Could PAYE be repealed for current plan holders? Forum

[bk1]

Anyone who says they know the answer to that is lying.

This. Nobody can give you a simple yes/no. You have to make your own risk assessment and act accordingly.

Basically, is making PAYE payments reckless because the government could essentially be like the mafia and simply change their mind, and strong arm you if you say "but constitution....?"

Personally, I think it's unlikely that the government would make any changes apply retroactively. As I noted above, each new income-driven repayment plan has not stopped people from continuing to use any of the prior plans. Of course 20-25 years is a long time, but I think odds are that people currently on these plans will be safe.

The other risk to consider is what the tax rates will be in 20-25 years (could very well be higher or lower, so I think it's a wash). Though there's also the possible benefit that the taxation is eliminated before your debt is forgiven.

[lacrossebrother]

Anyone who says they know the answer to that is lying.

This. I think the case I posted is a pretty good indicator that the answer s yes they can repeal. But I don't think it'd be impossible to make a case that due process would be violated

[lacrossebrother]

the question is, would it be worth the class action charging a regulatory taking?

Why would it be a class action?

[Anonymous User]

Anyone who says they know the answer to that is lying.

This. Nobody can give you a simple yes/no. You have to make your own risk assessment and act accordingly.

Basically, is making PAYE payments reckless because the government could essentially be like the mafia and simply change their mind, and strong arm you if you say "but constitution....?"

Personally, I think it's unlikely that the government would make any changes apply retroactively. As I noted above, each new income-driven repayment plan has not stopped people from continuing to use any of the prior plans. Of course 20-25 years is a long time, but I think odds are that people currently on these plans will be safe.

The other risk to consider is what the tax rates will be in 20-25 years (could very well be higher or lower, so I think it's a wash). Though there's also the possible benefit that the taxation is eliminated before your debt is forgiven.

The thought process would be to have all your assets held solely in a trusted person's name beginning 10 years out and declare bankruptcy when the tax burden hits. The tax debt to the government will not exist until the loan is forgiven (unless I'm understanding fraudulent transfers incorrectly).

[Danger Zone]

I really just want a yes/no on the hypo posited above. Just the one question. No quibbles back and forth with each other, please. Just one little yes/no answer.

Oh cool you sound like a client. Well fuck you here's some legal analysis that concludes with "maybe."

[Anonymous User]

I really just want a yes/no on the hypo posited above. Just the one question. No quibbles back and forth with each other, please. Just one little yes/no answer.

Oh cool you sound like a client. Well fuck you here's some legal analysis that concludes with "maybe."

I know you got big law and you're prestigious, and hung like a horse but you really come off like an 8 year old with this senseless aggression intended to pass you off as knowledgeable and suave. You could simply not answer my question.

[Danger Zone]

I really just want a yes/no on the hypo posited above. Just the one question. No quibbles back and forth with each other, please. Just one little yes/no answer.

Oh cool you sound like a client. Well fuck you here's some legal analysis that concludes with "maybe."

I know you got big law and you're prestigious, and hung like a horse but you really come off like an 8 year old with this senseless aggression intended to pass you off as knowledgeable and suave. You could simply not answer my question.

Maybe, leaning yes*

[bk1]

The thought process would be to have all your assets held solely in a trusted person's name beginning 10 years out and declare bankruptcy when the tax burden hits. The tax debt to the government will not exist until the loan is forgiven (unless I'm understanding fraudulent transfers incorrectly).

I don't know enough to have an opinion but this seems like fraud to me. Even if you could pull it off, it seems like there'd be gift tax issues (both in sending the money to the third party and getting it back from them). And doing this assumes that you don't make any 401k contributions, which are often financially advantageous for people on income-driven repayment plans because they reduce your AGI.

You also don't need to declare bankruptcy on a large tax burden because you are only taxed up to the point of solvency on the forgiven debt.

[ballouttacontrol]

Anyone who says they know the answer to that is lying.

This. Nobody can give you a simple yes/no. You have to make your own risk assessment and act accordingly.

Basically, is making PAYE payments reckless because the government could essentially be like the mafia and simply change their mind, and strong arm you if you say "but constitution....?"

Personally, I think it's unlikely that the government would make any changes apply retroactively. As I noted above, each new income-driven repayment plan has not stopped people from continuing to use any of the prior plans. Of course 20-25 years is a long time, but I think odds are that people currently on these plans will be safe.

The other risk to consider is what the tax rates will be in 20-25 years (could very well be higher or lower, so I think it's a wash). Though there's also the possible benefit that the taxation is eliminated before your debt is forgiven.

The thought process would be to have all your assets held solely in a trusted person's name beginning 10 years out and declare bankruptcy when the tax burden hits. The tax debt to the government will not exist until the loan is forgiven (unless I'm understanding fraudulent transfers incorrectly).

There's no reason to put your assets in someone else's name before filing Bk unless you're worth like fuking millions

Just put the $ in home equity, etc. Look at your states bankruptcy exemptions. Many have very large homestead exemptions, and various other large exemptions. Retirement plans are protected in Bk by federal law all your 401k and shit should all be fine

[Johann]

Nah.

[A. Nony Mouse]

Anyone who says they know the answer to that is lying.

Yup. I don't think we've ever had the situation arise.