Posts Tagged: ‘Chapter 7 Miami bankruptcy attorney’

Floridians Hold Some of the Highest Amounts of Credit Card Debt in the Nation

June 8, 2018 Posted by kingcade

Credit card debt is a problem for many Americans, but according to a recent study, it seems to be a more significant problem in Florida.  In fact, the Sunshine State has been ranked among the top three states where residents hold the highest amount of credit card debt.

Florida residents carry a total balance of $59.2 billion in credit card debt, as of the end of 2017. The State of California tops the list with its residents holding $106.8 billion in credit card debt, followed by Texas at $67.3 billion.

Interestingly enough, California has traditionally been known to be a state where individuals need to earn the most income to be considered “wealthy” by most standards. Considering the high level of credit card debt residents in California carry, this leads one to conclude that this “income” involves resorting to the use of credit cards, instead of solely relying on earnings.

According to the report, the states with the highest amounts of credit card debt in 2017 were:

  1. California $106.8 billion
  2. Texas $67.3 billion
  3. Florida 59.2 billion
  4. New York $58.1 billion
  5. Pennsylvania $33.2 billion
  6. Illinois $32.2 billion
  7. New Jersey $29.6 billion
  8. Ohio $26.7 billion
  9. Virginia $26.5 billion
  10. Georgia $26.3 billion

Florida residents were also in the top ten for credit card delinquency rates, meaning balances were left unpaid for 90 or more days. Nationally, approximately 7.5 percent of credit card debt was delinquent by these standards. Florida was above this average figure and ranked third in terms of delinquency reported.

The report stated that credit card balances on a national level declined between the years 2008 and 2013 but began to rise again in 2014. As of 2017, more than 470 million credit card accounts were open, totaling $3.5 trillion. The total debt figures were compiled by the Federal Reserve Bank of New York.  The full report can be viewed here.

If you are struggling with credit card debt 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://patch.com/florida/southtampa/florida-among-states-highest-credit-card-debt

 

Student Loans and Bankruptcy: Fixing a Broken System

May 30, 2018 Posted by kingcade

Student loan borrowers have continuously run into roadblocks when it comes to their student loan debt being discharged in bankruptcy cases. Many students graduate with well over six figures in student loan debt, causing them financial hardship for years.

The Department of Education recently solicited comments and input on what loan holders should consider when making a determination on whether to discharge student loans in bankruptcy. As a result, the Department ended up receiving over 400 comments in response to this request.

Currently borrowers have to prove that paying the student loan debt would constitute an “undue hardship” to the borrower. Traditionally, this standard has been a very hard one to meet. For student loans issued by the government, borrowers have had to jump a rather high hurdle to show this undue hardship. In addition, no set standard has been issued for determining what an undue hardship is, resulting in different courts applying different standards.

Only Congress can modify how the law handles discharging student loan debt in bankruptcy cases, but the Department of Education does have some say in making a recommendation on how these cases are handled. An official memo from the Department may go a long way in providing guidance for judges when evaluating these cases.

One possible change is clear criteria will be given to help determine what an undue hardship is. One recommendation has been establishing whether a student loan borrower is near the poverty line, has been determined to be unemployable due to a disability or whether the person is a caretaker for someone who is disabled or chronically ill.

Another recommendation was to make the standard more lenient to allow for more borrowers to be able to discharge student loans in bankruptcy. Congress has never given a clear definition for what undue hardship consists of, but many courts have used the “Brunner” test to determine what this means.

The Brunner test requires that the borrower show that he or she has made a good faith effort in repaying the debt, that the financial circumstance is such that the person cannot have a reasonable standard of living if he or she has to repay the debt, and this financial situation is likely to continue in the future. The problem is this standard is not easy to meet with each court viewing it differently. It has been recommended that courts use a more lenient standard called the totality of the circumstances test, which looks broadly at the debtor’s financial situation to determine if paying the loan(s) back constitutes a hardship.

Other comments suggested that the Department and loan issuers also consider whether the borrower finished college and whether he or she was victim of fraudulent conduct before making an ultimate determination on whether the debt should be discharged. This recommendation follows the issues that have followed students who have attended for-profit colleges who have been accused of enticing students to attend their schools with inflated job placement figures and graduation rates.

The strict standards that have been used in not allowing borrowers to have their student loan obligations discharged have kept many from pursuing bankruptcy when they arguably need this relief the most.

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. There are ways to file for bankruptcy with student loan 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.

 

 

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).

Click here to read more on this story.

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.

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.

 

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.

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.