Tag: Chapter 7

Bankruptcy Law, Debt Relief

Bouncing Back from Bankruptcy Can Happen Sooner than you Think

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There are many misconceptions surrounding the amount of time it takes to rebuild credit after bankruptcy.  But a new study reveals that individuals who file for bankruptcy can improve their credit score sooner than they think.

According to a recent study by LendingTree, more than 40 percent of consumers end up having a credit score of 640 one year after filing for bankruptcy. Approximately 65 percent of filers see the same score, at least, three years after the bankruptcy case is over.

What the study showed was that it is possible to bounce back from a bankruptcy, and relatively quickly. With proper planning and financial insight, it is possible for a bankruptcy filer to get back on his or her feet financially.

It helps to first evaluate how you got to the situation where bankruptcy was needed. Were you spending beyond your means and relying too heavily on credit? Perhaps a medical crisis brought on the debt or an unfortunate event like the loss of a job or a divorce caused the hardship.

The next step is to work on rebuilding your credit. One of the best ways to get credit back to where it once was is to pay all bills on time every month. Missing a payment is such an easy way to hurt your credit score. Put together a budget, see what your monthly expenses are, and stick to that budget. Make sure you have enough income every month to meet your monthly obligations, and set up automatic payments, if needed, to be sure no bills are missed.

In addition, the use of a secured credit card can also help rebuild credit. While these cards do have higher fees and lower spending limits, they can be excellent ways to build up credit and show that you can continue making payments on a card on a regular and consistent basis.

Once you use a secured credit card for a period of time, try to find a card with a lower interest rate. However, the key is to not overspend with this card. Use the card for only necessary expenses and make sure that the balance is paid off in full on a monthly basis.

Experts also recommend that you set up an emergency fund or savings account in the event you run into a financial crisis again in the future. Try putting away a small amount of money regularly on a monthly basis, if not setting up an automatic transfer into savings if possible. By having this emergency fund there, you are protecting yourself from having to rely on credit again in the event a major crisis occurs.

Following these tips and recommendations can help you rebuild your credit after bankruptcy. It may seem like the impossible dream, but with hard work and determination, it is possible.

See what some of our clients have to say about their credit score after filing for bankruptcy…

My credit score said on all three reports 775, I couldn’t believe that I had such a great score before 10 years. Tim for me was the best move I have made for my situation. I have no regrets, I am glad the past is the past. – Bill T.

Hi Tim- I just wanted to send a quick note and thank you and your team for handling my bankruptcy case.  It is only a month or two after discharge, and my credit scores are already in the upper 600’s.  I’ve sent a screenshot if you would like to use this to show prospective clients. – C.S.

Click here to read more on this story.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

How to Lower Credit Card Debt and Improve your Credit Score

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Having a good credit score can make many things in life easier, especially when it comes to purchasing a new home or vehicle. However, it can be easy to get off track. Credit card debt with a high interest rate is one way to lower your credit score, but for many Americans, that is exactly what has happened to their financial situations.

The problem of credit card debt may be more widespread than we think. According to Experian, the average American consumer owes more than $6,000 in credit card debt. This figure has gone up three percent in just one year. This amount of debt can be very difficult to get out of, even for someone earning a decent annual income.

Retail credit cards can be particularly tempting, especially when offered a great deal at the cash register, but these cards come with high interest rates and can be easy to rack up debt. Unless you are able to pay the retail card off in full after making the purchase, it is not recommended that you sign up for these department store cards.

Many consumers believe that not having a credit card is best when it comes to staying out of debt, but it is important to at least establish a credit score. Having one card, using it for minimal expenses and making payments on the balance in full on a regular basis every month can be an excellent way to establish that strong credit score. In fact, by having a high credit score, you have a better chance of getting a card with a low interest rate when opening the account.

What happens if you do have credit card debt that has gotten out of hand?  If possible, it is best to make a larger payment than the minimum payment amount. If any extra money is available in the person’s budget, it is best to put that extra money towards paying the debt. In addition, it can help to focus efforts on one card at a time, usually the card with the highest interest rate first. Once that card is paid, focus all the money that was going towards the first card on the next one and so on until the accounts are paid in full.

If you are not able to keep up on payments, contact the credit card company to negotiate a lower payment. If you fall behind on payments, it may be wise to contact a credit counselor to discuss repayment plans or negotiate the debt amount. If you are not able to make either of these options work, it may be time to talk to a bankruptcy attorney to discuss the options available to help eliminate the debt.

Click here to read more on this story.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law

Financial Options for Students to Discharge Private Student Loans in Bankruptcy

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Many students take out a combination of federal and private student loans to cover the costs of a higher education. Discharging federal student loan debt has been difficult for borrowers struggling to make payments- but there are ways to file for bankruptcy with student loan debt. Private student loans are not handled in the same manner as federal loans when it comes to bankruptcy.

Student borrowers who were not able to repay their loans or did not qualify for public service loan forgiveness or flexible student loan repayment plans, often considered bankruptcy as a back-up plan. After July 1, 2019, this concern will be even more pressing as Congress is hoping to end certain repayment programs, including public service loan forgiveness. For these students, the good news is they will be able to have their private student loans forgiven in bankruptcy, unlike their federal loans.

If the loan is a federal loan, it will only be discharged in the event the borrower is able to claim undue hardship, meaning he or she will need to file a petition for determination of undue hardship with the bankruptcy court. This hurdle can be a tough one for the borrower to clear and often results in the borrower not being able to clear the debt through discharge.

Additionally, if you have private loans that were for a school that is not accredited, the loans can likely be discharged in a bankruptcy. For these loans to be protected and not discharged, the school must be considered an “eligible educational institution” or the private loans must be for a “qualified higher education expense.” To qualify as a private student loan, an accredited school must have also offered Title IV federal loans.

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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. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

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

What Happens to Student Loan Debt When You Die?

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One of the more common questions asked by student loan borrowers has to do with what happens to the obligation if the borrower dies before the loan is paid in full. Does the loan die with that person, or will their loved ones be held responsible for paying it off after the borrower’s death?

According to the U.S. Department of Education, if the borrower of a federal student loan dies, the loan is automatically canceled, and the debt is discharged by the government. Unfortunately, private student loans do not offer the same liability protections. Whether or not your private student loans will be discharged when you die depends upon your student loan contract. It is important to check the terms regarding death and disability discharge in your student loan contract.

Some private loans, including Sallie Mae’s Smart Option Student Loan or New York HESC’s NYHELPs loans, do offer death and disability forgiveness in the event the borrower dies or becomes permanently disabled.  However, not all lenders are so generous.

If the student loan borrower is married, many believe that the spouse of the deceased remains liable for the debt. With traditional student loans, if the spouse is not listed as a joint account holder or a co-signer, the spouse is not legally liable for the debt. If the spouse did co-sign for the loan, he or she may still be liable for the student loan just as he or she would with any other co-signor obligation.

If the borrower lives in a community property state with his or her spouse, and the borrower dies, the spouse will be considered liable for the debt, regardless of whether the spouse’s name was ever on the original student loan unless the state has exceptions in its own laws. The states that are community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

The state of Alaska is unique in that married couples can choose to opt into a community property situation, but it is not required. For the other states that are not community property states, so long as the debt was never co-signed or jointly in the name of the deceased borrower, the surviving spouse will not be held responsible for the debt.

One important issue that should be addressed involves the tax implications of the student loan debt of the deceased being forgiven. Even if a student loan is cancelled or discharged due to a death or disability, the deceased’s estate may owe taxes on the amount that is forgiven before the estate can be closed. Therefore, while the surviving spouse or loved ones of the deceased may be in the clear when it comes to the actual debt itself, they may still owe something when it comes to taxes on the amount that was forgiven.

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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. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Which Business Debts Are Discharged in a Chapter 7 Bankruptcy?

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If you are struggling to pay off business debts, filing for bankruptcy can help.  A bankruptcy is not just a way to liquidate a business, it can serve as a way for you to keep your doors open while you reorganize and regroup.  Business owners can file for Chapter 7, Chapter 11 or Chapter 13 bankruptcy.  You may have questions about what types of business debts can be discharged in an individual Chapter 7 bankruptcy case. It depends ultimately on the type of business as well as the debt.

The types of debts that can be discharged in a Chapter 7 bankruptcy case include:

  • Unsecured debts, such as credit card bills or medical bills;
  • Some legal judgments;
  • Unsecured debts owned by a sole proprietor;
  • Obligations included under a lease or contract that were entered into by a sole proprietor, including commercial and residential property leases or equipment rental leases; and
  • Personal loans or promissory notes.

This list of debts includes only unsecured debts, meaning these debts are not connected to collateral or a piece of property. Secured debts are handled under different rules and require other considerations and depend on other factors, including whether a deficiency between what the property is worth and the amount that is owed on the property exists.

If your business is a sole proprietorship, you and your business are treated equally, which means that any unsecured debt that was obtained under the sole proprietorship can be discharged through a Chapter 7 bankruptcy case. If the business owes on a secured debt, this secured debt will be treated just as it would be treated in an individual bankruptcy filing.

If the business is a partnership, it is considered a separate legal entity. If the partnership files for bankruptcy, no discharge exists for the business debt. Normally the bankruptcy trustee will close and liquidate the business, selling the business or its assets to pay off the creditors. In a general partnership, all partners are personally liable for any business debt under the partnership. If the partnership fails and the bankruptcy court must liquidate the debts of the business, if there is still money owed on the debts due to the assets not being enough to satisfy the debts, the bankruptcy trustee can go personally after the partners to satisfy any outstanding obligation. It is usually advisable for the individual partners to file for Chapter 7 bankruptcy in their own names and discharge both the personal and business debts.

If the business is a corporation, it can file for Chapter 7 but will not receive a bankruptcy discharge of the business debts. Just like a partnership, the bankruptcy trustee will close the business and liquidate it under a Chapter 7 case, using that money to pay off the outstanding obligations. However, since shareholders are normally involved in a corporation, other complications do arise when it comes to closing a corporation and paying off business debts.

Lastly, if the business is a limited liability company (LLC), the same rules apply. The LLC can be liquidated through a business bankruptcy, but the debts must be either paid through the assets of the business or the debts can be discharged through a personal bankruptcy case.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com

Related Resources: https://www.nolo.com/legal-encyclopedia/business-debts-discharged-chapter-7-bankruptcy-32415.html

Bankruptcy Law, Credit Card Debt, Debt Relief

Study shows women struggle more with credit card debt than men

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Credit card debt is a problem for many Americans but according to a recent study by WalletHub, it appears to be more prominent among women.

Credit card spending is at an all-time high. Last quarter, consumers ran up nearly $30 billion in credit card debt, the highest seen since the 2008 financial crisis.

In this study, women cardholders reported that they were struggling with their card payments, on top of other monthly expenses. In fact, one in four female cardholders reported that they did not feel confident at all in their ability to pay their bills in full monthly. This figure is double the percentage of men reporting the same sentiments.

Approximately 31 percent of women surveyed reported that they were able to pay their credit card monthly statement balances completely in full once or less in the past six months.

What does this mean for female cardholders? According to these figures, if we had two groups of individuals, one group female and one group male, each carrying $5,700 of credit card debt, paying this balance off in full will end up eating up much more of the total annual income for the women than the men.

Federal reserve figures report that the average female salary is $41,554 annually while their male counterparts earn on average $51,640 annually. Paying just shy of $6,000 in credit card debt ends up taking a much larger percentage of their annual income, making it much harder to keep up with other monthly expenses.

Single mothers are a subgroup that is suffering particularly hard. Many of these women are already on tight budgets, and when a major expense hits, it can be hard for them to keep up with monthly bills, let alone pay a credit card off in full. Some even rely on credit cards to cover daily expenses.

Did you know that one of the leading causes of bankruptcy in America is divorce? Many people say issues regarding money cause divorce, but money problems after divorce can also be equally troubling. In many instances, single mothers become the sole financial providers for themselves and their children.

Click here to read more on this story.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Online Auto Lender Faces Scrutiny over Lending Practices

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If you have been struggling to pay your bills and need money quickly, it can be tempting to take out a loan against your car to get the cash. There are many online companies that exist for this exact purpose.

One company, Marlin Financial, has been the focus of recent scrutiny regarding these types of loans. A recent Tampa Bay Times story exposed the laws that Marlin Financial has been accused of breaking, leaving customers with more debt than they originally anticipated. The story featured 20 Marlin Financial customers, as well as former employees, who were approved loans that the company was not legally authorized to make.

In fact, the company’s debt cancellation policy resulted in interest rates that were well over the state limits. The company also deliberately failed to give their customers a chance to take personal belongings that were inside repossessed cars after these belongings were reported.

Marlin Financial now finds itself part of a consumer protection investigation by the Florida Attorney General’s office. One such violation the company is accused of making is the law that requires lenders to tell the car owners where their cars are being held and give them the chance to come and get their personal belongings in the car.

The company is also accused of not listing the fees for their loans as annual percentage rates, which is required by federal law.

Another violation, and arguably the most significant one, centers on Marlin Financial’s business practices and the policies that their customers purchased through their company. Deep within the fine print, the company requires their customers to either elect to purchase their debt cancellation product or decline the purchase. Unless the customers truly understand what this mean, he or she is likely signing on the dotted line with no clue what this could mean for his or her legal rights later.

Customers reported that when trying to decline the option, they were not able to complete the online transaction. Only by clicking “accept” for the debt cancellation policy were they able to successfully complete their application. Legally, debt cancellation should only be optional and viewed as an add-on product, but customers reported that it was essentially required for them to purchase the product.

Purchasing the debt cancellation add-on option ended up costing the borrowers 125 percent of their loan owed, which basically doubles the amount owed. Normally an add-on like debt cancellation is also done through a separate company from the original lender, but Marlin Financial offers an in-house option, which basically means the customers are paying the same company twice for the money lent.

The Florida state agency that licenses lenders like Marlin Financial, the Florida Office of Financial Regulation has received 12 total complaints within the last four years against the company while the Florida Attorney General has received 19. The Better Business Bureau has received a total of 32 complaints in this same period. The Florida Attorney General has opened an investigation into Marlin Financial’s business practices, which is ongoing.

Click HERE to read more on this story.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Medical Debt and Collections – What It Does to Your Credit Score

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It only takes one medical crisis to set you back thousands of dollars.  In fact, medical debt is the number one reason people file for bankruptcy.  Many times, consumers have no idea that the medical bill is coming or how much it will be.  In fact, according to a study from Consumer Reports, more than one-fourth of Americans who have health insurance have received one of these “surprise” medical bill in the mail.

In the past, as soon as an individual failed to pay a medical bill, the medical service provider could report the individual to a credit reporting agency.

However, new rules for the big three credit agencies, which include Equifax, Experian, and TransUnion, now require these agencies to wait 180 days before reporting an unpaid medical bill to a credit reporting agency. This waiting period gives individuals time to properly investigate the bill. If, after a dispute, the insurance company pays the bill, but the provider has already reported the claim to a credit reporting agency, the default will need to be taken off the credit report.

Unpaid medical bills affect your credit score. Typically, doctors and hospitals do not report debts to credit bureaus. Instead, they turn their unpaid bills over to a debt collector and it is the collection agency that reports them. Just one collection account can cause a good credit score to drop 50 to 100 points. Medical collections are no exception. Medical debt can remain on your credit report for up to seven years from the date of delinquency.

It is important that you routinely monitor your credit report to ensure there are no inaccuracies.  If a claim has been properly disputed with the medical provider or insurance company but still appears on the credit report, you will need to contact the medical provider to get proof of payment and then submit this proof to get the debt removed from your credit report.

If you receive a medical bill that you are not able to pay, it is extremely important that you do not ignore the bill. If you are not able to make a full payment on the bill, it is important that you communicate this fact as soon as possible with the medical provider. Most healthcare providers are willing to work with you. At the end of the day, these providers would prefer to receive payment in lieu of going through collections to get their money.

Ignoring a medical bill can result in a lawsuit being filed against you. If you fail to address the legal case, the medical provider will get a judgment by default and will be able to garnish your wages as a result. If a lawsuit has been filed against you for an outstanding medical debt, it is important that you contact an attorney as soon as possible to protect your rights.

Click HERE to read more on this story.

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 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 website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Medical Debt and Steps To Take if You are Facing A Medical Debt Lawsuit

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Medical debt was cited as the biggest cause of U.S. bankruptcies, according to a recent CNBC report. It is estimated that 2 million people were adversely affected.  It’s not surprising, with the rising cost of healthcare.  All it takes is one major medical crisis or trip to the emergency room, for a person to find themselves in over their head.

According to research from the American Enterprise Institute, more than two percent of adults have had medical bills under $200 sent to a collection agency after missing one or more payments. More than half of the medical accounts sent to collections on an annual basis were for amounts less than $600.

Not paying can lead to a lot of trouble relatively quickly. The medical service provider can make a report to a credit agency regarding the unpaid debt, even file a lawsuit against you.

You may be tempted to ignore a medical debt lawsuit and hope it goes away, but this is one of the worst things you can do because the debt collector will automatically win by default.  There are steps you can take if you are facing a medical debt lawsuit.

A review of the medical bills and the amounts owed on them were not substantial in numbers. The thing they had in common was the person responsible for the medical bill did not pay for six to 12 months. Of the bills sent to collections, 16 percent of them involved medical bills.

The research also showed that, even though medical costs go up as people age, the percentage of individuals who reported medical debt issues were relatively young. In fact, individuals who were in their late 20s were three times as likely to have their medical bills sent to collections as compared to those in their 60s.

However, improvements were noted in the report. The average size of the medical debt reported dropped 40 percent for consumers between the ages of 27 to 64. It should be noted, though, that these reports only included medical bills that were sent to collections. Many individuals rely on credit cards to pay for their medical expenses. These credit cards may also fall into default, which is an indirect way for medical expenses to also end up hurting someone’s credit score.

The reasons for why these consumers fell into default vary. It can depend on the person’s savings to pay for these unexpected medical expenses, but it can also depend heavily on the person’s health insurance plan. If someone has a high deductible plan, this means he or she must meet that deductible for any medical costs before they will be reduced. If the patient ends up needing a major medical procedure, the costs can go up very quickly.

Another problem involves the fact that patients will stop receiving treatment once their bills are sent to collections. If the individual who owes money needs the treatment for an important medical condition or procedure, this worry can cause even more stress for them in an already stressful time.

Experts strongly recommend that if you owe on a medical bill you contact your medical provider immediately, especially if you do not believe you will be able to pay on the amount owed. Contact the phone number on the bill and see if a payment plan can be worked out with the provider. Most are very willing to work with their customers and would prefer they be paid through an incremental plan than not at all. They can also verify that insurance has properly processed the claim before any payments are made.

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 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, Timothy Kingcade Posts

Bankruptcy Attorney Timothy S. Kingcade Obtains Successful Order Requiring Miami Regional University to Release Client’s Diploma and Transcripts

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MIAMI – (August 27, 2018) Bankruptcy Attorney Timothy S. Kingcade, founding partner of Miami-based Kingcade Garcia McMaken successfully obtained an Order for his client in a Chapter 7 case (In re: Adriana Gonzalez Case No. 18-15980-RAM), requiring Miami Regional University to immediately release client’s education transcripts and diploma, and make no further attempts to collect on the discharged debt, in compliance with the bankruptcy automatic stay.

“Justice was served today for our client, who prior to this Order was being denied the basic protections of the bankruptcy automatic stay.  The creditor in this case (Management Resources Institute, which operates a for-profit school, Miami Regional University) has willfully and intentionally violated the automatic stay by refusing to release our client’s diploma and transcripts. After the bankruptcy case is over, our client will need certified copies of her transcripts, which would have been continually denied by the creditor in this case,” Kingcade said.

Our client filed for Chapter 7 bankruptcy on May 18, 2018.  The problems as described in the motion started on June 6, 2018 and have continued through the date of the amended motion. The creditor, Management Resources, Inc. d/b/a Management Resources Institute, which operates a for-profit school known as Miami Regional University was listed on the bankruptcy petition. The creditor in this case was verbally advised of our client’s status in bankruptcy and the pending automatic stay.  Our client returned at least twice to the school seeking her transcripts and diploma.

Henry Babani, Vice President of Corporate Finance for the Creditor in the case confirmed to our client that the underlying debt would be discharged in the bankruptcy, but unless she paid what was due, the Creditor would not release her diploma or her transcripts.

The stay violation has continued since our client’s first visit and since the filing of this motion. Even though the Creditor operates a nursing school (Miami Regional University) where this situation is likely to recur, the Creditor’s position is the automatic stay and/or a discharge in bankruptcy is irrelevant to our client’s right to receive a current copy of her transcript, her diploma or future certified copies of her transcripts.

Our client who is currently applying for jobs, which require these documents for employment, is in jeopardy of losing job opportunities because of the Creditor’s willful violation.

Given the continuing nature of the stay violation and Creditor’s untenable position regarding our ability to receive her transcripts and diploma (and the future right to receive certified copies of her transcripts) an award of punitive damages is warranted against Creditor as a coercive sanction to compel Creditor’s future compliance with this court’s automatic stay and/or discharge injunction.

This is not the first time our firm has obtained justice for a client in a similar circumstance, where a school willfully and intentionally violated the automatic stay by refusing to release student transcripts.  On December 21, 2016, a successful Order was obtained requiring Belen Jesuit Preparatory School, a Miami-based Catholic school, to release education transcripts in compliance with the bankruptcy automatic stay and to pay our clients’ legal fees.

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Miami-based Kingcade Garcia McMaken was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade Garcia McMaken specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

 

For more information visit, https://www.miamibankruptcy.com/.