Credit Card Debt

4 Habits That Will Help You Pay Off Debt And Remain Debt-Free

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Paying off credit card debt can seem like a never-ending battle. If someone is carrying a high balance on a card with a high interest rate, it can seem like a dent will never be made toward paying off the total amount, especially if that person is only making minimum payments.

Here are some tips to help you pay off credit card debt and keep it off.

  1. Put money into a savings account.

It may seem counter-intuitive, but to pay off credit card debt, it helps to also put money away into savings. According to recent statistics from Bankrate, 29 percent of Americans have more credit card debt than they have money in emergency savings. Even worse, 28 percent of them reported having no emergency savings at all.  When a financial crisis hits, it only takes one unexpected expense to completely drain a small savings account or push that person into debt.

Bankruptcy Law

Steps to Take Prior to Filing for Bankruptcy

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Before filing for bankruptcy, certain steps can be taken in advance to make the process go much smoother. No matter what financial situation a filer may be in prior to pursuing bankruptcy, it always helps to come up with a plan to protect his or her assets and make sure that the filer receives the highest level of debt relief possible. This planning can be done individually by the filer, but it is often best to sit down with a bankruptcy attorney to receive proper advice on what to do.

Stop Using Credit Cards.

One of the main reasons why many people end up filing for bankruptcy is due to credit card debt or other debt to pay for daily expenses. As soon as someone decides to file for bankruptcy, it is always recommended that he or she immediately ceases using their credit cards. Bankruptcy courts will view creating more debt when the person knows that it will never be repaid as a form of bankruptcy fraud.

Credit Card Debt, Debt Relief

Tips for Paying Down Holiday Credit Card Debt

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Now that the holidays are over, consumers are about to receive a New Year’s “surprise” in the form of a credit card statement. Those who already had a substantial balance on their credit cards, the extra holiday spending has only added to those balances. According to a report from credit bureau, Experian, the average credit card balance has climbed to $6,629.

You are probably wondering the next steps to take to pay down holiday debt before the interest starts mounting. We recommend taking a realistic approach in paying down the balance over the course of the first quarter of the year. By calendaring and planning out the payments, the cardholder can visualize the end goal of paying off the debt.

Bankruptcy Law

Can I File for Bankruptcy and Still Keep My Car?

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The fear of losing everything is a very real fear for many bankruptcy filers. However, this is one of the most common bankruptcy myths, and can keep individuals who are drowning financially from filing for bankruptcy. One concern many filers have is whether they will be able to keep their mode of transportation after filing for bankruptcy.

The good news is most filers will be able to keep their vehicles after filing for bankruptcy. Florida bankruptcy laws offer generous exemptions which allow individuals to keep various types of property, including their vehicle. Under the Florida Motor Vehicle Exemption, bankruptcy filers can exempt up to $1,000 in motor vehicle equity. This amount can be even more if a married couple is filing for bankruptcy jointly.

Bankruptcy Law

Miami Bankruptcy Attorney Timothy S. Kingcade Receives the Prestigious AVVO Clients’ Choice Award for 2020

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MIAMI – (January 16, 2019) Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy law firm of Kingcade Garcia McMaken has received the 2020 AVVO Clients’ Choice Award. To obtain this award, an attorney must receive five or more exceptional client reviews in the same year.  This is the sixth consecutive year Kingcade has been honored with this award.

One of attorney Kingcade’s clients had this to say on AVVO: Mr. Timothy Kingcade is not only a living encyclopedia in matters of bankruptcy law, but he cares for you on a personal level. He was very detailed in explaining every step of the way what I had to expect as we entered this legal process and made me feel like family, and the rest of the team were always there to support me whenever I needed help. I definitely recommend his law firm; believe me they are the best!!!

student loan debt

Court Ruling in Favor of Discharging Student Loan Debt Gives Borrowers Hope

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Student loan forgiveness form on a desk.

When it comes to discharging debts in a bankruptcy case, student loan debt has traditionally been one of the most difficult debts to discharge. But a New York court ruling issued on January 7, 2020, has given student loan borrowers hope that change is near.

A New York judge ruled last week that the $221,385.49 in student loan debt that U.S. Navy veteran Kevin Rosenberg owed for six years was considered a dischargeable debt in his Chapter 7 bankruptcy case.

student loan debt

Tax Consequences That Come With Student Loan Forgiveness

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Receiving student loan forgiveness can be difficult to accomplish, which is why so many loan forgiveness applicants are rejected. It is also why many student loan borrowers choose to take the route of income-driven repayment plans to pay off their debt over the course of 10 to 25 years before having the remainder forgiven. However, what many of these borrowers do not realize are the tax consequences that come along with these income-based payment programs.

Under Section 61(a)(12) of the Internal Revenue Code, gross income includes revenue from the discharge of debt amounting to $600 or more in any calendar year, which means any debt that is forgiven at the end of the repayment period is considered taxable income. Depending on how high the outstanding balance is on the borrower’s debt, this taxable amount could be significant.

Bankruptcy Law

Mistakes to Avoid if You are a Senior Filing for Bankruptcy in Florida

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More seniors are filing for bankruptcy than ever before, which has been the result of a number of factors including rising healthcare costs, lack of retirement savings and less social security.  Between the years 2013 and 2016, approximately one in every eight bankruptcy cases were filed by individuals who were older than 65. Twenty-one percent of those filing for bankruptcy were between the ages of 55 and 64.

The following mistakes were made by individuals in this age group as they attempted to explore options to avoid filing for bankruptcy.

Credit Card Debt

Credit Card Debt Worse for those with High Income

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Credit card debt in the U.S. has reached a high of $830 billion, making a six percent jump since last year. Next to personal loans, credit card debt is the second-fastest growing category of debt, according to a recent Experian report. It is reported that the average American consumer carries a balance of $6,200 on his or her credit card. With balances that high, it can be quite difficult for the average consumer to pay off his or her debt.

It turns out that the consumers who are carrying the most credit card debt are those with a net worth of over $100,000 or more, according to a recent study from Bankrate.  Adults who carried net worth between $100,000 and $199,999 are the most likely to carry credit card debt, followed by individuals with net worth between $200,000 and $1 million. People who had a net worth over $1 million had the least amount of credit card debt.

Debt Relief

Growing Number of Personal Loans Could Mean Danger for U.S. Economy

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The rise in personal loan debt has financial experts worried. According to a recent study from Equifax, personal loans are up 10 percent from the previous year. In fact, all three major credit agencies report a double-digit increase in the use of personal loans over the past few months.

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.