Credit Archives - Page 7 of 82

Bankruptcy Law, Credit, Timothy Kingcade Posts

Household Debt Continues to Climb- Here’s the Categories that have seen the Biggest Jump

Posted on April 18, 2018by Admin

As a nation, household debt is continuing to increase. Debt is increasing in all major categories, except for auto loans during the last quarter of 2017. The two categories with the most significant growth were mortgage debt, which increased by more than $3,000 per household and credit card debt that went up by $250 per household.

The growth in credit card debt can be partially attributed to holiday spending. The last quarter of 2017 credit card debt per household stood at $15,983. Mortgage debt totaled $178,037 per household.

Credit card debt often comes with high interest rates, which means carrying debt month to month can create significant financial stress. Carrying this debt for many years can cause thousands of dollars in interest to accrue. Some quick tips to pay off credit card debt include: Finding out your total balance, doing a balance transfer to stop the accruing interest and powering through the balance (i.e. – take advantage of the interest-free period of your new card).

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

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

5 Alternatives to Charging Your Medical Bills

Posted on April 13, 2018by Admin

If you are like many individuals today facing serious medical bills, it is important to know that you have options. The rising cost of healthcare, combined with the growing number of Americans without adequate health insurance has led many people to file for Chapter 7 bankruptcy. In fact, medical debt is the No. 1 reason people file for bankruptcy in the U.S. In 2014 alone, an estimated 40% of Americans accumulated medical debt resulting from a health issue. Instead of putting medical expenses on your credit cards or worse signing up for a medical credit card, here are some alternatives that can help you stay out of medical debt.

Enroll in a payment plan. Certain hospitals and doctor’s offices offer payment plans for low-income patients. This will allow you to work out a payment plan directly with the healthcare provider, pay your bill overtime and avoid interest charges.
Ask about charitable funds. If your household income is low enough, you may qualify to have your medical bill completely dismissed. Some hospitals have money set aside to pay for treatment of patients who cannot afford to pay their bill. This is especially common in emergency health situations. However, be warned the paperwork and forms involved is extensive but is worth it in the end.
Negotiate a lower amount. Depending on the circumstances, you may be able to negotiate a lower bill. It never hurts to ask. In some cases, hospitals may agree to settle the debt for less than you owe.
Consider taking out a personal loan. If you have exhausted your other options and still need help paying your bill, consider taking out a personal loan rather than using credit cards. If you have good credit and a stable income, you could qualify for a loan with an interest rate as low as 5 percent.

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Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

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

An Inside Look at 83 Million Eviction Records, and what Housing has come to in America

Posted on April 11, 2018by Admin

A recent article in the New York Times provided an in depth look at the eviction crisis occurring in America. Nearly one million American households received eviction judgments in 2016 in new data spanning dozens of states. Two years prior, sociologist Matthew Desmond turned the topic of eviction into a national one with his book, ‘Evicted,’ which chronicled how poor families who lost their homes in Milwaukee sank even further into poverty. This problem is not just in Milwaukee, eviction judgment rates for renting households is widespread.

Desmond’s team found records for nearly 900,000 eviction judgments in 2016. Landlords were given the legal right to remove at least one in 50 renter households in the communities covered by this data. And one in five renter households in Richmond, Va., which has one of the highest eviction rates, were threatened with eviction in 2016. Their landlords began legal proceedings, even if those cases did not end with a lasting mark on a tenant’s record.

Most of those evicted never made it to the courtroom. Some did not appear because their problem seemed hopeless; others did not show because they had no legal representation. The median amount owed was $686. These cases, sometimes brought in bulk by property managers are settled in minutes when defendants are not present.

Eviction is not just one problem; it often spirals into a number of problems. Medicaid benefits and food stamps are forfeited by families who often need them the most after losing the permanent addresses where the renewal notices are sent.

To make matters worse, states like Virginia, that have some of the highest rates of eviction lack certain tenant rights available in other states. In areas like Richmond, Va., many poor African-Americans live in low quality housing projects with no means of escaping it. Many times these individuals are just a car repair or hospital visit away from missing a rent payment.

The process of what happens after the eviction is not any better. The current court process functions as an arduous rent-collection system, one that attaches attorney fees and court costs to rent checks, and one that saddles even tenants who do not lose their homes with lasting eviction marks on their credit reports. It oftentimes takes years for families to stabilize after this.

Another downside, the underprivileged tenants are not ensured access to legal aid or protected from steep rent increases, as in some cities and they have no rights to deduct their own repair costs from the rent. The median amount owed on a public housing eviction was $328, according to Desmond’s data. The public housing authority, spends on average 50 days turning over the apartments, costing the agency more in lost rent than the unpaid rent cases are often worth.

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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 Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

New Poll Reveals the Majority of Millennials are in debt, Postponing Major Life Events

Posted on April 10, 2018by Admin

Nearly three out of four millennials in the U.S. are in debt and according to a new poll credit card debt is the most prevalent type of debt among the group- not student loan debt.

A quarter of millennials — those 18 to 34 years old — are more than $30,000 in debt, including 11 percent who are over $100,000 in debt.

Debt has resulted in savings taking a backseat for many millennials and has caused a third, or 34 percent, to hold off on buying a home. Debt has also affected the millennial generation family structure. Fourteen percent of millenials have delayed marriage due to their debt and 16 percent have postponed having children.

Here are some additional findings from the NBC News/GenForward survey:

Sixty-two percent of millennials owe more in debt, than they have in a personal savings account
Three in 10 millennials have less than $1,000 in their personal savings, and only 1 percent have over $100,000 saved.
A quarter, 24 percent of millennials, have no personal savings.
Two-thirds of millennials, or 67 percent, said they would have difficulty paying an unexpected bill of $1,000 right away.
Credit card debt is the most prevalent type of debt among the group, while just two in 10 millennials say they have a mortgage or home loan.
Only 22 percent of millennials are debt free.
Fourteen percent of millennials have delayed getting married due to debt, and 16 percent have delayed having children.
Debt has caused a third of all millennials, or 34 percent, to hold off on buying a home and 31 percent to delay saving for retirement.

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

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Florida Ranks in the Top 5 States for Invalid and Illegal Debt Collection

Posted on April 3, 2018by Admin

Invalid and illegal debt collection practices are at an all-time high across the country, and Florida is no exception. Data was analyzed from the Consumer Finance Protection Bureau (CFPB) to identify the states that engaged in these deceptive and illegal practices. ‘Zombie’ debt collections are rampant in South Florida and involve attempts to collect debts not owed, those that were already paid or discharged in bankruptcy, debts owed by someone else, or are a result of identity theft. Typically, this debt collection practice is done by third-parties, who have collected these debts written off by the original creditor.

The five states in which zombie debt collection is most prevalent are:

Delaware– Delaware leads the nation when it comes to the likelihood of having to deal with a collection agency trying to collect a debt you do not owe. With a total of 422 complaints in the Consumer Complaint Database, Delaware has a per-capita rate of 44.72 complaints per 100,000 residents.
Florida– Florida comes in at number two with 42.43 complaints per 100,000 residents (a total of 8,314 complaints in all).
Georgia– Georgia trails Florida by two hundredths in its per capita incidence rate of reports of zombie debt collection attempts, with 4,258 complaints registered and a population of almost exactly 10 million residents.
Nevada– Like Florida, Nevada has incidence rates of illegal debt collection attempts well above the national average of 25.84 per 100,000.
Maryland– Maryland has 38.65 complaints per 100,000 residents. The affluent and suburban Prince George’s County has an incidence rate of 66.6 per 100,000 residents.

Knowing which debt collection agencies have a history of practicing zombie debt collection in your state can help you avoid being a victim. The three debt collection agencies most likely to engage in invalid and illegal debt collection practices in the country are:

Encore Capital Group
Enhanced Recovery Company (ERC)
Portfolio Recovery Associates

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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. 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, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What happens if I ignore a debt collector?

Posted on March 29, 2018by Admin

If you are unable to make payments on a debt, you may be tempted to turn a blind eye until you are able to come up with the money. But this is one of the worst things you can do. You always have the right to ignore a debt collector, but it will not make the debt go away. Here are some possible scenarios that can occur if you ignore a debt collector:

They leave you alone. You might think this is a good thing and perhaps the debt collector has forgotten about your debt. But this is unfortunately not the case.

Your credit score suffers. A past due debt will appear on your credit report regardless of whether you respond to debt collection attempts or not.

Your debt is transferred to another company. If the first collector is unable to reach you after repeated attempts, your account can wind up with a different agency. This can happen a number of times if the balance remains unpaid.

The debt continues to grow. Just because you stop paying your debt, does not mean the interest stops growing. Add on collection costs and this can cause the debt to double over time.

They reach out to people you know. Debt collectors can reach out to people who know you to try and locate you, especially if you have changed your phone number or address to avoid collection attempts. They are not allowed to tell them about your debt. Revealing debt to third parties (i.e. – family, neighbors, friends, co-workers, etc.) is a violation of the Fair Debt Collection Practices Act (FDCPA).

A lawsuit is filed against you. Ignoring a debt and failing to communicate with a debt collector can result in you being sued. You can try your best to defend yourself, but if a judgment is entered against you it can result in wage garnishment and even funds being withdrawn from your bank account to pay off the debt.

Stress mounts. The stress of debt can cause anxiety, sleepless nights, even marital problems. Avoiding debt collectors can leave you on the edge, wondering when the next phone call will be or collection letter will arrive in the mail.

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

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

‘Zombie’ Debt Collections Plague South Florida

Posted on March 28, 2018by Admin

According to a recent study, invalid and illegal debt collections are at a record high in the Sunshine State. The practice also referred to as ‘zombie debt collections’ is defined as attempts to collect debts not owed, those that were already paid or discharged in bankruptcy, debts owed by someone else, or are a result of identity theft. Typically, this debt collection practice is done by third-parties, who have collected these debts written off by the original creditor.

If you feel you have been a victim of zombie debt collection, first request that the debt collector provide you written documentation verifying the debt and check for any discrepancies. It is important that you respond to all court summonses to ensure that a debt collector does not win a court case by default.

Last week, the Federal Trade Commission declared in a new report that Florida is the scam capital of the nation, with nearly 2.7 million consumer complaints made to the agency in 2017. The top categories included: debt collection, impostor scams, identity theft, phone and mobile, and banks and lenders.

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Credit, Debt Relief, Timothy Kingcade Posts

Are you paying off your credit cards the right way?

Posted on March 26, 2018by Admin

If you have multiple credit cards you are making payments toward, paying off the cards in the right order can make all the difference in how quickly you get out of debt. Turns out most consumers are using a repayment strategy that takes longer and costs more than it has to.

Here are some quick tips to help you tackle credit card debt the right way:

Go above the minimum. When you receive your credit card statement, it will include the minimum monthly payment you are required to make. This is typically 2 to 5 percent of your entire balance. Paying only the minimum will have you avoid late fees and keep you from being reported to the credit agencies, but that is about it. Depending on the interest rate of your credit cards, paying only the minimum could keep you in debt for 30+ years!

Avoid balance-matching. According to a recent study, many consumers are allocating their credit card payments in proportion to the balances on each account. For example, bigger payments are going towards cards with bigger balances, while smaller payments are going towards cards with smaller balances, also known as “balance-matching.” The problem with this strategy is it avoids the interest rate entirely, which is a determining factor in how long it will take you to pay off the debt.

Utilize the debt avalanche method. This is the optimal payment method and requires making additional payments to your highest-interest cards, first while making only the minimum payments to your lower interest credit cards. Once your highest-interest credit card is paid off, move to the next highest-interest card, and so on, until your debt is eliminated. This debt elimination strategy ignores the balances and uses only the interest rate to determine how to allocate payments.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Myths about bankruptcy and your credit score debunked

Posted on March 22, 2018by Admin

There are many misconceptions surrounding the amount of time it takes to rebuild your credit after bankruptcy. We are clearing up some of the common misconceptions about how bankruptcy affects your credit score.

Myth #1: All bankruptcy information stays on your credit report for ten years.

The Truth: Only the public record of a Chapter 7 bankruptcy lasts for ten years. All other bankruptcy references remain on your credit report for seven years, including: Line items stating “account included in bankruptcy;” Third-party collection debts, judgments and tax liens discharged in bankruptcy and Chapter 13 public record items. Once these items begin to disappear, you will see a bigger boost to your credit score.

Myth #2: You will have poor credit as long as the bankruptcy information stays on your credit report.

The Truth: This is one of the biggest misconceptions and one that our clients can tell you is a complete myth.

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

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

You can begin to build your credit back with smart credit management. Within a few years, you can obtain a “good” credit score ranging from 700 – 749 by doing the following:

Adding new credit, such as secured credit cards or small installment loans, to offset the negative information on your credit report;
Making on-time payments for all debt, new and old;
Keeping your credit card balances under 30% utilization.

Myth #3: Bankruptcy affects the credit of all filers equally, regardless of the amount of debt.

The Truth: Your credit score will factor in details such as the amount of debt discharged and the proportion of negative to positive accounts on your credit report. If you have a low amount of debt and only a few accounts included in your bankruptcy, your credit score will be higher than someone with a more severe bankruptcy case.

Myth #4: You cannot get a credit card or loan after filing for bankruptcy.

The Truth: Credit cards are one of the best ways to begin rebuilding your credit and you will be surprised how quickly offers for them will appear in your mailbox after filing for bankruptcy. Secured credit cards, which require an upfront security deposit, allow you to spend and build credit easily and safely.

Myth #5: Bankruptcy will ruin your credit forever.

The Truth: Bankruptcy will damage your credit in the short term, but practicing good financial habits, can rebuild your credit to be stronger than ever. A report from the Federal Reserve Bank of Philadelphia showed that those who filed for Chapter 7 bankruptcy in 2010 had an average credit score of 538.2 on Equifax’s scale of 280 to 850. But the average score jumped to 620 by the time those bankruptcies were finalized, approximately six to eight months later. There are many ways to rebuild your credit after filing for bankruptcy. There are certain limitations you will face after filing, but taking advantage of the right financial tools can go a long way in helping you get back on the right path for your financial future.

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

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Steps to Take if You Want to Buy a Home after Bankruptcy

Posted on March 21, 2018by Admin

After filing for bankruptcy, you are going to want to begin rebuilding your credit as soon as possible. You can start by checking your FREE annual credit report on AnnualCreditReport.com to get reports from the three major credit bureaus: Equifax, TransUnion and Experian.

Your report may show late and missed payments on credit cards, mortgages and credit accounts you may have opened or closed. Bankruptcy provides you with a clean slate, which means you have a second chance to pay your bills on-time and in full.

If your credit score is in the low 600s, your credit is still too low for most decent loans with good terms, but you can work quickly to get it back up in the mid-700s.

After bankruptcy, when accessing and utilizing credit again, keep your credit card balances relatively low compared to the card’s limit. For example, less than 30% is typically advised while using just 10% of the available credit is even better.

Once your credit score improves, you can then find the right mortgage lender, real estate agent, and the right attorney to move forward with the purchase of your new home.

Still not convinced? A testimonial from one of our clients in regards to their credit score after filing for bankruptcy.