Consumer News, Credit Card Debt

Credit Card and Car Loan Defaults Hit 10-Year High

A number of consumers are defaulting on their credit cards and car loans to the point where the number of defaults reported are the highest seen since the financial crisis. With inflation not nearing an end any time soon and interest rates continuing to rise, the number of consumers defaulting is expected to grow.

This information comes from data provided by the credit agency, Equifax. The agency found that credit card delinquencies have hit 3.8 percent while car loan defaults have hit 3.6 percent. These figures are the highest ones seen in more than 10 years.

Bankruptcy Law, Consumer Bankruptcy

Important Steps to Take After Bankruptcy

Bankruptcy provides a financial fresh start for consumers seeking its help. But what does life look like after bankruptcy?

According to a study by LendingTree, 65 percent of people who filed for bankruptcy, had a credit score of 640 or higher in two years.  The following tips can help you bounce back quickly after bankruptcy.

One recommendation is to keep all bankruptcy paperwork from the case. It is possible this information will be needed again in the future if the consumer wishes to apply for a mortgage, loan or other financing. This paperwork should include the petition and submitted schedules, proof of income, any correspondence from the court and bankruptcy trustee, and the final bankruptcy discharge.

Consumer Bankruptcy, Legal Awards

Miami Bankruptcy Attorney Timothy S. Kingcade Named a Florida Super Lawyer 10 Consecutive Years

Super Lawyers 2023

MIAMI (June 27, 2023)– Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade Garcia McMaken has been selected to the 2023 Florida Super Lawyers list. This is the tenth consecutive year Kingcade has been selected to the Florida Super Lawyers list (2014-2023) in the practice area of consumer bankruptcy. The recognition is awarded to only the top 5% of attorneys in the state.

Attorney Kingcade practices exclusively in the field of bankruptcy law, handling Chapter 7 and Chapter 13 filings for the Southern District of Florida.  As an experienced CPA and proven bankruptcy attorney, Kingcade knows how to help his clients take full advantage of their rights under the bankruptcy laws to restart, rebuild and recover.

Consumer Bankruptcy

What Property Can You Keep in a Chapter 7 Bankruptcy?

The fear of losing everything is a very real fear for many bankruptcy filers. However, this is one of the most common bankruptcy myths, and can keep individuals who are drowning financially from filing for bankruptcy. One concern many filers have is, what will happen to my property during bankruptcy?

The good news is Florida bankruptcy laws offer generous exemptions which allow individuals to keep various types of property. If an item of property falls under one of these exemptions, this means that the person can keep the property after filing for bankruptcy. Property that does not fall under one of these exemptions is considered nonexempt and can be sold by the bankruptcy trustee and used to pay down qualifying debts.

Credit Card Debt

Consumers Add a Record $179.4 Billion in Credit Card Debt

U.S. consumers have hit a record high when it comes to credit card debt. According to a recent WalletHub study, American consumers added a record $179.4 billion in new credit card debt to the already-existing credit card debt in 2022. These numbers are expected to increase as we move into the second half of 2023.

The largest increase was seen in the fourth quarter of 2022 with an increase of $84.9 billion in that quarter alone. A fourth-quarter increase is not unusual, as it is usually followed by a first quarter pay-down. However, once 2023 began, WalletHub found that American consumers only paid down their credit card debt by $24 billion, which is the second smallest first-quarter credit card debt paydown seen in the last decade.

Legal Awards

Kingcade Garcia McMaken Awarded ‘Best Bankruptcy Lawyers in Miami’ for 2023

MIAMI (February 28, 2023) — The Miami-based bankruptcy law firm of Kingcade Garcia McMaken has been awarded one of the ‘Best Bankruptcy Lawyers in Miami’ for 2023, by Expertise for obtaining the highest scores in consistency, qualifications, reputation, experience & professionalism.

Expertise Award Best Bankruptcy Attorneys 2023

“We are extremely honored to have received this award,” says Founding Partner and Managing Shareholder, Timothy S. Kingcade. “In today’s competitive legal environment, clients have an increasing number of options when choosing an attorney. It is important that clients and potential clients know how serious we take quality customer service and business ethics. This is a true testament to the commitment we have to our clients and the standards we uphold as a law firm.”

student loan debt, Student Loans

Supreme Court Hears Arguments on Student Loan Cancellation

The U.S. Supreme Court will be hearing arguments this week over two legal challenges brought against President Biden’s student loan forgiveness plan. The decision from these challenges could make or break Biden’s overall plan for loan forgiveness, affecting tens of millions of American borrowers.

Since President Biden made his initial announcement regarding his loan forgiveness plan, his policy has faced six legal challenges. The two challenges before the high court now have consolidated these suits. One legal challenge has been brought by six states, including Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina. The other challenge has been backed by the Job Creators Network Foundation, a conservative-based advocacy group.

Consumer Bankruptcy, Tax Debt

Best Types of Bankruptcy for Tax Debt

Tax debt is one of the few forms of debt that is not always easily erased in a consumer bankruptcy case. While it is true that discharging tax debt can be difficult in a bankruptcy case, it is not impossible. Ultimately, it depends on the type of bankruptcy being pursued and the type of debt involved as to how it is handled.

While a bankruptcy filing normally puts an immediate halt to all collection actions on debt through the automatic stay, tax debt is treated differently.

Credit Card Debt

U.S. Cities with the Least-Sustainable Credit Card Debt

High interest rates and high inflation are making it harder than ever to pay down credit card debt. American consumers started the year with over $1 trillion in outstanding credit card debt.

According to a recent study, the average U.S. household has over $8,900 in credit card debt, which is up 4.5 percent (4.5%) from last year. Consumers in certain cities seem to struggle more than others. This fact was recently documented in a study produced by personal finance website, WalletHub, listing which American cities had the least sustainable credit card debt.

student loan debt, Student Loans

Uncertainty Surrounding Debt Relief Leads to Increased Student Loan Scams

Many student loan borrowers seeking relief from their student debt burden prior to payments resuming in 2022 have found themselves on the receiving end of student loan scams. In fact, a number of consumer protection firms across the U.S. have issued warnings regarding the increase of certain student loan debt relief scams.  It is important that all consumers are aware of what red flags to look for when being offered financial assistance towards their student loan debt.

Borrowers were given some relief during the COVID-19 pandemic with federal student loan repayments being paused since March 2020, along with federal student loan interest being halted during this time. However, federal student loan payments are scheduled to resume in February 2022, meaning that millions of borrowers will be required to pay on their student loan debt for the first time in over a year. This fact has many borrowers panicking and trying to figure out how to either continue paying on their debt or find relief wherever they can find it.

Student loan relief scams are nothing new. In 2021, the Federal Trade Commission (FTC) issued millions of dollars in refunds to individuals who fell victim to student debt scams. As of 2017, it is estimated that $95 million has been paid to student loan fraud victims. As a result, financial experts predict that even more fraud reports will be coming in 2022.

One of the biggest warning signs borrowers should look for when communicating with an entity claiming to provide debt relief to student loan borrowers is when the person on the other end of the phone requests the caller’s student loan login information or his or her Social Security number. While their request may seem legitimate, providing this information could open the consumer up to having their student loan accounts hacked, also allowing the scammer to create falsified documents with this information and defraud the consumer even further.

The information being requested is often referred to as personal identifiable information or PII, and it can include the consumer’s Social Security number, driver’s license number, banking information, and credit card numbers. Providing this information allows the scammer to hack the consumer’s identity.

Another sign of a scam occurs when the alleged debt relief company requests money up front before providing a service. If a company is requesting the person pay a fee before even beginning the process of negotiating on a debt, this is a major red flag that indicates the company may not be legitimate.

Additionally, if the student loan debt relief company advertises their services on social media or reaches out to the consumer directly through cold calling, this could be another sign of a potential scam. If a consumer speaks with a company who has contacted him or her directly regarding debt relief, it is imperative that he or she does the proper research to ensure that the company is legitimate. A general Internet search of the company on reputable sources should be able to help the person ascertain whether a scam is involved.

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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. 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.