Bankruptcies are the new normal for student loan borrowers, and a new category of bankruptcy attorney has been added to the mix.
According to the Federal Reserve Bank of New York, bankruptcy attorneys specialize in resolving student loan debt.
The bureau defines bankruptcy as a period of insolvency for an individual or entity, which ends when a debtor files for bankruptcy protection under federal law.
The new group of bankruptcy attorneys will work with individual student loan servicers, the Federal Trade Commission, and other debt collection agencies to assist students and borrowers.
They can help students obtain debt forgiveness, negotiate repayment terms, and file bankruptcy petitions to collect debts.
Here are the details:”Under the Consumer Financial Protection Act (CFPA), bankruptcy is an important means of relief for consumers when their debts have become burdensome or when they are unable to pay the principal and interest on their debts,” according to a press release from the Federal Deposit Insurance Corp. (FDIC).
As of now, there are more than 8,000 bankruptcy attorneys in the U.S., with about 6,500 working in consumer and other financial markets. “
The Federal Reserve expects to provide more information on the group’s mission and activities in the near future, and will be publishing more information soon.
As of now, there are more than 8,000 bankruptcy attorneys in the U.S., with about 6,500 working in consumer and other financial markets.
It’s not clear when the group will expand to other industries, such as real estate, real estate lending, and real estate foreclosures.