Posts Tagged: ‘Miami Bankruptcy’

Millennials Struggle to Keep up Financially with Previous Generations

May 22, 2018 Posted by kingcade

The financial crisis may have hit the ’80s generation the hardest. Americans who were born in the 1980s, otherwise known as “millennials,” are finding themselves struggling financially more than generations before them. Following the Great Recession, which began in 2007, individuals born in the ‘80s are at wealth levels which are 34 percent below where they would be had the financial crisis not occurred. Most millennials have to save longer to buy a home, struggle with student loan debt and rising home prices.

The generation known as “millennials” is categorized as being born between 1981 and 1996. According to a report issued by the Federal Reserve Bank of St. Louis, people in this generation are at risk of being termed “the lost generation.”

“Not only is their wealth shortfall in 2016 very large in percentage terms, but the typical 1980s family actually lost ground in relative terms between 2010 and 2016, a period of rapidly rising asset values that buoyed the wealth of all older cohorts,” the report says.

This can be attributed to a number of factors. One major setback this generation faced was entering the workforce as the financial crisis was beginning. In fact, this generation seems to have been hit the hardest for this very reason. Entering the workforce at the time of a recession put these young workers at an immediate disadvantage for earning an income, as well as saving money towards big purchases or retirement.

Once the recession passed and the economy began to improve, these individuals faced difficulty in recovering from the hard hit.

Millennials have been on the receiving end of a 67 percent increase in wages since 1970, but this increase in pay has not kept up with the rising costs of living, including rent, home prices, college tuition, costs for childcare, healthcare, and entertainment.

This generation also has to deal with large amounts of credit card debt, on top of six figure student loan debt. After graduating from college at a time when jobs are not as prevalent, these individuals have had to resort to credit to pay for these expenses.

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 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.businessinsider.com/1980s-millennials-wealth-the-great-recession-2018-5

https://blogs.wsj.com/economics/2018/05/21/crisis-hits-1980s-generation/

10 Things Debt Settlement Companies Won’t Tell You

May 17, 2018 Posted by kingcade

When facing overwhelming debt, it can seem like there is no way out, the thought of a third-party debt settlement company coming in and negotiating down the debt can seem like a dream come true. While it can be tempting to jump at this offer, there are several important facts that debt settlement companies will not tell you.

It is important to first understand what makes a debt settlement company different from the normal credit counseling service. A debt settlement company assists in negotiating down the individual’s debt. To qualify, the individual must stop making payments on any debts. All of the late fees, interests and penalties will continue to grow during this time, and the debtor will make payments to an escrow account held by the debt settlement company. When a specified amount has been saved, the company contacts your creditors and tries to get them to accept a lower amount to settle the debt.

  1. If it seems too good to be true…

The consumer facing mounds of debt is able to settle the case for less than what he or she owed. In return, the debt-settlement company collects fees from the consumer for having to negotiate the debt. However, like many things that sound too good to be true, it is not always that easy. In fact, the consumer can end up in a much worse financial situation than they were in before. The debt settlement company, on the other hand, comes out earning fees on the payments made by the consumer. Many times, the consumer will never end up seeing the light at the end of the tunnel and will end up filing for bankruptcy anyway. In the meantime, he or she has been making payments in an escrow account, while accruing fees and costs accumulate.

  1. Debt settlement is not an easy process.

The individual has to basically stop paying his or her bills and let all debt go into delinquency or default. The money that would be going towards the debt goes towards the debt-settlement firm and into an escrow account. By stopping payments on current debts, the creditors are supposed to be fooled into believing they will never receive payment, which will make them desperate to take a lower settlement. However, until that happens, it does not mean the collections efforts will stop. The creditors will want to receive payment and will continue doing anything they can to receive it. The debt settlement firm cannot stop the calls from coming, and they cannot stop the collection efforts during all of this.

  1. Debt-Settlement Companies Cannot Ask for Upfront Fees

In 2010, the Federal Trade Commission made it illegal for for-profit debt-settlement companies to charge upfront fees. Firms are not allowed to collect fees from the consumer before they have settled the debts. If the company is settling debts one debt at a time, fees can be collected on that settled amount, but they are not allowed to ‘front-load’ fees.

  1. There are other alternatives to debt relief.

Other debt-relief options are out there. Credit counseling is available, and many non-profits offer education for consumers on how to get rid of debts. Debt management programs offered through non-profit credit counseling services are also available. Additionally, if all else fails, bankruptcy is an available option. It helps to sit down with a bankruptcy attorney to discuss the possible options, as well as the best ones for the specific debtor.

  1. Debt-Settlement Will Not Save Your Credit Score.

The fact that the consumer simply stops paying his or her credit cards, letting them go delinquent means that the individual’s credit is going to take a hit. Even missing a payment for 30 days means that the consumer’s credit score is going to get hit. Once that happens, it can be hard to get it back.

  1. The Consumer May Still End Up Filing for Bankruptcy.

When all is said and done, the debtor may end up back at the point where he or she would have ended up had he or she not sought debt-settlement.  The bankruptcy process provides some protections for debtors that debt-settlement does not. All collection efforts stop with the automatic stay, including the fees from accruing. Also, the Chapter 13 bankruptcy process allows a more structured way for the individual to pay back the debt.

  1. Not All Debt Will Be Settled.

It is possible that the debt-settlement company may not end up settling all of the debt. They normally deal with liabilities that are unsecured, like credit cards, medical bills and unsecured loans. Debts that have collateral attached to them, such as mortgages or car loans, can be a little more difficult. Creditors are not under an obligation to work with debt-settlement companies, which is why many debts end up not being successfully settled.

  1. Debt Settlement Lawyers Do Not Represent You.

Many debt-settlement firms will tell consumers that their attorney represents them in negotiations with the creditors. However, half the time that means the attorney is basically letting the debt-settlement company utilize their letterhead. Most of the time, the attorney on the letterhead will never truly represent the consumer, and consumers should never assume or rely on false promises that they are legally protected by representation.

  1. You don’t need them.

One big issue debt-settlement companies do not want you to know is that you can do this alone. Nothing prevents a consumer from negotiating a settlement directly with the creditor. Many consumers are actually successful in working with creditors on a mutually-beneficial solution, independent from third-party intervention.

  1. Prepare for Tax Consequences.

The Internal Revenue Service considers debts that are forgiven, cancelled or discharged to be taxable income. If a consumer is successful in reducing or paying off their debts through settlement, they may still owe taxes for the amount that has been written off. In fact, consumers will receive a 1099-C form for any debt that applies as income, and this will need to be reported as gross income for taxes. The only exception to this rule is for taxpayers who are insolvent, meaning they owe more than they own.

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.marketwatch.com/story/10-things-debt-settlement-companies-wont-tell-you-2016-07-19

 

Landlord Held in Contempt of Court for Willful Violation of the Bankruptcy Automatic Stay

April 30, 2018 Posted by kingcade

Miami bankruptcy attorney Timothy S. Kingcade’s Motion Granted, Creditor Required to Cease and Desist all Eviction Proceedings and Pay Attorney’s Fees

MIAMI – (April 30, 2018) Bankruptcy Attorney Timothy S. Kingcade, founding partner of Miami-based Kingcade Garcia McMaken successfully obtained an Order for his client in a Chapter 7 case, granting Emergency Relief Requested.  Florida Bankruptcy Judge, A. Jay Cristol signed an order holding the landlord / creditor, Jonathan Smith and Delores Smith in Contempt of Court for Intentional Violation of the Automatic Stay (In re Montalvo Case No. 18-11489-AJC). Creditor, Jonathan Smith and Delores Smith are directed to immediately cease and desist all eviction proceedings and pay Kingcade Garcia McMaken $2,250.00 in attorney’s fees for having to bring forth the motion to enforce the automatic stay and protect its client.

“We are extremely pleased with this victory for our client today.  The landlord in this case completely disregarded the automatic stay put in place that protects bankruptcy clients from harassment and repossession of property. Despite having actual knowledge of the bankruptcy and automatic stay protections, this landlord continued to harass and threaten my client, causing them unnecessary distress, even going so far as to serving them with an eviction lawsuit during the case,” Kingcade said.

The Order directs creditor, Jonathan Smith and Delores Smith, jointly and severally, to pay attorney’s fees to Kingcade Garcia McMaken for having to bring forth this action and to cease and desist all eviction proceedings until further order of court.

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Miami-based Kingcade Garcia McMaken was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade Garcia McMaken specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

For more information visit, https://www.miamibankruptcy.com/.

Why Credit Card Debt is Bad for Your Health

February 21, 2018 Posted by kingcade

The economy is improving and with that comes consumer confidence, increased spending and rising credit card debt.  But while household income has grown over the past decade, so has the cost of living.  This has caused many consumers to access lines of credit and utilize more credit cards.  Credit card debt hit its highest point ever in 2017, surpassing $1 trillion, according to the Federal Reserve.

Close to 2 in 5 consumers who have been in credit card debt say it has affected their overall happiness, according to a recent study by NerdWallet. One-third said it negatively affected their standard of living, and 1 in 5 said it negatively impacted their health. Still, the average American has about three credit cards and a total balance of $6,375, up nearly 3% from last year, according to Experian’s annual study on the state of credit and debt in America.

There are steps you can take to deal with credit card debt with rising interest rates.  Don’t let your debt cost you another sleepless night. Sit down with an experienced Miami bankruptcy attorney to discuss your options in greater detail.  The consultation is free, the relief is real. 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/budget-and-spending/2018/02/19/why-credit-card-debt-can-bad-your-health/341044002/

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.