Money-myth debunks: a widely-believed false belief, corrected with a verified, primary-source-anchored truth. Steve Rhode brings the truth to assumptions about debt, credit, student loans, and consumer finance.
Myth: your bank can charge any debit card overdraft fee. Truth: Reg E (12 CFR 1005.17) requires opt-in for ATM/debit overdrafts — not checks or ACH.
Federal law guarantees one free credit report per bureau every 12 months. The weekly free access you rely on is real but voluntary — a bureau commitment, not a statute.
Myth: gifting your house before you file keeps it safe. A trustee can undo it, you usually lose your exemption on it, and a Chapter 7 discharge is at risk.
A cosigner bankruptcy discharge releases them, not you. Chapter 7 gives zero cosigner protection; Chapter 13 gives only a temporary co-debtor stay.
Federal law limits exactly where a debt collector can sue you over a debt. Here’s the FDCPA venue rule and what to do if you’re sued far from home.
Zero income does not mean a $0 student loan payment under RAP. The law sets a $10 monthly minimum, no exemption — here is what still lets you pay $0.
Private creditors can never touch your Social Security. But the IRS can levy 15% for back taxes, and Treasury can offset it for federal student loan debt.
SAVE forbearance months don’t count toward your IDR forgiveness clock. Unlike PSLF, there’s no buyback fix for IDR — here’s why, and what to do.
Federal Borrower Defense covers only federal loans. But some private student loan contracts carry a school-fraud defense under the FTC’s Holder Rule – here’s how to check yours.
A charge-off is an accounting move, not forgiveness. Here is what you still owe, what the statute of limitations really limits, and the 7-year rule.
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Think of this as me — just in AI form. I've walked in your shoes. I filed bankruptcy myself in 1990, and in over 30 years of experience I haven't seen a situation that can't be worked through or a person who deserves judgment. Everything here is built on that experience, that research, and genuine care for you. I can't be there in person. But I can be here.
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