Month: February 2018

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

How to Know If You Qualify for Chapter 7 Bankruptcy

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The bankruptcy Means Test determines whether your income is low enough to file for Chapter 7 bankruptcy. The test is designed to keep high-income earners from filing Chapter 7 bankruptcy and limited to consumers who truly need it and cannot afford to repay their debts.

If the Means Test proves your income is too high to file Chapter 7 bankruptcy, you can file Chapter 13 bankruptcy and repay a portion of your debts (typically over a three-to five-year period).  Even with the requirements to pass the Means Test, it does not mean you have to be penniless to file Chapter 7.  In fact, you can earn significant monthly income and still qualify for Chapter 7- depending on the expenses you have.

The Means Test determines if you qualify for Chapter 7 by deducting specific monthly expenses from your “current monthly income” (i.e. – your average income over the six calendar months before you file for bankruptcy) to arrive at your monthly “disposable income.” The more disposable income you have, the more likely you will be required to repay your creditors.

The first step of the Means Test is to determine whether your income is more or less than the median income in your state.  Median income levels vary by state and household size.  Also, each county and metropolitan region has different allowed amounts for categories of expenses, such as necessities, housing, and transportation.  You can enter your zip code into the Means Test Calculator to determine the income requirements for your specific location.

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

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

New Study Reveals- 24 Percent of Americans have more Credit Card Debt than Savings

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The new statistic comes from a 2017 Bankrate study, which also revealed only 52% of Americans have emergency savings that exceed their outstanding credit card balances.  Meanwhile, the average U.S. household owes $7,136 in credit card debt and an estimated 57% have less than $1,000 in the bank.

There are ways to break the cycle of debt and boost savings simultaneously.  It starts by creating a budget. Without a budget, you will have no idea where your money is going each month and where you can cut corners.  Downsizing your living space can free up several hundred dollars a month.  But keep in mind, cutting back on leisure purchases, eating out and clothing can do the same.

Taking on a side-job to earn extra income is another way to pay down debt and boost savings.  Of the 44 million Americans who currently have a second job for supplemental income, more than one-third bring home upwards of $500 a month as a result.

Getting out of the debt cycle begins with creating a realistic budget and getting a grasp on your current financial situation.  There are specific ways you can deal with high interest credit card debt.   If you are struggling with insurmountable debt, whether it is credit card debt, medical debt or student loan debt, consider sitting down with an experienced Miami bankruptcy attorney for a free consultation who can assess your financial situation in more detail and let you know if bankruptcy is right for you.

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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.

Student Loans, Timothy Kingcade Posts

Is refinancing your student loan debt a good idea?

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Well, it depends.  It depends on the terms of the loan.  With so many Americans struggling to pay back their student loans, refinancing can seem appealing, but it also has risks. Student loan debt surpassed $1.3 trillion in the United States in 2017 – and nearly 3,000 loans go into default every day, according to federal regulators.

Refinancing can look like an attractive option, offering borrowers a way to lower their monthly payments.  But essentially what it does is sell the debt to another lender under new terms.  Oftentimes, that comes at the expense of a longer lifetime of the loan.

Carefully examine the terms, because extending the terms of the loan could cost you significantly more money in the long run.  It is important to check the following before considering refinancing your student loan debt:

  • The length and interest rate of the loan;
  • Whether the interest rate is variable or fixed (Fixed is best right now, because rates are low);
  • Check for up-front origination fees;
  • Compare refinancing offers and read the contract carefully;
  • Always check if you are eligible for income based repayment plans, before you consider refinancing options.

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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 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, Timothy Kingcade Posts

Florida Ranks in the Top 10 for Highest Foreclosure Rates

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Even with economic improvement, Florida ranked among the top 10 states with the highest foreclosure rates in 2017, despite the number of foreclosures dropping by 45% compared to 2016. Last year in Florida there were 24,215 foreclosure proceedings filed, compared to 43,772 in 2016, according to ATTOM Data.

Here are the states with the highest foreclosure rates in 2017:

  1. New Jersey (1.61 percent of housing units with a foreclosure filing);
  2. Delaware (1.13 percent);
  3. Maryland (0.95 percent);
  4. Illinois (0.86 percent);
  5. Connecticut (0.78 percent);
  6. Florida (0.72 percent);
  7. South Carolina (0.70 percent);
  8. Ohio (0.70 percent);
  9. Nevada (0.67 percent);
  10. New Mexico (0.63 percent).

Florida ranked among the top states with the highest number of legacy foreclosures on loans originated between 2004 and 2008. Miami-Dade County ranked among the highest number of legacy foreclosures in the nation. The top counties were: Nassau County (Long Island), New York (6,782); Cook County (Chicago), Illinois (5,478); Kings County (Brooklyn), New York (4,677); Miami-Dade County, Florida (3,804); and Suffolk County (Long Island), New York (3,417). In the fourth quarter of 2017, Florida also ranked near the top of all states with the longest average time to foreclose, on average 1,493 days.

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.

 

Foreclosures, Timothy Kingcade Posts

Millions Left Unspent after State Ends Federal Foreclosure Aid

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This week Florida closed its three largest Hardest Hit federal housing-aid programs, years early- leaving $88 million unspent.  This closes three opportunities for struggling homeowners, which includes: mortgage help for the unemployed and underemployed, aid on delinquent home loans and mortgage principal reduction.

Florida’s Hardest Hit program helped only about half the number of the approximately 100,000 Floridians who applied since it launched in 2010. The program was troubled from the start, with “technical issues” such as rolling out with crashed computers and an eight-month delay to get approved.

Compared with 17 other states that were part of the program, Florida had the lowest admission rate, even though Florida had one of the most severe home-price corrections in the nation, according to a 2015 federal report.  The delayed disbursement of money from the program has not gone unnoticed and has drawn criticism.

“It’s criminal,” said one Florida resident, who tried unsuccessfully to apply for the funds. “I had all my ducks in a row but could not get through on the phone. I ended up standing in their lines, but there was no follow-up. It was a complete waste of time.”

Another Florida applicant said, “They put me through the ringer. They were so rude, so ugly. I tried so many times. I got turned down so many times. It was just totally ridiculous.”

U.S. Rep. Darren Soto, D-Orlando, said the money approved during the Obama administration could have been deployed quickly to help speed up Florida’s recovery from the crash and save families from foreclosure.

“Unfortunately, Governor Scott and Republican legislators dragged their feet for years in getting the FHFC [Florida Housing Finance Corporation] to deploy significant funds and various assistance programs, undermining the effort and stifling its effectiveness,” Soto said. Though the state has moved toward recovery, it remains one of the few yet to rebound fully, according to data from the National Association of Realtors.

Sen. Bill Nelson, D-Florida, has consistently called for investigations into Florida’s oversight of the federal spending program.

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.