Effective October 17, 2005, 11 USC §523(a)(8) of the Bankruptcy Code was amended to include private student loans. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) essentially made most private loans nondischargeable:
“A discharge ... does not discharge an individual debtor from any debt --
...
(8) unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor's dependents, for--
(A)
(i) an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution; or
(ii) an obligation to repay funds received as an educational benefit, scholarship, or stipend; or
(B) any other educational loan that is a qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986, incurred by a debtor who is an individual;” [The Internal Revenue Code defines qualified education loans as any indebtedness incurred by the taxpayer solely to pay qualified higher education expenses.]

It no longer matters whether the loan is owed to a governmental, nonprofit or other institution. Unless a debtor files an adversary action in the bankruptcy, any debt incurred for an educational benefit, including private loans, is not discharged.

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Benefits of using Local Investigators and Process Servers
by Trent Carlyle

If your law firm is like most, you undoubtedly work on cases or with participants in cases that are not in your immediate area. When you need to have these people found or served with legal documents who do you turn to? Many law firms use their “local guy” or a nationwide company. This may be the easiest route, but is that really the best choice for you and your client?

There are quite a number of reasons why using process servers and investigators that are local to the service area are your best option.

1. Efficiency and Faster Service.
Local process servers and investigators know the ‘landscape’ of the area in which they will be working.  There is no need for them to acclimate to a town or city. It is also very likely the local process server or investigator has access to a network of professionals, including law enforcement, that can help expedite the process or help collect hard-to-obtain information.

2. Lower Costs. 
When you hire a national process server or your “local guy” to have court documents served out of town, they will generally forward these papers to a business within their network. In cases such as this, the company you hire will tack on a margin for managing the serve. This fee can range from $50 to $200 or more for a routine service. This gets much more expensive when multiple attempts, rush service and mileage comes in to play.

By hiring local, you can save your firm and your clients hundreds of dollars on routine service of process.

Not hiring a local investigator can cost you even more.  If you hire a national company or an investigator in your own area you may incur hotel bills, travel costs and incidental expenses for an out-of-town surveillance or investigation.  This can easily add up to thousands of dollars that are not directly related to the investigation.  It is likely that these extra costs can be mitigated by hiring local, experienced investigators.

3. Knowledge of Local Laws.
Each state (and even some cities and counties) have specific laws about process serving and investigations.  If the process server or investigator you hire is not familiar with the local rules, you could be putting your client’s case at risk. Qualified local process servers and investigators can diminish the possibilities of a case being affected by their services.  These individuals are most likely to know from past experience the pertinent laws they must abide by while working on your firm’s behalf.

4) Efficient Communication.
As mentioned earlier, when you hire a nationwide provider or “the local guy” your case is referred out to someone else.  You do not have immediate access to these individuals which can be an issue if you need to react to time–sensitive information.  When you break down the communication chain and work directly with the folks handling your case you are more likely to receive timely and accurate information.

Since local investigators and process servers can be such an asset to your company, it makes sense to use local professionals over nationwide forwarding companies. When you have cases that require out-of-town process service or investigations you can save time and money by hiring locally. Local experts provide more control over who is handling your case in the field, reduce costs and improve the efficiency in which your case is handled.

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Trent Carlyle is co-founder of ServeNow.com and PInow.com. ServeNow.com is a local directory of qualified and experienced process servers. PInow.com is a directory of private investigators. Both online directories enable you to find qualified, experienced and pre-screened professionals anywhere in the United States or Worldwide. Additionally, you may reach them at (877) 737-8366 for personalized service.

This is a paid advertisement for ServeNow.com and PInow.com.