loans. Our office is conveniently located in suburban Fort Lauderdale, Florida, and is easily accessible from anywhere in Miami-Dade, Broward, and Palm Beach Counties. We handle bankruptcy debtor cases across the Southern District of Florida, particularly in Broward, Miami-Dade, Palm Beach, and Monroe Counties, and other bankruptcy cases and student loan matters throughout the entire State of Florida.
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