Timothy Kingcade Posts

Bankruptcy Law, Timothy Kingcade Posts

Divorce and Bankruptcy: Which Should I File First?

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For many people, divorce is the main reason they need to file for bankruptcy. While both predicaments can be challenging, proper planning can make the process less complicated and more cost effective. If you are not sure whether to file for bankruptcy or divorce first, there are several important factors to consider beforehand.

Bankruptcy and Divorce Costs

Bankruptcy filing fees remain the same, whether you file jointly or individually.  By filing a joint bankruptcy with your spouse prior to a divorce you can save on court fees and legal costs. Filing for bankruptcy before your divorce can also simplify debt issues, property division and divorce costs. It will also allow for financial support considerations, as this can affect how your bankruptcy will proceed.

Debt Allocation

Deciding which debts should be assigned to each spouse can become complicated in a divorce. While a bankruptcy may discharge a debt it does not discharge spousal obligations. If one spouse must pay a particular debt per the divorce decree, it does not alter the other spouse’s obligations toward that creditor. It may be in both spouses’ best interest to file bankruptcy and discharge combined debts prior to a divorce. Filing for bankruptcy jointly will allow for all debts to be addressed in one case.

Property Division

Eliminating debts by filing for bankruptcy jointly will simplify the property division process in a divorce.  If you own multiple properties, it may be a better idea to file a joint bankruptcy for more exemptions. However, bankruptcy proceedings will take precedence over divorce proceedings. Filing for bankruptcy during an ongoing divorce will enact the automatic stay, which will place a hold on the property division process until the bankruptcy is complete. A qualified and experienced bankruptcy attorney can discuss these options with you.

Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy

Chapter 7 bankruptcy is a liquidation bankruptcy designed to eliminate your unsecured debts- like credit card debt and medical bills.  In a Chapter 7 bankruptcy, discharges typically take place after only a few months.  This allows the bankruptcy to be completed quickly before a divorce.

It is important to note that you must qualify for Chapter 7 bankruptcy protection, based on your income. It may be necessary to wait until each spouse has a separate household after the divorce, before filing for Chapter 7 bankruptcy.  On the other hand, Chapter 13 bankruptcy may last three to five years because a portion or all of the outstanding debts will need to be repaid through a structured repayment plan.  Those filing Chapter 13 may want to do so individually, after the divorce because of how long the Chapter 13 bankruptcy process can take.

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, 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.

Sources:

http://www.nolo.com/legal-encyclopedia/divorce-bankruptcy-which-comes-first.html

http://www.alllaw.com/articles/nolo/bankruptcy/bankruptcy-and-divorce-which-comes-first.html

Bankruptcy Law, Timothy Kingcade Posts

Top Five Reasons People Go Bankrupt

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Over the last few decades, America has seen a significant increase in the number of consumers struggling with debt. Many Americans are turning to bankruptcy to achieve a fresh start with their finances.  Below is a list of the top five causes of bankruptcy in America today.

1. Medical Expenses.

An unexpected illness or injury can easily turn into hundreds of thousands of dollars in medical bills. Medical debt can quickly drain savings accounts, retirement or college education funds, even home equity.

According to a Harvard University study, the leading cause of bankruptcy is medical debt. It represents 62% of all personal bankruptcies. The study also showed that 78% of filers carried some form of health insurance, which debunks the myth that medical debt only burdens the uninsured.

2. Job Loss.

A layoff or job termination can cause a loss of income that can be financially devastating. For many Americans, they may experience a job loss without the cushion of savings or a severance package, which leaves little room for security.

3. Poor Use of Credit.

Credit card debt can easily spiral out of control, where even making the minimum payment becomes a challenge. Statistics show that many debt consolidation plans fail, only delaying an inevitable bankruptcy filing.  Utilizing home-equity loans or other loans to solve immediate financial problems can be risky and result in more debt and even foreclosure.

4. Divorce/ Separation.

These life changes are not only emotionally draining but also financially draining. Dividing marital assets, the loss of two incomes, paying child support, alimony, and legal fees often force many Americans into bankruptcy.

5. Unexpected Expenses.

Loss of property due to theft, an unexpected casualty, or a natural disaster can result in tremendous financial distress. Many homeowners may be unaware that additional coverage might be necessary to protect their home and valuables from natural disasters like a hurricane, flood or tornado.

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, 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.

Source:

http://www.investopedia.com/financial-edge/0310/top-5-reasons-people-go-bankrupt.aspx

Bankruptcy Law, Timothy Kingcade Posts

Celebrity Bankruptcies a Valuable Lesson for Kids

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Celebrity bankruptcies like NFL quarterback Michael Vick, hip-hop musician 50 Cent, and award-winning actor Nicolas Cage among others, have been widely reported by the news media.

Having once been one of the nation’s wealthiest hip-hop artists, 50 Cent wound up millions of dollars in debt, reducing his net worth from $150 million to $0. While this story is unfortunate, he’s not alone.  His story stands as a cautionary tale for many. Whether you are a celebrity or just the ‘average Joe,’ one rule should always be followed: Never spend beyond your means.

Bankruptcy statistics among celebrities show how quickly sudden wealth can disappear after poor financial decisions. One of the most important tips for young adults to remember is to be an active participant in the management of their money. Whether it is through a savings account or stocks, it is important to clearly understand what you are investing in. Even those who hire a financial adviser should monitor financial activities and stay involved when making investment choices.

Parents can play an important role in helping their children develop smart spending habits and money management. There are numerous daily opportunities that involve money management. Take advantage of including your child in these money matters so they can learn about it first hand.

Here are some ways to engage your child in money management and encourage smart spending habits:

  • Allow them to help with coupons and price comparisons;
  • Explain TV advertisements and messages that encourage spending;
  • Discuss how currency impacts society;
  • Give them an earned allowance;
  • Start a savings account for your child;
  • Explain balancing spending and saving;
  • Remind them that money cannot buy happiness.

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, 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.

Source:

http://www.postbulletin.com/business/kids-can-learn-lessons-when-celebrities-go-bankrupt/article_b347c0a2-bfdc-5489-896c-c962344977d6.html

Bankruptcy Law, Student Loans, Timothy Kingcade Posts

Today’s Student Loan Debt Crisis Examined

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Today’s Student Loan Debt Crisis Examined

Many consumers face financial struggles because of student loan debt and the numbers keep rising. This year’s graduating class held an average student loan debt amount of $35,000 for a bachelor’s degree, making them the most indebted graduating class in history. Many of these students plan on pursuing higher education, which means these numbers will continue to rise.

These figures indicate that a change is needed- now more than ever. “The Real College Debt Crisis: How Student Borrowing Threatens Financial Well-Being and Erodes the American Dream,” addresses this need. Professors William Elliott III and Melinda Lewis, authors of the book, hope to offer useful solutions to the growing problem that is today’s student loan debt crisis.

Elliot and Lewis argue that the significant increase in student debt is attributed to the common belief that it is acceptable to go into debt for the social and financial gains a higher education provides. While experts agree that education is fundamentally important, the resulting student debt raises the question of whether there is a return on investment.

Elliott and Lewis support shifting college financing away from “debt-dependency.” Instead, they suggest working towards an asset-building model that enables anyone willing to put in the effort to grow their wealth over time. They recommend utilizing Children’s Savings Accounts (CSAs), to accumulate assets from birth as a form of financial aid.

Political attempts to address the student debt crisis often fail to acknowledge the lifelong effects on the ‘asset building capacity’ of young borrowers from different racial and economic backgrounds.  This oftentimes effects the students who stand to benefit the most from attending college who struggle with debt following graduation.  This has been termed the ‘Debt Divide’ – where those with the highest need for student loans are the most susceptible to the negative effects before and after graduation.  There is a significant difference in student debt taken on by someone from a low-income background and student debt taken on by someone from a middle- or upper class background, who have the extended family resources to take on that debt. A long-term solution is still needed to the student loan debt crisis.  Until there is a change as to how college educations are financed, the problem of student loan debt will remain.

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 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.

Source:

http://time.com/3980583/student-debt-crisis/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Building Credit after Bankruptcy: A Step-by-Step Guide

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Rebuilding your credit score after bankruptcy can be a challenge, but it’s not impossible.   In fact, many of our clients have a credit score between 680-700, just one year after filing for bankruptcy. The key to understanding how to rebuild your credit score is understanding the process.

Below are some helpful tips that have worked for our clients.

  • Get Your Credit Report. You can and should check your credit report regularly. Credit.com offers two free credit scores, which are updated monthly. You are also entitled to a free annual credit report from each of the three major credit bureaus.
  • Start Small. Begin with a secured credit card and pay it on-time every month. Eventually, you can get approved for an unsecured credit card with a small credit limit. Continued on-time payments will help improve your credit history and in turn improve your credit score.
  • Use Lines of Credit Responsibly. Do not obtain a new line of credit and then max out the balance. Experts recommend keeping your credit card utilization below 30%.  For example, if you have a credit card with a $1,000 credit limit, you do not want to charge more than $300 each month.
  • Pay on Time.  With continued on-time payments and proper management of your finances, your credit score will begin to improve following a bankruptcy.
  • Monitor Your Credit. Certain negative reporting may be removed if a creditor cannot validate the debt. By keeping a close eye on your credit report, you can dispute certain negative marks. Equifax offers a user-friendly online dispute tool for this purpose.
  • Understand Student Loans. If you have student loan debt, it is important to understand that these loans cannot be discharged through bankruptcy. Non-payment on student loans can prevent you from getting a mortgage or future lines of credit. Payment deferments, forbearance and missed payments can cause balances to increase significantly. The best way to tackle student loan debt is to set up a realistic repayment plan with your lender and stick to it.

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, 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.

Source:

http://www.cbsnews.com/news/how-i-am-rebuilding-my-credit-after-bankruptcy/

 

 

Foreclosures, Timothy Kingcade Posts

NEW Reverse Mortgage Ruling helps Seniors Stay in Their Homes

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The Federal Housing Administration (FHA), which oversees the nation’s most popular reverse mortgage program, has significantly changed the way it will handle reverse mortgages for “non-borrowing spouses” for the second time in 90 days.

Reverse mortgages are available to individuals 62 years of age or older, who own their home. The amount of tax-free funds received is based on the owner’s age, current interest rates and a current home appraisal.  However, a major issue has involved surviving spouses. In the past, many surviving spouses were left out of the loan documentation because they were too young to qualify when the reverse mortgage was signed.

This left the surviving spouse at the risk of foreclosure or having to immediately move out of the home they shared with their loved one.  The FHA’s recent decision will allow surviving spouses to remain in the home and avoid displacement during their lifetime. The ruling specifically pertains to households with reverse mortgages written before Aug. 4, 2014.

FHA guidelines indicate that the lender can assign the reverse mortgage to the U.S. Department of Housing and Urban Development (HUD) under the Mortgagee Optional Election (MOE). In April, the FHA rescinded the MOE and updated it this past June. The amended MOE will allow HUD to eliminate lawsuits brought by non-borrowing spouses.

Surviving spouses will enter what is referred to as an unlimited deferment period where they may remain in their home. Non-borrowing spouses will be required to be added or remain on the title, 90 days after the reverse mortgage becomes due. They also must continue payment of property taxes and insurance, and be married at the time the spouse passed away.

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 website at www.miamibankruptcy.com.

Source:

http://www.akron.com/akron-ohio-real-estate.asp?aID=27386

Bankruptcy Law, Timothy Kingcade Posts

Ways to Build Credit Without a Credit Card

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Building good credit is an important part of planning for the future.  A high credit score allows you the opportunity to borrow money for a car, a home, or even cover the costs of an unexpected medical bill. For many people, however, using a credit card to build credit may seem intimidating and scary.  Fortunately, there are other ways to build your credit score without having to open up a credit card account.

Below are some ways to build your credit score without using a credit card:

Credit-Builder Loans. Credit-builder loans are offered by certain credit unions or banks. You are allowed to borrow a small amount (usually under $1,000) and then make payments for 12 to 24 months. Payments go into an interest-bearing CD or savings account. On-time payments will help build credit.

Passbook or CD Loans. This loan uses the balance you already have in a savings account or CD to secure the loan. Making the agreed payments on time will reflect positively on your credit score.

Personal Loans. These loans are also offered by credit unions and banks; however, do not require collateral and typically have slightly higher interest rates than secured loans.

Peer Lenders. This type of loan will allow you to borrow money in order to establish a credit profile. Certain peer lenders report activity to the credit bureaus, so make sure you are aware of the consequences if payments are not made timely.

Federal Student Loans. These loans can be obtained without a credit check and are reported to the credit bureau, regardless of your activity. That’s why it is important to stay current on your payments. It is recommended that you do not take out these type of loans unless you absolutely need them.

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, 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.

Source:

http://www.cbsnews.com/media/7-ways-to-build-credit-without-a-credit-card/

 

Bankruptcy Law, Timothy Kingcade Posts

Study Reveals Mortgage Holders Have Highest Non-Mortgage Debt

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According to a June 2015 report by Black Knight Financial Services (BKFS), U.S. mortgage holders possess the highest levels of non-mortgage related debt in ten years. These debts include credit card debt, auto loan debt, and student loan debt.

Four main loan groups were evaluated in the report. These include:

  • Federal Housing Administration (FHA) and VA loans;
  • Portfolio loans;
  • Private loans;
  • Government-Sponsored Enterprise (GSE) loans.

Utilizing data from Equifax Servicing data and McDash Credit’s database, BKFS was able to examine U.S. mortgage holders’ levels of non-mortgage related debt. The report revealed that Americans with mortgages have an average of $1,400 more non-mortgage related debt this year than in years past. So far for 2015, the total amount of non-mortgage debt reached $24,825. For 2014, it was $23,412. In 2006, it was $22, 817.

The report explains, “Non-mortgage debt is a key component of home affordability–the more total debt and the higher monthly non-mortgage payments borrowers have, the less money is available to put toward a new home purchase, to qualify for refinancing or, potentially, to meet current mortgage obligations.”

The largest category for non-mortgage debt was automobile debt, which accounted for 81% of overall non-mortgage debt. Since 2011, auto debt has been responsible for $2,094 of the nearly $2,600 increase in overall non-mortgage related debt. BKFS also found that student loan debt has skyrocketed to a 15% all-time high, among mortgage holders, with an average loan amount of $35,000. On the other hand, credit card balances for mortgage holders have decreased to below 83%.

Borrowers holding FHA/VA loans were shown to have the highest levels of non-mortgage related debt. FHA borrowers carry the highest student loan and auto debt amounts, as well as highest total non-mortgage related debt. However, GSE borrowers have 24% lower overall non-mortgage debt than FHA loans.

BKFS has discovered a direct correlation between non-mortgage debt, mortgage inquires, and prepayments. Borrowers with a recent mortgage inquiry on their credit report carry nearly 40 percent or $10,000 more debt on average than those who do not. Meanwhile those with a recent inquiry who have paid their mortgages on time have approximately $4,000 less non-mortgage related debt than those without the inquiry.

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, 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.

 

Source:

https://themreport.com/news/data/08-02-2015/report-finds-mortgage-holders-have-highest-non-mortgage-debt

Bankruptcy Law, Timothy Kingcade Posts

Study Takes a Closer Look at Personal Bankruptcy after Obamacare

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The U.S. Supreme Court has officially approved the Obama administration’s health-care reform. Boston Law Professor Daniel Austin conducted a study into personal bankruptcy filings in an effort to shed some light on how the mandatory health insurance law of 2005 has made an impact.

Among a sample of Massachusetts residents, Austin evaluated 5,400 bankruptcy cases filed between 2005 and 2013. He discovered that those who filed for bankruptcy protection had far less medical debt, compared with the rest of the country. Massachusetts is the only state where medical debt is not the leading cause of personal bankruptcy.

Austin speculates that mandatory health care among all 50 states could lead to affordable health insurance, which should serve to keep families out of bankruptcy. Multiple studies have revealed that medical debt is the number one reason why people file for bankruptcy. During his 2009 State of the Union address, President Barack Obama pointed out that 62.1% of consumer bankruptcies were the result of medical debt.

Professor Austin’s study shows only 18% to 25% of personal bankruptcies were filed in the U.S. because of medical debt. Massachusetts residents had only 3% to 9% of bankruptcy cases filed due to medical debt. Based on this information, Austin says that the Massachusetts health-care reform may be the main reason why less residents are filing for bankruptcy.

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, 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.

Source:

http://blogs.wsj.com/bankruptcy/2015/07/01/the-future-of-personal-bankruptcy-in-a-post-obamacare-world/

 

Foreclosures, Timothy Kingcade Posts

South Florida Foreclosure Rates Decrease

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As the local housing market continues to recover from the economic downturn of 2008, foreclosure rates have decreased in two South Florida counties.

According to a recent report by the property analytics firm CoreLogic, the percentage of Miami-Dade homes in foreclosure for May 2015 was 3.68%. This is positive news, since the percentage had been 3.88% in April 2015. Looking back one year, we see an even bigger decrease from 6.61% in May 2014.

Also, according to CoreLogic’s report Broward County foreclosures have decreased as well. This past May, we saw 3.35%, down from 3.54% in April. Similar to Miami-Dade, there was a significant drop from 6.14% recorded in May 2014.

Although the numbers of Miami-Dade and Broward County foreclosures have dropped, both counties still hold a higher percentage of foreclosed homes than Florida’s statewide numbers. As a whole, Florida’s foreclosure rate is at 2.89%. The U.S. national rate is 1.29%.

Earlier this month, another report revealed that Miami-Dade, Broward and Palm Beach combined hold the sixth highest foreclosure rate in the nation. While the numbers are still considered high, experts remain positive that the amount of foreclosed homes in South Florida will continue to decrease.

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 website at www.miamibankruptcy.com.

Source:

http://www.miamiherald.com/news/business/real-estate-news/article29094796.html