Month: June 2015

Bankruptcy Law, Timothy Kingcade Posts

Reasons to File for Chapter 7 Bankruptcy Instead of Chapter 13

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If you have decided that bankruptcy is the right solution for your financial situation, the next step is to determine which type of bankruptcy is best.  If you are an individual or small business owner, your most obvious choices are either a Chapter 7 or Chapter 13 bankruptcy.

Below are some of the key advantages associated with filing Chapter 7 bankruptcy:

  • Get a fresh start! The goal of Chapter 7 bankruptcy is to wipe the slate clean of all past debts (this excludes certain debts such as student loans, child support, alimony, taxes and debt incurred by fraud), giving the debtor a fresh start.    As opposed to a Chapter 13 bankruptcy, debts are forgiven without any attempt at repayment.
  • Keep future income. The property a debtor acquires after filing for Chapter 7 is not included in the bankruptcy estate.  This excludes property a debtor acquires within 180 days after filing for Chapter 7.  This rule applies to inherited property, property from a divorce or settlement agreement, death benefits or proceeds from a life insurance policy.
  • No limits. As opposed to Chapter 13 bankruptcy, Chapter 7 bankruptcy does not impose a limit on the amount of debt a filer may have.
  • Quick process. In most cases, Chapter 7 clients can receive a complete discharge of all of their debts in as little as three months.
  • NO repayment plan. Unlike Chapter 13 bankruptcy, the debtor does not have to repay debt in a court-approved repayment plan.  After receiving a Chapter 7 discharge, the debtor is no longer responsible for repaying the debt.

It is important to know that Chapter 7 bankruptcy does require a debtor to pass the “means test,” which determines whether your income is low enough to file.   The means test was designed to limit the number of Chapter 7 filers to those who truly cannot afford to pay their debts.  However, you can earn significant monthly income and still qualify to file for Chapter 7 if you have a lot of expenses, such as high mortgage payments, car loans, medical debt, taxes and other related expenses.

If you have any questions on this topic or would like to know which bankruptcy option is best for your situation, contact an experienced Miami bankruptcy attorney .  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://bankruptcy.findlaw.com/chapter-7/reasons-to-file-for-chapter-7-bankruptcy-instead-of-chapter-13.html

http://www.moneycrashers.com/chapter-7-vs-chapter-13-bankruptcy/

http://www.alllaw.com/articles/nolo/bankruptcy/which-type-chapter-7-chapter-13.html

http://www.nolo.com/legal-encyclopedia/chapter-7-bankruptcy-means-test-eligibility-29907.html

 

 

Bankruptcy Law, Timothy Kingcade Posts

Misleading Debt Collection Texts Tackled by the FTC

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The Federal Trade Commission (FTC) is cracking down on certain debt collectors who are using text messaging as a way to trick consumers into calling them back. While many debt collectors may reach out to consumers via text, others are doing so without following the rules associated with it.

Federal Courts in Georgia and New York recently closed down 3 debt collection agencies when they were accused of sending deceptive and even threatening text messages to consumers. Debt collectors had been reported using false statements to lure consumers into call them back. Texts included verbiage such as:

“YOUR PAYMENT DECLINED WITH CARD ****-****-****-5463 . . . CALL 866.256.2117 IMMEDIATELY.”

“YOUR PAYMENT FOR $[AMOUNT] IS SCHEDULED FOR [DATE]. CALL 866.257.2117 WITH ANY QUESTIONS OR CONCERNS.”

Chris Koegel, Assistant director of the FTC’s Division of Financial Practices, explained, “People think there’s a problem with their credit card or that they’re about to get charged for something.” Once they call in, they are quickly bombarded with debt collection attempts and threats of arrest or lawsuits.

Many define this way of doing business as “despicable.”  The law indicates that debts collectors are required to fully identify themselves and their purpose for communication, every time they contact a consumer. Debt collectors that are legitimate are fully aware of the rules and they cannot harass, threaten or lie to you.

Within five days of being contacted, debt collectors are also required to send you a “validation notice” in writing, indicating the amount owed, the creditor’s name, and steps to follow if you want to dispute the amount.

It is advised that you never respond to a debt collector until you receive the validation notice. If you receive one of these deceptive messages and call a debt collector, hang up and file a complaint immediately. The FTC website provides more information on how to deal with these debt collectors.

If you are in a financial crisis and are considering filing 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.

Source: http://www.nbcnews.com/business/consumer/ftc-cracks-down-deceptive-debt-collection-texts-n374341

Bankruptcy Law, Credit, Timothy Kingcade Posts

Miami Bankruptcy Attorney Timothy S. Kingcade Named to the 2015 Florida Super Lawyers List

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Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade & Garcia, P.A. (www.miamibankruptcy.com) has recently been listed in Florida Super Lawyers 2015 in the area of consumer bankruptcy law.  Super Lawyers represents the top 5% of Florida lawyers who have attained a high degree of peer recognition and professional achievement.

Super Lawyers is a listing of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The annual selections are made using a patented multiphase process that includes a statewide survey of lawyers, an independent research evaluation of candidates and peer reviews by practice area.  The result is a credible, comprehensive and diverse listing of exceptional attorneys, representing the top five percent of attorneys in each state.

Timothy S. Kingcade founded the law firm of Kingcade & Garcia, P.A., in 1996. Today, he and his firm handle more than one thousand bankruptcy filings each year. As Managing Shareholder of Kingcade & Garcia, P.A., Timothy and his firm represent clients throughout the State of Florida in Chapter 7 bankruptcy, foreclosure defense, personal injury and PIP claims. To compliment Attorney Kingcade’s extensive legal experience, he is also a certified public accountant (CPA), which provides him with a unique understanding of how to handle tax-motivated bankruptcy cases against the IRS.

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Miami-based Kingcade & Garcia, P.A. was established by managing partner and attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy, foreclosure defense, personal injury and PIP claims. The firm is committed to providing personalized service to each and every client. The office environment and the service provided are centered on a culture of superior client care. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Shedding Light on Payday Loan Dangers

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With payday loan stores so prevalent, the options for consumers seem endless. Today, consumer advocates are becoming more concerned with the real dangers surrounding these payday loans. High interest loans and scam loans are a growing problem that many consumers are still not fully aware of and experts claim that this risk goes beyond the normal cycle of debt associated with payday loans. Randy Hutchinson, the president of the Better Business Bureau, discussed the growing dangers of payday loans not only at the traditional walk-in stores but online as well.

According to experts, online payday loans often appear to be more convenient and discreet when in fact these have serious  risks that consumers must carefully consider. A major part of the problem is that consumers do not truly know who they are giving their information to and if the said company is even genuine. Furthermore, the online company may not even be licensed to conduct business in the state you live in.

A recent report by the Howard University Center on Race and Wealth revealed that 12 million Americans in lower income areas use payday loans annually, with an approximate average of 8 payday loans a year. These loans originally cost $375 on average, yet rack up nearly $520 in interest charges.

In Florida, storefront payday loan locations were far more common in lower income neighborhoods. The report also revealed that of the 1,277 pay day loan stores operating in Florida in 2014, more than 1,000 were located in communities with annual incomes falling between $30,000 and $40,000.

Recently, a Florida based company was shut down by the Federal Trade Commission for falsely offering payday loans to customers when in reality they were stealing their money, with no intention of providing a loan of any sort.

Whether you choose to apply for a payday loan either online or at a store front location, experts urge consumers to be careful, fully understand the associated fees and risks, and thoroughly check out the company before doing business with them.

If you are in a financial crisis and are considering filing 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.

Sources: http://wreg.com/2014/10/13/avoid-online-payday-loan-scams/

http://consumerist.com/2015/01/30/report-spotlights-impact-of-payday-lenders-on-most-vulnerable-communities/

Bankruptcy Law, Credit, Timothy Kingcade Posts

Bankruptcy case could result in hundreds being left without water

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A New Mexico grandmother, known as “the water lady” provides much needed water to hundreds of residents in the southeastern corner of the Navaho Nation, who lack an adequate water source. After visiting a well located at the St. Bonaventure Indian Mission and School, she fills up the 4,000-gallon water tank on her sturdy Chevrolet truck and spends the next 7 hours delivering this precious commodity to residents in need.

“These people really depend on the water truck,” she said tearfully. “That’s why I love my job.”

People in the area are concerned about a bankruptcy case filed by the Diocese of Gallup that has involved the St. Bonaventure Indian Mission and School. This year, a judge has approved plans to appraise several properties, including the 40 acres of land in St. Bonaventure, in an effort to cover bankruptcy reorganization costs.

According to court records, St. Bonaventure is viewed as one of the “key properties” considered for lien, liquidation or other uses. The school’s executive director said, “Depending on where this goes, we could lose the mission and the school.”

Mission property includes the well that offers the only free water source for hundreds of families.  Besides the mission, a 60-mile drive to Gallup offers the nearest source of drinkable water and users must pay a fee for the water.  The school has 65 employees and 215 enrolled students from pre-kindergarten to eighth grade. Mediation has been scheduled this week to discuss St. Bonaventure’s fate.

If you are in a financial crisis and are considering filing 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.

 

Sources http://www.abqjournal.com/592273/news/bankruptcy-case-could-leave-hundreds-with-no-water.html

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Florida Condominium Law after Bankruptcy

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Florida condominium owners may find themselves in a situation where they must file for bankruptcy. Oftentimes, owners want to know what will happen regarding their Condominium Owner Association (COA) assessments or fees, especially if they have fallen behind on payments. There are some important laws pertaining to these dues that every condominium owner should know.

If you own a condominium and must file for bankruptcy, condominium assessment liens can be removed if you are unable to pay them. According to the U.S. Bankruptcy Court, this means that the condominium fees would not need to be paid if the first mortgage amount surpasses the value of your property.

In the past, some Condominium Associations have argued against this, stating that its statutory lien should receive priority, because any first mortgagee gaining title from foreclosure is only required to pay either 1% of the original mortgage debt or a year’s worth assessments (the lesser of the two).

Since then, the court has rejected these arguments, citing Florida Statues, Section 718.116(1)9b. The law states it: “does not give the Association any lien rights (against a foreclosing lender for outstanding delinquencies). It merely gives it the right to assert liability for past-due assessments against the mortgage holder if the mortgage holder acquired title through foreclosure.”

While typically most debts listed in a bankruptcy petition, including condominium assessments and fees are dischargeable, there are certain types of debt that are not dischargeable. According to Section 523 of the 2005 Bankruptcy Reform Act, post-bankruptcy condominium or cooperative owner’s association fees are not dischargeable. This means that condominium owners would owe any assessments or fees owed after their bankruptcy petition is filed.

Condominium owners face “post-petition debt,” which is subject to collection. If you fail to pay your assessments that have accumulated after your bankruptcy filing, your COA can request the court to lift the automatic stay, allowing them to collect that post-petition debt.

If you have any questions on this topic or are in a financial crisis and are considering filing 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.

Source: http://rpmshomes.com/happens-condo-owner-declares-bankruptcy/

Bankruptcy Law, Credit, Timothy Kingcade Posts

Post Bankruptcy Creditor Violations a Growing Problem

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If you file for bankruptcy and your debts are discharged, it means your debts have been legally forgiven and you no longer owe that amount. Unfortunately, many creditors fail to acknowledge this and may still attempt to collect the debt, even after a discharge. Occurrences of consumers experiencing debt collection attempts like these are a growing problem.

Sometimes debts that are forgiven by bankruptcy courts may be sold to a junk debt buyer, spawning continued harassment for consumers. In many cases, consumers wind up paying off debts they no longer owe. If a lender fails to revise their records on your credit report, this could pose a serious problem. One consumer experienced this with Capital One when he tried to secure a mortgage on a new home. Capital One demanded he pay the balance in order to proceed with the home purchase.

The law clearly defines your rights regarding debts that have been discharged in bankruptcy court. It is crucial that consumers are aware of these rights. You have the right to file a motion with the court and report the action, if a creditor attempts collection on a discharged debt. A discharge means that a permanent statutory injunction has been set in place, stopping creditors from collecting the discharged debt. Creditors who violate this injunction can face hefty fines.

Even though it is illegal for creditors to pursue discharged debts, the trend continues. In an effort to stop this and hold creditors accountable, the FTC has begun working on new regulations designed to stop creditors from going after discharged debts in court.

If you are in a financial crisis and are considering filing 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.

Sources http://www.creditinfocenter.com/debt/dischargeddebtsreturn.shtml

Foreclosures, Timothy Kingcade Posts

Justice Achieved for Victims of Florida Foreclosure Relief Scam

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Recently, a federal judge granted final judgment against a local Florida law firm and its associates for operating a massive foreclosure relief scam. The Consumer Financial Protection Bureau (CFPB) and the state of Florida claimed that the firm and its affiliates had fraudulently charged fees from approximately 2,000 clients who were seeking foreclosure relief. The firm was sued by CFPB and the state of Florida for violating both Florida law and a federal rule concerning mortgage assistance.

$11.7 million of unlawful advance fees were collected by the law group and its affiliates, all of which they will be liable for. The firm must also pay a $10 million civil money penalty that has been issued for the CFPB, as well as a $6 million penalty to Florida, totaling  $27.7 million for their involvement in the scam. However, the majority of these penalties will be uncollectable. Last year both the CFPB and Florida froze the companies’ assets and the firm’s remaining assets, which are just over half a million dollars. CFPB Director Richard Cordray stated, “We are working to protect consumers from illegal predatory practices by holding bad actors accountable for their actions.”

The firm managed to lure clients in with deceptive marketing tools and false expectations for loan modifications and protection from foreclosure. Unsuspecting homeowners seeking to adjust their loans and keep their homes were charged an upfront fee of $6,000. A monthly payment of $495 was also collected from the homeowners. According to court documents, the firm violated federal rules by discouraging clients from communicating directly with their lenders or servicers, claiming they would handle all communications for the homeowners.

The CFPB explained, “Companies cannot legally accept payment for helping to obtain a mortgage modification for a consumer before the consumer has a modification agreement in place with their lender.” At this time, CFPB reports that the companies have been permanently disbanded and are no longer able to do business of any sort. The law firm’s associate has also relinquished his license to practice law in the state of Florida.

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 Kingcade & Garcia website at www.miamibankruptcy.com.

Sources: http://www.americanbanker.com/news/law-regulation/cfpb-florida-win-case-over-alleged-foreclosure-relief-scam-1074596-1.html
http://www.housingwire.com/articles/34036-cfpb-secures-277-million-judgment-against-foreclosure-relief-scammers

Bankruptcy Law, Student Loans, Timothy Kingcade Posts

How Long can Student Loans Harm Your Credit?

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Many borrowers are concerned with the repercussions of missing student loan payments. Oftentimes, it is hard to say how long it may affect one’s credit because each loan program tends to operate differently from the next. Those with past due private student loans can expect the debt to appear as a typical negative mark on their credit score, eventually clearing from the credit report after seven years. The majority of federal student loans will also drop off after seven years as well.

The Perkins loan is a type of student loan—the only of its kind—that remains on your credit report until is completely paid off, regardless of the number of years. The Higher Education Act’s provision allows the Perkins loan to affect your credit differently than other types of loans. Colleges distribute the Perkins loan on an “as-needed” basis and the interest is deferred while the student is actively attending school.

It is required that all federal loans are reported to the three major credit reporting agencies but often this information is given voluntarily. The Department of Education, Guaranty agencies, federal student lenders and the Department of Education are also required to provide information pertaining to extended loans, remaining balances, and loan delinquency dates if the loan is past due or in default. While defaults and delinquencies are reported for seven years, this can happen multiple times, resulting in new negative marks that remain for seven years after each occurrence. Lenders are not required to report loans that have been paid on time, therefore positive payment histories will not likely be reported regularly.

There are solutions to help you protect your credit moving forward. If you are behind on your student loan payments, initiate a catch up plan. This can include repayment options such as an income-based repayment plan. Continuing to make on-time payments will reflect positively on your credit score and protect more damaging marks from arising due to missed payments. Often this results in the removal of default notations on your credit report. Certain lenders may cease reporting late payments if this is done.

For borrowers with multiple student loans, consolidation is a smart idea for simplified repayments. Consolidation does not alter the original late payment date of the loans, but consistent payments will help generate positive activity on your report, which will in time make the negative information have less of an impact. Additional ways to rebuild your credit report with positive information is to make sure you pay your credit cards on time and keep the balance low in relation to the credit limit, preferably less than 30%.

Every year you are entitled to a free credit report, directly from each of the three major credit reporting agencies. Make sure the information on your report matches your activity. If it does not, you can dispute it to have it possibly removed.

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. It is important you 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.

Sources:
http://www.usatoday.com/story/money/personalfinance/2015/04/05/credit-dotcom-student-loan-credit/70729620/

Bankruptcy Law, Timothy Kingcade Posts

Housing Debt is Affecting More Older Americans

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Many older Americans face financial threats such as falling for money scams, running out of savings and not having adequate retirement plans in place. Since the housing market collapse and the worst recession American has seen since the 1930’s, millions of retirees are now struggling to make their mortgage payments.

Over the last twenty years, retirements have dwindled for the baby boom generation, as employers get rid of traditional pensions. American seniors are dealing with devastating financial consequences after using their retirement funds to cover housing costs. As a result, many must return to work again or seek help from charities, government programs or even their children.

According to the Consumer Financial Protection Bureau’s Office for Older Americans, 30% of homeowners, ages 65 and older paid a mortgage in 2013, approximately 6.5 million seniors. The median mortgage amount for seniors has also doubled from $43,400 to $88,000, since 2001. A significant amount of older Americans were left with mortgages exceeding their home’s value, after the housing market crisis. Hundreds of thousands of these seniors have even lost their homes to foreclosure. AARP found in a 2012 study that that between 2007 and 2011, 1.5 million Americans over 50 lost their homes.

One struggling retiree cannot manage the financial weight left behind by her late husband. “I’ll live on the streets, I guess,” she says, considering homelessness at age 74.

Reverse mortgages is another problem retirement age Americans have run into. These loans against the equity of their property, supplied cash to the homeowners, but once they passed on or sold the house, the money was due. Many seniors faced problems when their spouse signed the reverse mortgage, to qualify for a larger loan, only to pass on shortly thereafter. Often lenders then demanded full repayment, with foreclosure as the unfortunate alternative.

If you are in a financial crisis and are considering filing 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.

Sources:
http://www.foxnews.com/us/2015/06/02/more-older-americans-are-buried-by-housing-debt/
http://www.usatoday.com/story/money/2015/06/02/older-americans-housing-debt-retirement/28358093/