Category: ‘Student Loans’

Top 10 Reasons People File for Bankruptcy

February 17, 2018 Posted by kingcade

While it is commonly assumed that people who file for bankruptcy cannot resist the temptation of using credit cards or are self-proclaimed shopaholics, most people go bankrupt for other reasons.  Here are the most common reasons people file for bankruptcy.

  1. Medical debt. Medical expenses account for approximately 62 percent of personal bankruptcy filings in the U.S., according to a recent Harvard University study.  And interestingly enough, the study revealed that 72 percent of those who filed for bankruptcy due to their medical bills had some form of health insurance.
  2. Reduced income. Companies are cutting back on expenses and for many employees that means pay cuts. Less income, combined with an unexpected expense can end in bankruptcy.
  3. Job loss. The sudden loss of a job can quickly deplete ones savings.  Approximately 62% of Americans have less than $1,000 in savings and 21% live month-to-month.
  4. Credit card debt. This is not always the result of irresponsible spending, but can accumulate due to an unexpected medical expense, illness or job loss.
  5. Divorce. This can mean a significant loss of income and assets for both partners. It can also mean taking on a portion of your partner’s debt if you co-signed on a loan during the marriage.
  6. Unexpected expenses. Emergencies can happen to any one of us, whether your vehicle breaks down, you suffer a debilitating illness or a catastrophic storm damages your home—these events can deplete savings quickly.
  7. Student loans. Even though these are difficult to discharge in bankruptcy, statistics show that student loans account for at least one percent of all U.S. bankruptcy filings, which translates to approximately 15,000 bankruptcies a year.
  8. Utility payments. For many homeowners, the rising costs of utilities- such as heating, air conditioning and electricity- can quickly add up and pave the way to bankruptcy.
  9. Foreclosure. A number of people file for bankruptcy in an effort to save their homes from foreclosure.
  10. Money mismanagement. Money management has become more difficult, thanks in part to inflation.  A combination of poor spending habits and incorrect budgeting can quickly spiral into debt.

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If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

New Study Reveals- 24 Percent of Americans have more Credit Card Debt than Savings

February 8, 2018 Posted by kingcade

The new statistic comes from a 2017 Bankrate study, which also revealed only 52% of Americans have emergency savings that exceed their outstanding credit card balances.  Meanwhile, the average U.S. household owes $7,136 in credit card debt and an estimated 57% have less than $1,000 in the bank.

There are ways to break the cycle of debt and boost savings simultaneously.  It starts by creating a budget. Without a budget, you will have no idea where your money is going each month and where you can cut corners.  Downsizing your living space can free up several hundred dollars a month.  But keep in mind, cutting back on leisure purchases, eating out and clothing can do the same.

Taking on a side-job to earn extra income is another way to pay down debt and boost savings.  Of the 44 million Americans who currently have a second job for supplemental income, more than one-third bring home upwards of $500 a month as a result.

Getting out of the debt cycle begins with creating a realistic budget and getting a grasp on your current financial situation.  There are specific ways you can deal with high interest credit card debt.   If you are struggling with insurmountable debt, whether it is credit card debt, medical debt or student loan debt, consider sitting down with an experienced Miami bankruptcy attorney for a free consultation who can assess your financial situation in more detail and let you know if bankruptcy is right for you.

Click here to read more on this story.

As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Is refinancing your student loan debt a good idea?

February 7, 2018 Posted by kingcade

Well, it depends.  It depends on the terms of the loan.  With so many Americans struggling to pay back their student loans, refinancing can seem appealing, but it also has risks. Student loan debt surpassed $1.3 trillion in the United States in 2017 – and nearly 3,000 loans go into default every day, according to federal regulators.

Refinancing can look like an attractive option, offering borrowers a way to lower their monthly payments.  But essentially what it does is sell the debt to another lender under new terms.  Oftentimes, that comes at the expense of a longer lifetime of the loan.

Carefully examine the terms, because extending the terms of the loan could cost you significantly more money in the long run.  It is important to check the following before considering refinancing your student loan debt:

  • The length and interest rate of the loan;
  • Whether the interest rate is variable or fixed (Fixed is best right now, because rates are low);
  • Check for up-front origination fees;
  • Compare refinancing offers and read the contract carefully;
  • Always check if you are eligible for income based repayment plans, before you consider refinancing options.

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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

More Seniors Struggling with Student Loan Debt

January 17, 2018 Posted by kingcade

More than 5 million people began paying off federal student loan debt between October 1, 2013 and September 30, 2016, according to the U.S. Department of Education.  And not all of them were young people.

The number of borrowers over the age of 60 with student loan debt has quadrupled over the past decade in the United States.  Of the more than 5 million people, 580,671 of them — or 11.5 percent — defaulted on their loans. This is a slight increase from the previous year’s 11.3 percent and the first time the percentage has increased in the last five years.

Many have accumulated the debt helping their children or grandchildren, either by borrowing directly or co-signing on student loans.  As these borrowers age, it becomes more difficult to afford the monthly payments while also paying for necessary food, housing, prescriptions, and medical expenses.

Seniors living month-to-month on fixed incomes are most likely to default.  When this happens to borrowers 65 and older, a portion of their social security benefits can be seized by the government.  Many seniors who are carrying federal student loan debt are eligible for income-based repayment plans, but student loan servicing companies have not made it easy for borrowers to enroll in these programs or even let them know it is an option.

For Florida seniors who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Related Resources:

https://www.dcourier.com/news/2018/jan/12/more-seniors-citizens-have-student-loan-debt/

 

Bankruptcy Court Settlement Could Bring $600 Million in Student Loan Debt Relief to ITT Students

January 8, 2018 Posted by kingcade

Students who attended ITT Technical Institute could have $600 million in student loan debt canceled under a new proposed court settlement. The settlement acknowledges that students who attended the college between 2006 and 2016 have a $1.5 billion claim against ITT.  This means that if any money is left over from the school’s assets after its bankruptcy, students could receive a portion of it.

Since ITT abruptly closed its nearly 140 campuses nationwide and declared bankruptcy in the fall of 2016, students have been desperate to seek financial relief.  Nationwide, ITT Tech had an estimated 35,000 students enrolled in classes.

Last January, a group of students led by the Harvard project, filed a lawsuit claiming that they had a right to ITT’s remaining assets, like any other creditor in a bankruptcy case. They claimed that ITT employed aggressive tactics to recruit them.  After recruitment, the students’ allege they were deceived or misled on multiple fronts.  This deception included the cost of attendance, the school’s accreditation status, the experience of instructors, and the likelihood of job placement and salaries they would earn after graduation.

Click here to read more on this story

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.