Consumer Debt, Credit Score

Millions of Debt Collections Disappear from American Consumers’ Credit Reports

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Millions of debt collections disappeared from American consumers’ credit reports during the COVID-19 pandemic, according to reports from the Consumer Financial Protection Bureau (CFPB). Even though a large number of collections cases dropped off credit reports, overdue medical debt still remains a major consumer problem.

According to the CFPB, the total number of debt collection cases on consumer credit reports went from 261 million in 2018 to 175 million in 2022, dropping 33 percent (33%). Additionally, the number of consumers who had a debt collection on their credit report decreased by 20 percent (20%) between 2018 and 2022.

Credit Card Debt

Half of Millennials and Gen Xers Carry More Credit Card Debt than Savings

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Nearly Half of Millennials, Gen Xers Have More Credit Card Debt Than Savings. 

Putting extra money in a savings account for the unexpected expense or emergency is a good rule of thumb. Unfortunately, for many American consumers that concept is nowhere near reality. In fact, according to a recent Bankrate study, nearly half of Americans between the ages 27 and 58 have credit card debt balances that exceed how much they have in savings.

Bankrate found that approximately 45 percent of consumers in the Millennial and Generation X categories reported that they were carrying credit card balances that were greater than their savings or emergency funds. What this means is a growing number of American consumers are relying more on credit than they are savings to get themselves through tough economic times.

Bankruptcy Law, Car Repossession, Consumer Bankruptcy

What Happens to My Car During Bankruptcy?

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Will filing for bankruptcy cause me to lose my car? 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, what will happen to my car during 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.

Car Repossession, Consumer News

Car Repossessions Hit a Decade High

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Car repossessions have reached a figure not seen in over a decade. According to Fitch Ratings, the number of subprime auto borrowers who were at least 60 days past due on their car payments increased to 5.67 percent (5.67%) from 2.5 percent (2.5%), which was the figure reported in April 2021.  

Numbers like these have not been seen since January 2009 when 5.05 percent (5.05%) of subprime car borrowers were at least 60 days late on their car payments during the peak of the Great Recession.

Legal Awards

Kingcade Garcia McMaken Awarded ‘Best Bankruptcy Lawyers in Miami’ for 2023

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MIAMI (February 28, 2023) — The Miami-based bankruptcy law firm of Kingcade Garcia McMaken has been awarded one of the ‘Best Bankruptcy Lawyers in Miami’ for 2023, by Expertise for obtaining the highest scores in consistency, qualifications, reputation, experience & professionalism.

Expertise Award Best Bankruptcy Attorneys 2023

“We are extremely honored to have received this award,” says Founding Partner and Managing Shareholder, Timothy S. Kingcade. “In today’s competitive legal environment, clients have an increasing number of options when choosing an attorney. It is important that clients and potential clients know how serious we take quality customer service and business ethics. This is a true testament to the commitment we have to our clients and the standards we uphold as a law firm.”

student loan debt, Student Loans

Supreme Court Hears Arguments on Student Loan Cancellation

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The U.S. Supreme Court will be hearing arguments this week over two legal challenges brought against President Biden’s student loan forgiveness plan. The decision from these challenges could make or break Biden’s overall plan for loan forgiveness, affecting tens of millions of American borrowers.

Since President Biden made his initial announcement regarding his loan forgiveness plan, his policy has faced six legal challenges. The two challenges before the high court now have consolidated these suits. One legal challenge has been brought by six states, including Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina. The other challenge has been backed by the Job Creators Network Foundation, a conservative-based advocacy group.

student loan debt, Student Loans

The Supreme Court Prepares to Hear Legal Challenges to Biden’s Student Loan Forgiveness Program

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For many people with federal student loan debt, it has been approximately three years since they were obligated to make a payment on their loans. The pause on these payments started at the beginning of the COVID-19 pandemic and has continued since then, eight separate times. 

Another extension has been issued for this pause on payments after legal challenges were made regarding President Biden’s widespread student loan forgiveness program originally announced in August. To help borrowers who were anticipating help from this forgiveness, the government announced student loan debt bills from the federal government will not be collected formally for months. 

Consumer Debt, Credit Card Debt

Debt is Hitting Home for Many in South Florida as Interest Rates Continue to Rise

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More consumers are racking up credit card debt at a pace not seen in decades as interest rates rise and inflation continues to pervade the economy. Many consumers in South Florida are struggling to manage this debt and as a result are in a vicious cycle that they cannot seem to escape.

Total credit card debt was on the rise towards the end of 2022. According to TransUnion, the average credit card user carried a balance of $5,805 over the last three months of 2022. This number is up 11 percent (11%) from 2021.

Bankruptcy Trends, Consumer Bankruptcy

Bankruptcy Courts See an Increase in Consumer Bankruptcy Filings

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U.S. consumer bankruptcy filings are on the rise again, across all chapters, according to data recently published by Epiq Bankruptcy. This increase in filings represents a change in the trend previously seen with new bankruptcy cases, as numbers have been on the decline since the start of the COVID-19 pandemic.

According to Epiq, the total number of commercial bankruptcy filings increased by twelve percent (12%) in January. In January 2023, 1,694 new commercial bankruptcy cases were filed, as compared to 1,508 filed in January 2022.

Legal Awards

Miami Bankruptcy Attorney Timothy S. Kingcade Receives the Prestigious AVVO Clients’ Choice Award 2023 for the 10th Consecutive Year

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AVVO Clients' Choice Award

MIAMI – (January 31, 2023) Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy law firm of Kingcade Garcia McMaken has received the 2023 AVVO Clients’ Choice Award. To obtain this award, an attorney must receive five or more exceptional client reviews in the same year. Kingcade has been awarded the Clients’ Choice Award 10 years in a row.

One of attorney Kingcade’s clients had this to say on AVVO:

The law firm is very much customer focused. In my case, I was referred by a previous client and the procedure to start working with them is easy and painless, they set an appointment and Mr. Kingcade himself interviewed me, precise, concise, and straight to the point. He made everything crystal clear. Then the information phase started, they asked for a list of documents and statements and gave me enough time to collect them all. In the end, the results were stellar. I can recommend Kingcade & Garcia from here to the moon. Excellent service! -J.G.A