Debt Relief Archives - Page 43 of 86 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Rebuilding Your Credit After Bankruptcy

Posted on August 3, 2017by Admin

Chapter 7 bankruptcy allows you to get a fresh start financially and erase past debts, but a legitimate concern consumers have is the effects it will have on their credit score and their ability to take out credit again.

One of the biggest misconceptions about filing for bankruptcy is that it will ruin your credit score and your financial future. To the contrary, after filing for bankruptcy you can begin restoring your credit right away.

Here are some steps you can take to begin rebuilding your credit after filing for bankruptcy:

Create a budget. This will help you stay on top of your finances and is something you should have gone over in the “pre-discharge” credit counseling.

Build an emergency fund. Research shows that having as little as $250 saved up for an unexpected expense can protect families from having to resort to pay day loans and credit cards.

Plan your post-bankruptcy credit strategy. Assess your situation by first checking your credit score. Dispute any inaccurate information on your credit report and have this corrected immediately. Remember, a Chapter 7 filing will wipe out your debts, but it does not wipe your credit reports clean. Make sure and double check all three reports.

Here are some ways to access to new credit while rebuilding your score.

Secured loans are typically offered by credit unions or community banks. One type of secured loan involves borrowing against money you already have on deposit. The other type can be made without upfront cash. Instead, this money is loaned to you and is placed in a savings account and released to you only after you have made the necessary payments. In return, the financial institution agrees to send a report to the credit bureaus.

A secured credit card is backed by the deposit you make and the credit limit is typically the amount you have on deposit. This can help repair your credit while you wait to become eligible for an unsecured card.

A co-signed credit card can improve your score, but it is definitely a big ask. Essentially, this individual (the co-signer) is risking his or her own credit history for you and will be on the hook if the full amount is not paid on the card.

If asking to co-sign is too much, an authorized user status will work. Basically, you are an authorized user on that person’s credit card. Just make sure the credit card will report the payment activity by authorized users to the credit bureaus, otherwise it will have no effect on your score.

A lighter debt burden automatically makes you more desirable to lenders, so be vigilant about paying on time. 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.

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

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.

If you have any 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, 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.

Related Resources:

https://www.nerdwallet.com/blog/finance/rebuild-credit-after-bankruptcy/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Changes to Healthcare could lead to More Bankruptcies

Posted on August 1, 2017by Admin

Thanks to the Affordable Care Act, personal bankruptcy filings dropped about 50 percent, from 1,536,799 in 2010 to 770,846 in 2016. Studies have shown medical debt as the leading cause of personal bankruptcy filings. As legislators and the executive branch renew their efforts to repeal and replace the Affordable Care Act, there is concern about what that will do to coverage and premiums.

A study conducted by the American Medical Association in 2007 found that 67% of those who filed for bankruptcy cited medical debt as a major factor. For middle class homeowners, the issue of medical coverage was even more influential, with half of all foreclosures caused in part by medical debt. The uncertainty about the fate of healthcare coverage for many Americans may cause the number of bankruptcies and foreclosures to increase in the coming years.

The current healthcare bill that is being debated may result in 22 million to 32 million Americans losing a portion of their current healthcare benefits.

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, 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.

Related Resources:

https://www.consumerreports.org/personal-bankruptcy/how-the-aca-drove-down-personal-bankruptcy/

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

Student loan debt has grown 250% in the last 10 years

Posted on July 31, 2017by Admin

Student loan debt has skyrocketed, as much as 250 percent across the U.S., according to a new report. This puts total student loan debt at $1.4 trillion. Between 2004 and 2014, the U.S. saw an almost 90 percent increase in the number of student loan borrowers, and a nearly 80 percent increase in average balance size. The average amount of debt per borrower is now $26,700. Value Penguin, the consumer spending site that published the report ranked the states where the average amount of student debt is the highest.

New Hampshire

Number of graduates with debt: 76 percent
Average debt: $36,101

Pennsylvania

Number of graduates with debt: 71 percent
Average debt: $34,798

Connecticut

Number of graduates with debt: 64 percent
Average debt: $34,773

Delaware

Number of graduates with debt: 65 percent
Average debt: $33,849

Rhode Island

Number of graduates with debt: 64 percent
Average debt: $32,920

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, 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.

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

New Changes Coming to Student Loans

Posted on July 28, 2017by Admin

Student loan debt now stands at a staggering $1.34 trillion in the U.S. If you are not struggling with student loan debt, you probably know someone who is. Student debt has surpassed auto loans and credit card debt. But some big changes could be coming as to how the government handles them.

For one, the Education Department may consolidate the number of federal lenders. Currently, there are nine. This number could be reduced to just one. In the president’s submitted budget plan, the federal loan program would move from the Education Department to the Treasury Department.

Studies show students in 2016 graduated with an average of more than $37,000 in student loan debt, compared to ten years ago when it was just over $20,000.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

New Payday Loan Regulations for Lenders

Posted on July 27, 2017by Admin

Online lenders are now required to advertise on at least one price comparison website and display “prominently” a link on their own website to a price comparison site. A cap on payday loan costs is also being enforced. The Competition and Markets Authority (CMA), say the new rules are a win for consumers and will allow them to compare loans more easily and establish the best value. Borrowers will also be provided a clear explanation of the fees and charges, making it easier to determine the costs of missing payments.

We never advise clients’ resort to taking out payday loans, as this are an extremely costly way to borrow money. We have identified alternatives to payday loans in another blog on this same topic.

Click here to read more about this story.

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

Thousands of Student Loan Debts Could Be Wiped Out Due to Missing Paperwork

Posted on July 25, 2017by Admin

Tens of thousands of borrowers will likely see their private student loan debt erased due to a technicality- missing paperwork and incomplete ownership records. One of the largest owners of private student loans in the U.S., The National Collegiate Student Loan Trusts is at the center of a legal dispute involving at least $5 billion in student loans, the New York Times reports.

Judges have dismissed dozens of lawsuits filed by the lender against student borrowers due to the lack of documentation proving the loans are even owed. The National Collegiate Student Loan Trusts, which includes 15 trusts that hold 800,000 private student loans, has brought tens of thousands of lawsuits in the past five years against borrowers who have fallen behind on their payments. The trusts hold loans totaling $12 billion and more than $5 billion of those loans are in default. The mix up occurred when the loans, which were originally made by banks, were sold to lenders and the ownership records were lost in the process.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Former “Dance Moms” Star Abby Lee Miller Begins Prison Sentence for Bankruptcy Fraud

Posted on July 24, 2017by Admin

Abby Lee Miller, star of the hit reality TV show “Dance Moms,” began her sentence in federal prison this month, more than a year after pleading guilty to fraud in a Pittsburg federal court. Her sentence is 366 days in prison after pleading guilty to bankruptcy fraud and bringing in more than $120,000 worth of Australian currency into the United States, unreported.

Federal prosecutors charged that Miller was in the middle of Chapter 11 bankruptcy when she attempted to hide $775,000 in income from her Lifetime network reality show and its spinoffs.

The investigation was prompted after the bankruptcy judge in Miller’s case was channel-surfing one night and saw the reality star on TV in December 2012 and figured she had to be making more than the $8,899 in the monthly income she was claiming.

On a lighter note, Miller’s prison diet will be fruit, hot grits, whole wheat bread with jelly, and skim milk for breakfast; burgers with a choice of fries or a baked potato and fruit for lunch; and a deli sandwich or hummus wrap for dinner during her first week in prison, according to TMZ Live.

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. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing. In addition, the potential penalty for bankruptcy crimes includes fines and imprisonment of up to five years.

Click here to read more on this story.

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, 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.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

The New Age in Digital Debt Collection

Posted on July 21, 2017by Admin

Experian announced a self-service platform named eResolve, which it says will let consumers negotiate and resolve past-due debts without ever speaking to a debt collector. The latest technology in “digital” debt collection is allowing consumers to interact on their terms at any time of the day, using a digital channel that is more preferred over the traditional phone calls during dinnertime and having to deal with aggressive debt collectors.

TrueAccord, another digital debt collection technology says they have had “hundreds of thousands” in successful resolutions where consumers can easily click and tell them they have been victims of identity theft or had recently filed for bankruptcy so collection attempts can stop.

Negotiating debt through digital platforms seems to be more straightforward as well. For example, with TrueAccord a similar digital-type platform: Debtors get an email with an offer such as making three payments with 0% interest, or 90 cents on the dollar if paid in full. Depending on what lenders say they will accept, a consumer who turns down that offer might get a subsequent pitch for an 80-cents-on-the-dollar settlement. According to certain experts, this digital-based debt collection solves two problems. Chief among them: Regulatory issues. Computers do not call or text at the wrong times. They do not use profanity or threaten arrest to get you to pay, which are all in violation of the Fair Debt Collection Practices Act (FDCPA).

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, 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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

5 Mistakes keeping you in Credit Card Debt

Posted on July 20, 2017by Admin

Approximately 122 million Americans carry credit card debt. In fact, the average debt per household is $8,448. With interest rates averaging 14%, that means Americans are paying more than $1,000 in interest alone each year. Many consumers remain trapped in this cycle. Here’s why:

Failure to create a realistic budget. When establishing a budget for yourself, it is easy to look forward and see how much you will spend. However, the most effective budgets are created by looking backwards, and understanding where your money (every last penny) went.
Not making the tough decisions. Oftentimes, the right decisions are easy to calculate but hard to execute. For example, knowing your car payment is too high but not taking the steps to trade it in and purchase a less costly, slightly older model.
Taking advantage of automation. It’s easy to automate your student loan and retirement payments, but what about your credit card payments? If you plan to become debt-free you can make sure the only money remaining in your checking account at the end of each month is your budgeted spending money. Data has shown that automation is the best way to achieve your financial goals.
Convincing yourself the reward points, miles, cash back, etc. are worth it. Earning cash back and “free” flyer miles are a great way to put some extra money in your pocket. But if you are deep in credit card debt, those flights and reward points are costing you more than the perks.
Trying to borrow your way out of debt. Debt consolidation and balance transfers can help reduce the cost of your debt, but if you have not dealt with your spending problems these tools can be dangerous.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What You Should Know before Closing out A Credit Card

Posted on July 19, 2017by Admin

When closing out a credit card, the effects it can have on your credit score lie in the details. Here are some important facts you need to know before closing out your card.

Age Matters. The age of your credit card that is. The average age of your open accounts makes up 15 percent of your overall credit score. So if the card you are closing out has been open for a long time, it really is better to keep it open and pay it in full, otherwise your score will be negatively effected.
Available Credit. Your credit utilization ratio is important. A low credit utilization ratio would be if you have $300 or less on a credit card that allows you to spend $1,000. A high credit utilization ratio is if you have $993 in charges on a card that gives you a credit limit of $1,000. Lenders do not like you to do this and your score will be penalized as a result.
Automatic payments. If you have been using your credit card to make payments on your car insurance or electric bill each month automatically, make sure and update this information timely before closing out the card. This way you can avoid getting hit with late fees and other penalties.
Rewards. If you have accumulated reward points on your credit card, redeem them first before closing out the card. Otherwise you will likely lose them.
Verify. It can take up to a month or two before the account is closed, so keep that in mind. Mistakes on credit reports are also fairly common. In fact, a recent study revealed that one in five consumers have at least one error on their credit report. It is always a good idea to double-check your account has been completely closed out.