Debt Relief Archives - Page 31 of 86

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.

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.

Related Resources:

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

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

Top 10 Reasons People File for Bankruptcy

Posted on February 17, 2018by Admin

While it is commonly assumed that people who file for bankruptcy cannot resist the temptation of using credit cards or are self-proclaimed shopaholics, most people go bankrupt for other reasons. Here are the most common reasons people file for bankruptcy.

Medical debt. Medical expenses account for approximately 62 percent of personal bankruptcy filings in the U.S., according to a recent Harvard University study. And interestingly enough, the study revealed that 72 percent of those who filed for bankruptcy due to their medical bills had some form of health insurance.
Reduced income. Companies are cutting back on expenses and for many employees that means pay cuts. Less income, combined with an unexpected expense can end in bankruptcy.
Job loss. The sudden loss of a job can quickly deplete ones savings. Approximately 62% of Americans have less than $1,000 in savings and 21% live month-to-month.
Credit card debt. This is not always the result of irresponsible spending, but can accumulate due to an unexpected medical expense, illness or job loss.
Divorce. This can mean a significant loss of income and assets for both partners. It can also mean taking on a portion of your partner’s debt if you co-signed on a loan during the marriage.
Unexpected expenses. Emergencies can happen to any one of us, whether your vehicle breaks down, you suffer a debilitating illness or a catastrophic storm damages your home—these events can deplete savings quickly.
Student loans. Even though these are difficult to discharge in bankruptcy, statistics show that student loans account for at least one percent of all U.S. bankruptcy filings, which translates to approximately 15,000 bankruptcies a year.
Utility payments. For many homeowners, the rising costs of utilities- such as heating, air conditioning and electricity- can quickly add up and pave the way to bankruptcy.
Foreclosure. A number of people file for bankruptcy in an effort to save their homes from foreclosure.
Money mismanagement. Money management has become more difficult, thanks in part to inflation. A combination of poor spending habits and incorrect budgeting can quickly spiral into debt.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

A Consumer’s Rights When a Creditor Violates the Automatic Stay

Posted on February 15, 2018by Admin

The two most powerful tools in the bankruptcy code are the bankruptcy discharge and the automatic stay. U.S. bankruptcy law defines the automatic stay as an automatic injunction that halts actions by creditors, with certain exceptions, to collect debts from an individual who has declared bankruptcy. Under section 362 of the United States Bankruptcy Code, the “stay” begins at the moment the bankruptcy petition is filed.

Automatic stay violations can be accidental or deliberate. Most of the time, it is the result of timing issues or lack of understanding of the law. When a bankruptcy case is filed, the automatic stay goes into effect immediately, but sometimes it can take a week or more for the creditor to find out about the case.

When timing is of the essence- for example, when trying to prevent a foreclosure from taking place, it is of extreme importance your attorney notify that particular creditor immediately after the case is filed.

It is not unlikely that you will continue receiving phone calls, collection letters or statements demanding payment in the mail. Even though these are violations of the automatic stay, in these situations it is best to direct all calls to your attorney. To prove the violation, you will have to show the court that the creditor acted willfully (i.e. – the creditor must know that the action it is taking is prohibited.)

We advise our clients to keep their filing information readily available, so they can provide the case number, name of the court in which the case is being filed, etc. to creditors who continue to call. If this is documented, and the calls continue, the creditors can be held accountable for violating the bankruptcy automatic stay.

Penalties for Violating the Automatic Stay

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. Damages can include out-of-pocket costs (e.g. – renting a vehicle to get to work if your car was repossessed); it can also include attorney’s fees and costs for having to bring the motion before the court, and even pain, suffering and mental anguish.

Our firm works to hold creditors accountable for violating the protections allotted by the U.S. bankruptcy laws. Just last month, 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.

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, Debt Relief, Timothy Kingcade Posts

Auto Loans in Chapter 7 Bankruptcy- Can you keep your Vehicle?

Posted on February 13, 2018by Admin

If you are considering filing for Chapter 7 bankruptcy, you may be wondering whether you will be able to keep your vehicle. Fortunately, it is possible to keep your vehicle and file for bankruptcy- even if you are still financing it. People with car loans have three options under Chapter 7 – they can reaffirm the debt, redeem or surrender their vehicle.

If you choose to reaffirm your car loan, you agree to continue making payments on the loan. You will need to fill out a Chapter 7 Individual Debtor’s Statement of Intention that lists your secured debts. Continuing to make on-time payments on the auto loan after bankruptcy will help rebuild your credit score quickly as these payments will be reported to the credit agencies.

If you choose to redeem your car, this will mean coming up with the money to completely pay off the loan. This option is oftentimes the most difficult of the three.

Surrendering the car allows a borrower to return the car to the lender in bankruptcy. This is a viable option if you realize you are not able to make your monthly payments and the auto loan has become too burdensome or you are upside-down on your auto loan. This option can essentially give you a second chance with a less expensive, more affordable car payment.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

How to Know If You Qualify for Chapter 7 Bankruptcy

Posted on February 11, 2018by Admin

The bankruptcy Means Test determines whether your income is low enough to file for Chapter 7 bankruptcy. The test is designed to keep high-income earners from filing Chapter 7 bankruptcy and limited to consumers who truly need it and cannot afford to repay their debts.

If the Means Test proves your income is too high to file Chapter 7 bankruptcy, you can file Chapter 13 bankruptcy and repay a portion of your debts (typically over a three-to five-year period). Even with the requirements to pass the Means Test, it does not mean you have to be penniless to file Chapter 7. In fact, you can earn significant monthly income and still qualify for Chapter 7- depending on the expenses you have.

The Means Test determines if you qualify for Chapter 7 by deducting specific monthly expenses from your “current monthly income” (i.e. – your average income over the six calendar months before you file for bankruptcy) to arrive at your monthly “disposable income.” The more disposable income you have, the more likely you will be required to repay your creditors.

The first step of the Means Test is to determine whether your income is more or less than the median income in your state. Median income levels vary by state and household size. Also, each county and metropolitan region has different allowed amounts for categories of expenses, such as necessities, housing, and transportation. You can enter your zip code into the Means Test Calculator to determine the income requirements for your specific location.

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

New Study Reveals- 24 Percent of Americans have more Credit Card Debt than Savings

Posted on February 8, 2018by Admin

The new statistic comes from a 2017 Bankrate study, which also revealed only 52% of Americans have emergency savings that exceed their outstanding credit card balances. Meanwhile, the average U.S. household owes $7,136 in credit card debt and an estimated 57% have less than $1,000 in the bank.

There are ways to break the cycle of debt and boost savings simultaneously. It starts by creating a budget. Without a budget, you will have no idea where your money is going each month and where you can cut corners. Downsizing your living space can free up several hundred dollars a month. But keep in mind, cutting back on leisure purchases, eating out and clothing can do the same.

Taking on a side-job to earn extra income is another way to pay down debt and boost savings. Of the 44 million Americans who currently have a second job for supplemental income, more than one-third bring home upwards of $500 a month as a result.

Getting out of the debt cycle begins with creating a realistic budget and getting a grasp on your current financial situation. There are specific ways you can deal with high interest credit card debt. If you are struggling with insurmountable debt, whether it is credit card debt, medical debt or student loan debt, consider sitting down with an experienced Miami bankruptcy attorney for a free consultation who can assess your financial situation in more detail and let you know if bankruptcy is right for you.

Click here to read more on this story.

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, Debt Relief, Timothy Kingcade Posts

Determining Dependents in Bankruptcy

Posted on January 31, 2018by Admin

When you file for bankruptcy, whether it is Chapter 7 or Chapter 13, you will be required to complete a set of schedules that lists information about your debts, expenses, income, assets and transactions. Schedule J: Your Expenses requires you to provide details about your current household budget. The court uses this to determine several things, including: whether you have too much income to qualify for a Chapter 7, and if you can afford to make your proposed payments in a Chapter 13 repayment plan bankruptcy. You also must provide information about your dependents. We have explained below how to determine whether someone counts as a dependent and should be listed on this form.

Minor Dependents

Any child under the age of 18 for whom you pay at least 50% of the bills should be listed on the form. This includes your own children who live with you, your spouse’s children who live with you, and children who might not live with you all the time but for whom you pay at least half of their support. This can also include children you have agreed to care for (i.e. – a foster child or another family member’s child for an extended period of time.)

Adult Dependents

Dependents can also be adults. For example, if you provide at least 50% of the support for a parent or grandparent, or an adult relative (such as a child or sibling), that person should be listed as a dependent.

Adults Who Are Not Dependents

There may be adults who live with you but are not your dependents. For example, if your parents allowed you to move back into their house while you get back on your feet financially, they are not your dependents. Similarly, if you have allowed an adult child to move back in with you, but your child pays his or her own way, that child is not a dependent. Roommates who pay their fair share of the bills are not to be listed as dependents. Your spouse does not count as a dependent, regardless of your financial relationship.

Related Resources:

http://www.alllaw.com/articles/nolo/bankruptcy/schedule-j-expenses.html

https://www.thebankruptcysite.org/resources/bankruptcy/filing-bankruptcy/determining-dependents-for-bankruptcy-schedule-i

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

What happens to my 401(k) if I file for bankruptcy?

Posted on January 30, 2018by Admin

Some people think that filing for bankruptcy means they will lose everything. That is one of the biggest bankruptcy myths out there. To the contrary, you will likely get to keep a lot of your possessions including homes, cars and other assets. A vast majority of Chapter 7 cases are “no-asset” cases, which means the debtor is not required to give up any of their possessions.

Another asset protected in bankruptcy is individual retirement accounts. In fact, social security, 401(k)’s and pensions worth up to $1.245 million are all exempt from creditors during bankruptcy. This means that retirement income and savings are out of reach and protected under federal law.

We have filed bankruptcy petitions for clients with more in their retirement accounts than on their credit card statement. A Chapter 7 bankruptcy allows you to hold onto all of your retirement savings and keep every penny of your 401(k).

However, this is only the case if the money remains in your 401(k) retirement account. Removing funds from the 401(k) or any retirement account before filing for bankruptcy turns the funds from a protected asset to an unprotected asset. It is important to speak with an attorney, especially if you have recently lost your job and have considered pulling from your retirement savings to help pay for day-to-day living expenses.

Related Resources:

http://time.com/money/4367416/bankruptcy-myths/