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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.

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.

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.

You may be surprised to hear who the Bipartisan Student Loan Certainty Act of 2013, officially signed on August 9, by President Obama is actually benefitting. According to a recent story in U.S. News & World Report, the Congressional Budget Office projects the new law will increase government profits on student loans through 2023 by $715 million! The new law offers a moderate amount of help to current students at the expense of future ones and simply does not address the fundamental problem in the student loan system- the enormous profit the federal government is making at the expense of students.

The amount added to subsidized and unsubsidized direct loans for undergraduates is 2.05 percentage points. Unsubsidized direct loans for graduate and professional students have 3.6 percentage points added to the 10-year Treasury note rate and 4.6 percentage points are added to PLUS loans for graduate and professional students. By itself- when interest rates are low- this is not too bad.

Unfortunately, the new law combines this market rate with different – and much higher – interest rate caps. Undergraduates can now pay a maximum interest rate of 8.25 percent – compared with the previous maximums of 6.8 and 3.4 percent for unsubsidized and subsidized direct loans. When interest rates go up, which they likely will in the near future, students will pay much higher rates.

Click here to read more on the new student loan act and who it is actually benefiting.

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.

According to a recent report by Reuters, Detroit’s two public pension funds will file an objection on Monday to the city’s bankruptcy filing on Michigan constitutional grounds. The challenge expected from the pension funds is the first to emerge from among several parties likely to object to the city of Detroit’s claim that it is bankrupt.

For Detroit’s Chapter 9 bankruptcy to proceed, U.S. Bankruptcy Judge Steven Rhodes, who is overseeing the case, must first find the city has proved it is insolvent and negotiated in good faith with its creditors, or that there were too many creditors to make negotiation possible.

In a court filing earlier this month, Detroit released a list of creditors, including current, former and retired workers that filled 3,504 pages. If Detroit is ultimately deemed eligible for municipal bankruptcy, it would be the biggest case in U.S. history.

The city’s two pension boards will claim that Michigan Governor Rick Snyder violated the state’s Constitution when he allowed Detroit’s state-appointed emergency manager,Kevyn Orr, to make the bankruptcy filing. The pension boards will also claim Detroit violated state constitutional language that prohibits the impairment of vested retirement benefits for public workers.

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.

A good credit score can help you get approved for a mortgage or a car loan. It also allows you to qualify for the best loan interest rates possible. A ‘good credit score’ is considered to be a 720 or higher. But it’s all too easy to let your credit score slip. Below are seven mistakes that can negatively affect your credit score:

1.) Failing to understand how your credit score is calculated. The three credit reporting bureaus- Equifax, Experian and TransUnion rely on the following five factors: payment history, amount you owe, length of credit, types of credit and new credit inquiries you make.
2.) Pay late. Lenders look for patterns of missed or late payments. Even being one day late on a payment can lower your credit score.
3.) ‘Max out’ your credit card. Lenders consider it a bad sign if your debt-to-credit ratio is too high. You should shoot for a ratio under 30 percent.
4.) Canceling credit cards. This is not always a good thing. Canceling a credit card can raise your debt-to-credit ratio because the available credit you have shrinks when you close the account.
5.) Failing to strike a balance between paper and plastic. Using a credit card properly can convey responsibility when it comes to money management. Deciding to pay cash for most purchases can actually hurt your credit score.
6.) Applying for a credit you do not need. The more credit inquiries you make, the riskier you seem to creditors. Apply only for credit you truly need.
7.) Give up on improving your credit score. If you have a low credit score and are not making efforts to improve it, chances are your score will continue to go down. There are two things that will eventually help improve your credit score: making regular, on-time payments and the passage of time.

Click here to read more on the seven mistakes that can hurt your credit score.

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.