Credit Archives - Page 8 of 82

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What happens if a creditor tries to collect on a debt during my bankruptcy?

Posted on March 16, 2018by Admin

After you file for bankruptcy, creditors are not allowed to contact you regarding any debt you owe; they must deal only with your attorney. The protections allotted by the bankruptcy automatic stay prohibit all collection activity, including legal action, wage garnishment, even contact by phone or mail in an attempt to collect on a debt.

There are a few exceptions. For example, the automatic stay does not stop criminal cases, some child support actions, and certain eviction cases. The automatic stay also does not apply to debts incurred after the bankruptcy case was filed. Here’s how to determine if a creditor violated the automatic stay and what you can do if a creditor continues trying to collect a debt.

The penalties for violating the automatic stay depend on the nature of the violation and whether it was done with deliberate disregard for the bankruptcy filing. You have several options if a creditor continues to pursue a debt in violation of the automatic stay.

Tell the creditor about your bankruptcy. Most debt collectors will stop contacting you if you tell them this. Many times the debt collector is unaware of your case. For example, if a collector garnishes your wages after the bankruptcy case is filed, it must immediately return the money.

Notify the bankruptcy court. If the collection attempts continue, the next step is to notify the bankruptcy court. The court can sanction the collector for violating its automatic stay order.

File a lawsuit. If a debt collector continues to try and collect on the debt, it may not only be violating the automatic stay but also other state and federal laws including, the Fair Debt Collection Practices Act (FDCPA).

Our firm works to hold creditors accountable for violating the protections allotted by the U.S. bankruptcy laws. Recently, our firm’s motion was granted by a Florida judge in a case that held the creditor in contempt of court for violating the automatic stay in a Miami bankruptcy case. The Order directed the creditor to cease and desist all eviction proceedings until further order of the court. The creditor in this case was also required to pay attorneys’ fees for our firm having to bring forth the motion to enforce the automatic stay to protect our client.

If you are dealing with a creditor you think may have violated the automatic stay, contact your attorney immediately. An experienced Miami bankruptcy attorney will know whether the contact was innocent in nature or a willful violation worth pursuing.

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

U.S. Credit Card Debt Exceeds $1 Trillion for the First Time

Posted on March 14, 2018by Admin

Consumer credit card debt in the United States has exceeded $1 trillion for the first time, according to a recent study by WalletHub. The average U.S. household owes $8,600 on credit cards. Florida is in the top 5 states with the highest credit card debt burden, according to CreditCards.com.

Financial experts attribute this increase to consumer confidence. In the fourth quarter of 2017 alone, consumers added $67.6 billion while the charge-off rate remained at historic lows. Charge-off rate refers to the percentage of credit card users whose unpaid balances credit card companies are unable to collect.

Household indebtedness in the fourth-quarter rose to $13.15 trillion from $12.96 trillion in the third quarter, an increase of 1.5 percent. Mortgages accounted for the largest component of household debt, according to a quarterly report published by the Federal Reserve Bank of New York.

In addition, the average credit score for U.S. consumers has declined. It is now 675, just four points lower than the average in 2007, according to consumer credit reporting agency Experian.

Click here to read more on this story.

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, 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, Student Loans

Trump Proposal Could Protect Student Loan Debt Collectors

Posted on March 9, 2018by Admin

Bloomberg reported the U.S. Department of Education could issue a directive that says federal law prohibits state governments from regulating student loan debt companies that collect student loan debt on behalf of the Education Department.

A document from the Department of Education that was obtained by NPR states:

“Congress created and expanded the Direct Loan Program with the goal of simplifying the delivery of student loans to borrowers, eliminating borrower confusion, avoiding unnecessary costs to taxpayers, and creating a more streamlined student loan program. Recently, several States have enacted regulatory regimes or applied existing State consumer protection statutes that undermine these goals.”

If the directive is enacted, the student loan debt collectors will benefit because they would face less regulations. Student loan borrowers are currently protected by state regulators who do not allow collectors to use aggressive tactics and unfair business practices to collect on debts.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you 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 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, Student Loans, Timothy Kingcade Posts

New Data shows 43 Percent of Credit Card Holders Have More Than $15,000 in Debt

Posted on March 8, 2018by Admin

According to the Federal Reserve, credit card debt is the highest it has ever been in the U.S. In December, American’s had a total of $1.029 trillion in credit card debt. This means the average household had $8,732 in credit card debt. A survey conducted by Student Loan Hero reported that 43 percent of credit card holders surveyed had more than $15,000 in credit card debt and 58 percent had at least $6,000 of credit card debt for more than a year.

The Federal Reserve also reported that the average interest rates on credit cards are approximately 14.99 percent, which makes it much more difficult for Americans to pay off their debt.

Carrying a consistent credit card balance is detrimental to your financial well-being. One option that is often overlooked by cardholders is getting a credit card consolidation loan. According to Student Loan Hero, only 52 percent of cardholders that have more than $6,000 in credit card debt have consolidated.

Below are three ways credit card consolidation loans may help you.

They typically come with lower interest rates than credit cards do, meaning you are paying less in the long run.
Installment loans set firm repayment plans, unlike credit card companies. This means you are more likely to pay off your debt when making your minimum payment each month.
They combine your payments. This comes in handy if you have debts across multiple credit cards.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The Key Differences between Secured Debt and Unsecured Debt

Posted on March 1, 2018by Admin

There are two main types of debt, these include: Secured debt and unsecured debt. Knowing the difference between the two can help you prioritize paying off your debts and keep your assets. Secured debts are tied to an asset that is considered collateral for that debt. Lenders place a lien on the asset, giving them the right to repossess it if you stop making payments on the loan. Examples of secured debt include a car loan and a home mortgage. A title loan is also a type of secured debt.

When it comes to unsecured debts, lenders do not have rights to any collateral for the debt. If you fall behind on payments or stop paying all together, the lender can generally not take any of your assets for the debt. The lender can take other actions against you to collect on the debt. For example, file a lawsuit against you and ask the court to garnish your wages. Unsecured debt can include credit card debt, student loans and medical bills.

So how do you know which debts to prioritize? Secured debts, those tied to a specific piece of property, are typically the best choice to pay first. These payments are often harder to catch up on if you fall behind and you risk losing essential assets, like your home or vehicle. Here are some ways bankruptcy can affect your debts– both secured and unsecured.

Related Resources:

https://www.thebalance.com/the-difference-between-secured-and-unsecured-debts-960181

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

When you should stop paying your credit cards and file for bankruptcy

Posted on February 27, 2018by Admin

If you are struggling to make the minimum payments on your credit cards, the thought of filing for bankruptcy has probably crossed your mind. Whether it is in your best interest to file for bankruptcy depends on:

Whether you can afford to ever pay back your debt;
Whether you are being sued by creditors;
Whether you are facing wage garnishment, and;
The amount of nonexempt property you own.

There are additional signs you should file for bankruptcy. In certain cases, you may be able to negotiate with the credit card company and settle your debt for less than the total amount. You can also request a lower interest rate on your credit cards.

If you have stopped making payments on your credit cards, you will likely begin receiving numerous calls from collection companies. The more delinquent you are, the more frequent and harassing the calls will become. For many people, the constant calling is enough to consider bankruptcy protection and relief.

If you are struggling to pay your credit card debt, know your rights and what debt collectors can and cannot do. The Fair Debt Collections Practices Act (FDCPA) limits the tactics that debt collectors can take to collect on a debt.

Not making payments on your credit cards can result in a lawsuit being filed against you. If the credit card company obtains a judgment against you in court, your wages could be garnished. If you are facing a lawsuit due to your outstanding debt, it is time to consider the consumer protections under bankruptcy law.

Bankruptcy Law, Credit, Debt Relief

Why Credit Card Debt is Bad for Your Health

Posted on February 21, 2018by Admin

The economy is improving and with that comes consumer confidence, increased spending and rising credit card debt. But while household income has grown over the past decade, so has the cost of living. This has caused many consumers to access lines of credit and utilize more credit cards. Credit card debt hit its highest point ever in 2017, surpassing $1 trillion, according to the Federal Reserve.

Close to 2 in 5 consumers who have been in credit card debt say it has affected their overall happiness, according to a recent study by NerdWallet. One-third said it negatively affected their standard of living, and 1 in 5 said it negatively impacted their health. Still, the average American has about three credit cards and a total balance of $6,375, up nearly 3% from last year, according to Experian’s annual study on the state of credit and debt in America.

There are steps you can take to deal with credit card debt with rising interest rates. Don’t let your debt cost you another sleepless night. Sit down with an experienced Miami bankruptcy attorney to discuss your options in greater detail. The consultation is free, the relief is real. 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

Legal Tips to Stop Creditor Harassment

Posted on February 19, 2018by Admin

People accumulate debt for all kinds of reasons, whether it’s going back to school, having a baby, or one of life’s unexpected emergencies. Regardless of your circumstances, being in debt can be stressful- it can be made even worse by creditor harassment.

The first step is to try to address the issue before it becomes a problem. Do not ignore the debt and hope it goes away. It will not. Tell the creditor you are unable to pay the bill. You can attempt to settle the debt at a reduced amount or request to be placed on an affordable monthly payment plan. If these options do not work, you can write a letter requesting that the collector stop contacting you all together.

Another option is to sit down with an experienced bankruptcy attorney for a free consultation to discuss your financial situation in greater detail. Bankruptcy automatically protects you from further collection activity and is an effective way to stop creditor’s from harassing you.

If you are struggling with debt, know your rights and what debt collectors can and cannot do. The Fair Debt Collections Practices Act (FDCPA) limits the tactics that debt collectors can take to collect on a debt.

Under the Fair Debt Collections Practices Act, it is illegal for debt collectors to do the following:

Call you repeatedly
Contact your employer or neighbors about your debt (they may only contact them to locate you, but may not mention the debt)
Call you late at night or at unreasonable hours
Call you at work
Engage in deceptive conduct
Calling you without disclosing their identity
Use obscene, derogatory, or insulting remarks
Threaten arrest or loss of child custody or welfare benefits
Publish your name
Use any communication, language or symbols on envelopes or postcards that indicate that the sender is in the debt collection business
Threaten repossession without legal right or present intent to do so

If the collection agency has made any of these violations, you may be able to sue them for damages, your attorney fees, plus an additional $1,000.00.

Related Resources:

https://www.legalzoom.com/articles/got-debt-stop-creditors-from-harassing-you-with-these-few-legal-tips

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Millennials Slower to Pay Down Medical Debt

Posted on February 14, 2018by Admin

A recent study by TransUnion revealed that millennials pay medical expenses at a lower rate than Gen X or baby boomers. The study did a comparison of credit data and it revealed five key findings.

Millennials use fewer credit cards than Gen X consumers. In fact, their use of private label cards is 23 percent lower than Gen X consumers, while their usage of bankcards is 22 percent lower.
Millennials prefer to make every day purchases using cash and debit cards, according to TransUnion.
When it comes to credit cards, subprime millennials carry a serious delinquency rate of 23 percent, which is lower than the Gen X rate of 28 percent.
Millennials tend to pay medical bills at a slower pace compared to other generations, according to TransUnion. The study found 74 percent of millennials did not pay their medical bills in full in 2016, a 6 percent increase from 2015. That compares to 68 percent for Gen X consumers and 60 percent for baby boomers.
Millennials’ slower rate of paying medical bills is occurring in a healthcare environment where patients are taking on more financial responsibility for their care. The study found healthcare provider revenue collected directly from patients increased from less than 10 percent to more than 30 percent over the last 10 years.

Click here to read more on this story.

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, Timothy Kingcade Posts

5 Steps for Buying a Home after Bankruptcy

Posted on January 29, 2018by Admin

Purchasing a home after bankruptcy may seem out of reach. However, all hope is not lost. If you recently filed for bankruptcy and wish to purchase a home in the future, there are certain steps you can take to speed up the process.

Step One: Keep an Eye on your Finances

If someone has just completed bankruptcy, he or she is going to soon discover that the free credit report is a lifesaver. It is an easy way to keep a close eye on your finances, ensuring that all debts have been discharged and that no additional liabilities are out there. After all, no one wants to be surprised at the last minute, especially right before trying to purchase a home. Make it a regular practice to get a credit report reviewed annually to ensure that progress is being made and that your credit score is going up rather than down. In addition, prepare a budget and keep to that limit to ensure that all monthly expenses are paid in a timely manner.

Step Two: Grow a Savings Account

One recommendation financial advisors almost always make is to pay yourself first, meaning that when you create a budget, enough money is taken out of every paycheck and put into savings in the event it is needed for an emergency at a later date or for larger purchases down the road. This can be done through an automatic savings account method meaning money immediately is transferred from one account to another automatically before you have a chance to access it.

Step Three: Develop a Plan

Come into the situation with a plan in mind. Survey what the home prices are for the area in which you wish to buy. See what home values are and what these will be for monthly payments. Calculate what you can afford, based on your budget. Schedule an inspection to ensure that you are not purchasing a home that is going to be a money pit requiring multiple renovations at a later date.

Step Four: Organize the Documents Needed

Odds are if the person wanting to purchase the home has recently filed for bankruptcy, he or she knows what it takes to get all of the required financial documents put together. It can take a lot of time, so why not begin the process now if you anticipate purchasing a home soon? Organize all financial records, including pay information, paystubs or taxes. Make sure that tax records are easily accessible, as well as bank, credit card or loan statements, legal documents, such as the bankruptcy documents, and insurance documents.

Step Five: Shop Around

It is important that you research all of the options out there and shop around for the best one available. The first way to go about this is to figure out what type of loan is needed, whether it be an Federal Housing Administration (FHA) loan or one offered through a private bank. You will need to discuss these options with the lender and find the option that fits best, and it may not always be the easiest or first option. It does help to go into the meeting prepared, knowing what types of loans are out there before making any decisions.

Click here to read more on this story.