September 2007

29 Sep Man Sued By FIA Card Services In Bankruptcy Wins Major Victory

Did you use a credit card prior to filing for bankruptcy? If so, there you need to know that those charges may be excepted from discharge on the grounds that recent use indicates an inability to repay a debt; this is a type of fraud. But take heart - courts are willing to hold creditors to a high standard, making them prove that inability to pay and the bad faith that is part of this section of the U.S. Bankruptcy Code. And if a creditor cannot prove the case, it is tossed out the window. Consider the case of FIA Card Services, N.A. v. Flowers, 07-3009 (Bankr. M.D.Ala. September 26, 2007). Arthur T. Flowers filed a Chapter 7 bankruptcy Code on November 22, 2006 in Alabama. FIA Card Services sued him to except a debt of $4,000.00 which was incurred either 97 or 98 days prior to the date of the petition. The debtor filed an affidavit that he suffered a heart attack prior to the date of use of the credit card, that he had always paid his bills on time and that it was always his intention to repay his debts.
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28 Sep College Cost Reduction Act of 2007, A Sad Disappointment!

Congress just passed The College Cost Reduction and Access Act of 2007. The name suggests that Congress has finally done something about the building crisis in student loans. Media sound bites may give this impression, but in reality this is nothing more than a smokescreen hiding those still stoking the fire. A recent post (New Student Loan Law Provides Welcome Relief) announces this new legislation and gives justifiable thanks for the meager benefits extended to students by this new legislation. However, a close examination of the Act shows most provisions concerning student loans to be of little benefit to the borrower. Several sections seem aimed more at guaranteeing lender profits and ensuring a steady stream of new
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