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When Is an Emergency Bankruptcy Filing Necessary?

Posted on June 6, 2025by Admin

An emergency bankruptcy filing is a streamlined process used in situations where the filer urgently needs to stop a creditor from collecting on a debt. It is often referred to as a skeleton bankruptcy filing because it’s so simplified.

The filer receives the same benefits and protections they would in a standard bankruptcy case. Like the automatic stay, which puts an immediate halt to all collection activity. The emergency filing gives the same protection after completing certain online forms and submitting the remaining required documents later.

The shortened process allows you to start a bankruptcy case by submitting an incomplete, otherwise “bare bones” filing. The best part about an emergency bankruptcy filing is that it can be completed online and in a matter of minutes.

A specific emergency isn’t required for a skeleton filing. Anyone who needs to file quickly to prevent an unwanted event from happening can use the process. For instance, bankruptcy can stop:

Foreclosure
Eviction
Vehicle Repossession
Wage Garnishment
Legal action, such as a deposition or trial.

After filing the petition, the bankruptcy automatic stay goes into place and stops these types of issues immediately.

When is an emergency bankruptcy filing appropriate? It is appropriate when a debtor is facing an imminent foreclosure on his or her home or a repossession of his or her vehicle. Since the amount of paperwork needed to formally open a bankruptcy case is significant and cannot be done overnight, it may not be done quickly enough to stop the foreclosure or repossession from happening. However, with an emergency bankruptcy petition, it is possible to be done quickly enough to get the automatic stay and protect the filer’s assets. The key is the filer must file the additional documents within 14 days or his or her bankruptcy petition will be dismissed. The filer must also comply with other rules, which will be provided on the court’s website.

Certain documents are required for an emergency bankruptcy filing. The bankruptcy petition is the essential part of the bankruptcy case, which will determine which chapter of the bankruptcy code forms the basis of the filing. The creditors’ contact information is also required with the emergency bankruptcy filing, along with a credit counseling certificate of completion or a waiver request, along with a Form B121. The filing will also be accompanied by a filing fee, although the filer can submit a request for a fee waiver. It is also possible to submit the fee in installments if this makes the situation more financially feasible.

Occasionally, the filer may also need to complete additional paperwork, as required by the court. It is important that the filer complies with these requirements, or the court will dismiss the bankruptcy petition within a certain required period, usually within 14 days.

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.

Source: JUSTIA.com

Auto Loan Debt, Consumer Debt

Auto Loan Debt Rising in the U.S. – Here are Cities with the Most

Posted on June 3, 2025by Admin

People in the U.S. collectively owe over $1.64 trillion in auto loan debt, with the average household owing nearly $14,000. These loans have become significantly more expensive, and interest rates have surged.

WalletHub has identified the cities where auto loan debt is growing the fastest and those where the increases are more modest by examining proprietary consumer debt data. Here are the findings:

Hialeah ranks in the Top 5 cities where auto loan debt is increasing the most. Miami comes in at #43 on the list. In most of the Top 10 cities on the list, this extra debt is a bad sign because those cities tend to have high debt delinquency rates and a lot of people experiencing financial distress.

Click here to read more.

If you have questions on this topic or are in a 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 Filings, Bankruptcy Trends, Consumer Bankruptcy

Experts Warn of a Summer Bankruptcy Spike Amid Economic Instability

Posted on May 21, 2025by Admin

A recent report suggests that bankruptcy filings could soon be on the rise due to the economic hardships many families are facing.

The average American household carries over $105,000 in consumer debt. LegalShield’s Bankruptcy Index suggests that filings this summer could spike to a level not seen since the start of the COVID-19 pandemic.

If you are borrowing to make ends meet every month, bankruptcy can provide you with a way out. There are two paths for individuals considering personal bankruptcy. Filing for Chapter 7 involves liquidating assets to pay off debts, while Chapter 13 allows individuals to keep some assets and restructure their debt.

Certain debts, such as alimony and child support, cannot be discharged in bankruptcy. Student loan debt might be included, but only under specific circumstances. Credit counseling is another option. By following a strict budget and negotiating lower interest rates on outstanding debt, it is possible to get your finances under control.

Click here to read more.

student loan debt, Student Loans

What Borrowers Should Know as the Government Begins Collections on Student Loans in Default

Posted on May 19, 2025by Admin

The Trump Administration has announced it will begin collection efforts on defaulted student loans for the first time in five years. The Department of Education announced that its office of Federal Student Aid will resume collections on May 5, meaning it can start taking funds out of borrowers’ tax refunds, Social Security benefits, and even their wages.

This has raised questions and anxieties for millions of borrowers across the country. The change will affect 5.3 million borrowers who went into default before the pandemic, according to the Education Department. A borrower is considered in default when they fail to make a loan payment for at least 270 days.

According to data provided to NPR, 2.9 million borrowers are 61-90 days late with their loan payments. Another 4 million are in “late-stage delinquency,” and have been reported to the credit bureaus, according to the Department.

With the economy going the way, it is, and tariffs making the cost of goods more expensive, the number of delinquent borrowers is expected to grow.

How can I tell if I am impacted?

The Department of Education says it will reach out to all borrowers that are in default by May 5, 2025. People can also check their status by going to StudentAid.gov, the Department of Education’s website.

The online dashboard shows how much debt is owed and to whom, the monthly payment amount and — if they are in default — a warning message that says so. It is also where they can ensure all their contact information is up to date.

What are my options if I am in default?

There are ways people can get out of default. The quickest, but oftentimes the hardest is to pay off the loan in full. Another method is consolidation, which involves paying off your defaulted loans with new repayment terms. Student loan consolidation combines multiple federal student loans into a single, new federal loan. This simplifies payments, potentially reduces monthly payments, and allows for a longer repayment term. Loan rehabilitation requires a borrower to make multiple — typically nine — consecutive on-time payments of an amount that is usually based on their income. Once those are paid, the loan is taken out of default and the default line is removed from the person’s credit report.

Click here to read more.

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 Filings, Bankruptcy Trends, Consumer Bankruptcy, Consumer Debt, Timothy Kingcade Posts

Consumer Bankruptcy Inquiries Reach Highest Level Since the Pandemic

Posted on May 6, 2025by Admin

People inquiring about filing for bankruptcy have reached its highest level since 2020. Insurmountable debt, years of steep inflation, costly mortgages, and a weakened housing market remain the driving factors.

Legal Service provider, LegalShield, reported bankruptcy legal inquiries jumped in Q1 following three quarters of “high consumer stress.” The index is based on a survey of more than 25 million legal requests.

Prolonged financial stress combined with price pressures driven by tariff uncertainty will likely contribute to a surge in bankruptcy filings this summer.

These bankruptcy warning signs come amid a third straight quarter of elevated consumer stress measured by LegalShield’s Consumer Stress Legal Index (CSLI), pointing to a heightened financial strain that has become a “new normal” for American households.

Tariffs are driving up costs on everything from food and clothing to electronics and cars. The increased costs are typically passed on to consumers.

The share of households more than 90 days late on credit cards and car loans hit a 14-year high at the end of 2024, according to The Federal Reserve Bank of New York, and delinquencies are still climbing. Credit card balances also hit a record high of $1.21 trillion.

Click here to read more.

Bankruptcy Trends, Consumer News, Timothy Kingcade Posts

Fears of a Recession Grow as Trump’s Tariff Policy Takes Effect

Posted on May 5, 2025by Admin

Several economic indicators point to a recession, including declining stock prices and a weakening consumer outlook. Consumer inquiries about bankruptcy surged during the first quarter of 2025 to the highest level since early 2020, reports LegalShield, which predicts “a potential wave” of bankruptcy filings this summer.

What do economists rely on to predict a recession? There are 10 indicators, some of which have been weakening before President Trump announced his tariff policy.

Shifting Stock Prices. In the aftermath of Trump proposing higher tariffs on April 2, the S&P 500 has dropped sharply, down 6% just in the two-plus weeks since then. Lower stock prices reflect declining consumer and business confidence.

Uptick in Foreclosures & Real Estate Trends. Certain real estate segments have shown weakness, with office buildings among the most stressed. A new sentiment survey among real estate investors, compiled by RCN Capital and CJ Patrick Co., dropped to its lowest level since it was started two years ago. The survey takes quarterly readings of optimism or pessimism among investors in residential properties.

Employment Uncertainty. The unemployment rate stood at 4.2% in March. While those numbers are not bad, jobless rates are not a leading indicator for predicting the direction of the economy. However, if the economy does take a dive, unemployment rates will start climbing.

Credit and Interest Rate Movements. With inflation expectations rising, due to higher tariffs, the Federal Reserve is likely to face a tough choice between trying to boost economic activity while trying to keep inflation at bay.

Consumer Outlook and Expectations. Consumers are feeling uneasy about the economy, and that is showing up in the data. Even before Trump’s tariff announcements, consumer expectations were the component that weighed down the leading indicators index. Since then, things have worsened. A more current indicator of consumer sentiment tracked by the University of Michigan showed substantial drops in confidence as of early April, as people prepare for what they think will be rising unemployment and inflation.

Hours Worked in Manufacturing. One key goal of Trump’s tariff policy is to boost jobs in U.S. manufacturing. However, while manufacturing employment may rise, it will take time, years even, for improvements to be reflected.

New Business Orders. This includes consumer goods, and orders for non-defense capital goods. The group also compiles a separate index that tracks new orders. As of the most recent report published in March, one of these components showed weakness, another was flat, and the third, slightly positive. The Trump Administration has changed its tariff policy several times in recent weeks, creating the type of uncertainty that businesses fear.

Click here to read more.

student loan debt, Student Loans

Student Loans in Default Will Be Referred to Collection, Says Department of Education

Posted on April 24, 2025by Admin

Beginning May 5, 2025, the Education Department will begin collection efforts on federal student loans that are in default. The action will impact borrowers who have not made payments on their federal loans for more than nine months.

Roughly 5.3 million borrowers are in default on their federal student loans. The announcement marks an end to a grace period that began during the COVID-19 pandemic. No federal student loans have been referred for collection since March 2020, including those in default. Under President Biden, the Education Department tried multiple times to grant forgiveness of student loans, only to be stopped by courts.

Beginning May 5, the department will begin involuntary collection through the Treasury Department’s offset program, which withholds government payments — including tax refunds, federal salaries and other benefits — from people with past-due debts to the government (i.e. – federal student loan debt). Those borrowers who are in default on their federal student loans could be at risk of having their wages garnished.

Click here to read more.

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.

Foreclosures, Housing Market Trends

Florida Foreclosures Spike in the Aftermath of Last Year’s Hurricane Season

Posted on April 22, 2025by Admin

Florida led the nation in foreclosures in 2024, and all signs point to a continuation in the trend. A report by property data firm ATTOM shows that Lakeland ranked No. 1 nationwide for the most filings in 2024, with one in every 172 homes foreclosed on.

After a six-month period of decline, foreclosure filings abruptly increased in October, revealing the impact back-to-back hurricanes had on the market.

Hillsborough, Broward, Miami-Dade and Orange counties had the most foreclosures in Florida. Among U.S. metro areas with populations greater than 1 million, Orlando, Jacksonville and Miami had the first, third and fourth highest rates in the nation.

Foreclosures can oftentimes be a precursor to bankruptcy, and both have risen dramatically over the last 12 months.

Several major Florida metros ranked in the top 10 U.S. cities whose residents have the highest levels of financial distress. Tampa ranked No. 8, while Jacksonville, Orlando and Miami ranked third, sixth and ninth.

Click here to read more.

Choosing the right attorney can make the difference between keeping your home or losing it in foreclosure. 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 McMaken website at www.miamibankruptcy.com.

REMEMBER: In Florida, the homeowner has rights when it comes to foreclosure! But do not delay.

Consumer Debt, Credit Card Debt

The Emotional Burden of Debt on Your Mental Health

Posted on April 8, 2025by Admin

Today, as the U.S. is facing economic uncertainty and high inflation, consumers are feeling an increase in financial pressure. Everyday costs are on the rise, and struggling to afford the basics is a challenge for many.

The result? Higher levels of debt are becoming more widespread.

Debt can cause a lot of damage, and not just to your credit score. Carrying any amount of debt can be stressful, but carrying substantial amounts of debt can be debilitating to a consumer’s emotional well-being. Credit card debt can cause stress, which can lead to depression, anxiety, and other health problems.

Over half of the adults in the U.S. with a debt problem are also living with a mental health issue, according to a study from the Royal College of Psychiatrists.

High levels of debt can also lead to stress and arguments within marriages. In fact, arguments about money are one of the top causes of divorce in America, after infidelity. Debt and stress often go hand in hand. It’s natural to worry about debt and if you will ever get out of it.

According to the Stress in America survey conducted by the American Psychological Association, 87 percent of Americans reported the rising cost of living as a significant source of stress. The survey also found an increase in the percentage of Americans stressed about the economy, and finances in general.

Click here to read more.

student loan debt, Student Loans

Lawsuit Filed Against the Trump Administration for Shutting Down Access to Income-Driven Repayment Plans Used by Millions

Posted on April 1, 2025by Admin

A teacher’s union has filed a lawsuit accusing the Trump administration of unlawfully shutting down access to income-driven repayment plans used by millions of student loan borrowers.

The American Federation of Teachers filed the lawsuit in federal court and took aim at the Education Department’s decision to suspend borrowers’ ability to enroll in affordable repayment plans.

The department made the change after a federal appeals court ruled that Democratic President Joe Biden’s administration lacked authority to pursue a student debt relief program designed to lower monthly payments for borrowers and expedite loan forgiveness for some.

In the days that followed the 8th Circuit’s decision, the Education Department directed student loan servicers to stop accepting and processing income-driven repayment applications and removed the application form from the department’s website.

In the lawsuit, the American Federation of Teachers, argued that the Education Department did so even though the 8th Circuit’s decision did not bar the department from offering several other types of income-driven repayment plans that were not the subject of the litigation.

Click here to read more on this story.