Bankruptcy Law

Financial freedom and independence from debt is a powerful thing. But if you are struggling on a daily basis with insurmountable debt and harassment from creditors you may be feeling less than ‘independent’ today. Many Americans face financial oppression, unable to pay their obligations, not because they do not want to, but because they have been victim to the economic downturn, having lost their job, recently became divorced or accumulated a large amount of medical debt from circumstances outside of their control.

Chapter 7 bankruptcy creates the best financial circumstance from a debt management perspective, because it erases your debt. You are no longer responsible for debt repayment and your creditors will be required by law to stop contacting you. If your credit score has suffered as a result of multiple missed payments, declaring bankruptcy may even help your credit score. Once you declare bankruptcy, your balances and records of unpaid debt are removed. All of these debts will be marked as being included in bankruptcy. You will now be able to start from scratch and given the opportunity to rebuild your credit.

As a citizen of the United States, you have the right to file bankruptcy. Do not allow the ‘bankruptcy stigma’, largely created by creditors stop you from considering bankruptcy as an option. Bankruptcy laws are designed to protect consumers, giving them the ability to come out with a clean slate, wipe out their debt and regain financial freedom.

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.

Taking on multiple sources of debt is a balancing act and it’s easy to become overwhelmed. The first thing you should do when considering taking out another loan is to determine your total monthly payments for current outstanding debt and the amount you are looking to borrow. Next, figure what percentage of your monthly income will go towards paying off that debt.

It is recommended that no more than 30% of your take-home pay go toward housing costs and no more than 20% go toward servicing other debt, such as car loans and credit cards. If you exceed these percentages, you could find yourself easily overwhelmed with debt.

Before taking out another loan, experts suggest having a repayment plan in place. Some borrowers find it motivating to pay extra towards the smallest loan in order to quickly eliminate it. If you already have a car loan or credit card payments, before taking on additional debt, you may want to consider refinancing the loan or getting a lower interest rate balance transfer credit card. You can then pay down the principle of the higher rate credit card faster if you transfer the balance to a lower interest rate credit card, provided you continue to make the same monthly payment.

Click here to read more on how to manage multiple sources 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.

For parents with kids heading off to college in the next few years, it’s not too late to implement these last minute savings tips.

1.) Compromise on School. Parents and children should have open and honest conversations and make their school choice based on learning needs and career ambitions, not name recognition.

2.) Take Advantage of Government Loans. Every family should take advantage of government education loans. According to Bill Harris, founder of online wealth management company Personal Capital, there is no “means testing” with the Stafford Loan, which means a family making $200,000 and one making $40,000 are both eligible.

3.) Invest in a 529-College Savings Plan. The earlier parents start funding a 529-college savings plan, which is a tax advantaged way to save for the college, the better, but it’s never too late to start. Many states give tax deductions for contributing to a 529-plan.

4.) Take advantage of American Opportunity Tax Credit. Families with an overall income under $160,000 per year, or $80,000 for single filers, can qualify for a tax credit of up to $2,500 during the first four years of a child’s college education. This tax credit includes expenses for things like books, supplies and equipment that aren’t necessarily paid to the college or university.

5.) Move Assets out of a Child’s Name. Many parents open savings accounts in their children’s name, which is a great way to build a nest egg, but it can have a negative impact when it comes to paying for college. When determining eligibility for federal financial aid, 20% of any assets under the child’s name will count against him or her in the amount of aid offered.

6.) Explore Alternative Loan Types. Most private loans from a bank of credit union have higher costs and higher rates of interest. Instead, consider peer-to-peer lenders to see if they offer a lower fixed rate and always check with the financial aid department at your college to see what kind of tuition assistance is offered.

Click here to read more on last minute college savings tips for parents.

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.

It is important to keep your credit score high. A good credit score can earn you low mortgage and refinancing rates, more negotiating power and increased credit limits. But even financial behaviors that do not directly affect your credit score can be a red flag that you are headed towards serious financial problems.

Here are five red flags that will not show up on your credit report:

1.)Taking out payday loans. Resist the urge to take out a payday loan. This can be toxic to your finances and a red flag that you are off track financially. You should resist the temptation no matter how tough your situation seems because the high interest rates and payment terms typically put people even further in debt.

2.) Fighting with your spouse about money. People often ignore this sign because they think it is a sign of marital issues, not financial issues. But arguing about money typically means that you are not on the same page with your spouse on financial issues. The deeper you get into financial trouble, the more people find themselves fighting with their spouse about how to spend money and how to get out of debt.

3.) Paying household bills with your home equity loan or line of credit. While paying your household bills with home equity money will not show up on your credit report, it is typically a sign that you are running out of options to pay your bills. ‘Revolving debt is unsecured, so it is very risky to borrow against a secured loan, such as your mortgage.’

4.) Bouncing Checks. If you are routinely overdrawing your bank account or bouncing checks, then you are most likely either not able to manage your finances or are in serious debt. While bouncing checks does not directly show up on your credit report, overdrawn accounts can result in a negative check writing history report.

5.) Tapping into your retirement fund. In addition to the early withdrawal penalties, you are costing yourself the compound interest you would have earned by leaving the money in the account.

Click here to read more on the 5 warning signs that you could be headed toward financial hardship.

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.

The month of June continues to be regarded as the most popular month for tying the knot. With that being said, there are important steps you need to take before walking down the aisle in order to avoid fighting over finances. Couples need to first understand each other’s attitudes and concerns about money and then concentrate on the strategies and tools they will use to organize their financial affairs.

1.) Have a pre-wedding financial discussion: Share past money management experiences, and be honest. Discuss where you want to be financially in five, 10, and 20 years and express any fears you might have associated with money and brainstorm ways those fears could be alleviated.
2.) List your financial goals: this is a way to find out what is important to each of you. Rank the items on the list according to importance so that when the lists are compared and consolidated it will be easier to concentrate on the most important issues.
3.) Make a monthly budget: Many people cringe when they hear the word budget, but keep in mind you do not have to deny yourselves the things you love, just work them into the budget.

Money problems are one of the most significant factors that can lead to divorce.

Click here to read more on the financial steps you need to take before walking down the aisle.

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.

Following a natural disaster, such as the recent Oklahoma tornados and California wildfires- not to forget Florida’s hurricane season, the last thing you want to think about is whether you have paid your Visa bill.

Putting such tasks on the back burner while you are focusing on more important issues such as temporary housing along with food and water can be devastating to your credit score. Just a few delinquent payments can ruin your credit score when you need access to credit the most.

Here are six ways to ensure that your old debts do not jeopardize your financial future:

1.) Get a copy of your credit report. By having a copy of your credit report before it reflects any financial impact resulting from the disaster, you can later make the case to a lender or someone else checking your credit that the disaster, not financial mismanagement, caused your low credit score. You can get a free credit report each year from each of the three big credit bureaus (Experian, Equifax and TransUnion) from AnnualCreditReport.com
2.) Create a post-disaster budget. While you’re waiting for a check from your insurance company, take a realistic look at your savings and any income that’s coming in. Once you have your post-disaster budget, you will know how much you have left to pay on your credit cards and other debts.
3.) Initiate contact with creditors. Once you know how much money you are working with, it’s time to reach out to your creditors. Sometimes when disasters occur, credit card companies will email their customers to let them know they are aware of the disaster and will waive late fees that month for those who have been affected.
4.) Document all conversations. When contacting your creditors, be prepared to tell them how the disaster affected you, how long you think your ability to pay will be impacted and how much you can afford to put toward your bill. Keep a detailed record of the conversation, knowing who you talked to, what they promised and when the phone call took place.
5.) Explain the disaster’s effects on your credit reports. As you are recovering financially from a disaster, you can add a 100 word statement to your credit report explaining that you experienced a natural disaster and it caused your credit to suffer.
6.) Look for long-term recovery funding. Your insurance policies and government assistance may help you rebuild your home or possibly replace your car, but you may have to seek additional resources to help you pay for other debt obligations, particularly if you lost your job following the natural disaster.

Click here to read more about the six ways you can protect your credit following a natural disaster.

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.

Thanks to the Credit Card Act of 2009, cardholders are getting hit with fewer penalty fees and surprise interest rate hikes. However, according to a recent news story, a sequel to the Credit Card Accountability, Responsibility and Disclosure Act of 2009 could be in the works as regulators sort through a fresh batch of complaints. Regulators at the Consumer Financial Protection Bureau collected the comments earlier this year about the post-CARD Act environment. The CFPB plans to issue a study in coming months that will look at the law’s impact on the availability of credit, and at how card issuers’ practices are affecting consumers.

Several groups pointed at deferred interest cards as the most dangerous trap lying in wait for unwary borrowers. Deferred interest cards allow people to purchase appliances, furniture and other expenditures they cannot pay for upfront without accruing the added interest. The delayed interest deals are also becoming popular with some doctors and dentists as a way for their patients to finance expensive medical procedures. These type cards are often the most dangerous traps for unwary borrowers, because these cards come with very complicated contracts. One unwary Denver resident told Consumers Union that she and her spouse wound up paying more than $1,000 in surprise interest on a deferred deal. Having made their first payment in October, the couple figured that the final payment on the one-year deferral would be due the following October — but that was a month late. As a result, they were charged the full year of accrued interest, which took a few more months of payments to erase.

Click here to read more on the new protections being proposed by regulators and consumer advocates when it comes to the Credit Card Act of 2009.

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.

For recent college graduates, the end of college means entrance into the ‘real world’. While new grads tend to focus on pressing issues like submitting job applications and sending out resumes, it is important to pay attention to personal finances.

1.) Choose cards selectively and apply seldom: Be selective about which cards you apply for, and only apply for one credit card at a time. Most credit applications result in an extensive inquiry, and if you have too many inquiries in a short period of time, you may be less likely to be approved by lenders when you apply for additional lines of credit in the future.

2.) Use your cards wisely: To build strong credit, use your credit card to buy everyday items, preferably things that you’re getting rewards points and cash back for, and pay the bill in full every month.

3.) Pay down your student loans: If you have a student loan payment that’s too high, your best option is to negotiate with the lender and try and make a reduced payment every month. You’ll be paying down the debt at a slower rate, but it’s a start. You may also consider consolidating all your loans into one, which may help lower monthly payments and better manage your outstanding debt. Deferment and forbearance are not wise options. These simply postpone the inevitable.

4.) Pay your bills on time: Your payment history contributes to 35% of your credit score, and on-time payments matter. Set up alerts and use online (automatic debits from your bank account) payments to help you stay current when it comes to your bills. Any payment more than 30 days late will likely be reported to the credit bureaus as delinquent.

5.) Check your credit report: Go to www.annualcreditreport.com and check your credit report at least once every year. It’s free to do! A recent report by the Federal Trade Commission found that 20% of consumers had an error on at least one of their three credit reports. Errors may impact your ability to receive financing on things like a mortgage or car loan or limit your access to the best credit cards.

Click here to read more on the 5 credit tips for recent college graduates:

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.

Paying off student loan debt can often be just as difficult as earning your degree. According to the Pew Research Center, nearly 1 in 5 households carry student loan debt. That’s nearly double the number of households from 1998. U.S. students on average borrow $27,000 for education, according to the Project on Student Debt, which is more than twice what students borrowed, on average, about 20 years ago.

No matter what debt eliminating strategy you use, giving up a portion of your paycheck to pay off student loan debt takes discipline and oftentimes radical lifestyle changes. Here’s how three couples worked to pay down their student loan debt in record time.

• Understand the Problem: It wasn’t until Deacon Hayes and his wife wrote down their student loan debt on paper that they got serious about paying it off. They credit their strict budgeting and using the debt snowball method (paying down debt starting with the smallest amount and working up) as the reasons why they were able to pay off all of their debt in just 18 months. In addition, they combined cell phone plans, saving $50 per month and sold Hayes’ brand-new car.

• Close the Leaks: Once you understand where your money is going, plug budget leaks and open new income streams. Both tactics are helping Bryan Lovgren and his wife in their plan to tackle nearly $28,000 in loans in just 10 months. They bargain shop for necessity items and have switched to a more vegetable-based diet to lower food costs. More importantly, they have committed to living off one salary, while Lovgren’s wife devotes her entire paychecks to the loan. They have also generated $7,000 to $8,000 by selling things they own through a local classified service.

• Stay Motivated: Statistically, consumers spend less when they use cash over credit cards, plan purchases in advance, automate their savings and keep projected savings goals in mind. Keeping your eye on the prize also helps. To pay off more than $100,000 in student loan debt in five years, Tricia Meyer and her husband made loan payments equivalent to their mortgage payments each month and built that into their necessary household expenses. To make the extra payment, they both took freelance consulting or teaching jobs and Meyer launched a couponing website where she now works full time. Together the couple generated between $10,000 and $15,000 annually in side income.

Click here to read more on how three couples paid off their student loan debt in record time.

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.