Consumer Bankruptcy

Consumer Bankruptcy

New Year, Fresh Start. Bankruptcy Can Help You Take Back Control of Your Finances

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The New Year is a popular time for financial check-ins, motivating people to set goals like paying off debt. For those struggling with overwhelming debt, bankruptcy can be a legal pathway to a fresh start, eliminating eligible debts.

Before filing for bankruptcy, certain steps should be taken to ensure the case goes smoothly and is successful.

  1. Stop using credit cards.

One of the reasons people file for bankruptcy is due to overwhelming credit card debt. As soon as someone decides to file for bankruptcy, it is always recommended that he or she immediately ceases using their credit cards. Bankruptcy courts will view creating more debt when the person knows that it will never be repaid as a form of bankruptcy fraud.

  1. Pay for the essentials.

Many filers find themselves behind on bills prior to filing, including rent and utilities. Prior to filing for bankruptcy, make sure you are caught up on essential living expenses, including paying rent and utilities.

  1. End automated payments.

Many consumers set up automatic payments with their bank and creditors, allowing creditors to auto debit their bank account. While this may be a convenient method, once a bankruptcy case is filed, it can quickly become a giant inconvenience. With the automatic stay, creditors are prohibited from directly soliciting payments on debts owed by the filer, but this does not necessarily mean these payments cannot be made via automatic monthly withdrawals that were in place prior to filing. To avoid this problem, prior to filing, consumers should sign on to all online accounts with creditors and end automatic payments.

  1. Gather financial records.

Organize recent pay stubs (60 days), bank statements, tax returns (2 years), asset details (home, cars), and creditor statements.

  1. File your tax return.   

If someone is considering bankruptcy, taxes are often the last thing on that person’s mind. However, it is important that a consumer considering bankruptcy file his or her tax returns prior to filing. After all, the bankruptcy court will be looking at the consumer’s income and assets when deciding bon what type of bankruptcy can be pursued, and tax returns are vital documents needed to make that determination.

5. Review Your Credit Report.

Get a copy of your credit report for free by visiting Annual Credit Report.com – Home Page. Free weekly online credit reports are available from Equifax, Experian and TransUnion. Credit reports play an important role in your financial life, and we encourage you to regularly check your credit history to ensure accuracy.

You can regain control of your financial future in 2026. The consultation is free; the relief is real. 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.

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305-285-9100

1370 Coral Way, Miami FL 33145

Bankruptcy Trends, Consumer Bankruptcy

Consumer Bankruptcy Filings Increase in December 2025

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Unlike previous years, consumer bankruptcy filings in December 2025 increased both month-over-month and year-over-year, according to the latest data from G2 Risk Solutions. Consumer bankruptcy filings increased 5.8% from November 2025 and nearly 21% over December 2024. A departure from historical norms, bankruptcy filings tend to see a decline in the months of November and December, as many choose to defer the stress and filing fees until after the holidays.  The total number of consumer filings reached 44,890 in December.

Even though consumer bankruptcy filings have increased over the past five years, filings remain about 25% below pre-pandemic levels.

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If you have questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can assist you and address 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.

Consumer Bankruptcy, Debt Relief

Debt Relief vs. Bankruptcy in 2025

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Debt relief and bankruptcy can offer real financial help in a challenging economic environment- but there are a few things you should know about each option.

American households are struggling with debt like never before, as total credit card balances have soared past $1.21 trillion nationally. With credit card interest rates approaching record highs and the cost of living rising, many people have found themselves trapped in a cycle of making minimum payments.

Amid the financial pressure, people are exploring different options to regain control over their debt.

Debt relief programs, such as credit card settlement plans, are increasingly accessible, while bankruptcy remains an option for those facing overwhelming debt.

Each option has unique benefits, costs, and long-term implications.

Debt relief programs only address unsecured debt, like credit cards, personal loans, and medical bills. These type programs cannot help with secured debts, like a mortgage or car loan.

filing for bankruptcy

Bankruptcy, on the other hand, can wipe out certain unsecured debts entirely, and in some cases, provide options for addressing secured debt. Understanding exactly what you owe, and to whom is the first step in deciding which approach to choose.

Debt relief programs work best if you have a steady income that allows you to make monthly payments. If your earnings are inconsistent or barely cover your living expenses, these programs can prove challenging to sustain.

For those whose income will not support repayment, bankruptcy provides a better option. However, post-bankruptcy budgeting is essential to avoid falling back into debt.

Choosing between bankruptcy and debt relief is a personal decision influenced by your total debt, income, credit outlook, and long-term goals.

Debt relief can offer structured repayment and lower interest costs without the long-lasting credit hit of bankruptcy, but it requires discipline and consistent payments. Bankruptcy, however, can immediately wipe out your debt and provide you with a fresh financial start when debt becomes unmanageable.

As you weigh your options, it is important to review each one carefully, ideally with a financial counselor, certified debt specialist, or experienced bankruptcy attorney before deciding.

Click here to read more on this story.

If you have questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can assist you and address 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 Filings, Bankruptcy Trends, Chapter 7 Bankruptcy, Consumer Bankruptcy

Personal Bankruptcy Filings are Soaring – But How Do You Know When You Need a ‘Financial Reset’?

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Chapter 7 consumer bankruptcy filings have increased 15% in the first nine months of 2025, according to American Bankruptcy Institute. That amounts to 249,152 filings so far this year as compared to the 216,773 filed last year for the same period, according to data from Epiq AACER. Individual Chapter 13 filings also increased by 4.3%.

The rise in bankruptcy filings can be attributed to the growing financial pressure families are facing across the country. Inflation has outpaced wage growth for 43 percent of Americans.

Chapter 7 bankruptcy is a powerful legal tool that allows those in financial crisis to cancel debts such as credit card debt, medical debts, and personal loans.

As soon as a Chapter 7 bankruptcy case is filed, the consumer receives immediate protection from his or her creditors. This protection comes from the automatic stay that is issued by the court upon filing. The automatic stay puts a pause on all collection actions, including collection phone calls, legal proceedings to collect on a debt, wage garnishments, evictions, and foreclosures. The automatic stay also gives consumers a chance to breathe and work with the court and bankruptcy trustee.

It can be difficult to determine whether it is the right time to file for Chapter 7 bankruptcy. Typically, those that file should meet the following criteria:

  • Have a low credit score.
  • Have no foreseeable way to pay off debt within the next few years.
  • Do not possess expensive property.
  • Have more than $10,000 in debt
  • Struggle to make payments.
  • Are in fear of legal action being taken against them due to debt.

An alternative to Chapter 7 bankruptcy is Chapter 13 bankruptcy. Most commonly, those that opt to file for Chapter 13 fail to qualify for Chapter 7 due to their income. They may also own a property that is not protected by Chapter 7 bankruptcy exemptions. An experienced bankruptcy attorney can provide crucial assistance in evaluating your finances to determine which plan is best suited for your situation.

If you have questions or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can assist you and address 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.

SOURCE: Personal Bankruptcy Filings Are Soaring This Year Due to ‘Mounting Financial Pressure’ — but Do You Know What It Means To File and the Alternatives?

Bankruptcy Law, Consumer Bankruptcy

Personal Loans After Bankruptcy. Can You Get One?

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YES, it is possible to get a personal loan after bankruptcy.

The good news is that after bankruptcy, you can immediately take steps that can have a positive impact on your credit history. While each lender will have certain eligibility requirements, for example, a minimum credit score and minimum income.  A descent income and a low debt-to-income ratio can be compensating factors. Especially, if you have taken steps to rebuild your credit.

Here are some important tips for rebuilding your credit after bankruptcy.

  1. Pull a copy of your credit reports for free by visiting https://www.annualcreditreport.com/.
  2. Make sure your credit reports are accurate. The accounts that were discharged in bankruptcy should be closed. If any discrepancies are found, these errors should be reported right away to the credit bureaus via a formal dispute.
  3. Prioritize making future payments on time. It sounds simple, but on-time payments and responsible credit card use can significantly help you recover from bankruptcy.
  4. Creating a budget is important after completing a bankruptcy case. Write down all necessary living expenses and track how much of the consumer’s income can be used to go towards paying these costs. A good rule of thumb when budgeting is to follow the 50/30/20 rule. What this entails is 50 percent of the consumer’s income goes towards meeting his or her needs. Another 30 percent would be set aside for items that are considered not necessary or are wanted, while 20 percent of the monthly income goes towards savings.

Getting a personal loan after bankruptcy.

If you are interested in applying for a personal loan after bankruptcy, here are some important steps to take.

  1. Review your credit report. If you find mistakes, contact the credit bureau before applying for the loan.
  2. Know your loan amount. A personal loan can be helpful, but it still needs to be repaid. That means borrowing within your means and only for what you need.
  3. Research lenders. Look at minimum and maximum loan amounts, eligibility requirements, APRs, repayment terms, fees, and customer reviews.
  4. Get prequalified: Once you have your list of potential lenders, see if you can get prequalified online.
  5. Have all your documents ready. Make sure you have pay stubs, tax statements, and bank statements ready to support your application. After that, it’s in the lender’s hands. You may get a response immediately, or within a couple of days, or up to a week, depending on the type of lender.

 

Click here to read more.

If you are in financial crisis and considering filing for bankruptcy, 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, 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.

Consumer Bankruptcy, Florida Super Lawyers, Legal Awards

Miami Bankruptcy Attorney Timothy S. Kingcade Named a Florida Super Lawyer 12 Consecutive Years

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MIAMI (June 26, 2025) – Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade Garcia McMaken has been selected to the 2025 Florida Super Lawyers list. This is the 12th consecutive year Kingcade has been selected to the Florida Super Lawyers list (2014-2025) in the practice area of consumer bankruptcy. The top 5% of lawyers in Florida are selected by Super Lawyers.

“It is an honor to be named to the Florida Super Lawyers list this year. The recognition is a testament to the hard work and dedication that comes with providing exceptional legal representation to our clients,” said Managing Shareholder, Timothy S. Kingcade. “I would like to thank my colleagues for their nominations and support, and Super Lawyers for acknowledging my professional achievements.”

Attorney Kingcade practices exclusively in the field of bankruptcy law, handling Chapter 7 and Chapter 13 filings for the Southern District of Florida.  As an experienced CPA and proven bankruptcy attorney, Kingcade knows how to help his clients take full advantage of their rights under the bankruptcy laws to restart, rebuild, and recover.

Super Lawyers is a listing of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement, representing the top 5 percent of Florida lawyers. The annual selections are made using a patented multiphase process which results in a credible, comprehensive, and diverse listing of exceptional attorneys. Attorneys are nominated by their peers, evaluated by a research team, and reviewed by a blue-ribbon panel before being selected for the final list. The Super Lawyers list is published nationwide in Super Lawyers Magazines and in leading city and regional magazines and newspapers across the country.

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Miami-based Kingcade Garcia McMaken, P.A. 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 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, P.A. 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.

Bankruptcy Fraud, Bankruptcy Law, Consumer Bankruptcy

What is Considered Bankruptcy Fraud in Florida?

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When you file for bankruptcy, you are required to list all your property and any assets you have transferred to others within a particular time on your bankruptcy paperwork.  Bankruptcy fraud can be many actions.  But the one common factor is an attempt to pay a creditor less than what is owed by using the bankruptcy process.

While most people who file for bankruptcy are honest, hardworking people, some individuals are tempted to hide assets and property.  Here are some examples, that could be considered criminal.

  • Concealing a property or asset transfer prior to bankruptcy. For example, transferring the title of a house or car to a friend or family member to shield it from creditors.
  • Transferring assets out of state to make them harder for creditors to reach.
  • Hiding cash or bank accounts from the bankruptcy trustee.
  • Paying someone to help hide assets from the court.
  • Selling assets at significantly reduced prices to friends or family members prior to filing bankruptcy. For example, selling a car that is worth $15,000 for $1,500.
  • Failure to list all assets on the appropriate bankruptcy schedule.
  • Destroying documents.
  • Providing a false document to the bankruptcy court or trustee.

The relief bankruptcy affords people is a powerful one and frees you from the burden of overwhelming debt.  However, it does cost your creditors.  Bankruptcy law attempts to mitigate this loss by establishing a bankruptcy ‘estate’ (i.e. – the remaining property) after your exemptions (i.e. – those assets which are kept to maintain a job and household).

Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to hide assets, the consequences are big. Anyone who makes a knowingly false statement in association with a bankruptcy filing can be assessed fines up to $250,000 and receive up to 5 years in prison. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. 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. Visit our website to learn more www.miamibankruptcy.com.

Bankruptcy Filings, Bankruptcy Trends, Consumer Bankruptcy

Experts Warn of a Summer Bankruptcy Spike Amid Economic Instability

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A recent report suggests that bankruptcy filings could soon be on the rise due to the economic hardships many families are facing.

The average American household carries over $105,000 in consumer debt. LegalShield’s Bankruptcy Index suggests that filings this summer could spike to a level not seen since the start of the COVID-19 pandemic.

If you are borrowing to make ends meet every month, bankruptcy can provide you with a way out. There are two paths for individuals considering personal bankruptcy. Filing for Chapter 7 involves liquidating assets to pay off debts, while Chapter 13 allows individuals to keep some assets and restructure their debt.

Certain debts, such as alimony and child support, cannot be discharged in bankruptcy. Student loan debt might be included, but only under specific circumstances. Credit counseling is another option. By following a strict budget and negotiating lower interest rates on outstanding debt, it is possible to get your finances under control.

Click here to read more.

If you have questions on this topic or are in a 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 Filings, Bankruptcy Trends, Consumer Bankruptcy, Consumer Debt, Timothy Kingcade Posts

Consumer Bankruptcy Inquiries Reach Highest Level Since the Pandemic

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People inquiring about filing for bankruptcy have reached its highest level since 2020.  Insurmountable debt, years of steep inflation, costly mortgages, and a weakened housing market remain the driving factors.

Legal Service provider, LegalShield, reported bankruptcy legal inquiries jumped in Q1 following three quarters of “high consumer stress.” The index is based on a survey of more than 25 million legal requests.

Prolonged financial stress combined with price pressures driven by tariff uncertainty will likely contribute to a surge in bankruptcy filings this summer.

These bankruptcy warning signs come amid a third straight quarter of elevated consumer stress measured by LegalShield’s Consumer Stress Legal Index (CSLI), pointing to a heightened financial strain that has become a “new normal” for American households.

Tariffs are driving up costs on everything from food and clothing to electronics and cars. The increased costs are typically passed on to consumers.

The share of households more than 90 days late on credit cards and car loans hit a 14-year high at the end of 2024, according to The Federal Reserve Bank of New York, and delinquencies are still climbing. Credit card balances also hit a record high of $1.21 trillion.

Click here to read more.

If you have questions on this topic or are in a 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.

Consumer Bankruptcy, Debt Relief

When Bankruptcy Is the Best Option

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One of the biggest advantages of filing bankruptcy is the possibility of a fresh financial start. Filing for bankruptcy also stops collection calls, wage garnishments, and lawsuits. Chapter 7 bankruptcy wipes out many kinds of debt, including: credit card debt, medical bills, personal loans, civil judgments, past-due rent and utility bills, business debts and some older tax debts.

Filing for bankruptcy may make sense depending on how much debt you have, your other financial obligations, and other methods of debt relief you have tried.

To file Chapter 7 bankruptcy, you will need to complete and submit paperwork outlining your earnings, spending, and amount of debt to the bankruptcy court. Those that are employed will also be required to share tax returns and pay stubs.

Typically, those that file should meet the following criteria:

  • Have a low credit score
  • Have no foreseeable way to pay off debt within the next few years
  • Do not possess expensive property
  • Have more than $10,000 in debt
  • Struggle to make payments
  • Are in fear of legal action being taken against them due to debt.

A qualified bankruptcy attorney can offer guidance and answer any questions the person may have about whether it is time to move forward and proceed with a bankruptcy filing. A bankruptcy attorney can also assist in determining which type of bankruptcy is best.  

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.

SOURCE: https://www.nerdwallet.com/article/finance/bankruptcy-best-option