Posts Tagged: ‘Chapter 7 Miami bankruptcy attorney’

Household Debt Continues to Climb- Here’s the Categories that have seen the Biggest Jump

April 18, 2018 Posted by kingcade

As a nation, household debt is continuing to increase.  Debt is increasing in all major categories, except for auto loans during the last quarter of 2017.  The two categories with the most significant growth were mortgage debt, which increased by more than $3,000 per household and credit card debt that went up by $250 per household.

The growth in credit card debt can be partially attributed to holiday spending. The last quarter of 2017 credit card debt per household stood at $15,983.  Mortgage debt totaled $178,037 per household.

Credit card debt often comes with high interest rates, which means carrying debt month to month can create significant financial stress.  Carrying this debt for many years can cause thousands of dollars in interest to accrue.  Some quick tips to pay off credit card debt include: Finding out your total balance, doing a balance transfer to stop the accruing interest and powering through the balance (i.e. – take advantage of the interest-free period of your new card).

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If you are struggling with insurmountable credit card debt 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.

Divorce & Bankruptcy – How They Are Connected

April 5, 2018 Posted by kingcade

Medical bills, job loss and divorce are some of the main reasons people file for bankruptcy today.  Financial problems can sometimes lead to divorce and as a result it is not uncommon for couples to decide to file bankruptcy right after they get divorced.  Here are some things to consider.

Whether or not you decide to file for bankruptcy before or after your divorce depends on the following:

  • Which type of bankruptcy you file– If you file together, both of your incomes are used to qualify you for a Chapter 7, which may make you ineligible for this type of bankruptcy. An experienced bankruptcy attorney will help you determine which type of bankruptcy to file, a Chapter 7 or Chapter 13.
  • State exemption laws– All property you own is declared either exempt or non-exempt during a bankruptcy.  Exempt property may be kept after the bankruptcy case has concluded. Florida has one of the most generous homestead exemptions in the country.  Here are some of the most common bankruptcy exemptions in Florida.
  • State laws concerning division of property during a divorce could be at odds with what property is exempt in a bankruptcy.  The items you fought to keep after your marriage comes to an end could be in jeopardy, again in subsequent bankruptcy proceedings.
  • The cost for filing a joint bankruptcy is the same as filing an individual one.  This means you can save hundreds of dollars by filing together.
  • Work together if possible. Filing bankruptcy jointly implies that you can work together, something that may be difficult to do, but worth it in the end.

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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.

 

Dept. of Education’s Announcement Gives Hope to those struggling with Student Loan Debt

April 4, 2018 Posted by kingcade

With student loan debt at nearly $1.5 trillion, 40 percent of borrowers will default on their student loans by 2023, according to a recent study by Brookings Institute.  The staggering numbers have caused the Department of Education to take action and announce that it will review and potentially alter policies that make it exceedingly difficult for student loan debt to be discharged in bankruptcy.

The problem is that ‘undue hardship’ was never defined and the case law has never led to a standardized definition. Courts often use the “Brunner Test,” which requires you must show that you cannot maintain a basic standard of living while paying the student loans and that this difficulty would last throughout the majority of the repayment period.  You also must prove that you made a good showing of trying to repay your student loan debt.

The Department of Education’s latest actions indicate that they will broaden the “undue hardship” current definition – which is good news for student loan borrowers.   This change could also help streamline the bankruptcy process and help borrowers struggling with massive student loan debt rebuild their lives.

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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.

The Truth about Student Loan Debt Bankruptcies

March 30, 2018 Posted by kingcade

When it comes to bankruptcy and student loan debt, there are some common misconceptions. One being, that student loans are never dischargeable in bankruptcy. In fact, there are ways to file for bankruptcy with student loan debt. Congress has yet to establish what “undue hardship” means with regard to students’ having their loans forgiven in bankruptcy; still, courts have set legal standards for proving it.  In a new paper, Professor Jason Iuliano argues that bankruptcy courts have interpreted the discharge exception ‘too broadly,’ applying it to loans for unaccredited schools, loans for tutoring services, and loans beyond the cost of attendance for college.

The Bankruptcy Court for the Southern District of Texas recently adopted the narrow reading of §523(a)(8)(A)(ii) in Crocker v. Navient Solutions, LLC, Adv. 16-3175 (Bankr. S.D. Tx Mar. 26, 2018). The court denied Navient’s motion for summary judgment, finding that the bar exam study loan at issue was not within the discharge exception for qualified student loans or educational benefit repayments.

In another class action complaint filed against Navient and Sallie Mae, plaintiffs claim that servicers are defrauding student loan debtors of their bankruptcy discharge rights. Servicers illegally continued collecting private student loans that were fully discharged in bankruptcies because they were not qualified educational loans, according to the complaint in Homaidan v. Sallie Mae, Inc.  (17-ap-01085 Bankr. EDNY),

There has been talk about potential changes coming to bankrupt borrowers’ ability to discharge student loan debt. Even student loans covered in the bankruptcy discharge exception can still be discharged based on showing “undue hardship” and courts are more likely to approve undue hardship discharges than many debtors and some lawyers realize.

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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.

U.S. Credit Card Debt Exceeds $1 Trillion for the First Time

March 14, 2018 Posted by kingcade

Consumer credit card debt in the United States has exceeded $1 trillion for the first time, according to a recent study by WalletHub.  The average U.S. household owes $8,600 on credit cards. Florida is in the top 5 states with the highest credit card debt burden, according to CreditCards.com.

Financial experts attribute this increase to consumer confidence.  In the fourth quarter of 2017 alone, consumers added $67.6 billion while the charge-off rate remained at historic lows.  Charge-off rate refers to the percentage of credit card users whose unpaid balances credit card companies are unable to collect.

Household indebtedness in the fourth-quarter rose to $13.15 trillion from $12.96 trillion in the third quarter, an increase of 1.5 percent. Mortgages accounted for the largest component of household debt, according to a quarterly report published by the Federal Reserve Bank of New York.

In addition, the average credit score for U.S. consumers has declined.  It is now 675, just four points lower than the average in 2007, according to consumer credit reporting agency Experian.

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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, P.A. 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.