Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Why More Americans Are Going Bankrupt and What It Means

Posted on August 4, 2026by Admin

If you are struggling with overwhelming debt and are thinking of filing for bankruptcy, you’re not alone. While the word “bankruptcy” often conjures up images of failed companies, personal bankruptcies are far more common. More than half a million personal bankruptcies were filed last year, a nearly 50% jump from three years earlier, according to the Administrative Office of the U.S. Courts.

Filings at the end of March were up almost 12% from a year earlier.

Experts say this shows that a growing number of Americans have reached the point where the pressure of their debt has surpassed the stigma of bankruptcy.

A common bankruptcy concern is that it can hurt your credit history. But if you’re filing for bankruptcy, your credit score is probably not in the best place.

In fact, many of our clients have seen their credit scores improve after filing for bankruptcy. Here’s what some of them have to say.

All three of my credit reports showed a score of 775. I couldn’t believe my score was that high after 10 years. Working with Tim was the best decision I made for my situation. I have no regrets, and I’m glad to have the past behind me. – Bill T.

Hi Tim, I wanted to send a quick note to thank you and your team for handling my bankruptcy case. Just a month or two after discharge, my credit scores are already in the upper 600s. I’ve included a screenshot in case you would like to use it with prospective clients. – C.S.

While filing for bankruptcy can relieve you from your debts, it is not a step to be taken lightly. Be sure to ask yourself the following questions before filing for bankruptcy.

Have I exhausted all my options? Thoroughly investigate alternatives or consider selling assets to pay off your debts. Alternatives, such as loan modifications and credit counseling, may provide a way to manage your debt and avoid some of the costs of filing for bankruptcy.
What type of bankruptcy is most appropriate for my situation? There are different types of bankruptcy. For individuals, the options are Chapter 7 and Chapter 13 bankruptcy. Chapter 7 involves liquidating your assets to pay off debts, while Chapter 13 establishes a repayment plan over a three-to-five-year period. Each has its own eligibility requirements, so understanding which type you qualify for is key.
How will bankruptcy affect my credit score and for how long? Bankruptcy will have an impact on your credit score, potentially lowering it by 200 points or more. However, if your score is already low, perhaps due to high credit card balances or late payments, it may not drop that many points.
Can I afford the costs associated with filing for bankruptcy? While it may seem counterintuitive, filing for bankruptcy isn’t free. It is a legal process that comes with costs. There are court filing fees and it is important to hire an experienced bankruptcy attorney to help you navigate the process.
Will bankruptcy discharge all my debts? Not all debts can be discharged in bankruptcy. For example, federal student loans, most tax debt, alimony and child support payments cannot be discharged in bankruptcy.

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 assist you and address 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.

Credit Card Debt

What Happens When You Stop Making Credit Card Payments?

Posted on July 21, 2026by Admin

Many people have difficulty keeping up with credit card payments. If you stop paying, you may face late fees, higher interest rates, and even a debt collection lawsuit. According to FICO, more recent collection activity can have a greater negative impact on your credit score.

The Stages of Credit Card Delinquency

A credit card payment is late if it is received after the due date. However, according to Equifax, it will not appear on your credit report until it is 30 days past due. This can trigger a drop in your credit score between 50 and 100 points.

The financial consequences worsen for a credit card payment that is 60 days past due. At this point, you will be subject to more fees and penalties and see your credit score drop even more.

Once your payment hits 90 days of delinquency, the credit card company could send your account to collections. If this happens, the debt collector will reach out to you about the overdue payments. This will cause your credit score to take a sizeable hit, by approximately 180 points.

What Happens at 120, 150 and 180 Days Late?

After you miss at least four payments, the card issuer or collection agency will increase its efforts to collect the debt.

If it hasn’t already, your credit card issuer will most likely sell your debt to a collection agency once you’re 180 days late, which is known as a charge-off. A charged-off debt stays on a consumer’s credit report for seven years. Unlike the name, the debt is not forgiven, and you are still responsible for paying it.

While each consumer’s financial situation is different, there are ways to determine if you are carrying too much credit card debt.

Consider your answers to the following questions:

Is credit card debt affecting your financial and emotional well-being? High credit card balances can lower your credit score and create financial and emotional stress. As a general guideline, your monthly payments should not exceed 10 percent of your monthly income.

Are you paying only the minimum? Credit cards typically have low monthly minimum payments, but that doesn’t mean they are affordable just because you can cover that amount. If you are only able to make the minimum payment, that can be a sign you have too much credit card debt.
Is your credit card debt impacting your credit score? Credit cards can help your credit score- or hurt it, depending on how you use them. It is recommended that you keep your credit utilization below 30 percent. Having significant credit card debt can have a negative impact on your credit score. This can make other debts, like your mortgage and car payments more expensive.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.

Filing for bankruptcy is a viable option for those struggling with insurmountable credit card debt. 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 regarding income, assets, and expenses to file for Chapter 7 bankruptcy, which is determined by the bankruptcy means test.

Click here to read more on this story.

5 Loans You Should Never Get

Posted on July 8, 2026by Admin

Certain loans can help you reach your financial goals. However, loans with high interest rates and fees, or payment terms that trap borrowers in a cycle of debt can create long-term problems. These are often referred to as predatory loans. These loans come with high annual percentage rates (APRs), short repayment terms, and balloon payments or hidden penalties. They are aggressively marketed to people with bad credit. Understanding the risks of these loans can help you make better borrowing decisions and protect your credit and financial future.

Here are five types of loans you should avoid entirely, or approach with caution.

Payday Loans. These short-term, high-cost loans are usually meant to be repaid by your next paycheck. They promise fast approval with no credit check, making them appeal to people facing urgent financial stress. Beware, these loans come with sky-high interest rates and fees. Many payday lenders charge APRs that exceed 400% and the repayment window is often only two weeks.
Car Title Loans. These loans are another form of short-term lending, where you use your car title as collateral. If you do not repay the loan on time, the lender can repossess your car. This can be risky if you rely on your vehicle for work, handle daily tasks, or care for your family.
Cash Advances from Credit Cards. This allows you to withdraw money from your credit card account. It’s one of the most expensive ways to borrow money. Cash advances carry higher interest rates and start accruing interest immediately.
High Interest Installment Loans. These loans are more manageable than payday loans because they allow repayment over time. But many of these loans come with high interest rates and fees that make them just as risky. These loans often target people with poor credit who may not qualify for bank loans or low interest credit cards.
Loan Offers with No Credit Check. While these loans may sound appealing, their terms and conditions are not. These loans are often marketed to people with poor credit. Lenders are not worried about you repaying the loan because they are making their money off the interest and sky-high fees.

Click here to read more on this story.

Florida Super Lawyers

Miami Bankruptcy Attorney Timothy S. Kingcade Named to 2026 Florida Super Lawyers List

Posted on June 29, 2026by Admin

This recognition marks Kingcade’s 13^th consecutive year among the top 5% of Florida attorneys.

MIAMI (June 26, 2026) – Timothy S. Kingcade, Managing Shareholder of the Miami-based bankruptcy and foreclosure defense law firm, Kingcade Garcia McMaken, has been named to the 2026 Florida Super Lawyers list. This marks Kingcade’s 13^th consecutive year earning the distinction in consumer bankruptcy law from 2014 to 2026.

“Being recognized by Super Lawyers is a tremendous honor and a reflection of the hard work and dedication required to provide exceptional legal representation to our clients,” said Timothy S. Kingcade. “I am grateful to my colleagues for their nominations and support, and to Super Lawyers for recognizing my professional achievements.”

“This recognition reflects not only my work, but also our firm’s commitment to providing the highest level of care and professionalism in every case we handle,” Kingcade said.

Kingcade focuses exclusively on bankruptcy law, handling Chapter 7 and Chapter 13 filings in the Southern District of Florida. As an experienced CPA and bankruptcy attorney, Kingcade helps clients use their rights under bankruptcy law to restart, rebuild, and recover.

Super Lawyers recognizes outstanding attorneys across more than 70 practice areas who have achieved strong peer recognition and professional success, representing the top 5% of lawyers in Florida. Selections are made through a patented, multiphase process designed to produce a credible, comprehensive, and diverse list of exceptional attorneys. Candidates are nominated by their peers, evaluated by a research team, and reviewed by a blue-ribbon panel before final selection. The Super Lawyers list is published nationwide in Super Lawyers magazines and in leading city and regional publications.

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Miami-based Kingcade Garcia McMaken, P.A. was founded in 1996 by managing partner and bankruptcy attorney Timothy S. Kingcade. The firm represents clients throughout Florida in Chapter 7 bankruptcy and foreclosure defense matters. It is committed to personalized service, helping each client understand available options based on their unique circumstances. The firm’s office environment and services are built around a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade Garcia McMaken, P.A. focus on consumer bankruptcy and foreclosure, and all attorneys and staff members are bilingual in English and Spanish.

Contact Information: Timothy S. Kingcade (tsk@miamibankruptcy.com). For more information visit www.miamibankruptcy.com or call (305) 285-9100.

Foreclosure Defense, Foreclosures, Housing Market Trends

Florida, Delaware, and South Carolina Top List with Most Foreclosures

Posted on June 25, 2026by Admin

U.S. Foreclosure Filings Spike 18%, Florida is one of the nation’s primary hot spots for distressed property activity.

U.S. foreclosure rates are up 18% from a year ago, according to the latest data from ATTOM. There was a total of 42,430 U.S. properties with foreclosure filings, just in the last month. This total includes default notices, scheduled auctions, and bank repossessions.

Foreclosure starts were up 12% from a year ago, while completed foreclosures increased 42%.

ATTOM’s report incorporates documents filed in all three phases of foreclosure: default and notice of default; notice of foreclosure; and real estate-owned or REO properties, defined as properties that have been foreclosed on and repurchased by a bank.

In Florida, 1 in every 2,092 housing units show a foreclosure filing. Florida has a median listing price of $426,000, with homes staying on the market a median of 74 days.

Florida homeowners are feeling the squeeze. Property insurance premiums are still among the highest in the nation. Soaring property taxes, and increases in Condo Association/ HOA fees are leaving many homeowners in financial distress.

What Florida Metro has the most foreclosures?

Lakeland, Florida recorded the highest foreclosure rate in April, with one filing for every 1,221 housing units.

In Lakeland, the median listing price is $335,000 and homes stay on the market a median of 75 days.

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 are facing a foreclosure filing and need professional representation, you can request a complimentary case evaluation through the Kingcade Garcia McMaken website or call their office directly at (305) 285-9100.

Medical Debt

How to Lower Your Medical Debt and Avoid Damaging Your Credit

Posted on June 10, 2026by Admin

Like other types of debt, unpaid medical bills can stay on your credit report for up to seven years. It can affect your ability to take out loans, finance a home or car, and qualify for credit.

If you can resolve medical debt quickly or keep it below $500, it may never show up on your credit report. Paid medical debt, medical debts under $500, and unpaid debts less than one year old are no longer reported by the three major credit bureaus.

Here are some ways to get rid of medical debt.

Review your bill carefully. Request an itemized bill and check for errors. Make sure the charges are accurate, that you were not billed twice, and your insurance benefits were applied.

Request a payment plan. Hospitals and doctors’ offices often offer payment plans and may work with you to set an affordable monthly amount. These plans are often interest-free and can help keep your account out of

Negotiate the bill. Hospitals will sometimes allow you to negotiate a lower balance. This can apply when you either pay in full or within a certain period.
Explore financial assistance options. Some hospitals offer financial assistance programs that can significantly discount or entirely waive medical bills for qualifying patients. You may qualify for reduced or free care based on your household income, especially if you are uninsured or underinsured. These policies usually apply to medically necessary care, with eligibility determined on a sliding scale based on the Federal Poverty Level.

Here’s what to do if your medical debt is already in collections.

Confirm the debt is valid. You have the right to request a debt validation letter from the collection agency. Review it to confirm the amount is correct and that your insurance was If the agency cannot verify the debt, you can dispute it with the credit bureaus.

Check if the debt will be recorded. Medical debt under $500, or less than a year old, should not appear on your credit reports. If they do, you can file a dispute with the credit bureaus to have it removed.
Reduce the balance. Even if you cannot pay the full amount, lowering the debt below $500 may help remove it from your credit report. Once you pay it down, ask the collection agency to update your credit report.

How Bankruptcy Treats Medical Debt

In bankruptcy, medical debt is treated the same as credit card debt. Medical bills are listed as general unsecured debt and can be easily wiped out in a Chapter 7 bankruptcy filing. Making the decision to file for bankruptcy is never an easy one.

Fortunately, consumers have the option available to them to file for bankruptcy to escape this burden of medical debt. In a bankruptcy case, debts are classified into two categories: secured and unsecured, as well as priority and nonpriority debts. Secured debts are those that are backed by a form of collateral, while priority debts can be unsecured but receive special status, such as tax bills, student loans, and child support. Unsecured debts are those debts that are not secured by collateral and include personal loans, credit card debt, and medical debt.

In a bankruptcy case, unsecured debts are the ones that are discharged at the end of the case, while priority and secured debts are the focus of payment plans or payment in a Chapter 7 case after assets are liquidated. If a debt is discharged, this means the court has issued an order stating that the debt does not have to be paid.

Medical debt may also become part of the repayment plan issued as part of a Chapter 13 bankruptcy case. The bills may not end up paid in full, but the medical providers will receive at least some amount of payment, which helps the consumer maintain a relationship with their healthcare providers. Repayment plans normally last three to five years, ending with the consumer’s remaining debts, including medical debt, getting discharged.

Click here to learn more.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney Timothy Kingcade knows how to help clients take full advantage of bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken, 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 McMaken, P.A. website at www.miamibankruptcy.com.

Credit Card Debt

Americans Are Falling Behind on their $1.25 Trillion Credit Card Debt

Posted on May 30, 2026by Admin

How much is too much credit card debt?

Surging inflation and rising interest rates have left millions of Americans relying on credit cards to cover everyday expenses. Middle-class households are struggling the most to pay down these balances. More families have shifted to a pattern of “survival debt.” Survival debt refers to money borrowed explicitly to cover basic, essential living expenses, like food, housing, utilities, and medical expenses, rather than discretionary purchases.

America’s credit card balance is a staggering $1.25 trillion, up from $1.18 trillion in the same quarter last year. The average interest rates on credit cards rose to 21% in February, from 14.6% in February 2022, according to a survey by the Federal Reserve.

With the rising cost of food, housing, and healthcare there is less money to pay down credit card debt. Consumers have been forced to make some tough decisions. Not wanting to lose their car or their home, people are likely to stop paying their credit cards, first.

Credit counseling agencies have seen an uptick in clients by 60%, since 2018. The National Foundation for Credit Counseling, a network of nonprofits that helps people reduce credit-card debt, said it had 24% more clients in January than a year earlier.

People carry an average of about $6,500 to $6,700 in credit card debt, according to credit-reporting agencies. The percentage of cardholders with balances of more than $10,000 has risen in communities across different income levels since 2018, analysis from the Urban Institute data shows. Last year, 17% of cardholders in low-income communities held balances greater than that amount, 20% in medium-income communities and 25% in higher-income communities.

While each consumer’s financial situation is different, there are ways to determine if you are carrying too much credit card debt.

Consider your answers to the following questions:

Is your credit card debt impacting your financial and emotional health? Carrying large amounts of credit card debt can damage your credit score and cause you to experience financial and emotional stress. A good rule of thumb is to ensure your monthly payments are not more than 10 percent of your monthly income.
Are you paying only the minimum? Credit cards typically have low monthly minimum payments, but that doesn’t mean they are affordable just because you can cover that amount. If you are only able to make the minimum payment, that can be a sign you have too much credit card debt.
Is your credit card debt impacting your credit score? Credit cards can help your credit score- or hurt it, depending on how you use them. It is recommended that you keep your credit utilization below 30 percent. Having significant credit card debt can have a negative impact on your credit score. This can make other debts, like your mortgage and car payments more expensive.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.

Filing for bankruptcy is a viable option for those struggling with insurmountable credit card debt. 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 regard to income, assets, and expenses to file for Chapter 7 bankruptcy, which is determined by the bankruptcy means test.

Click here to read more on this story.

Chapter 13 Bankruptcy

Pros & Cons of Filing Chapter 13 Bankruptcy in Florida

Posted on May 26, 2026by Admin

Bankruptcy filings have been on the rise in Miami. Inquiries have increased due to the cost of living, elevated interest rates, and consumer debt. Inflation, healthcare, housing, and the cost of energy are some of the issues people cite as their top financial concerns.

Chapter 13 bankruptcy, referred to as a “wage earner’s plan” or a “reorganization bankruptcy,” has become a common choice for people who need time to catch up on their debts.

There are advantages to filing Chapter 13 bankruptcy in Miami, and a few drawbacks. It’s important to discuss your personal circumstances with an experienced Miami bankruptcy attorney to understand how bankruptcy will affect you.

How Chapter 13 Bankruptcy Works
When you file for Chapter 13 bankruptcy, you will submit a detailed budget showing your monthly income and expenses. The bankruptcy court uses this information to determine how much you can realistically afford to pay your creditors each month. Allowed expenses include housing, utilities, food, transportation, insurance, medical care, and other necessary costs. The court follows standardized guidelines for many of these expenses, but there’s flexibility based on a filer’s specific circumstances.

The remaining amount becomes your monthly Chapter 13 payment. This means you keep enough of your income to maintain a basic standard of living while repaying what you can afford with your creditors.

Pros:
*End Creditor Harassment. Thanks to the automatic stay, creditors will no longer be able to contact you.

*Avoid Foreclosure. If you have fallen behind on your mortgage payments, filing Chapter 13 can help you keep your home by getting caught up on those payments.

*A Defined Repayment Plan. Allows you to pay what you can according to your income and assets.

Cons:
*Expect your credit score to take a hit. However, it’s important to remember, continuing to struggle with your debt will also have a negative impact- not only on your credit score, but on your health and your happiness. Balances eventually become too high and overdue payments and delinquencies result.

*Not being able to wipe out all your debt. Unlike Chapter 7 bankruptcy, you do not discharge all your debt. You repay it. Chapter 13 plans can last anywhere from three to five years, but most are five-year plans.

It is worth noting that in Chapter 13 bankruptcy not everyone pays back the same percentage of their debt. Some people repay their unsecured creditors in full, while others might pay back only a fraction, sometimes as little as 10% or even less, depending on their disposable income and the value of their assets. The point here is that your payment is based on what you can afford, not on taking everything you earn.

If you have any 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 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.

Car Repossession

What Are the Repossession Laws in Florida?

Posted on May 7, 2026by Admin

If you are facing the possibility of repossession in Florida, knowing your rights, and understanding the process can help you feel more in control and figure out your next steps. Florida repossession laws favor lenders, but as a borrower you still have rights. Lenders are legally allowed to start the repossession process after just one missed payment. Whether that happens depends on your loan agreement. Most lenders offer a grace period, allowing you a few extra days to make a payment without late fees or other penalties.

When it comes to auto loans, these are considered secured debts. The car is what “secures” the loan. So, if you do not make your loan payments, the lender can take back the car through repossession.

Falling behind on car payments is stressful. A car is not only a vehicle for people, but an essential asset. Many people rely on it to get to work, take their children to school or daycare, and for other daily needs. The thought of losing it can be overwhelming.

How Can I Stop Repossession?

One of the best ways to avoid repossession is to make sure your car payment fits your budget before buying a vehicle. It also helps to hold on to your car as long as you can. Trading in a vehicle before the loan has been paid off can lead to higher monthly payments when rolling over the debt into a new loan. This can result in owing more money than your car is worth.

Unexpected financial hardships can happen to anyone. If you are behind on payments or worried about falling behind, here are steps people often take to avoid repossession:

Talk to your lender: Some lenders are willing to work with you. They may adjust the terms of your loan and set up a payment plan that fits your current financial situation.
Catch up on missed payments: If possible, try and get current on the loan. Request late fees and finance charges be removed. Anything to help get the balance down.
Consider bankruptcy: If your car payment is just one of the bills you are behind on, filing bankruptcy might help. Particularly if you have overwhelming credit card debt or medical bills. In some cases, people can keep their car during the bankruptcy process. Consider setting up a free consultation with an experienced bankruptcy attorney to learn more about your options.

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 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. To learn more, visit the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

SOURCE: Repossession Laws in Florida – Upsolve (January 15, 2026)

Bankruptcy Law

What is the 180-day Rule in Bankruptcy?

Posted on May 1, 2026by Admin

When it comes to filing bankruptcy in Florida, timing matters. Aside from things like income limits, exemptions, and credit counseling requirements, the timing of your bankruptcy filing can either protect you or put you at risk. Let’s say, your paycheck arrives late. A tax refund hits your account. A family member passes away and leaves you inheritance money. Any of these events can affect how your bankruptcy case unfolds.

The 180-day rule is a bankruptcy provision that determines whether certain benefits or assets obtained within 180 days after filing must be included in your bankruptcy estate. This means if you file for bankruptcy and then receive or inherit certain types of money within the next 180 days (about 6 months), the bankruptcy court may treat that money as if you had it when you filed. This rule most commonly applies to:

Inheritances
Life insurance proceeds
Property settlements from divorce or separation
Certain trust distributions

If any of these occur within 180 days after your filing date, the assets could potentially be used to repay your creditors. This surprises many filers because they assume only assets owned on the filing date matter. The 180-day rule extends that window, making timing crucial.

How Does the 180-day Rule Affect Chapter 7 vs. Chapter 13?

Chapter 7 bankruptcy: Because Chapter 7 involves, liquidating non-exempt assets, anything covered by the 180-day rule could be taken by the bankruptcy trustee and distributed to creditors. For example, receiving an inheritance three months after filing could mean losing part or all of it.

Chapter 13 bankruptcy: In Chapter 13, you commit to a repayment plan and keep your assets. Assets acquired under the 180-day rule may increase how much you are required to repay over the life of your plan.

What does the 180-day rule not cover?

The 180-day rule does not apply to everything acquired. For example:

Regular wages earned after filing are generally protected
Bonuses tied to post-filing work are usually excluded
Tax refunds depend on when the income was earned, not when the refund arrives

That distinction is why professional guidance matters when it comes to navigating a bankruptcy. 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. To learn more, visit the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Source: What is the 180-day rule in bankruptcy? – CBS News