Tag: Miami

Bankruptcy Law, Student Loans, Timothy Kingcade Posts

New Bankruptcy Rules Proposed for Student Loan Debtors

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According to a recent report from the Consumer Financial Protection Bureau, it is estimated that there are around 44 million individuals with student loan debt. The report showed that around $1.4 trillion is owed by total student loan borrowers. Of this amount, around 11 percent of that debt is past 90 days overdue. These figures show one common theme: student loan debt affects many Americans and not in the good way.

Student loan debt becomes an even bigger problem for those borrowers who are not able to keep up on their payments. It has traditionally been impossible for a borrower to have his or her student loans discharged in bankruptcy, which meant that these individuals were continued to be burdened by immense debt even after bankruptcy was over. It seems counter-intuitive since the purpose of bankruptcy is to get a financial fresh start, which has led to recent proposals to change the way student loans are handled in bankruptcy.

A recent bill, the HIGHER ED Act, H.R. 5549, introduced in April 2018 by Oregon Democratic Congressman Peter DeFazio has proposed significant changes to how student loans are handled in bankruptcy. The legislation would broaden the legal definition of “undue hardship,” which is the standard used by bankruptcy courts to determine if a borrower is eligible for discharge of his or her student loan debt.

The “undue hardship” determination has never been truly defined, and bankruptcy courts have had to decide on what it means on a case-by-case basis, and this inconsistent application has led to inconsistent rulings across the board. Earlier in 2018, the U.S. Department of Education had issued a statement requesting public comments on whether the undue hardship definition needed to be modified. The Department had previously expressed concerns that the undue hardship test has kept borrowers from trying to see relief from their debts through bankruptcy.

In a recent study written by Jason Juliano at the University of Pennsylvania Law School, it was found that around 40 percent of borrowers who included their student loan debts in their initial bankruptcy filings ended up with some or all of their debt obligation discharged. That number does not seem too bad until it is compared with the 0.1 percent of filers who actually attempted to discharge their student loan debts. This number shows that people simply do not even feel it is worth trying to discharge their student loan debts.

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.

All of the federal courts of appeals, with the exception of the Boston 1st U.S. Circuit Court of Appeals and St. Louis 8th U.S. Circuit Court of Appeals have adopted what is commonly referred to as the Brunner test in defining undue hardship. The test goes through three factors when making this determination:

  1. If the borrower had to continue to pay back the loan, would he or she be able to maintain a minimal standard of living?
  2. Are the borrower’s financial difficulties expected to continue for the next several years, or are they temporary?
  3. Has the borrower made efforts to keep up with student loan payments before deciding to file for bankruptcy?

Under the Brunner Test, the borrower must be able to show that the debt has made it impossible for him or her to support themselves and their families and that the financial situation is not expected to change without the debt being discharged or lifted.

The Department of Education is taking the comments and data received this year and hopes to re-evaluate this criterion. The Department also hopes to change the weights given to each of the three factors and make the discharges more accessible to student loan borrowers who desperately need relief.

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.

 

 

 

Bankruptcy Law, Credit, Timothy Kingcade Posts

How to Spot a Debt Collection Scam

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Debt collection scams are an all-too-common occurrence these days as scammers look for ways to take advantage of people already in a bad financial situation. A recent scam has been reported by the Federal Trade Commission (FTC), where scammers have been calling residents regarding fake power bills. These callers are threatening to turn off the person’s electricity if they do not immediately pay them over the phone.

Last year, the FTC received a total of 2.7 million complaints with debt collection scams being the largest category of complaints. Not all scams are the same, and some scammers, like the utility ones, are far from sophisticated in their schemes. However, the FTC is reporting that many collections scams have become more advanced. The individuals contacting the callers are using names of real local businesses or are posing as lawyers. Some of their claims are so believable that the person on the receiving end of the call believes they are legitimate.

It is important to always have your guard up. Ask for the name of the business contacting you and do the research before simply paying the debt. Also, be aware of what methods the company is using to make threats. For example, if the company trying to collect upon a debt is saying that they will only accept payment in the form of a prepaid gift card, that is a red flag that the caller is perpetuating a scam. The same goes for a company threatening to have someone arrested for nonpayment. Other legal avenues are available for a company collecting on a payment, and the first option is not to have that person arrested.

When someone gets a call from a potential scam, after asking the name of the company, it is recommended that the caller get off the phone and call the company back by using the phone number accessible via the consumer’s own records. Inform the company that someone has made contact and is demanding payment. That company will want to know whether its name and identity is being used. The company will also be able to verify whether any actual debt collection is being pursued against the caller.

If the person on the other end of the phone is a legitimate third-party debt collector and is still using harassing techniques, the consumer still has rights. Under the Fair Debt Collection Practices Act (FDCPA) a consumer is protected from debt collectors who are using unfair, abusive or harassing debt collection practices. Many debt collection agencies resort to scare tactics to get individuals to pay on their bills, but these tactics can become illegal if they cross the line from persuasive to abusive.

If an individual is facing debt collection proceedings, bankruptcy may be a viable option for him or her. After a petition for bankruptcy has been filed, an automatic stay goes into effect which puts an immediate stop to any pending collection proceedings which can give the individual relief from ongoing collections attempts and contact from debt collectors.

Click here to read more on this story.

If you have 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.

 

 

 

 

 

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief

Tips for Eliminating Credit Card Debt

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Credit card debt is a problem for many people today. While having a credit card is not necessarily a bad thing, if you are unable to pay off the entire balance each month, the interest, fees and finance charges can accumulate quickly.  This can eventually cause your credit card balance to spiral out of control. It helps to know what steps to take to eliminate credit card debt before it becomes too big of a problem.

  1. Use all your resources.

One tip that helps in attacking credit card debt is to maximize all the resources available to you. It can take a lot of time and dedication, but it does get the job done. To be successful with the method of throwing all your resources at your debt, you need to do the following:

  • Rely on cash-only to pay for expenses. Make sure these expenses are essential in nature and not frivolous, causing you to waste more money rather than make progress.
  • Put together a list of all credit card debt, detailing the interest rate for each card and the minimum payment on each card.
  • Use the debt avalanche method to attack the debt. What this entails is the person chooses the card with the highest interest rate, and he or she uses all extra money that he or she has available at paying off that card. After that card is paid off, the money that was used to pay that card goes to the next one, and so on. The idea is the money that goes towards the card snowballs in size, helping to pay each one down quicker than the person would be able to do with just meeting monthly minimum payments.
  • Find extra money to pay towards credit cards by creating a realistic budget and sticking to it.
  1. Consider a Balance-Transfer Credit Card.

If the person has a good credit rating, it is possible that he or she could open a new credit card with a lower interest rate for the sole purpose of transferring the balance from a current card with a higher interest rate. Many cards offer promotions for zero-percent annual percentage rates (APRs) with no balance transfer fees during that limited time period. This idea may seem like a bad one since it encourages the person to rely on a credit card to pay off another credit card. However, it can be a good idea if the person has good credit and is dedicated to paying off the balance on the new card, once the old balance is transferred. It is also important that the card holder take advantage of the introductory period to make sure the interest rate stays low while the amount is paid off. Once the period is over, the interest rate could jump up, thus bringing the cardholder to square one.

  1. Credit Consolidation Loan

Another method that is possible to pay off credit card debt is through a credit card consolidation loan. These loans are also referred to as debt consolidation or personal loans. Many of them are unsecured, meaning the person does not need to have assets or collateral to cover the obligation. The interest rates on these loans are usually lower than what the credit card interest rates would be, which makes it a little easier for the borrower to pay back the loan and make progress rather than pay the minimum payment owed on the credit card. Another benefit is the loan allows the person to only make one monthly payment rather than several different minimum payments on various credit cards. It is possible the borrower will need a cosigner, depending on his or her credit score, to back up the loan.

  1. Debt Management Plan

Another option that is available to individuals struggling to pay off credit card debt is a debt management plan. Debt management plans line the debtor up with a credit counselor who works with that person to create a budget and a plan to pay back the debt. The counselor will also speak with the person’s creditors on behalf of that individual and can often negotiate down the debt amount or terms of repayment. It is important to find a quality company when choosing a debt management company. Do research before jumping into the first choice and ensure that the company is legitimate and not a scam. An average debt management plan can take anywhere from four to five years for a person to successfully clear his or her debt.

  1. File for Bankruptcy

If none of these options work or if the debt is simply too much, bankruptcy may be the best option. Chapter 7 is the fastest form of consumer bankruptcy and forgives most unsecured debts like credit card debt, medical bills and personal loans.  There are certain qualifications a consumer must meet in regards to income, assets and expenses to file for Chapter 7 bankruptcy, which is determined by the bankruptcy means test.

If you have 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.usatoday.com/story/money/personalfinance/2018/06/26/credit-card-debt-5-cost-effective-ways-you-can-erase/714014002/

 

Bankruptcy Law, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

When Is the Right Time to File for Bankruptcy?

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Making the decision to file for bankruptcy is never an easy one.  For some, it can be difficult to get past some of the myths associated with filing for bankruptcy.  Sometimes by waiting, an individual facing a lot of debt can find himself or herself in an even worse situation. So, when is the right time to file for bankruptcy?

A recent study from the Consumer Bankruptcy Project and an article from the Notre Dame Law Review highlighted that the longer people wait to file bankruptcy, the more they end up struggling- not only financially, but in their personal lives as well.

The following factors are indicators that you should consider filing for bankruptcy, or at least sit down with an experienced bankruptcy attorney to discuss your options in more detail.

  • If your debt amount is more than 40 percent of your income. The higher the debt-to-income ratio a person has, the less likely it is he or she will earn enough money to ever pay back the debt;
  • If you are using debt, such as credit cards or unsecured personal loans, to pay for other debts;
  • If your debts include items that can be liquidated in bankruptcy, such as medical debt, credit cards or personal loans;
  • You are using payday loans to help cover necessities before your next paycheck. This is oftentimes a sign your expenses are exceeding your income;
  • If you are forgoing necessities such as healthcare, prescriptions, or food;
  • If the collection calls have reached a breaking point;
  • If you have been threatened with a lawsuit, are being sued by a creditor or your wages are being garnished.

If someone is on the fence as to whether to file for bankruptcy, he or she should schedule a free consultation with a bankruptcy attorney.

If you have 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.

 

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Student Loans, Timothy Kingcade Posts

U.S. Consumer Debt Increases in the Month of May

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Recent data shows that U.S. consumer debt rose in the month of May by the most it had in the last six months, showing that Americans were more confident in their spending habits halfway through the second quarter.  The increase was seen in revolving debt, which includes credit card debt along with non-revolving debt like student loan debt and auto loans.

As of May 2018, Americans owe more than 26 percent of their income on consumer debt, up from 22 percent in 2010. That means Americans are on track to accumulate $4 trillion collectively in consumer debt by the end of this year. Americans have been accumulating more debt, particularly over the last two years, where consumer credit has grown at a rate of 5 to 6 percent annually.

Click here to read more on this story.

If you have 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.

Foreclosures, Timothy Kingcade Posts

Cities Can Sue over Predatory Mortgage Lending but the Standard is high

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The U.S. Supreme Court ruled that cities can sue banks over predatory mortgage lending to minorities that harms municipal finances, but cast doubt on whether these cases can succeed by throwing out a lower court decision (ruling 8-0) that had allowed litigation brought by the city of Miami to even move forward.

Miami accused Wells Fargo, Bank of America and Citigroup into pushing “non-white” borrowers into higher-cost and riskier loans they often could not afford, even if they had decent credit. As a result of these alleged discriminatory lending practices, property values declined due to the high rate of loan defaults, which led to foreclosures. The city of Miami said it lost property tax revenue and was forced to pay to repair and maintain the properties that went into foreclosure.

Justice Stephen Breyer said Miami had the legal standing to sue the banks, but needed to present more evidence that the injuries it claims to have suffered were tied to alleged violations of the federal Fair Housing Act. Miami accused the banks of a decade of lending discrimination in its residential housing market. Los Angeles, Oakland and several other U.S. cities have filed similar lawsuits.

Click here to read more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Florida Email Scam Tricks Consumers Using Their Social Security Numbers

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A company operating under names such as ACS Debt Collection USA, Cash NET USA and other variations has been using an email scheme to trick consumers into believing they owe a debt for a payday loan. The fictitious collection agency has been contacting consumers in the Central Florida area using their social security numbers and driver’s license numbers to convince them the debts are real.

Although the company is using a Clearwater address, the Better Business Bureau (BBB) has been unsuccessful in locating the company or the money. The BBB also issued the company an “F-Rating” after receiving nearly 1,600 consumer complaints. The BBB went on to say that when consumers reached out to the company, they were subjected to “abusive language and intimidation tactics,” which are violations of the Fair Debt Collection Practices Act.

In the scam emails, the company lists the social security numbers, driver’s license numbers and threatens legal action due to past due “payday loans.” The emails state the “borrower” will face three counts of criminal allegations including:

  1. Violation of federal banking regulation
  2. Collateral check fraud
  3. Theft by deception

 

Click here to read more on this story.

If you 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, 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 website at www.miamibankruptcy.com.

Debt Relief, Foreclosures, Timothy Kingcade Posts

Condo Associations Scam South Florida Consumers

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According to the Miami Herald, condo associations are scamming South Florida consumers and residents with exorbitantly high application fees. The Florida state laws permit condo association to charge people a maximum of $100 per person who are applying to rent or buy a unit. The law also states that married couples should be treated as one person and prohibits charges for dependent children or consumers who are renewing their leases. The fee is nonrefundable and covers costs such as background checks and credit checks. However, recent reports have revealed that associations are charging anywhere from $125 to $625 per person.

Further investigation by the Miami Herald also proved that some associations are tacking on additional charges, sometimes several hundred dollars or more, for “move-in fees” or “pet fees.” In fact, the Herald reported that nearly half of all listings in Miami-Dade County charged application fees that exceeded $100.

In addition to the cap on application fees, the Florida Condominium Act also prohibits associations from charging fees that exceed $100 for transfers such as sales, mortgages, leases, sublets or any other unit transfers.

Click here for more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Foreclosures, Timothy Kingcade Posts

Florida’s Foreclosure Rate Drops to No. 2

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Florida has fallen to the No.2 spot in the nation for foreclosure activity in August behind Nevada after three consecutive months at No. 1, according to RealtyTrac. In August, one in every 383 residences in Florida received a foreclosure filing. A total of 23,372 Florida properties received foreclosure filings in August, down 14 percent from July and down 15 percent from a year earlier.

The decrease in Florida foreclosure activity reflects a 65 percent decrease in new filings, which hit their lowest level since RealtyTrac began issuing its state report in April 2005.

In Miami-Dade County, one in every 264 residences received some type of foreclosure filing in August, as foreclosure activity fell 19.88 percent from a year earlier and declined 14.13 percent from July, according to RealtyTrac. In Broward County, one in every 372 residences received a foreclosure filing in August. That reflected a 12.23 percent decline in foreclosure activity from a year earlier and a 27.28 percent decline from July. In both Miami-Dade and Broward, new foreclosures filings were down in August from a year earlier, while auction notices and bank repossessions increased.

Among the 20 largest metropolitan areas, Miami posted the highest foreclosure rate, and Tampa ranked second.

Click here to read more on Florida falling to the No. 2 spot in the nation for foreclosure activity.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Top 10 Leading Causes of Bankruptcy

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In the southern district of Florida, 31,989 people filed for personal bankruptcy in 2012 and 36,847 in 2011. However, the factors that cause people to file for bankruptcy can be very different. See below for the top ten leading causes of filing for personal bankruptcy.

1. Medical Bills: Medical debt is the leading cause of bankruptcy in the United States. Studies show that 42% of all personal bankruptcies are the result of medical bills.

2. Job Loss: Approximately 22% of those who file for personal bankruptcy attribute their financial troubles to their unemployment.

3. Uncontrolled Spending: Credit card bills, mortgages and car payments contribute to approximately 15% of bankruptcies in the United States. Many Americans are forced to file for bankruptcy protection every year due to uncontrolled spending habits.

4. Divorce: Divorce can be very expensive when there are legal fees, child support payments, alimony payments and the burden of providing for a household on only one income. Divorce attributes to 8% of bankruptcy filings in the United States.

5. Unexpected Disasters: Around 7% of personal bankruptcies are the result of an unexpected disaster such as an earthquake, flood or hurricane. Many Americans cannot recover from debt surrounding a natural disaster due to a lack of homeowners or renters insurance.

6. Avoiding Foreclosure: Many people have filed for bankruptcy protection in order to avoid their home from being foreclosed on. Approximately 1.5% of Americans reportedly file for bankruptcy to stay in their homes.

7. Poor Financial Planning: Nearly 1.5% of Americans who file for bankruptcy protection are forced to do so because of poor financial planning.

8. Preventing Loss of Utilities: One percent of families file for bankruptcy protection in order to keep their utilities on, such as electricity.

9. Student Loans: Student loans are not typically dischargeable debt when filing for bankruptcy; however, the minimum payments can be so high that the individual is forced to file for bankruptcy to eliminate other debt. One percent of Americans attribute their bankruptcy to student loans.

10. Preventing Repossession: One percent of Americans file for bankruptcy in order to have repossessed items returned to them or to avoid repossession altogether.

Click here to read more about the 10 leading causes of personal bankruptcy.

Click here to find bankruptcy statistics in the United States from 2011 and 2012.

If you are in a financial crisis and are considering filing 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, 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 website at www.miamibankruptcy.com.