Bankruptcy Filings, student loan debt, Student Loans

Student Loan Overhaul Could Lead to More Bankruptcy Filings, Says Judge

After nearly three decades as a bankruptcy judge, Sarah Sharer Curley details what she calls the unfairness of the legal process in her new book, “The Price of Forgiveness: Debt, Bankruptcy, and the Future of Fairness in America.”

She calls Trump’s “Big Beautiful Bill” an “attack” on student loan borrowers and predicts an increase in bankruptcy filings. She says the law sets unrealistic federal student loan caps, potentially pushing students toward private loans that lack federal guarantees and often carry higher interest rates.

For example, let’s say a student needs a $300,000 loan to go to medical school. If the individual has a lower credit score, their interest rate may jump to 16%, leading to a payment of $5,017 per month over 10 years, or $302,040 in interest.

These expenses are not sustainable for most individuals. The rate of bankruptcy filings will most likely increase. One of the most painful cases she witnessed in her three decades presiding over bankruptcy cases, involved a 73-year-old woman who stood before her in 2012 with a student loan balance of more than $584,000.

The debt dated back to the 1970s and had grown throughout the woman’s public sector career. She had “never made a lot of money,” Curley said, and by the time she sought debt relief, the woman was living in poverty, with Social Security as her only income. Even so, strict bankruptcy laws can make student loans nearly impossible to discharge.

There were attempts by the U.S. Department of Education to work out repayment plans for student loan borrowers who could not repay their debts. There was also the possibility that the Education Department would agree to forgive at least a portion of the student loans.

However, once the Education Department was gutted in 2025, there were few, if any, employees who could approve the debt modifications through one of the offered programs. As a result, it has become harder to reach a settlement with the Department of Education.

In 2025, more than half a million personal bankruptcy cases were filed — an almost 50% rise from three years prior, according to the Administrative Office of the U.S. Courts.

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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. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law

The Most Common Forms of Bankruptcy Fraud

Bankruptcy laws require that the filer be honest and open about his or her financial situation, including disclosing all assets and debts. While no one wants to lose property to pay off creditors, some assets must be sold during the bankruptcy case to pay off the filer’s debts. If a filer actively tries to hide or fails to disclose information in hopes of keeping it from the bankruptcy court, this is called bankruptcy fraud and it can cause your case to be dismissed.

Hiding Assets

Concealing assets is one of the more common forms of bankruptcy fraud. Approximately 70 percent of all cases where some type of fraud was reported involved concealment of assets. It can involve the person simply leaving a certain asset off the list of those reported to the bankruptcy trustee. It can also involve hiding the asset through a fraudulent transfer, including giving the asset to someone else to keep it during the duration of the bankruptcy case, with the intent that the person holding the asset will return it after the case concludes. If this type of fraud is discovered, the filer and the person holding the asset could be held liable for bankruptcy fraud.

Bankruptcy Law, Credit, Timothy Kingcade Posts

What Debt is Dischargeable through Bankruptcy?

Bankruptcy laws specify that only particular types of debts can be discharged through bankruptcy. Chapter 7 and Chapter 13 bankruptcy allow borrowers to eliminate their unsecured debts. Unsecured debts include items such as credit card debt, medical bills, utility bills, service bills, personal loans, payday loans and judgments. Secured debts which are backed by some form of collateral, like a house, and debts incurred through fraudulent activity, student loans, tax debts, child support and alimony are typically not dischargeable in bankruptcy.

When you hire Kingcade & Garcia, P.A. our attorneys will provide a complete evaluation and give you an honest and accurate assessment of your financial circumstances. We help clients analyze their finances and determine the best path to debt relief. This past year our firm handled more than 1,500 bankruptcy cases, bringing debt relief to individuals, families and business owners throughout South Florida. If you are struggling with insurmountable debt do not wait any longer, set up your FREE office consultation today by calling (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Gamblers in Debt have Luck on their side as a result of New Bankruptcy Laws

In the past, bankruptcy courts have found gambling debts as non-dischargeable. However, due to recent changes in the law, gambling debts owed to a casino can be eligible for debt discharge through bankruptcy. Gamblers often get trapped in a vicious cycle, taking cash advances in the hope that future earnings will pay them off. Gambling can be a slippery slope and can lead to addiction and financial devastation. However, gamblers have some luck on their side if they take advantage of the current bankruptcy laws, as a Chapter 7 bankruptcy filing can eliminate gambling debts.
At Kingcade & Garcia, we understand the need for a legal means of escaping overwhelming debt. What if you could eliminate your gambling debts and take a huge step toward taking control of your finances and your life? By taking advantage of our free consultations and speaking with our experienced team of bankruptcy attorneys, you can.
If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy attorneys at (305) 285-9100. 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, P.A. website at www.miamibankruptcy.com.

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Filing for Bankruptcy Could Save your Home

By the time a foreclosure notice arrives, many struggling homeowners figure they are out of options. However, there is one step many often overlook: filing for bankruptcy. The impact of filing for bankruptcy- especially on your chances of getting a loan- may not be as dire as many consumers assume. In fact, homeowners facing foreclosure may be able to improve their credit by filing for bankruptcy.

In the eyes of lenders, by filing for bankruptcy, you are making an attempt to pay back what is owed and keeping up with your payments. That help can make a big difference for homeowners struggling to deal with a lending industry which is overwhelmed by the mortgage mess.
Bankruptcy automatically stops the foreclosure process, giving the struggling homeowner and the court time to try and get back on track with your mortgage payments. Even if you fail to save your home, the consequences of a bankruptcy filing may be less severe than foreclosure. In fact, bankruptcy laws were established to provide an orderly process for people in financial trouble to reorganize their debts, start fresh and rebuild their lives.

Many of the individuals that come into my office are not living extravagant lifestyles; instead, they are forced to take drastic steps because of a change in circumstances, whether it’s the loss of a job or a divorce.  A bankruptcy filing will not guarantee that you will be able to keep your home. However, it does stop the foreclosure process and will buy you time while the court reviews your finances and attempts to work out a payment plan with lenders.

To read more on this story, visit:
http://www.msnbc.msn.com/id/41787682/ns/business-personal_finance/

If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy attorneys at (305) 285-9100. 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, P.A. website at www.miamibankruptcy.com.