Timothy Kingcade Posts Archives - Page 4 of 155

How Much Debt Is Required To Qualify for Chapter 7 Bankruptcy?

Posted on April 16, 2019by Admin

One of the common misconceptions surrounding bankruptcy has to do with how much debt you must have to qualify for bankruptcy. Bankruptcy laws do not have a set minimum debt requirement for someone to be able to file for bankruptcy. Ultimately, it depends largely on the person’s financial circumstances, including the type of debt he or she has, as well as the person’s ability to pay back the debt, along with other factors.

When it comes to debt levels, how much debt you have is only one consideration made when determining whether you should proceed with a bankruptcy filing. Unlike a Chapter 7 bankruptcy case, a Chapter 13 bankruptcy does have a maximum debt amount for debtors considering this form of bankruptcy. While there is no minimum debt amount required to file for bankruptcy, you cannot have more than $1,257,850 in secured debt or $419,275 in unsecured debt if you want to file for Chapter 13 bankruptcy (these amounts, which are adjusted periodically to account for inflation, are valid as of April 2019).

Filers are limited in how many times they can receive a bankruptcy discharge within a set amount of time. For example, if you filed for Chapter 7 bankruptcy and received a discharge, you must wait eight years before being able to file for Chapter 7 again. Therefore, if you do not have a significant amount of debt, you may want to consider whether you will anticipate needing to file in the future. Is it worth it to file for bankruptcy now on a smaller amount of debt and be barred from filing again, if needed? A bankruptcy attorney can talk through these options with you to help you make the best choice.

Bankruptcy looks at the different types of debts you carry and whether these debts can be discharged. Certain debts are considered non-dischargeable, including priority tax debts, student loans in most cases, child support, spousal support, and any obligations arising from a personal injury case caused by wrong actions, which can include drunk driving. For instance, if most of your debt is in student loans, a bankruptcy may not be your best option, while a person who carries mostly credit card and medical debt will find bankruptcy beneficial.

If you are filing for Chapter 7 bankruptcy in Florida, you can use Florida bankruptcy exemptions to protect your property. In addition, residents are provided unlimited exemptions for homestead, annuities, and the cash surrender value of a life insurance policy. Florida has one of the most generous homestead exemptions in the country.

Even if you do not have a large amount of debt, if you are being sued or the matter is being referred to collections, it may be best to file for bankruptcy now instead of later. As soon as you file for bankruptcy, an automatic stay will be issued, putting a stop to all collection actions. If you wait too long, and a judgment is issued on the debt, resulting in wage garnishment, it may be too little too late. It is for this reason that it is important you meet with an experienced bankruptcy attorney to talk about your financial situation and whether bankruptcy is right for you.

If you have 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.

Source: AllLaw.com

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

How To Know If You Are Being Scammed By a Debt Collector

Posted on April 11, 2019by Admin

Scams are everywhere, especially when it comes to debt collection. Many times, a debt collection scam will even try to get you to pay on a debt you do not owe. It helps to know what red flags to look for to avoid becoming the next victim of a debt collection scam.

One of the reasons why debt collection scams are so dangerous is that they take advantage of someone when they are at their weakest. These scammers are aware that the person they are calling is already in a difficult financial situation, and can be easily taken advantage of.

For the most part, these types of scams play out in the same manner. The scammer contacts a person and tells him or her that they are calling on behalf of a collection agency, law firm or other government agency and that they are reaching out to collect on an overdue debt. If the caller refuses to comply, the scammer then makes threats of wage garnishment, telling their friends, family or employer of the outstanding debt, even threatening arrest and jail time. If the person answering the phone is savvy enough to know that no company can legally do these things, the threats will have no effect. However, many times, the person answering the phone plays right into the scammer’s hands.

If you are on the receiving end of one of these calls, you need to know your rights. The first of these is the right to receive written confirmation of the debt. Under U.S. law, debt collectors are required to provide a written validation notice of any debt, when requested. In this notice, the collector must include the amount owed, the name of the original creditor, and a statement of the person’s rights. If a debt collector refuses to provide this information, this refusal is a red flag that the call is a scam.

If you have any suspicions that the caller is not legitimate, do your research. Make sure the caller is real by asking for the company’s name, telephone number and street address. Never provide credit card information or bank account information over the phone. If the collector is legitimate, the company will likely have all this information already. Also, if the collector asks for payment through PayPal or other electronic transfer, this is another red flag that the call involves a scam.

More recent scams have attempted to collect on debt that is past the statute of limitations. You may have owed this debt at one point in time, but after a certain length of time has passed, the debt is no longer legally collectible. However, scammers hope that the caller does not know this fact and will make payment, thereby ‘re-activating’ the debt. For personal loans, the statute of limitations in Florida is five years, while oral contracts and revolving accounts, such as credit cards, the statute of limitations is four years. The written verification provided for the debt should allow you to confirm whether the debt is past the statute of limitations.

If you see any of these red flags, hang up immediately. Do not give the person on the other end of the phone any information and report the call to the Federal Trade Commission or the Florida Attorney General’s Office. It also helps to know your rights under the Fair Debt Collections Practices Act (FDCPA), which makes it illegal for debt collectors to use abusive, deceptive, unfair or threatening practices when collecting on a debt.

Click here to read more.

Additional source:

https://www.debt.org/faqs/americans-in-debt/consumer-florida/

Bankruptcy Law, Student Loans, Timothy Kingcade Posts

How the Student Loan Debt Crisis Got So Bad

Posted on April 9, 2019by Admin

Student loan debt is a problem that plagues over 40 million Americans. It is currently estimated that more than $1.5 trillion is owed in student loan debt nationwide. With an outstanding balance this large, many are asking: how did this problem get so out of hand?

Former Consumer Financial Protection Bureau (CFPB) Ombudsman and the current Executive Director of the Student Borrower Protection Center, Seth Frotman, recently gave an interview to Yahoo Finance where he provided his input on the situation. Since he was on the front lines when it came to government protection of student borrowers, Frotman believes that loan balances have gotten out of hand as a result of decades of predatory lending and weak government regulation over the student loan sector.

Frotman resigned from the CFPB in August 2018 in a letter where he accused the current administration of not protecting student borrowers from predatory lending and other similar practices. In his letter, Frotman accused the administration of not enforcing lending violations and protecting bad lenders in the process.

In the interview, Frotman gave some background as to how student loans have been handled in past decades. For the most part, student loans are issued by banks or federally-backed private lenders. Given the fact that someone asking for a student loan normally does not have an extensive credit history, it is important that these borrowers are protected when taking out money to attend college.

However, over time, the cost of going to college began to skyrocket. It is estimated that the average cost of tuition for a private non-profit four-year university is $35,830, which is twice what a college student would have paid two decades ago. As tuition costs went up, the loans students had to take on to pay for going to college also went up. The result of this increase attracted other less-than-reputable lenders who saw a huge money-making opportunity.

In Frotman’s words “no one was minding the store” when it came to student lending, as more and more companies joined the student lending game. Unfortunately, the 2008 recession caused even more problems. Congress ended up bailing out the banks’ student loan arms hundreds of billion dollars to ensure that students still had access to loans to attend college.

As a result, however, the government ended up owning a great deal of student loan debt. The government ended up entering contracts with banks and loan providers that serviced student loans, including Navient, Nelnet, Great Lakes and FedLoan. These contracts are expected to expire this summer, leaving many, including Frotman, to worry about what will happen next. The current Education Secretary, Betsy DeVos, has mentioned that she would consider an exclusive contract to just one company to service billions of dollars of existing student loans, which has raised a lot of opposition. However, until a decision is made, it is expected that the existing contracts will be extended.

Lenders are required to follow a series of rules and regulations when it comes to providing student loans, but it was discovered recently by a government watchdog that the Department of Education was not holding loan providers accountable under these regulations. Some of these violations included misleading borrowers into putting their loans in forbearance, putting delinquent accounts into forbearance without borrower approval, and generally not holding servicers accountable.

The situation is expected to get even worse. It is estimated, as of February 2019, that 11.5 percent of student loans are at least 90 days delinquent or are in default. It is possible this number underestimates just how many borrowers are behind on their payments, including those in forbearance or loans that are deferred, which means the number of loans that are past-due could be even higher.

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. There are ways to file for bankruptcy with student loan 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.

Foreclosures, Timothy Kingcade Posts

‘Hardest Hit’ Federal Funding Money Spent on Luxury Hotel Stays by Florida Officials

Posted on April 5, 2019by Admin

Florida officials have come under fire after it was discovered that they were using money from a federal fund meant to help homeowners struggling with finances and facing foreclosure to pay for vacations and luxury hotel stays.

This information was discovered by the Special Inspector General for the Troubled Asset Relief Program. The alleged misuse of funds took place between 2011 and 2016. Officials from the Florida Housing Finance Corp. used money from the Hardest Hit Fund to pay for all costs to attend conferences in Orlando, Miami, Boston, Nashville, and San Diego. While this part may seem appropriate, it was later discovered that only two hours of the total four days charged were related to the Hardest Hit mortgage relief program. The remainder of the time was spent for relaxation and enjoyment.

The expenses totaled $40,000 for what they claimed were “routine meetings” in some of the finest hotels and luxury resorts in Florida, including stays at the Vinoy Renaissance St. Petersburg & Golf Club and the Hyatt Regency in Orlando. The expenses are considered a direct violation of federal regulations in how the relief funds should have been used.

Florida currently has one of the highest rates of foreclosures, as well as highest rates of denying funding from the Hardest Hit Fund to struggling homeowners who need it the most. “Florida has the lowest homeowner admission rate for relief funds offered by the organization, one of the highest withdrawn application rates and has consistently denied homeowners at higher rates than the national average,” according to the Troubled Asset Relief Program (TARP).

Unfortunately, this is the not the first time a misuse of funds has occurred when it comes to The Hardest Hit Fund. Back in 2017, it was reported that millions of dollars in foreclosure assistance was squandered by government agencies.

The Hardest Hit Fund was created in 2010 by the U.S. Treasury Department. The fund carried $9.6 billion at the time of its creation to help 18 states specifically, including Florida, who were hit hardest by foreclosures during the end of the recession. In Florida, the money is disbursed by the Florida Housing Finance Committee. However, since its creation, Florida has come under scrutiny for how slowly the agency disburses money to homeowners in need. Back in 2015, it was reported that only 20 percent of the applicants who requested relief in Florida were accepted. The national average acceptance rate is about 48 percent. At the same time, money is being used by federal employees for bonuses and vacations.

Stephen Auger, executive director for Florida Housing, was forced to resign in 2016 after an audit showed he allowed the agency to pay for a $52,000 lobster and filet mignon dinner to honor the lenders who worked directly with lower-income borrowers.

All this information was disclosed in an 85-page report from the federal special inspector general. Florida was one of the states that had a “culture of inappropriate spending” of the Hardest Hit funding. Florida Housing charged the fund approximately $18,000, which was the most of any state, just to send their employees to national housing conference that had nothing to do with the fund at all.

Click here to read more on this story.

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.

Student Loans, Timothy Kingcade Posts

Student Loan Debt and College Costs Set to Increase with Trump’s New Budget Proposal

Posted on April 3, 2019by Admin

President Trump’s proposed budget could have some serious consequences for individuals carrying student loan debt. In fact, student loan debt seems to be a major part of the President’s proposed fiscal year 2020 federal budget, which was sent to Congress on Monday.

The proposed fiscal year 2020 budget includes various cuts and changes to federal student loan programs. In addition, the budget includes a 10 percent total decrease in Department of Education Funding. The total cuts end up being $62 billion, which is $7.1 billion less than what the DOE had allotted in funds for the 2019 fiscal year.

Many financial experts worry what these changes could mean for student loan costs, as well as college expenses. Not only would the budget proposal raise costs for attending college, it could also result in a significant increase when it comes to student loan debt.

An estimated $1.5 trillion in student loan debt is owed nationwide. However, it is estimated that this new budget could force borrowers to pay an additional $207 billion more on their student loan debt on top of this already astronomical amount.

One part of the proposed budget eliminates the subsidized student loan program. Students who are enrolled in school could discover that they are accruing interest on their loans even though they are still enrolled in school. Currently, if a student is enrolled in school, they do not accrue interest on their loans, which means these students could be in for a rude awakening if the proposals go through. Adding interest while students are attending college could increase the cost of attending college or even graduate school for these students.

President Trump’s budget proposal also eliminates the public service loan forgiveness program, which has been law since the President George W. Bush era. Many graduates utilize this program as a means of eliminating their student loan debt by entering the public sector and taking jobs as prosecutors, public defenders, legal aid attorneys, police officers, firefighters and civil servants. Taking a lower paying job with the end goal of eliminating tens of thousands in student loan debt pales in comparison to the alternative of being stuck with student loan debt for decades. However, this option may no longer be available for these borrowers if the budget is approved.

The proposed budget does call for quicker loan forgiveness with respect to undergraduate student loans. The budget proposal includes the possibility of student loan debt being forgiven after 15 years instead of the current 20-year term.

Click HERE to read more.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Bankruptcy Checklist: What to Bring to Your First Meeting with Your Attorney

Posted on April 1, 2019by Admin

Deciding to file for bankruptcy is never an easy decision, but those who emerge from it are often thankful for a fresh financial start and the opportunity to rebuild their finances.

Before you sit down with an experienced Miami bankruptcy attorney, there are several important documents you need to bring with you.

Outstanding Debts and a List of Assets. The most important documents to bring to your initial bankruptcy consultation are a list of your outstanding debts and a list of your assets (i.e. – major assets, such as homes, cars, boats, trailers, time shares, etc.)
Financial Documentation. Wage statements, a recent pay stub, tax returns, bank account statements and any large purchase receipts.
Budget. A rough budget of your household’s income and expenses.
Creditor Information. A list of credit accounts, account numbers, the amounts you owe and their contact information.
Loan documentation. Any mortgages and outstanding loans you may have, such as: car loans, personal loans, etc.
Real Estate documentation. Forms and information pertaining to any property you may own or rent.
Personal Property Documentation. Any major personal property items like vehicles, boats, valuable jewelry, electronic items, appliances or other items that could be repossessed.
Questions. A list of any personal questions you may have for your attorney.

While it is best to be as prepared as possible, if you are unable to obtain all of these documents, do not worry. You will be provided with adequate time to contact your banks, lenders and creditors to obtain the necessary documentation for your bankruptcy proceeding. It is important to be open and honest with your bankruptcy attorney to prevent possible bankruptcy fraud or being accused of “hiding” assets. By providing all necessary documentation and working closely with your attorney, you will help ensure the bankruptcy process runs smoothly.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia 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.

Foreclosures, Timothy Kingcade Posts

National Foreclosure Scam Results in 11 Indictments

Posted on March 27, 2019by Admin

Eleven people involved in a national foreclosure scam were indicted this week by a federal grand jury in connection with a scheme to defraud homeowners desperate to save their homes. These 11 people come from five different states in connection with the scam. They stand accused of making promises to homeowners that they would negotiate with their mortgage lenders to protect them from losing their homes in foreclosure but never did anything on behalf of the homeowners after money was paid. This is a common scam we have seen so many times before.

The formal indictment listed MVP Home Solutions, also known as “Stay In or Walk Away,” Bolden Pinnacle Group Corp, also known as “Home Advisory Services Network” and “Home Advisory Services Group,” and Silverstein & Wolf Corp, as parties to this legal matter.

What these parties are accused of doing is using multilevel marketing schemes for recruiting homeowners facing foreclosure. The companies encouraged their employees to be aggressive in pushing homeowners to get on board with the program. They would search court records and online databases to find people who they know were facing foreclosure and were vulnerable and desperate to do whatever necessary to stay in their homes. The individuals targeted were living in states where foreclosure rates were particularly high- including Florida.

The reports show some examples of how persistent these companies were at recruiting homeowners to cooperate with them. In southern Ohio, more than 22,000 postcards were mailed to homeowners, indicating that the company could stop the foreclosure from proceeding or could stop a sheriff sale if the homeowner paid a fixed fee to the company first. In addition, these companies made promises that they could also negotiate the release of mortgage loans for a deed in lieu of foreclosure sale or a short sale or could stop a foreclosure sale from proceeding. They also made statements that, for a fixed fee, the company could achieve the short sale price at a fraction of what the homeowner owed on the mortgage.

Once the victim of the scam paid the upfront fee, there was never any negotiation done on their behalf. It was a typical “take the money and run” scheme, and the homeowner wound up not only losing their home but additional money in the process that they paid to the company.

The released indictment included charges involving conspiracy to commit mail fraud and wire fraud, four counts of mail fraud, seven counts of wire fraud, one county of bank fraud, 12 counts of bankruptcy fraud, and even one count of aggravated identity theft.

So far, eight of the 11 individuals listed in the indictment have been arrested in Ohio, Virginia, New Jersey, and New York. Three others named in the indictment, including a Rafiq Bashir from Jacksonville, FL, have not yet been arrested.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Personal Loan Debt Reported as the Fastest Growing Category of Consumer Debt

Posted on March 22, 2019by Admin

A new trend is being observed when it comes to consumer debt across the country. More often than before personal loans are being utilized by consumers looking to pay for unexpected or needed expenses. In fact, personal loan debt was reported as being the fastest growing category of consumer debt in 2018. Personal loans reached a record high of $291 billion as of the last quarter of 2018, according to a new study from credit reporting agency, Experian.

Experian compared lending figures from 2017 to 2018 and found an 11.9 increase in personal lending in the course of one year. In fact, the increase of consumers taking out personal loans was nearly double the growth rate of consumers taking out new credit cards. Between 2017 and 2018, an increase of 5.9 percent was seen in credit card applications while personal loans grew at the reported 11.9 percent. In comparison, car loans saw an increase of 4.3 percent while student loans saw a jump of only 5.8 percent and mortgages at 2.8 percent.

One reason for the increase of personal lending has been attributed to the similar increase of online lenders and other financial technology that makes it easier for someone to get these type of loans. These loans require only a signature as a promise to pay. High interest personal loans are oftentimes a last resort for borrowers who are in financial trouble and lenders know it. The terms and conditions are not favorable to the borrower. If the borrower wishes to pay off the loan early, there often exit fees and penalties that come as a result.

According to the study, currently 36.8 million outstanding personal loans exist in the United States. These loans vary depending on whether they are secured by collateral or were issued unsecured. Many consumers utilize personal loans as a means of consolidating debt, while others use personal loans to finance larger purchases. Regardless of their reasons, it is estimated that 10.8 percent of adults have at least one personal loan debt.

It is estimated that the average personal loan balance, as of the end of 2018, is $15,143 with an average monthly payment of $353. Personal loans tend to carry a higher interest rate, especially those that are unsecured, and the average annual percentage rate on a personal loan is currently 9.37 percent.

Of all the age categories surveyed, the Baby Boomer generation had the highest average personal loan balance owed of $19,403. Millennials carried an average balance of $12,574, while Generation Z held the lowest balance of $5,941.

The survey found that Washington had the highest average personal loan balance in the amount of $27,295. Washington was followed by South Dakota who had an average loan balance of $26,597, Oregon with a balance of $26,527, North Dakota with a balance of $26,281, and Montana who had an average balance of $24,725. Of all the states surveyed, New Mexico was the state that had the highest number of personal loans taken out per person in the state, with a rate of 1.7. Other states with similar rates included Louisiana, Oklahoma, and Texas.

Of all the states surveyed, Hawaii was found to have the lowest average personal loan balance of $12,638. Other states with lower average balances included Kentucky, Illinois, and Georgia, as well as the District of Columbia.

Please click here to read more.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Understanding the Bankruptcy Process in Florida

Posted on March 21, 2019by Admin

Making the decision to file for bankruptcy is never an easy one. The steps taken during a bankruptcy case vary depending on the type of person or entity filing for bankruptcy. Once you decide to file for bankruptcy, it is important that you avoid mistakes that could impact your case or jeopardize your debts from being discharged.

Business filers are limited normally to a Chapter 11 bankruptcy, unless the business is a sole proprietorship. In this situation, the business may be able to proceed with a Chapter 7 or Chapter 13 bankruptcy. If the filer is an individual, depending on qualifications, he or she may be able to do either a Chapter 7 or Chapter 13 bankruptcy.

To qualify for a Chapter 7 bankruptcy case in Florida, the debtor needs to pass the means test. The means test takes into account your income, expenses and family size to determine whether you have enough disposable income to repay your debts. If the debtor does not pass the means test, the next option is a Chapter 13 bankruptcy, which is also known as a repayment or reorganization bankruptcy. In Chapter 13, the debtor works with the bankruptcy trustee on a three-to-five-year-long repayment plan whereby the debtor’s debts are negotiated down and consolidated into one single monthly payment. The debtor will normally get to keep all of his or her assets in this type of bankruptcy.

Many people fear that filing for bankruptcy will result in them losing everything they own. Do not believe this myth. Many Chapter 7 cases are “no-asset” cases, which means that the debtor gives up no possessions due to the allotted bankruptcy exemptions. Florida has one of the most generous homestead exemptions in the country. To use Florida’s exemptions, you must have resided in Florida for at least 730 days before filing your bankruptcy petition. To claim the full value of the homestead exemption in Florida, you must have owned the property for at least 1,215 days before the bankruptcy filing.

The state also allows the filer to exempt personal property up to $1,000, education savings and health savings, tax credits and refunds, and up to $1,000 in motor vehicle equity if the filers are married and filing jointly. Additionally, Florida allows for wages of the head of family to be exempt for up to $750 weekly or the greater of 75 percent or 30 times the minimum wage. Florida exemptions also cover different types of pensions and retirement funds, as well as annuities and insurance policies.

If a debtor passes the means test and is able to file a Chapter 7 bankruptcy case, the next question is whether the filer’s debt is dischargeable. For the most part, bankruptcy involves debt that is unsecured and not connected to collateral, such as medical bills or consumer credit card debt. Other debt, such as child support payments, tax debt and spousal support are not dischargeable. If the filer’s debt is mainly unsecured, Chapter 7 bankruptcy can be the better option for him or her to discharge the debt. If the filer’s debt is connected to another asset that the filer wishes to keep, a Chapter 13 filing may be the better option.

It helps to have the assistance of an experienced bankruptcy attorney to guide you through the process. A bankruptcy attorney can review the debtor’s situation, advise him or her on the best route to take with respect to bankruptcy and can ensure that all paperwork is completed correctly to avoid any unnecessary delays.

Please click here for more information.

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

70 Percent of Americans with Credit Card Debt Admit They Cannot Afford to Pay it Off in One Year

Posted on March 19, 2019by Admin

Credit card debt is a major problem for many Americans. Almost half of all Americans currently carry a balance on their credit cards, but the problem is, most of them are not able to pay off the balance. In fact, 70 percent of cardholders say they cannot pay off the balance within one year.

These figures come from a survey released by real estate data company, Clever. They surveyed 1,000 credit card users regarding their credit card use. The study found that 47 percent of all Americans carry a monthly balance on their credit cards. On top of that, 70 percent of those surveyed say that their card balance is more than $1,000.

Additionally, 56 percent of those surveyed said that they have had their credit card debt for at least one year. Of those surveyed, 20 percent of them say they believe it will take them over three years to pay off the debt. Eight percent of them admit that they do not know when they will be able to pay off the debt.

Depending on how high the balance is, the interest rate on the card can make it virtually impossible to ever make progress on the debt. The average credit card APR currently is 17.65 percent. If a cardholder is only making the minimum monthly payment, he or she is likely only paying on the interest for the card.

Credit card debt has hit an all-time high, according to data from the Federal Reserve. As of December 2018, U.S. credit card debt was estimated at $870 billion, which is the highest it has ever been. Credit card balances were also said to have increased by $26 billion from the prior quarter, which is another notable increase.

What seems to be making this problem worse is the fact that Americans rely heavily upon debt to cover everyday expenses. Even something as simple as buying groceries or paying for gas for their cars can add up if charged on a credit card. In fact, the Clever survey reported that 28 percent of them say that they rely on credit cards to pay for their essential living expenses.

It is no secret that credit card usage has gone up in recent years. It is estimated that currently 480 million credit cards are in circulation nationwide. As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges. It is not surprising with the high interest rates, unreasonable fees, harassing debt collection calls, penalties and never-ending minimum payments that do not even make a dent in your actual debt. We offer additional tips for eliminating credit card debt on our blog.

Click here to read more on this story.