Posts Tagged: ‘Chapter 7’

How long does bankruptcy stay on my credit report?

January 15, 2018 Posted by kingcade

A common question you might have after filing for bankruptcy is how long will it remain on my credit report?  When you file for bankruptcy, it is considered “public record” and is maintained by the court where the case was filed.

Under the federal Fair Credit Reporting Act, bankruptcies can be reported for 10 years from the filing date.  The three major credit reporting agencies will remove Chapter 13 bankruptcies seven years from the date the case was filed.  This type of bankruptcy involves paying some or all of the debt back over time.

Chapter 7 is a more straightforward bankruptcy and eliminates almost all unsecured debts, including credit card debt and medical bills allowing consumers to gain a fresh start financially. Chapter 7 bankruptcy can remain on a consumer’s credit report for up to 10 years.

However, there are ways to speed up the removal process.  Removing a bankruptcy requires filing a separate dispute with each of the three major credit bureaus. This dispute can either be over inaccurate information in your credit report or an inquiry to the credit bureau about how your bankruptcy was verified.  This process is lengthy, but it can be worth it.

While you are waiting for your bankruptcy to be removed from your credit report, make an effort to rebuild and improve your credit.  It is a bankruptcy myth that you cannot rebuild your credit after filing for bankruptcy.  Make sure you have accurate and positive credit information moving forward.

If you have any questions on this topic or are in a 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 website at www.miamibankruptcy.com.

Related Resources:

http://blog.credit.com/2013/04/when-can-i-get-a-bankruptcy-off-my-credit-report-65750/

Beware of these Holiday Debt Traps

December 22, 2017 Posted by kingcade

The holidays are officially here and if you have some last minute shopping to do this weekend, make sure and avoid these common holiday debt traps.  Last year shoppers took on an average of $1,003 worth of debt, up from $986 in 2015.  The merriment and excitement of holiday shopping can be replaced with anxiety and fear of debt in the New Year.

Keeping up with the Joneses. The pressure to purchase the latest and greatest holiday gifts ranging from expensive electronics to brand new cars all contribute to holiday debt.   From the tree, to elaborate light displays and decorations, if not limited to a budget can all leave you with debt in the New Year.

Hot holiday toy crazes. On average, parents plan to spend $495 per child, according holiday shopping data from Rubicon Project.  When the ‘must-have’ toy items start to run out, prices increase.  Plan accordingly, and budget throughout the year for holiday spending.

Store credit cards. Avoid store credit cards at all costs.  The 10% off the day of purchase can have big consequences if a single payment is missed on one of these cards, such as 29.99 percent APR.

Holiday parties. Hosting hordes of holiday visitors and entertaining guests can cost hundreds of dollars, not only adding to your grocery bill, but your utilities in the month of December.

Indulgent spending. The problem is that many consumers do not plan for holiday spending. Sometimes, they mentally plan to go into debt.  We advise planning ahead for the next season, start checking items off the list in February or in the summer months when fewer people are buying and prices are lower.

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.

Related Resources:

http://www.wbir.com/article/money/magnify-money/watch-out-for-these-holiday-debt-traps/507-493900752

Reasons to File Bankruptcy before Divorce

December 13, 2017 Posted by kingcade

Financial stress caused by the way couples view and spend money can ultimately lead to divorce.  If you are facing both of these issues, does it make sense to file for bankruptcy or divorce, first?  The bottom line: Divorce will most likely not make the financial pressure go away, oftentimes it compounds it.

Here are some reasons why you should file bankruptcy before divorce.

You will save money filing jointly. If you are still married, you can file your bankruptcy case together.  This will allow you to pay one court filing fee, one set of documents and scheduling, one meeting of the creditors and one attorney fee.

Filing for bankruptcy together will free you of any liability on joint debt.  If you file for bankruptcy before divorce you will be off the hook for paying joint debt acquired during the marriage.  However, if you file for divorce first and receive a divorce settlement, you may still be responsible for some (or all) of the joint debt.  Essentially, you may have to cover your spouse’s liability.

Filing jointly doubles the exemption amounts.  When you file for bankruptcy, you are allowed to keep some property in order to regain a fresh start.  These exemption amounts are usually limited or capped.  However, if you file a bankruptcy case with your spouse, in most states you and your spouse will each be able to claim a full set of exemptions.

It saves you time. If one spouse files for bankruptcy in the middle of the divorce case, the bankruptcy judge may take jurisdiction of any property settlements, which can cause delays.  Filing a joint bankruptcy will eliminate most (if not all) unsecured debt, such as credit cards, medical bills and personal loans for both spouses, allowing the divorce to go much smoother when negotiating debt and property division.

It reduces stress.  Eliminating debt and reducing financial pressures can in turn reduce stress in the marriage.  If the marriage ultimately cannot be saved, it can help the divorce proceed more amicably.

Keep in mind, if your spouse files for bankruptcy before or during the divorce case and you do not, you may ultimately be responsible for all of the marital debt. This is because your spouse used the bankruptcy case to eliminate his or her liability on your joint debts.

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.

Related Resources:

https://www.thebalance.com/six-reasons-to-file-bankruptcy-before-the-divorce-316343

Subprime Warning Issued by the Fed As Household Debt Hits New All Time High

November 30, 2017 Posted by kingcade

U.S. household debt has grown $605 billion in the past 12 months, with $116 billion, accumulating in the latest quarter, according to the Federal Reserve Bank of New York.  Debt is ballooning on mortgages, student loans and auto loans.  Credit card debt has increased 3.1 percent in the latest quarter.

Total U.S. household debt was $12.96 trillion in the three months to September, up $116 billion from the prior three months. Debt levels were $605 billion higher than during the third quarter of 2016.

Auto loans grew by $23 billion and credit card balances increased by $24 billion, while student loans saw a $13 billion increase. Credit card balances increased by $24 billion. The combined credit card limit rose for the 19th consecutive quarter, with a 1.5% increase.

Some financial experts are saying this build-up is reminiscent to the financial crisis of 2007 and 2008.  Federal data shows an increase in credit cards and auto loans moving into delinquency.

Aggregate household debt increased for the 13th consecutive quarter, rising by $116 billion (0.9%) to a new all time high.  As of September 30, 2017, total household indebtedness was $12.96 trillion, an increase of $605 billion from a year ago and equivalent to 66% of US GDP, versus a high of around 87% in early 2009.

If you are struggling with debt, know your rights and what debt collectors can and cannot do. The Fair Debt Collections Practices Act (FDCPA) limits the tactics that debt collectors can take to collect on a debt.   

Click here to read more on this story.

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.

Related Resources:

http://www.zerohedge.com/news/2017-11-14/fed-issues-subprime-warning-household-debt-hits-new-all-time-high

 

7 ways to rebuild credit after filing for bankruptcy

November 22, 2017 Posted by kingcade

Nearly 800,000 people filed for bankruptcy in the United States last year.  Several counties in Florida made the top 100 areas for the highest incidence of bankruptcy, including Miami-Dade County, which saw more than 400 personal filings per 100,000 people from April 2015 to March 2016.

Chapter 7 is often the most preferred method of filing because it involves no repayment of debt and in states like Florida, exemption laws can be used to benefit and retain property throughout the filing process.  In fact, Florida has one of the most generous homestead exemptions in the country.  You can exempt an unlimited amount of value in your home or other property covered by the homestead exemption.

It is important consumers know that immediately after filing for bankruptcy they can begin improving their credit score.  Here are seven steps you can take to begin rebuilding your credit after filing for bankruptcy.

  • Know your credit score. Go to annualcreditreport.com and pull your three credit reports (Experian, Equifax and TransUnion). Make sure all of the debts affected by the bankruptcy are listed.  Also confirm all information is accurate on each of the reports.
  • Pay bills on time and in full. Raising your credit score after bankruptcy is all about getting back to basics. Set calendar reminders or set bills on auto-pay so you are not late on a payment.  Do not spend more than you can afford each month and pay your cards off in full so you do not incur any interest charges.
  • Open a new bank account. When you open a new checking or savings account you are demonstrating financial stability. This can also provide you with a clean slate to practice good financial habits.
  • Apply for a secured credit card. These cards are one of the easiest ways to build credit and improve your credit score. Secured credit cards borrow money against a deposit the consumer has already made. Compare interest rates and select a card with the best rate and low annual fee.
  • Create and stick to a budget. This should be based on your income minus expenses for rent, utilities, groceries and other expenses. Creating a budget will help you stay on track when it comes to your finances.
  • Start a savings account. Having an emergency savings means you will be less likely to have to access credit when an unexpected expense occurs. Research shows that having as little as $250 saved up for an unexpected expense can protect you from having to resort to pay day loans and credit cards.
  • Be patient with yourself. If you made mistakes, learn from them. You should not feel ashamed after filing for bankruptcy.  The more active of a role you take in rebuilding your credit, the sooner you can bounce back after bankruptcy.

If you are in a financial crisis and are 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.