Consolidate debt credit card

He looked deeper into this head-scratcher. The only evidence provided in discovery was a spreadsheet with little more than his client’s name and some dollar figures. And he found that no judge had given so much as a side glance at the debt buyer’s lawsuit. A clerk simply processed the creditor’s claim based on a document stating little more than this person owes us this much, and the fact that she was served with the suit, then entering judgment after it went unchallenged. (Benshoof’s client had never heard of the company pursuing her and considered the various contacts junk mail or spam.) … [Read more...] about Debt-buying industry and lax court review are burying defendants in defaults

Although this approach is preferable to recasting the debt as equity in the flow-through entity, it nonetheless may give rise to serious tax issues. For example, if the partner is a domestic corporation and the putative debt holder is a non-U.S. person, then “interest” payments on the putative debt instrument may be recast as U.S.-source dividends and, if so, may be subject to withholding. It is unclear who would be the “withholding agent” required to remit the withholding to the IRS in this case. The Regulations also take the position, challenged by some commentators, that an instrument recast as equity under the Regulations is treated as equity, and produces dividends, for purposes of U.S. tax treaties. … [Read more...] about Controversial Debt-Equity Regulations Finalized With Limited Fixes, Concessions and Reservations by Government

Non-fungibility. Many securitizations are treated as disregarded entities of their sponsor for U.S. tax purposes, because the sponsor retains all of the residual certificates. If one or more classes of notes is not fully subscribed on the closing date, then an affiliate of the sponsor may acquire all or a portion of those classes with the intention of selling them at a later time. If the new regulations apply to these affiliate-retained notes (e., because the affiliate is a member of the same expanded group as the sponsor, but does not file a consolidated tax return with the sponsor), then the affiliate will be treated as having exchanged the notes for stock in the sponsor. For U.S. tax purposes, this would cause the affiliate-retained notes to be treated as retired. When the affiliate later sells these notes to a third party, they would be deemed reissued, and may have to be retested to determine (1) whether they are treated as debt for U.S. tax purposes[7] and, if so, (2) the amount … [Read more...] about Application of New Debt-Equity Regulations to Securitizations

Susan Berson: There seem to be two different camps. There are lawyers who graduated into this recession with a job and debt. And then there are lawyers who are still looking for jobs. If you’re a lawyer who graduated with a job and debt, I think saving and paying down that debt is certainly attainable. As to retirement, it’s certainly attainable; it just may seem kind of elusive right now, depending on what your expectations are and the amount of debt you have. So for those folks, either way you’ve got to get a hold of how you’re going to handle your debt. And if you’re a couple, if you’re married, if you’re contemplating marriage, what I always stress is that you’ve got to sit down as a couple and truthfully, calmly, realistically, determine how best you’re going to handle that debt. … [Read more...] about How lawyers can dig themselves out of debt and plan for a future (podcast with transcript)

“It’s not a guarantee, but even after committing to a college, there is still a possibility of getting more aid from a college,” Peeler said. The financial aid office might have “leftover” funds because of lower than expected enrollment numbers or other factors, she said. (Want more college aid? Here’s how to get it.) … [Read more...] about The Latest Victims of the Student Debt Crisis — Parents