Credit Card Debt, Debt Collection, Debt Relief

U.S. Cities Seeing the Highest Increase in Millennial Debt

Consumer debt is increasing nationwide, affecting individuals in all types of economic and sociographic groups. However, millennials seem to be the generation hit the hardest. In fact, millennials living in certain U.S. cities are hurting the most when it comes to their debt, according to a recent study from LendingTree.

LendingTree found that individuals in the millennial generation, born between the years 1981 and 1996, carried large amounts of auto debt, as well as student loan debt. These two categories made up the biggest portion of non-mortgage debt carried by millennial consumers.

student loan debt, Student Loans

Keep Our Graduates Working Act Gathers Support in Florida

A new piece of legislation has been introduced in the Florida State Senate which would protect the professional licenses of student loan borrowers from being suspended or revoked in the event they fall into default on their loan obligations.

The measure is Senate Bill 356, also known as the “Keep Our Graduates Working Act.” The bill expressly prohibits a state authority from suspending or revoking an individual’s professional license, registration, permit or certificate due to the person falling into delinquency or default on his or her student loan obligations.

Bankruptcy Law, Debt Collection, Debt Relief

Student Loan Tax Refund Garnishment and What Borrowers Need to Know

Many student loan borrowers struggle to keep up with their federal student loan payments upon graduation, but defaulting on student loans can end up resulting in the loan servicer garnishing the borrower’s state and federal tax refunds. Here’s what borrower’s need to know about tax refund garnishment.

The Treasury Offset Program, established in 1986, overseen by the Bureau of Fiscal Service, gives departments within the federal government the ability to ask the Internal Revenue Service (IRS) to garnish tax refunds to collect on defaulted debt owed toward either state or federal government entities. This action is known as a tax offset. A tax offset does not mean that the borrower will lose all his or her refund. The government can choose to seize the entire refund or a portion of the refund, depending on how much debt is owed. If part of the refund pays off the debt owed, including fees and interest charges, whatever is left of the refund will then be forwarded to the borrower.

Debt Relief

U.S. Household Debt Jumps the Most in 12 Years

The total amount of household debt carried by American consumers increased by $601 billion in 2019, according to recent figures from the Federal Reserve.  This increase represents the largest annual jump seen since before the 2007 financial crisis, according to officials at the New York Federal Reserve.

While total household debt has increased by $601 billion, the total amount outstanding has now reached $14 trillion for the first time. The last time the nation has seen national household debt grow this much was in 2007. At the time, household debt jumped by just over $1 trillion.

Bankruptcy Law

Timing is Important When It Comes to Filing for Bankruptcy

When it comes to filing for bankruptcy, it is not always a matter of “if” but rather a matter of “when.” Depending on a person’s financial situation, it can pay to properly time out a bankruptcy filing. Whether it is the right time to file for bankruptcy can depend on several factors including whether someone is facing foreclosure, vehicle repossession, wage garnishment, or any of the following.

Mortgage Modification

When someone is facing foreclosure, a few different steps can be taken to delay or even prevent the process. One of these solutions is through a mortgage modification. Homeowners facing foreclosure should try this approach first before filing for bankruptcy.

Debt Relief, student loan debt, Student Loans

An Alarming Number of Student Borrowers Have Made No Progress on their Loan Balances

A disturbing number of student loan borrowers who began their repayment plans between 2010 and 2012 have made little to no progress towards reducing the principal balance owed on their student loans. According to a recent report from Moody’s Investor Services, 49 percent of student loan borrowers whose loan repayment plans began during that time have made no progress. Even worse, many of them have seen their balances grow.

This problem could be due to several factors, including poor job prospects and low salaries in their first jobs after graduation. Depending on the degree pursued by each borrower, it can be difficult, if not impossible, to find a viable job that will allow the borrower to make appropriate payments to pay down their student loan debt.

Credit Card Debt

The Worst Ways to Pay Off Credit Card Debt

Credit card debt is a major problem that plagues so many Americans, with the total amount of credit card debt estimated to be over $870 billion in total. According to data from Experian, the average credit card balance is $6,629. If you are struggling with credit card debt, certain behaviors can be counterproductive and make the problem worse when trying to pay down a credit card balance.

Skipping Payments.

One of the worst things a consumer can do is to skip a credit card payment, intending to pay it next month or forgetting completely. When it comes to debt- unfortunately, out of sight, out of mind does not work. Missing just one month’s payment can result in a sharp increase in interest rates, as well as late fees. The higher the interest rate is, the less likely it is that the cardholder will make any progress towards paying off the principal every month.

Bankruptcy Law

Miami Bankruptcy Attorney Timothy S. Kingcade Obtains Order Allowing Protections for Chapter 13 Bankruptcy Client

Bankruptcy Attorney Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade Garcia McMaken obtained an Order for his client in a Chapter 13 case (Case No. 20-10135-RAM), limiting the scope of permissible relief in a pending criminal contempt case. The Motion for Contempt seeks relief against Jeffrey Charlow and counsel, for proceeding with a criminal case pending against Kingcade’s client in Broward County, Florida.

The Criminal Contempt Case was initiated by an order entered by Judge Robert W. Lee in a civil case also pending against the client. The court determined continuation of the Criminal Contempt case was not a violation of the automatic stay, but imposed two important limitations protecting our client:  Judge Lee may not sentence our client to jail with an Order that expels the sentence if a fine is paid and payment will necessarily come from the property of the estate.

Debt Collection, Medical Debt

Military Hospitals Aggressively Pursuing Medical Debt

Medical debt collectors can be relentless, and when someone has no money or resources to pay medical debts, this process can be extremely stressful. Recent reports have shown that private hospitals are not the only entities persistently collecting on medical debt. Federally backed governmental institutions, including military hospitals, are some of the worst offenders when it comes to pushing patients hard to pay on their medical bills.

A recent piece in The Atlantic highlighted just how dire the situation has gotten for many individuals. A Texas man, Ricardo Gonzalez Jurado, faced aggressive debt collection efforts from Brooke Army Medical Center (BAMC), a trauma center where he received treatment after sustaining significant injuries on a work site. Gonzalez Jurado did not have the funds to pay his bills in full, so he began a payment plan with the hospital. He kept to the payment plan and even agreed to pay more after the hospital requested higher payments. He later received a letter from BAMC after some time stating that his balance had been paid in full even though he had only paid a portion of the bill at that point. Despite trying to reach the hospital and continuing to send in his payments, BAMC returned his monthly checks.

Bankruptcy Law

Tips to Recover Quickly from Bankruptcy

Bankruptcy offers consumers a fresh financial start, but many people hold off on filing bankruptcy for fear of the negative effect it will have on their credit.  This is one of the most common bankruptcy myths,  and can keep individuals who are drowning financially from filing for bankruptcy. Bouncing back after bankruptcy is possible, and with proper discipline, it can be done relatively quickly.

According to a recent study by LendingTree, 65 percent of people who filed for bankruptcy in 2017, had a credit score of 640 or higher in two years.  The following tips can help you bounce back quickly after bankruptcy.