Month: December 2017

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Reasons to File Bankruptcy before Divorce

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Financial stress caused by the way couples view and spend money can ultimately lead to divorce.  If you are facing both of these issues, does it make sense to file for bankruptcy or divorce, first?  The bottom line: Divorce will most likely not make the financial pressure go away, oftentimes it compounds it.

Here are some reasons why you should file bankruptcy before divorce.

You will save money filing jointly. If you are still married, you can file your bankruptcy case together.  This will allow you to pay one court filing fee, one set of documents and scheduling, one meeting of the creditors and one attorney fee.

Filing for bankruptcy together will free you of any liability on joint debt.  If you file for bankruptcy before divorce you will be off the hook for paying joint debt acquired during the marriage.  However, if you file for divorce first and receive a divorce settlement, you may still be responsible for some (or all) of the joint debt.  Essentially, you may have to cover your spouse’s liability.

Filing jointly doubles the exemption amounts.  When you file for bankruptcy, you are allowed to keep some property in order to regain a fresh start.  These exemption amounts are usually limited or capped.  However, if you file a bankruptcy case with your spouse, in most states you and your spouse will each be able to claim a full set of exemptions.

It saves you time. If one spouse files for bankruptcy in the middle of the divorce case, the bankruptcy judge may take jurisdiction of any property settlements, which can cause delays.  Filing a joint bankruptcy will eliminate most (if not all) unsecured debt, such as credit cards, medical bills and personal loans for both spouses, allowing the divorce to go much smoother when negotiating debt and property division.

It reduces stress.  Eliminating debt and reducing financial pressures can in turn reduce stress in the marriage.  If the marriage ultimately cannot be saved, it can help the divorce proceed more amicably.

Keep in mind, if your spouse files for bankruptcy before or during the divorce case and you do not, you may ultimately be responsible for all of the marital debt. This is because your spouse used the bankruptcy case to eliminate his or her liability on your joint debts.

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 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.

Related Resources:

https://www.thebalance.com/six-reasons-to-file-bankruptcy-before-the-divorce-316343

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Reasons to Delay Your Bankruptcy Filing

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Bankruptcy can be used as an effective tool to take back control of your financial future and get out from under insurmountable debt.  However, sometimes it is best to delay filing your bankruptcy case. Here are some reasons you should do so.

You recently took on additional debt.  If you took on additional debt right before filing, there is a chance that debt will not be discharged in your bankruptcy case.   If you took on the debt knowing you could not repay it or intended to file for bankruptcy, the debt could be considered fraudulent.  Certain debts can be exempt from a bankruptcy discharge.  These include:

  • Cash advances of at least $925 taken out within 70 days before filing bankruptcy;
  • Charges of $650 or more to any one creditor for luxury items made within 90 days before filing bankruptcy.

You recently sold, gave away or transferred property.  If you sold or gave away property two years before filing for bankruptcy, the trustee will scrutinize the transaction.  They do this to prevent the person who is filing for bankruptcy from putting the property in the hands of someone else.  These might be gifts or they may be transferred intentionally to get them out of the bankruptcy case (i.e. – fraudulent transfers).

You expect your income to decrease or your expenses to increase soon.  To qualify for Chapter 7 bankruptcy, your financial circumstances are applied to the Means Test.  This test compares your income and expenses against national and local norms to determine if you have the means to pay at least a portion of the debt.  The higher your income the more likely you are to have difficulty qualifying for the Means Test.   Sometimes depending on your financial circumstances and the timing, it might make sense to wait until the figures used to calculate the Means Test are most favorable.  It is important to work with a professional who has the skill and experience to evaluate all aspects of your financial situation and to build a strategy for your bankruptcy case that meets your specific needs.

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 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.

Related Resources:

https://www.thebalance.com/four-reasons-to-delay-filing-your-bankruptcy-case-316336

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

Wells Fargo Faces Penalties over Ignoring Student Loan Debt Included in Bankruptcy

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An important legal victory was recently obtained for a borrower attempting to discharge a student loan debt.  Ryan, the consumer, filed for bankruptcy and following the bankruptcy Wells Fargo Bank sued Ryan and obtained a state court judgment to collect on the debt.

Ryan had attended Capella University, a for-profit school.  In the case, Educational Financial Services, a division of Wells Fargo Bank, made the argument the loan was not actually discharged in the 2007 bankruptcy.  When Wells Fargo sued Ryan in State Court to collect on the student loan debt they made no mention of Ryan’s previous bankruptcy and discharge.

Ryan felt pressured to enter a consent judgment over the debt in 2008 and made monthly payments of $150 on the loan for the next seven years.  Frustrated, he sought legal help to reopen his previous bankruptcy case and his attorney raised the valid point, “that the loans from Wells Fargo were discharged by operation of law on November 29, 2007, because the loans were not a student debt protected by any subsection of Section 523(a)(8).”

The issue at hand was if Ryan’s discharge had been violated because the loans were not student loans under Section 523(a)(8).

“Given Wells Fargo’s actual and constructive knowledge of the timing of the Plaintiff’s loans, the “cost of attendance” at Capella University, and the nature of the Loans it extended to the Plaintiff, Wells Fargo knew or should have known that the Loans were discharged in the Plaintiff’s bankruptcy,” the complaint states.

The Judge ruled that even though Ryan had previously repaid the debt through the State Court judgment he was not prevented from reopening his bankruptcy and filing an adversary proceeding to rule on the discharge of his non-protected private student loan debt.

This is why it is important for anyone who includes student loans in a bankruptcy to pursue an adversary proceeding to get a ruling on the dischargeability of the loans, a key step which is often overlooked.

Click here to read more on this story.

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 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, 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 website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Hurricanes could bring with it another disaster: Foreclosures

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As life returns back to normal for the hurricane ravaged parts of Florida, Texas and Puerto Rico, housing and consumer experts are warning of another crisis looming: The threat of foreclosure.  Legal aid groups are working with borrowers who are struggling to make their current mortgage payments on homes made uninhabitable by the storm, while paying rent somewhere else.

Approximately, 4.8 million mortgaged properties were in the eye of Hurricanes Harvey, Irma and Maria, representing nearly $746 billion in unpaid principal balances, according to financial data firm Black Knight. In September, the number of loans that were more than 30 days past due rose 48% in Irma-affected areas and 67% in Harvey-affected areas, according to Black Knight found. The numbers have not been run yet for Puerto Rico.

For many homeowners, months of postponed payments were suddenly due all at once after that grace period ended, creating an overwhelming financial burden.

Click here to read more on this story.

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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

New House Bill Calls for Federal Student Loan Caps, End of Public Service Loan Forgiveness

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A new bill from House Republicans could end Public Service Loan Forgiveness for student loans.  The U.S. House of Representatives will consider proposed changes to the Higher Education Act, including limits on the amount of money students and parents can borrow in government student loan programs, and ending loan forgiveness programs for public interest employees.  Approximately a quarter of jobs in the U.S. economy are considered public interest positions.

The earliest someone could receive loan forgiveness under the Public Service Loan Forgiveness (PSLF) program was October 2017, and not a single person has reported receiving loan forgiveness through the program.

The proposal also suggests changes to student loans’ income-driven repayment plans. Currently, if borrowers make payments of between 10 and 15 percent of their discretionary incomes the remainder of their school loans will be forgiven after 20 or 25 years.

Rep. Virginia Foxx (R-N.C.) and Rep. Brett Guthrie (R-KY) of the House Committee on Education and the Workforce introduced the 542-page legislation known as the Promoting Real Opportunity, Success and Prosperity through Education Reform (PROSPER) Act. The PROSPER Act, if implemented, would have borrowers in income-driven repayment plans “pay 15 percent of discretionary incomes for as long as it took to cover the amount they would have paid under a 10-year standard repayment plan,” according to the Wall Street Journal.

Click here to read more on this story.

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 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, 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 website at www.miamibankruptcy.com.

Related Resources:

https://www.forbes.com/sites/zackfriedman/2017/12/06/house-bill-student-loan-forgiveness/#1f25540b7990

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

5 Signs it’s Time to File for Bankruptcy

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Filing for bankruptcy is a complicated process and a decision that should not be taken lightly.  But for some, it is the only solution that will get them out of debt and serious financial problems.  So how do you know if bankruptcy is right for you?  Here are five signs it’s time to consider filing for bankruptcy:

You are being sued by debt collectors.  When you fail to make payments on a debt, that debt gets turned over to a collection agency.  If the collection agency’s calls and letters go unanswered they may file a lawsuit against you.  Fighting these lawsuits can be difficult and if you lose, you will likely end up paying more in attorneys’ fees and court costs.  It is best to not let it get to this point.  Filing for bankruptcy provides you legal protection against creditors and debt collectors.  Once the automatic stay is issued, it bars any additional collection attempts, including lawsuits being filed against you.

Your credit cards are maxed out.  This not only is affecting your credit score negatively, but you are likely trapped in a cycle of making only the minimum payment on these cards while the interest accrues to amounts you will never be able to pay off.  Credit card debt is one of the easiest kinds of debt to discharge in bankruptcy.

Your wages are being garnished. If a creditor obtains a court order for a wage garnishment, your employer is required by law to abide by the order and withhold money from your check each pay period until the debt is paid off.   If your wages are being garnished you can still be protected by the automatic stay, which will halt further wage garnishment.

You cannot afford your bills.  If you were recently laid off from your job or had an unexpected medical expense, for many Americans it is just a matter of time before even a small amount of debt can spiral into something much greater.   Chapter 7 bankruptcy is specifically designed for individuals and families whose income level is not sufficient to pay their debts.

You are in danger of losing your home.  If your financial situation has reached the point where you are behind on mortgage payments and facing possible foreclosure, filing for bankruptcy can help you get caught up on those payments while staying in your home.

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 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.

Related Resources:

https://smartasset.com/credit-score/4-signs-its-time-to-file-bankruptcy

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

New Survey Reveals the Hidden Cost of Debt

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A survey of more than a thousand U.S. adults conducted by Harris Poll revealed that over half of the respondents said debt had negatively impacted their life.  Some of the top sources of concern among respondents included: “relationship tension” with a spouse or partner (21%) causing them to mislead family or friends about their “financial situation” (11%), many worried about their debt in general, (31%), at work, (18%) and before they went to bed (25%), according to the survey.

All of these worries led many to stress about everyday financial decisions because of their debt (28%). Some of the respondents received letters and calls from collection agencies (19%).

However, it was Millennials who showed the greatest signs of stress, with 68% saying debt has had a “negative impact” on their everyday life, a higher percentage than other generations surveyed such as Baby Boomers (48%) and GenXers (59%).

Click here to read more on this story.

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 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.