Bankruptcy Law

Bankruptcy Law, Credit, Timothy Kingcade Posts

TREND ALERT: Middle Class Debt Falling Nationwide

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As the economy is steadily improving, middle class families are feeling the effects. According to Manilla.com, a financial organization website, total household debt- which includes outstanding mortgage, auto and college loan balances-fell 1.1% in the first quarter of this year among middle-class families. Overall, consumers are being more cautious before taking on new debts for major investments like homes, automobiles and education. Americans average mortgage debt was $150,200.21 as of July 1, down 4% since the end of 2012. Below are the top 10 cities with the highest mortgage balances:
• San Francisco: $312,301.64
• Los Angeles: $262,792.56
• San Diego: $258,548.22
• New York: $250,078.12
• Washington, D.C.: $226,444.31
• Seattle-Tacoma: $199,205.30
• Sacramento: $194,796.46
• Portland, Ore.: $176,452.78
• Boston: $176,350.70
• Miami-Ft. Lauderdale: $176,057.60

Auto loan balances have increased by 7.9% since the end of 2012, Manilla.com reports, because Americans are now willing to spend more on cars, which signals a stronger economy. Eight of the 10 markets with the highest auto loan balances remained consistent in the first half of 2013. The worst debt offenders for auto loans as of July 1 are:

• Little Rock-Pine Bluff: $17,797.82
• Houston: $17,078.08
• Miami-Ft. Lauderdale: $16,997.15
• New Orleans: $16,968.24
• New York: $16,672.47
• Memphis.: $16,538.02
• Birmingham.: $16,436.04
• Las Vegas: $16,294.38
• Waco-Temple-Bryan: $16,263.03
• San Antonio: $16,164.34

Click here to read more on the recent trend of middle class debts falling nationwide and the cities with the highest amount of debt.

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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Bankruptcy Blunders: Top Reasons Your Bankruptcy Filing May Get Rejected

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A recent FindLaw.com survey revealed that one in eight Americans have considered filing for bankruptcy. Whether because of a job loss, carrying an excessive amount of credit card debt or medical debt, a large number of Americans have considered the option of bankruptcy to gain a fresh financial start. But not everyone’s case is accepted by bankruptcy courts. Your bankruptcy filing can be rejected for a number of reasons- often due to mistakes or omissions of proper paperwork. That is why it is crucial you hire an experienced bankruptcy attorney to assist you in the process.

Below are a few reasons why your bankruptcy filing could be rejected:

1.) You do not pass the “means test” in court. In order to qualify for Chapter 7 bankruptcy, where most of your unsecured debts are wiped out, you must pass a “means test” imposed by the court. The means test is a way for the court to determine how much disposable income you have. If you have too much money, a court may reject your Chapter 7 bankruptcy request. It is important to meet with an experienced bankruptcy attorney who will advise you of all your options and let you know if you qualify for Chapter 7. At Kingcade & Garcia, P.A. we offer free consultations where we sit down with our clients, assess their financial situation and determine if bankruptcy is the right option for them.

2.) You fail to provide requested tax documents or fail to appear at the creditor meeting. The court may reject or dismiss your bankruptcy case if you misrepresent your tax information or fail to provide tax documents altogether. In past years, you were not required to file tax returns to pursue bankruptcy. But since bankruptcy reform passed in 2005, this has become a requirement.

3.) You submit a proposed repayment plan that is not feasible. With a Chapter 13 bankruptcy filing, you repay some of your debts over a period of three to five years. If you file for Chapter 13 bankruptcy and set up a repayment plan, your proposed plan must be feasible in order to be accepted by the courts. The courts will review your current income, debts and assets to determine whether you can realistically pay back your creditors under the Chapter 13 plan. If you cannot, they can reject your case.

4.) Someone challenges your bankruptcy request. Once you have filed for Chapter 7, the goal is to get a “discharge” of your debts. A discharge is a permanent court order that relieves you of any legal liability to pay unsecured debts like medical bills or credit card debts. However, for those filing a Chapter 7, a creditor or the bankruptcy trustee has the right to challenge your discharge. This can occur if the trustee or debtor believes you have been dishonest or committed fraud in some way. These can include: hiding assets, making false statements or even failing to appear at mandatory credit counseling- any and all of these can result in a challenge.

Click here to read more on the top reasons your bankruptcy filing could get rejected.

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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

TREND ALERT: More Americans Paying Credit Card Bills on Time

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The popular credit monitoring site, TransUnion reports the rate of credit card payments that are at least 90 days overdue fell in the second quarter to 0.57%, the second-lowest recorded by the agency in nearly 20 years, when the rate was 0.56%. More Americans are working to bring down their credit card balances as the U.S. credit card delinquency rate fell close to the lowest levels since 1994. The trend is positive, and according to experts may be a sign that the worst is behind for cardholders post-recession.

If this trend does not apply to you and you are still struggling with credit card debt, below are some helpful tips for getting out from under credit card debt.

1.) Negotiate interest rates. If you are in good standing with your card issuer, try to negotiate your current interest rates. Today, issuers are more willing to negotiate with consumers to keep them as card holders.

2.) Prioritize your debt. Review and evaluate all of your outstanding debts and work to pay off those balances, beginning with those cards that carry the highest interest rates.

3.) Consider consolidation. Consider consolidating your debts into one personal loan for a fixed rate. You will want to make sure and put your cards away, so you are not tempted to use them.

4.) Reach out for help. Do not be afraid to ask for help. If you are more than $10,000 in debt, seek advice from a credit counselor who can help come up with a repayment plan. If your debt becomes unmanageable, consult an experienced bankruptcy attorney who can advise you of all your options.

Click here to read more on the recent trend of more Americans paying their credit card bills on time and for tips on getting out of credit card debt.

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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

New Date Set for Detroit Bankruptcy Filing Forum

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The Detroit Democrat has reported that the forum planned by U.S. Representative John Conyers on the legal implications of Detroit’s bankruptcy filing will be re-scheduled to 3 p.m. on Saturday at Fellowship Chapel in Detroit. Conyers has said the forum will examine the filing’s impact on pensions and possible conflicts of interest involving state-appointed emergency manager, Kevyn Orr.

Another issue being discussed is whether Orr’s July 18 bankruptcy petition was made in good faith. Conyers says a bankruptcy’s ramifications on taxpayers, city workers and retirees will be discussed at the forum. Orr says Detroit has at least $18 billion in debt, much of it being tied to pension and retiree health care obligations.

Click here to read more on the latest drama surrounding Detroit’s bankruptcy filing.

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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Steps You Can Take in Preparation for Bankruptcy

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So you have considered all your options, examined your finances and have come to the conclusion that bankruptcy is the right option for you. It is important to remember that filing for bankruptcy is a process, not an event. What you do before, during and after the filing will affect your future. RELAX… You are on the path to a financial fresh start!

Below are some steps you can take in preparation of bankruptcy:

1. Consult with an experienced bankruptcy attorney. The first thing you should do once you decide to file bankruptcy is to talk to an experienced bankruptcy attorney. The initial consultation is often free, so you have nothing to lose. The fact that it is possible to file bankruptcy pro se (without a lawyer), does not mean you should do it. Doing your own bankruptcy can be difficult, risky and emotionally draining. Your lawyer will negotiate on your behalf with the bankruptcy court trustees and contact your creditors to put an end to those harassing calls.

2. Stop Borrowing Money and Using Credit Cards. Once you have decided to file for bankruptcy, you should immediately stop borrowing money and using your credit cards. Racking up exorbitant amounts of debt prior to filing bankruptcy is considered fraud and can land you in jail. This includes borrowing money from family and friends. When you file for bankruptcy, you must include as creditors any family members or friends who loaned you money.

3. Stop Paying your Bills. Well, some of them. You will want to stop paying on any unsecured debts or loans. For example, making credit card payments. Do not do any of the following unless your attorney advises you otherwise:
• Do not repay friends or family members who made unsecured loans to you.
• Do not pay any single unsecured creditor a total of $600.00 or more within the three months prior to filing bankruptcy.
• Do not transfer any property, assets, cash or anything else of value to anyone else in an attempt to get these out of your name.

4. Learn How to Live Poor. You must learn to economize. You will be required to live on a cash basis for a short amount of time. Live within your means and take this second chance at a new financial life seriously.

5. Reclaim your Phone. From the time you stop paying your bills until you retain an attorney to help you file for bankruptcy, bill collectors are likely going to have your cell phone number and will be calling you obsessively trying to collect unpaid debts. In the mean time, it may be a good idea for you to buy a prepaid cell phone with a new number. But it is important to remember to NEVER use this new phone to call a bank, credit union, utility company or bill collector. If you do this, your new number will be captured and within days uploaded to the credit bureau allowing every bill collector to have access to it, again.

6. Tell Someone. Surround yourself with positive people following your decision to file bankruptcy. You should not feel depressed, ashamed or alone. This person can be a family member, counselor or friend.

7. Start Planning your Recovery. Discuss the following financial recovery goals with your attorney or bankruptcy counselor:
• Opening a savings account immediately upon discharge and accumulating a certain amount within six months after your bankruptcy is discharged.
• Getting a secured credit card within a month after discharge.
• Having enough cash to pay for a 20 percent down payment on a new car within one year of discharge.

Click here to read more on steps you can take in preparation for bankruptcy.

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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

A Roadmap out of Bankruptcy

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People who file for bankruptcy can sometimes feel ashamed, hopeless and overwhelmed. But it may be a comfort to know that you are not alone. According to the American Bankruptcy Institute, the number of July bankruptcy filings came to 87,684.

Below are eight tips on how to recover after filing for bankruptcy:

1.) Address what caused the bankruptcy. This will help you avoid ending up in the same predicament five years later. Set a new budget and look for different employment opportunities.

2.) Identify your goals. These can include paying off old debts or rebuilding your credit score. Whatever these may be, it’s important to write down these goals and work towards them.

3.) Check your credit score. Inaccurate information on credit reports is becoming more common and can affect everything from qualifying for the best mortgage rates to getting hired for that dream job you recently applied for. Simply removing incorrect information from your credit report can oftentimes improve your score.

4.) Gradually re-establish credit. Taking out two credit cards and paying them off monthly can help rebuild your credit score. After seven to 10 years of doing this, your score could look as good as new!

5.) Find a new credit card issuer. While lenders are sometimes hesitant to give credit to people that have recently filed for bankruptcy, there are some that are willing. The terms may not be ideal at first, but these new accounts will help rebuild your credit over time.

6.) Avoid unfair deals. Predatory lenders oftentimes target the most vulnerable groups, including recent bankruptcy filers. You should be weary of payday loans and rent-to-own deals that carry high interest rates.

7.) Seek support. Surround yourself with positive people following your bankruptcy. Online communities of people going through the same thing can offer much needed support.

8.) Think positively. Most people’s credit improves after filing for bankruptcy. Many of the clients I help, their only regret is that they didn’t file sooner. While bankruptcy will stay on your credit report for up to 10 years, many creditors are more than willing to lend you credit after you have filed for bankruptcy.

Click here to read more on a roadmap out of bankruptcy and into recovery.

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.

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

FHA Shortens Waiting Period for Borrowers Who Experienced Foreclosure or Bankruptcy

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The Federal Housing Administration (FHA) is allowing borrowers who went through a bankruptcy, foreclosure, deed-in-lieu or short sale to reenter the market in as little as 12 months. Previously, borrowers who experienced a foreclosure had to wait at least three years before getting a chance to be approved for an FHA loan. To qualify for the more lenient approval process, documents must show ‘certain credit impairments’ were from loss of employment or loss of income that was beyond the borrower’s control. The lender must also verify the income loss was at least 20 percent for a period lasting for at least six months.

Additionally, borrowers must demonstrate they have fully recovered from the event that caused the hardship and complete housing counseling. Housing counseling must come from a HUD-approved housing counseling agency and be completed at least 30 days but no more than 6 months before applying for a loan. Recovery from an economic event involves reestablishing ‘satisfactory credit’ for at least 12 months. The criterion for ‘satisfactory credit’ includes 12 months of good payment history on either a mortgage, rent or credit card account.

This more lenient approval process applies to case numbers assigned on or after August 15, 2013 and is effective through September 30, 2016.

Click here to read more on the FHA’s more lenient approval process allowing borrowers to reenter the housing market in as little as 12 months.

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 website, www.miamibankruptcy.com.

Bankruptcy Law, Timothy Kingcade Posts

How Bankruptcy Could Help Solve the Student Loan Debt Crisis

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Last week, President Obama introduced a proposal that would give colleges federal money based on performance and affordability to students. This so called ‘ratings system,’ Obama said would require accountability at colleges across the country in an effort to curb the escalating costs of student loans.

However, experts say there may be another more effective way to solve the student loan debt crisis: bankruptcy law. Under the current system, student loans are near impossible to get discharged through bankruptcy, unlike most other forms of unsecured debt, such as medical bills and credit card debt. Legal experts say this is creating a generation of Americans who are unable to get out from under the crushing weight of college debt and falling off the economic grid.

The Consumer Financial Protection Bureau found that total student loan debt is approaching $1.2 trillion, which would exceed credit card debt by more than 28 percent. According to a recent study done by the Center for American Progress, forty-five percent of all American families now have student loans.

With unemployment high among recent college grads, default rates on these student loans have risen as well. The economy is different today and college grads are leaving school with $50,000 to $100,000 in debt unable to find jobs. Experts say allowing college graduates to discharge their student loan debt in bankruptcy will allow them to have a ‘fresh start’ and return to being participants in the economy.

The ability to discharge student loans in bankruptcy has become increasingly difficult over the years to the point where now the borrower has to prove that any student loan, even a privately issued one, would cause an “undue hardship” to them in order to get it discharged. Another hurdle is that in order to discharge a student loan debt, a debtor must file a separate action and argue in front of the bankruptcy court, a process that usually requires an attorney and additional money.

Experts have proposed a number of fixes that would help out borrowers stuck under unmanageable debt burdens. One proposal discusses allowing all private loans to be dischargeable in bankruptcy. Another discusses loan forgiveness programs — in which a borrower repays an affordable amount over 20-25 years before getting the rest discharged. Another proposal allows bankruptcy courts to value a debtor’s student loan at its fair market value, which is what another investor would be willing to pay to buy the loan off the original lender, and discharge anything above that value. A similar process is currently available to some debtors on their mortgages in bankruptcy.

Experts on the topic still feel it is going to take a lot more than the President’s recent proposal and bankruptcy to fix the system. It’s really going to come down to looking at institutions, both for profit and nonprofit, who are doing innovative things to get students to graduation and employment.

Click here to read more on how bankruptcy could help solve the student loan debt crisis.

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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

President Obama’s New ‘Ratings System’ and what it means for Student Borrowers

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President Obama recently went on a two-day bus tour to push a new proposal aimed at creating a college ratings system that evaluates schools on a number of criteria including tuition, graduation rates, debt of graduates and alumni’s earnings.

He claims the ratings system will make college more affordable since federal aid will be allocated based on the results of the ratings.

College affordability is something President Obama has stressed will help restore the middle class since his election into office. The student loan debt epidemic is affecting all age brackets and more than 38 million Americans.

On August 9, the president signed the Bipartisan Student Loan Certainty Act, which ties interest rates on Stafford and PLUS loans to the fluctuations of the 10-year Treasury bond. But while the passage of this new law, which Republicans and Democrats claim will help students, is temporarily lowering interest rates, in five years, it is estimated that interest rates will actually end up being higher than before the bill was signed. According to the Congressional Budget Office, it will make the government an extra $715 million.

The CBO reports that the government is already making an estimated $184 billion from student loans — and this new bill increases the number to a staggering $184,715,000,000.

Click here to read more on Congress’ latest student loan bill and the President’s new ratings system.

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.

Bankruptcy Law, Timothy Kingcade Posts

Kodak’s New Strategy after Emerging from Chapter 11 Bankruptcy

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A Manhattan bankruptcy judge recently approved a plan for Eastman Kodak to emerge from Chapter 11 as early as September 3rd, 2013. The new company will be vastly different from the once dominant film company that virtually invented amateur photography.

Manhattan bankruptcy judge Allan Gropper, in approving the plan, called it a necessary preliminary to Kodak regaining what he called “its position in the pantheon of American business.”

After decades of seeing its traditional business diminish as a result of foreign competition and digital photography, Kodak was forced to seek bankruptcy protection. Kodak said in a statement that it is transforming itself into a seller of digital printing services to other businesses. That does not mean the company’s traditional consumer products will disappear; they will now be made by another entity, owned by a U.K. pension fund. Kodak is selling its consumer film and camera business to the workers’ pension fund to settle $3 billion worth of pension obligations to its former workers in the U.K.

Click here to read more on Kodak’s new strategy after emerging from Chapter 11 bankruptcy.

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.