Tag: Bankruptcy Lawyer

Credit Card Debt, Debt Relief

When Can a Credit Card Company Garnish Your Wages?

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When someone is facing a credit card collection action, the last thing that person wants is to have his or her wages garnished by the credit card company. However, credit card companies do have the right to garnish a cardholder’s wages, just like any other creditor.

Before credit card debt can be collected, it must be considered delinquent.  At the time a person gets a credit card, he or she enters into an agreement to make monthly payments. If these payments are not made on time, that contract is considered broken and the debt delinquent. Once this happens, the credit card company is within its right to collect on the debt. Normally, missing a credit card payment results in a significant interest rate hike, but if the debt goes unpaid for too long, the credit card company can file a legal action to collection on the debt.

This step is where garnishment comes into play. Credit card companies cannot garnish the cardholder’s wages without first filing a legal complaint to collect on the debt and serving the complaint on the cardholder. The accountholder has a chance to respond to the complaint and file an answer within a set period of time. If he or she does not respond, the credit card company can obtain a default judgment against the cardholder, speeding up the process. However, if the cardholder does respond, the credit card company must prove that the debt is owed at a hearing before a judge.

Credit, Student Loans, Timothy Kingcade Posts

How To File For Bankruptcy with Student Loan Debt

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For consumers struggling with significant debt, filing for bankruptcy may be your best option to provide you with a fresh start. If your debts consist of federal student loans, it is not an easy process to get these discharged in bankruptcy; however, it is possible.

The first thing you must do is to decide whether you will file for Chapter 7 or Chapter 13 bankruptcy. In Chapter 7 bankruptcy, the goal is to get unsecured debt wiped out. This means, you have little disposable income available to pay off your debts. If you choose to file for Chapter 13 bankruptcy, your plan is to get your debts restructured in order to repay some of it. This also means you likely have some disposable income to repay part of your debt.

The most important part of your case when you have student loan debt is that you must prove “undue hardship” to the court. This means that you must prove that you cannot pay back your federal student loans. In order to prove undue hardship, you and your bankruptcy attorney must file a petition called an adversary proceeding, which is unique to bankruptcy involving student loan debt.

In most courts, The Brunner Test is used to evaluate hardship. Below are 3 factors of The Brunner test outlined by the U.S. Department of Education’s Federal Student Aid office:

  • The filer cannot maintain a basic standard of living if paying back federal student loans
  • The filer can prove the hardship will last for a large percentage of the repayment period
  • The filer honestly tried to repay the loans before filing

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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. 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, Credit, Debt Relief

Steps to Take if a Creditor Has Seized Your Bank Account

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If you owe a debt to a creditor or a collection agency, they can legally seize your bank account and take back what is owed. However, agencies are supposed to notify debtors about the lawsuit beforehand. Unfortunately, creditors can take everything in your bank account and leave you with nothing if it is the same amount or less than what is owed.

Although your options are limited, here are three of your best options at this point.

  1. File Bankruptcy. If a creditor seizes your account and you immediately file for bankruptcy, you may be able to recover some or all of the money that was in your account. In some states, you can “exempt” those funds that were seized from your bank and the creditor would be forced to return it.
  2. Contest the Lawsuit. You may be successful in contesting the lawsuit if you were not properly served.
  3. Stop using your Account. If the first two options fail, it may be in your best interest to avoid keeping funds in your bank account. Creditors may continue to seize your funds until the balance is paid in full.

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If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorneywho can advise you of all of 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, Credit, Debt Relief

Things Not To Do Before Filing Bankruptcy

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If you are considering filing for bankruptcy, the list of actions to avoid is just as important as the list of things to do before filing. If you do not avoid these simple decisions, it may prevent you from getting debt relief.

  • Do not transfer assets out of your name. Doing so raises huge red flags in bankruptcy court, particularly if the transferal of assets occurs right before bankruptcy filing. In some cases, hasty asset transfers may be illegal.
  • Do not use a credit card for large cash advances. Many filers choose to max out their credit cards before filing for bankruptcy because they fear losing credit later or they assume the debt will be discharged. However, if someone has no intention of paying money back, it is considered fraud.
  • Do not pay off a preferred creditor. Oftentimes, bankruptcy filers try to pay off debts with friends and family members before filing. However, bankruptcy court may make them give the money back so other creditors can get their share.
  • Do not make large purchases. It may seem like a good time to make large, expensive purchases since your debts are about to be discharged, however; the bankruptcy court may consider these purchases fraudulent.

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If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of 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, Credit, Debt Relief, Timothy Kingcade Posts

How to Shop Smart on Black Friday and Cyber Monday

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Whether you plan to shop online or hit the best black Friday deals, here are a few tips on how to shop smart this holiday season!

Do your homework now. It may seem like everyone has something on sale. However, research is key in finding the best deals. The first thing you need to do is make a list of the items you are hoping to purchase. Some retailers offer deep discounts on limited quantities or specific product models in order to lure in buyers. If you make a list, it may save you from buying something you don’t want, just because it is on sale. If you are looking for a specific item, check the price at multiple stores. Some retailers may be offering the same items for different sale prices.

Be tech savvy and take your time. Use the tools available on your smartphone, tablet or computer to track prices and make sure you are actually getting a bargain. Here are a few of the best apps and websites to help you save money on Black Friday.

  • CamelCamelCamel is available for Google’s Chrome and Mozilla’s Firefox web browsers. It tracks prices as they fluctuate on Amazon to make sure you are not leaping at a discount that is actually a small margin off a previously marked up price.
  • Invisible Hand is available for Chrome, Firefox and Apple’s Safari web browsers. It shows a discreet notification while you shop online that will alert you to a lower price at another retailer. It also has an iPhone app that you can use on the go.
  • Honey is another browser extension that automatically searches the web for coupon codes applicable to your purchases at online retailers before you check out. If it finds one, it will apply it to your cart to save you money.

Another option for online shoppers is to fill a cart, abandon it and then sometimes retailers will email you a coupon code or offer you free shipping on your order.

Don’t bother lining up. Unless you have a specific product in mind that has limited quantities, lining up all night is probably not worth it. Research suggests that almost any deal that you line up for on Black Friday will eventually be available online.

Click here to read more on this story.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of 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, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

When Unpaid Student Loan Bills Mean You Can No Longer Work

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Many former students across the country have realized that the loans they took out to pay for their education are now derailing their careers. In 20 different states, government agencies can and have been seizing state-issued professional licenses from residents who default on student loans.

As debt levels rise, creditors are taking increasingly tough actions to pursue people who fall behind on student loans. Across the nation, firefighters, nurses, teachers, attorneys, massage therapists, barbers, psychologists and real estate brokers have all had their licenses suspended or revoked.

In the past, lenders have pursued delinquent borrowers by filing lawsuits, garnishing their wages, putting liens on their property and seizing tax refunds. However, lenders believe if borrowers are faced with losing their licenses, they will find the money. On the other hand, critics of the laws say that enforcing these terms will shove some borrowers off a financial cliff.

Florida is among the 20 states that can seize state-issued licenses if a borrower defaults on student loans. The other 19 states include: Washington, California, Alaska, Hawaii, North Dakota, South Dakota, Minnesota, Iowa, Illinois, New Mexico, Texas, Arkansas, Mississippi, Louisiana, Tennessee, Virginia, Georgia, Kentucky and Massachusetts.

Click here to read more on this story.

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. 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, Credit, Debt Relief, Foreclosures

Life After Bankruptcy: Getting a Credit Card Again

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If you have recently filed for bankruptcy, you may be wondering about the possibility of getting a new credit card. Before you apply for a credit card, it is important to make sure you have a stable job and the ability to pay your other bills such as rent and utilities.

If bad financial decisions led to your bankruptcy, you may want to avoid getting a credit card for a while. However, if unexpected events such as a divorce or a job loss led to your money problems, you may be able to handle a credit card again.

Below are three important things to consider before filling out a credit card application:

  1. Timing is everything. Your bankruptcy must be discharged before you can get a credit card. Lenders will deny a line of credit during a bankruptcy proceeding because the account can be included in the bankruptcy. It takes approximately three months for debts to be discharged after the initial filing of a Chapter 7 bankruptcy. A Chapter 13 bankruptcy entails a three to five-year partial repayment plan and therefore takes much longer to be fully discharged.
  2. Weigh your options, good and bad. A recent bankruptcy will drag down your credit score for some time. As a result, you will likely receive credit card offerings from subprime lenders. Keep in mind that these credit cards typically come with higher interest rates and low limits. In addition, they typically require frequent fees that are much higher than most. A better option after a bankruptcy discharge is a secured credit card. This type of card is designed for consumers with bad or no credit. They are backed by a security you are required to put down. Secured cards have low limits and high interest rates but do not typically charge annual fees.
  3. Monitor your credit score. If you do get a secured card, do not spend more than 30 percent of the credit limit and pay off the balance every month. If you follow these two rules, your credit score should improve in time.

Click here to read more on this story.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of 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, Debt Relief, Timothy Kingcade Posts

Key Differences Between Chapter 7 and Chapter 13 Bankruptcy

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There are two types of bankruptcy available to consumers who are struggling with insurmountable debt- Chapter 7 and Chapter 13 bankruptcy. Choosing the right one is critical to your success in eliminating your debt. Below is a comparison guide to help you best decide which bankruptcy is right for you.

Chapter 7 is a form of liquidation and it is often considered the most straightforward type of bankruptcy. Consumers are given a fresh start financially, oftentimes within three months of filing.  Contrary to the bankruptcy myths surrounding Chapter 7, it does not mean you will lose your home, your car and your retirement savings. In most Chapter 7 cases, filers do not have assets above the legal threshold, which is set by state law and therefore they do not have to give up anything.  If you are filing for Chapter 7 bankruptcy in Florida, you can use Florida bankruptcy exemptions to protect your property.

In addition, residents are provided unlimited exemptions for homestead, annuities, and the cash surrender value of a life insurance policy. The average Chapter 7 bankruptcy case lasts approximately three and a half months from filing to discharge. Approximately 96 percent of debtors who file under Chapter 7 receive a discharge of their debts.

When a debt is discharged, it is no longer legally owed. Unsecured debts such as credit cards and medical bills are typically dischargeable, with the exception of student loans. Secured debts such as mortgages or car loans are typically either relinquished or kept by continuing payments.

Chapter 13 restructures your debt into an affordable repayment plan. The debtor’s obligations are combined in one, regular payment calibrated to the debtor’s income.

Chapter 13 plans can last anywhere from three to five years, but most are five-year plans. Approximately 41 percent of debtors who filed under Chapter 13 received a discharge of their debts and another 10 percent first tiled under Chapter 13 and later converted to Chapter 7 and received a discharge that way.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of 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, Credit, Debt Relief, Timothy Kingcade Posts

Wells Fargo Review Finds 1.4 Million More Fraudulent Accounts

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Last September Wells Fargo agreed to pay $185 million to settle three government lawsuits over the bank’s creation of fake accounts. Thousands of employees, trying to meet aggressive sales goals, created accounts in customers’ names without their knowledge. Workers who did not meet goals risked losing their jobs, while those who did meet their sales goals received bonuses.

At the time, Wells Fargo said that 2.1 million suspect accounts had been opened from 2011 to 2015, but it also acknowledged that the problems may have started earlier. The bank said it would expand the review to include accounts open from 2009 to 2011.

Last month the bank reported finding 1.4 million more accounts, bringing the number to approximately 3.5 million fraudulent accounts – nearly 70 percent more than the bank’s initial estimate. The bank has since released that 528,000 customers have been enrolled in the bank’s online bill payment service without authorization. The bank stated it will issue $910,000 to customers who incurred fees or charges, as a result.

“We are working hard to ensure this never happens again and to build a better bank for the future,” Timothy J. Sloan, Wells Fargo’s chief executive, said in a statement announcing the review’s results.

Senator Elizabeth Warren, Democrat of Massachusetts, released a statement saying, “Unbelievable. Wells Fargo’s massive fraud is even worse than we thought.”

Click here to read more on the story.

If you have any questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of 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, P.A. 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 website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Why Debt Settlement is Still a Bad Alternative to Bankruptcy

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Increased regulation and enforcement has forced debt settlement companies to do what they promise in recent years, rather than charge people hefty upfront fees and fail to deliver any relief. However, debt settlement is not as consumer-friendly as the industry presents it, and many of the people who praise the companies and the process do not fully understand their alternatives or the long-term consequences of settling debts. A few of the minor consequences you might experience if you opt for debt settlement include: tax bills on the forgiven debt, a dip in credit scores and increased interest on new purchases.

Here are some of the biggest problems with debt settlement:

  • The debt settlement process takes years. Customers are told to stop paying their credit card bills, loans and other debts and put money into a savings account, however; negotiations may take years. According to the Freedom Financial Network, the largest debt settlement company, half of all customers eventually settle at least 75 percent of their debt, but the process usually takes three to four years. In the meantime, customers risk being sued over their debts. On the other hand, Chapter 7 bankruptcy halts collections activity, including lawsuits.
  • The math doesn’t add up. Debts are typically settled for 45 to 50 percent of the current balance, which is often higher than the initial balance because of late fees and interest. The average debt settlement fee is 20 percent of the debt at the time of enrollment. The amount of forgiven debt is usually reported to the IRS and is taxable as income. If the borrower is in the 25 percent federal tax bracket, the total cost of the settlement can equal 90 percent or more of the original amount owed.
  • Debt settlement companies tend to demonize bankruptcy. For example, National Debt Relief, a large debt settlement company, claims on the website, “Declaring Chapter 7 bankruptcy may mean saying goodbye to most of the assets you have accumulated over the course of your life.” However, few people who file for Chapter 7, which erases most debts in three to six months, lose any assets thanks to state laws that typically protect most if not all of what filers own.
  • Debt settlement companies also claim that bankruptcy is harder on credit scores. However, both processes often drop scores into the mid-500s. Credit scores can begin the recovery process immediately after either process is complete. The difference is that Chapter 7 bankruptcy typically takes only months to complete, while debt settlement typically takes years to complete.

Click here to read more on this story.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of 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, P.A. 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 website at www.miamibankruptcy.com.