Many California consumers are aware of the proposed Student Aid Bill of Rights backed by President Obama. While the directive has been issued for the Department of Education to research methods for making loan repayment easier for consumers, there is no firm plan in place for how that goal might be reached. Nonetheless, that has not stopped unscrupulous companies from promoting "Obama" debt reorganization services to troubled borrowers.
Once an individual's debt has surpassed his or her ability to make good on those financial obligations, the result is a high level of chronic stress. A recent study asserts that it is not just debt in general, but the specific type of debt one holds that can have an impact on their emotional health. These findings suggest that addressing unmanageable debt could have positive results on both financial and emotional health of consumers in California and elsewhere.
A recent ruling by the U.S. Supreme Court could have a significant impact on the bankruptcy cases of many California residents. The unanimous ruling states that individuals who file for bankruptcy cannot make an immediate appeal of a court's rejection of a Chapter 13 debt repayment plan. For those in California who are planning to seek bankruptcy protection, the case should be taken into consideration when creating a repayment plan to present to the Bankruptcy Court.
When many California residents think about bankruptcy, they imagine that only those who rank in the lowest socioeconomic groups pursue this path. In reality, however, people from all walks of life make the decision to file for bankruptcy, including those who achieve high levels of personal and professional success. Bankruptcy is often believed to be proof of financial failure, but, for many, it is simply a powerful financial tool that can help re-establish financial stability.