Posts Tagged: ‘recession’

Puerto Rico Files for Largest U.S. Municipal Bankruptcy

May 11, 2017 Posted by kingcade

Last week Puerto Rico filed for municipal bankruptcy with a total of $123 billion in debt and pension obligations. It is the largest municipal bankruptcy filing in U.S. history, far exceeding Detroit’s $18 billion bankruptcy filing in 2013.

Governor Ricardo Rossello said, “Given the deficit that we inherited, it is my responsibility to guarantee the best interests of the Puerto Rican people.”

The court proceedings could potentially make the island solvent again for the first time in decades. However, many of the prominent Wall Street firms who own Puerto Rico’s bonds are not too happy about the bankruptcy filing because they fear they won’t get paid back the money they are owed.

Puerto Rico has been in an economic recession for more than a decade and the unemployment rate is 11.5 percent.  The island’s financial crisis is so bad that Congress installed a Fiscal Oversight Board last year to call the financial shots. However, the board stopped negotiations with creditors last week and filed for bankruptcy.

While on the campaign trail, Donald Trump said he would not “bail out” Puerto Rico. He repeated that again in a recent tweet. His budget director also said that the White House pushed hard to ensure no federal dollars would go toward paying the island’s debts in the latest Congressional budget deal.

If you are in financial crisis and considering filing for bankruptcy, 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, 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.

Related Resources:

http://money.cnn.com/2017/05/03/news/economy/puerto-rico-wants-to-file-for-bankruptcy/

https://www.nytimes.com/2017/05/03/business/dealbook/puerto-rico-debt.html?_r=1

Credit Card Debt Approaches Post Recession Levels

October 26, 2016 Posted by kingcade

 According to the Household Debt and Credit report released by the Federal Reserve Bank, total household debt balances grew slowly throughout the second quarter of this year. As of June 30, 2016, total household debt had reached $12.29 trillion, up $35 billion from the first quarter of 2016.

At the same time, the nation’s cumulative credit card balance reached $729 billion, which is up $17 billion from the first quarter. While still below its peak of $866 billion in the fourth quarter of 2008, economists say that the numbers are on track to reach pre-recession levels of credit card debt around the second quarter of 2017. However, economists also say that conditions might change and previous numbers do not necessarily mean we will enter into another recession.

While credit card debt is up, credit card usage is actually down substantially from previous highs. Credit card usage peaked in 2008 at 68 percent of borrowers, then swiftly declined to 59 percent during the recession due to banks reactively and proactively closing accounts.

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.

South Beach Hot Spot Foreclosed on this Month

May 28, 2013 Posted by kingcade

A final judgment of foreclosure has been entered against the Shore Club on Collins Ave. in Miami Beach. The once local hot spot and celebrity hangout has struggled to regain its financial footing since the recession. It is reported that more than $164 million is owed on the property. An online sale of the 309-room hotel has been set for June 25, 2013.

Morgans Hotel Group, which operates the Shore Club as well as the Delano and Mondrian in South Beach, released a statement saying that it “remains committed to managing the hotel to the standards our guests have come to expect.”

Click here to read more about the Shore Club being foreclosed on this month.

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 website, www.miamibankruptcy.com.

Foreclosures are Returning to Pre-Recession Levels

April 26, 2013 Posted by kingcade

The foreclosure filing rate has been dropping to levels not seen since before the housing market crashed in 2008. These include notices of default, scheduled auctions and bank repossessions. During the first quarter, the levels fell 23 percent from 2012. This is the lowest level since the second quarter of 2007. During March, the banks repossessed fewer than 44,000 homes, compared with September 2010 when the banks repossessed 100,000. RealtyTrac Vice President, Daren Blomquist said he expects to be back to normal foreclosure levels by 2014.

Foreclosure rates have been declining for the past couple of years because homeowners have been seeking alternatives such as filing for bankruptcy or a short sale. Government programs such as the Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP) have also helped homeowners avoid foreclosure. The $25 billion settlement deal between federal officials and the five largest mortgage lenders have also pushed the banks to agree to help struggling homeowners. As a result, the largest percentage of the foreclosure activity in the country is occurring in areas that are suffering severe economic problems and no longer in mid to upper-class neighborhoods. Many Americans who are now dealing with foreclosure are those who have recently been laid off or filed for divorce from their spouse.

Click here to read more on foreclosures returning to pre-recession levels.

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 website, Kingcade & Garcia, P.A.