Bankruptcy Law, Consumer Bankruptcy

Will a Bankruptcy Filing Remove a Vehicle Repossession?

A bankruptcy discharge will relieve the filer of his or her debts, which means that the person can walk away with a clean financial slate.  However, a bankruptcy case does not remove all debts from the consumer’s credit report. In fact, certain debts and the legal proceedings associated with them can be difficult to remove, including vehicle repossession.

A consumer bankruptcy case, including Chapters 7 and 13, should remove negative marks on the consumer’s credit report. In a Chapter 7 bankruptcy case this is accomplished by liquidating the consumer’s assets that are not otherwise protected under a bankruptcy exemption and using those funds to pay off the consumer’s debts. Those not paid are then discharged at the end of the bankruptcy. Under a Chapter 13 bankruptcy case, the consumer works with the bankruptcy trustee on a repayment plan that lasts between three to five years. At the end of that time, the remaining debts are discharged from the consumer’s record.

Bankruptcy Law, Consumer Bankruptcy

Is It Possible to Refinance a Mortgage after Bankruptcy?

One of the biggest fears expressed by bankruptcy filers is how a bankruptcy case will affect their ability to receive financing in the future.  While having a bankruptcy on a person’s credit report can make it more difficult to qualify for a mortgage, it is possible for someone who has completed bankruptcy to refinance his or her mortgage after the case is successfully closed.

A number of factors can influence how easy it is to refinance after bankruptcy, including the type of bankruptcy, whether it be a Chapter 7 or Chapter 13 bankruptcy. The type of mortgage loan that the borrower is looking to refinance can also heavily influence this.

Bankruptcy Law, Consumer Bankruptcy

When Is Filing for Bankruptcy the Best Option?

Making the decision to file for bankruptcy is never an easy one. Many individuals hold off on filing for fear of what it will do to their credit or worse, fear of the unknown. For many consumers, taking that first step and initiating a bankruptcy case can be the best option for them. The key is deciding when to take that step.

The longer a person stays in debt, struggling to pay bills, defaulting on liabililities, the worse the financial damage will be.  Not to mention the emotional toll it takes.  By not taking action, a person can risk being sued by thier creditors or having their wages garnished. Credit card companies, creditors and even the IRS can take legal action to garnish your wages to pay off outstanding debt.

Bankruptcy Law, Consumer Bankruptcy

Will Filing Chapter 7 Bankruptcy Prevent Vehicle Repossession?

When someone is behind on his or her car payments, a Chapter 7 bankruptcy case may allow him or her to catch up on these missed car payments, saving the vehicle from repossession. The ability to do this depends on how far behind the borrower is on his or her payments and whether the loan is already in default.   

While a Chapter 7 bankruptcy case will not permanently prevent the person’s vehicle from ever being repossessed, it can provide the borrower a chance to catch up on missed payments or negotiate with the lender before the loan goes into default.  

Foreclosure Defense, Foreclosures

How to Save Your Home from Foreclosure in Florida

Many Americans have been able to utilize the federal and state mortgage foreclosure moratoriums during the COVID-19 crisis to stay in their homes. But a record number of homeowners have fallen behind on their mortgage payments. According to statistics from the Consumer Financial Protection Bureau, the number of Americans who have fallen three or more months behind on their mortgage payments increased by 250 percent in 2020, reaching a record of over two million households nationwide. These figures have not been seen since the Great Recession.  

It is estimated that the total amount owed is nearly $90 billion in deferred principal, interest, insurance, and tax payments. Financial analysts predict that the nation will soon see a wave of foreclosure lawsuits hitting the court system. However, it is possible for a consumer to stop the process from getting out of control and allow the individual to stay in his or her home.  

The first step should always be for the homeowner to reach out to his or her mortgage lender. Pursuing a foreclosure costs the lender money. In fact, they end up losing more money through that process than they would gain if they worked on a deal with the homeowner to stay in the home, which is why so many of them are more than willing to negotiate 

Many mortgage lenders are offering loan deferral programs or are either lowering or deferring interest payments for a temporary period. They may also be willing to waive late fees and penalties. The key is the homeowner needs to ask, first. The lender is not going to proactively reach out to the homeowner to see if he or she needs assistance. Ultimately, it is up to the homeowner to request this.

If the consumer has already reached out to the lender and is not able to realistically catch up on payments and late fees, it may be best to sell the property to pay back what is owed. For this plan to truly succeed, the borrower needs to price the property to sell. The longer the home stays on the market, the longer the homeowner will be behind on his or her payments, making the home even more difficult to sell.   

While the home is in default or foreclosure, the homeowner will likely be receiving mail from the court or lender regarding important dates and opportunities to make a deal on his or her payments. It is extremely important that all mail related to the home be opened immediately, be read, and if a response is required, be responded to quickly. The last thing the homeowner wants to do is miss an important court date or fail to take advantage of an opportunity if the lender is offering lower payments or a deal that could allow the person to remain in his or her home 

Lastly, to keep the home, it is important to continue making mortgage payments, if possible. Many people will take the idea of a moratorium and assume it means he or she does not have to pay on the mortgage debt during that periodThe problem is, during a moratorium, mortgage bills continue to incur, and if payments are not made, the homeowner will fall behind even more than he or she was at the start of the moratorium. The mortgage bill is arguably one of the most important payments the homeowner makes, even above other bills or debts, such as credit cards or medical debt.

Filing for bankruptcy can help. It may seem counter-intuitive, but when someone is facing foreclosure and is in the middle of a major financial crisis, bankruptcy can be a viable option to help save that person’s home. Ultimately, it depends on your specific financial situation and the type of bankruptcy you file – but bankruptcy can be used as a tool to help keep your home.

The Power of the Automatic Stay

If your home is already set for a foreclosure sale, you may be asking, “how can I make it stop?” Filing for bankruptcy can put a stop to the process or at the very least postpone it. As soon as a petition for bankruptcy is filed, the court issues an order called an “automatic stay,” which puts an immediate halt to all collection activities that were happening to the homeowner before the petition was filed. This automatic stay also applies to foreclosure cases.  Creditors (including your mortgage lender) must immediately cease collection attempts. Even if the mortgage lender has the home scheduled for a foreclosure sale, the sale will be postponed during a pending bankruptcy.

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Choosing the right attorney can make the difference between keeping your home or losing it in foreclosure. 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 

 

Bankruptcy Law

What Happens When You File for Bankruptcy? 

The bankruptcy process is meant to give consumers who are struggling financially a fresh start. However, many consumers hold off due to the fear of filing for bankruptcy, even if it is the best option. Bankruptcy cases have both positive aspects, as well as negative ones, that go along with beginning and successfully finalizing a case. It is important to understand how a bankruptcy case works before moving forward with filing so that the person filing knows what to expect.  

Automatic Stay 

One of the most positive aspects of proceeding with a consumer bankruptcy case is the automatic stay that accompanies the filing. As soon as a Chapter 7 or Chapter 13 bankruptcy case is initiated, an automatic stay of all collection efforts against the filer is issued. What this means is the consumer’s creditors are temporarily blocked from moving forward on collecting any outstanding debt. This stay also stops wage garnishments, foreclosures, or completion of legal collections cases. The purpose of the automatic stay is to give the consumer a chance to work with the bankruptcy trustee on determining how various debts should be handled. A creditor can file a request to continue collection even though an automatic stay has been issued, but they can only continue if the request is granted.  

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.

Bankruptcy Law

Can Filing for Bankruptcy Save My Home?

When someone is facing the possibility of bankruptcy, the thought of losing his or her home is a very real and frightening one. However, the protections of the bankruptcy automatic stay can help the filer protect his or her home through a Chapter 7 or Chapter 13 filing. The key to this protection rests heavily on the type of bankruptcy filing and the filer’s financial situation. The bankruptcy automatic stay also offers filers who are facing a multitude of collection calls relief from their creditors, protect them from lawsuits, wage garnishmentrepossession, and losing valuable property.

As soon as the bankruptcy petition is filed, the automatic stay goes into effect. After this point, creditors and debt collectors are legally barred from attempting to collect on any debt owed by the filer.

Bankruptcy Law, Debt Relief

How Small Business Owners Can Protect Assets in Bankruptcy

Many business owners worry about what will happen to their companies and their business assets when facing bankruptcy or a lawsuit. It is important for any business owner that he or she creates an asset protection plan for these exact types of situations.

The first step is to develop a debt management plan for the business. Having debt is not always a bad thing. The key is to manage the debt in an intelligent manner to stay out of trouble.  Business loans will usually involve offering business assets as collateral, which means that if the business owner ends up defaulting on the loan, the lender can seize the collateral to pay the debt. Some lenders will require borrowers to sign a personal guarantee if the collateral is not enough to cover the debt.