Tag: bankruptcy lawyers

Consumer Debt, Credit Score, Debt Collection, Payday Loans

What Happens If I Can’t Payback a Payday Loan?

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Many people use payday loans to cover expenses, like utilities, gas, and groceries, when they run out of money before their next paycheck. But because of the loan’s high cost and short turn around time, it can be difficult to pay them back on time.

Defaulting on a payday loan can result in fees, collection calls, even legal action being taken against you. Lenders may send your unpaid account to a collection agency, which can end up damaging your credit score if it appears on your credit report.

Understanding what happens if you cannot pay back a payday loan and the options available can help you decide how to handle your loan.

Consequences of Not Paying Back a Payday Loan

  • Fees and Interest Accumulation

Payday loans come with high fees that equate to triple-digit annual percentage rates (APRs). If you fail to repay the loan on time, late fees and interest can accumulate, making it increasingly difficult to pay back the original loan.

  • Bank Fees

Payday lenders usually require access to an active checking or debit account so they can deposit funds and collect repayment by electronic debit or post-dated check. If your account lacks enough money when payment is due, you may face overdraft or insufficient funds fees. Repeated withdrawal attempts can add more fees and worsen your financial hardship.

  • Debt Collection

After several unsuccessful attempts to collect payment, payday lenders may sell your debt to a collection agency. Collection agencies often use aggressive tactics to recover the debt including frequent phone calls, letters and even emails or text messages.

  • Impact on Your Credit Score and Future Credit

Payday lenders typically do not report payments to the credit bureaus. However, if you stop paying and the debt is sent to collections, it can hurt your credit score and make it harder to qualify for new credit cards, loans, or other services that require a credit check.

  • Legal Consequences

In some cases, lenders or collection agencies may pursue legal action to collect the debt. This can lead to a judgment against you, which can result in wage garnishment or bank account levy.

What to Do if You Cannot Repay a Payday Loan

  • Request a financial hardship program. Reach out to your lender before the due date to ask for an extension or repayment plan.
  • Stop electronic withdrawals. To prevent bank fees, you can revoke the lender’s payment authorization. Notify the lender in writing and inform your bank.
  • Borrow from a trusted friend or family member. If feasible, consider borrowing from a trusted friend or family member, to help pay off your payday loan debt. Be sure to establish a clear repayment plan to maintain your relationship.
  • Seek credit counseling. A nonprofit credit counselor may be able to help you find solutions for getting out of your payday loan debt.
  • Avoid taking out another payday loan. While it may be tempting to borrow a second loan to cover the first, doing so can trap you in a cycle of payday loan debt.

How to Rebuild Credit After Payday Loan Default

  • Get current on your payments. If you still have outstanding payday loan, prioritize paying them off. You may be able to negotiate a lower payoff amount, even if the loan has gone to collections.
  • Pay down existing debt. Work on reducing your credit card balances. A lower credit utilization ratio can have a positive impact on your credit score.
  • Monitor your credit. Check your credit report for any inaccuracies. Dispute any errors with the three major credit bureaus (Equifax, Experian, and TransUnion). If you find inaccuracies on your credit report, you have the right to file a dispute with the credit bureaus to have them corrected or removed.
  • Make on-time payments. Payment history accounts for a significant portion of your credit score. Making consistent, on-time payments toward your bills and credit cards can have a positive impact on your credit score.
  • Lower your credit utilization. Pay down revolving credit accounts to free up more available credit. The goal is to keep your credit utilization at 30% or lower. Your debt payment history is the most important factor in your credit score calculation, making up 35% of your FICO®ScoreΘ. This score is used by 90% of top lenders.
  • Avoid taking on additional debt. Limit new credit applications while rebuilding your credit. Applying for multiple accounts at once can add hard inquiries to your credit report and may temporarily lower your score. Space out applications and apply only when necessary.
  • Build positive credit. Make on-time payments on bills and credit accounts to help improve your score. You might also build credit with a secured credit card or by becoming an authorized user on the account of someone who manages credit responsibly.

If you have questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can assist you and address 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.

SOURCES:

Dow, N. (2026, March 4) Can’t Repay a Payday Loan? Here’s What to Do. Nerdwallet. Nerdwallet.com.

Irby, L. (2024, October 7) What Happens if You Can’t Pay Back a Payday Loan? Experian. Experian.com

Consumer Debt, Credit Card Debt

The Emotional Burden of Debt on Your Mental Health

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Today, as the U.S. is facing economic uncertainty and high inflation, consumers are feeling an increase in financial pressure.  Everyday costs are on the rise, and struggling to afford the basics is a challenge for many. 

The result? Higher levels of debt are becoming more widespread.

Debt can cause a lot of damage, and not just to your credit score. Carrying any amount of debt can be stressful, but carrying substantial amounts of debt can be debilitating to a consumer’s emotional well-being. Credit card debt can cause stress, which can lead to depression, anxiety, and other health problems. 

Over half of the adults in the U.S. with a debt problem are also living with a mental health issue, according to a study from the Royal College of Psychiatrists. 

High levels of debt can also lead to stress and arguments within marriages. In fact, arguments about money are one of the top causes of divorce in America, after infidelity. Debt and stress often go hand in hand. It’s natural to worry about debt and if you will ever get out of it.   

According to the Stress in America survey conducted by the American Psychological Association, 87 percent of Americans reported the rising cost of living as a significant source of stress. The survey also found an increase in the percentage of Americans stressed about the economy, and finances in general.

Click here to read more. 

If you have 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 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.

Legal Awards

Miami Bankruptcy Attorney Timothy S. Kingcade Receives the Prestigious AVVO Clients’ Choice Award for 2025

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AVVO Clients' Choice Award 2025

MIAMI – (January 24, 2025) Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy law firm of Kingcade Garcia McMaken has received the 2025 AVVO Clients’ Choice Award. To obtain this award, an attorney must receive five or more exceptional client reviews in the same year. Kingcade has received the Clients’ Choice Award consistently since 2010, earning the award 15 years in a row.

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

Helped me from start to finish.

I thought I could pull myself through this situation, but it dragged on for a few years due to Covid. The stress on my mental and physical health was taking its toll. Timothy Kingcade and his entire office staff hung in there with me through thick and thin. I never thought I’d have to go through this experience; I know many people do, but for me it was slow and personal, not my area of expertise at all. I cannot thank Timothy and his team enough for all the emails, texts, and office visits. They supported me all the way to the finish line. Thank You!

-Leanne

Click here to read all of Miami Bankruptcy Attorney Timothy Kingcade’s client reviews on AVVO. Timothy has earned a “Superb” 10.0 AVVO rating in the area of bankruptcy law, the highest rating an attorney can receive.  The rating is calculated using a mathematical model, which takes into consideration the years an attorney has practiced law, their professional achievements, discipline history and industry recognitions.  The rating is completely objective and unbiased.  Attorneys cannot pay or petition the site to have their rating changed, which makes AVVO one of the most respected lawyer rating services in the country and an invaluable legal resource for consumers.

Attorney Timothy S. Kingcade founded Kingcade Garcia McMaken, a prominent law firm that handles a substantial number of bankruptcy filings each year. Timothy, along with his dedicated team, provide comprehensive legal representation to clients throughout South Florida. Kingcade Garcia McMaken is committed to helping clients navigate the complexities of bankruptcy law. Their experienced attorneys guide individuals in understanding recent changes in bankruptcy regulations and the critical distinctions between filing under Chapter 7 or Chapter 13 bankruptcy. The firm also handles foreclosure cases alongside bankruptcy matters. Throughout South Florida, Kingcade Garcia McMaken has earned a solid reputation as a dependable and effective advocate for clients from diverse backgrounds. The firm’s commitment to providing personalized service is evident, with their attorneys taking the time to clearly explain the available options based on each client’s unique circumstances. The personalized approach ensures that clients receive the individual attention and care they deserve during the legal process.

###

Miami-based Kingcade Garcia McMaken, P.A. was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade Garcia McMaken P.A. specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish. For more information, visit https://www.miamibankruptcy.com/ or call (305) 285-9100.

Credit Card Debt

Credit Card Debt Among Retirees Jumps

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While credit card interest rates are at an all-time high, the amount of retirees with credit card debt has increased substantially.

About 68% of retirees had outstanding credit card debt in 2024, up from 40% in 2022 and 43% in 2020, according to a new poll by the Employee Benefit Research Institute.

This is a worrisome financial trend, since many retirees are on a fixed income. About 2 in 5 cardholders have maxed out or nearly hit their card limit since early 2022, resulting from inflation and higher interest rates, according to a recent Bankrate poll.

There are a few ways retirees can get their credit card debt under control.

  1. Reduce expenses
  2. Boost income
  3. Reduce your interest rate

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.

Filing for bankruptcy is a viable option for those struggling with insurmountable credit card debt. Chapter 7 is the fastest form of consumer bankruptcy and forgives most unsecured debts like credit card debt, medical bills, and personal loans.  There are certain qualifications a consumer must meet in regard to income, assets, and expenses to file for Chapter 7 bankruptcy, which is determined by the bankruptcy means test.

Please click here to read more.

If you have 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.

student loan debt, Student Loans

Judge Blocks Biden’s New Student Loan Forgiveness Plan

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U.S. District Judge Randal Hall in Augusta, Georgia, has issued a temporary restraining order against President Joe Biden’s second effort to cancel student loan debt for millions of Americans. Earlier this summer, millions of federal student loan borrowers received an email from the Biden administration informing them that debt forgiveness was on the way, and they may be eligible.

Judge Hall, responded to a lawsuit against the relief package brought by seven Republican-led states. The states — Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio — said the U.S. Department of Education’s new debt cancellation effort, like its previous attempts, ‘is illegal.’

Hall said the states had made a convincing case that the department was overstepping its authority and blocked the Biden administration from moving forward with its attempt to cancel federal student loan debt.

In June of 2023, the Supreme Court ruled Biden’s first attempt to cancel around $400 billion in federal student loan debt unconstitutional.

Biden’s first attempt to forgive student loan debt was through an executive action. This latest time, his administration has pursued the regulatory process, a lengthier route that it hoped would make its relief package more immune to legal challenges.

Click here to read more.

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.

Credit, Credit Card Debt

Banks Prepare for Consumers to Stop Paying Off Their Credit Cards

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Big banks, like JPMorgan Chase, Bank of America, Wells Fargo and Citigroup are preparing to face more risk when it comes to their lending practices. With interest rates sitting at a two-decade high and inflation rates rising, these banks have raised their provisions for credit losses from the previous quarter.

These provisions are the money that financial institutions set aside to cover any potential losses from credit risk, including delinquent or bad debt and lending, like commercial real estate (CRE) loans.

JPMorgan built up $3.05 billion in provision for credit losses in the second quarter; Bank of America had $1.5 billion in stores; Citi’s allowance for credit losses totaled $21.8 billion at the quarter’s end, more than tripling its credit reserve built from the prior quarter; and Wells Fargo had provisions of $1.24 billion.

A recent analysis by the New York Fed found that Americans owe a collective $17.7 trillion on consumer loans, student loans and mortgages. Credit card balances totaled $1.02 trillion in the first quarter of the year.

Credit card issuance and, subsequently, delinquency rates are also on the rise.

With rents up more than 30% nationwide (between 2019 and 2023) and grocery costs rising 25% in that same period, renters who did not lock in low rates and are struggling with rental prices that have exceeded wage growth are seeing the most stress in their monthly budget.

A recent survey found that 48% of Americans depend on credit cards to cover essential living expenses. As consumer’s pre-pandemic savings dwindle down, the reliance on credit for necessities, such as gas and groceries, has become the norm for many.

Click here to read more.

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.

Bankruptcy Filings, Bankruptcy Trends

Bankruptcy Filings Increase by 16 Percent

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Bankruptcy filings rose 16 percent during the 12-month period ending March 31, 2024.

Factors contributing to the increase include higher interest rates, a reduction in consumer discretionary spending, higher housing costs, and a continued drawdown of excess savings.  The trend is expected to continue through 2024.

According to statistics released by the Administrative Office of the U.S. Courts, total filings rose to 467,774 new cases, compared with 403,273 cases reported during the year ending March 31, 2023.

Business filings increased 40.4 percent, from 14,467 in March 2023 to 20,316 in the newest report. Non-business filings rose 15.1 percent, from 388,806 in March 2023 to 447,458 in March 2024.

This year’s 12-month filing total for the quarter ending March 31 is nearly three-fifths of the total reported in March 2020, when the pandemic disrupted the U.S. economy. That year’s 12-month total was 764,282.

If you have 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.

SOURCE:

Bankruptcies Rise 16 Percent Over Previous Year | United States Courts (uscourts.gov)

Legal Awards

Miami Bankruptcy Attorney Timothy S. Kingcade Receives the Prestigious AVVO Clients’ Choice Award 2024 for the 11th Consecutive Year

Posted on by Admin

MIAMI – (January 29, 2024) Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy law firm of Kingcade Garcia McMaken has received the 2024 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 11 years in a row. In addition to the Clients’ Choice Award, he has earned 1,500 contributor points this year, and was presented with the Top Contributor Award on the site.

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

Made the process very easy.

Declaring bankruptcy was a straightforward yet daunting experience for me. The team at Mr. Kingcade’s office, including Mr. Kingcade himself, ensured a swift and seamless process. They dedicated time to thoroughly explain each step and addressed all my queries. My deepest gratitude goes to them for their significant support for my boys and me, especially for their enduring patience. I often called and delayed submitting the necessary documents, yet they were understanding. I wholeheartedly rate them with the highest accolades and strongly recommend their services. My sincere thanks once again.

-Bianca C.

Click here to read all of Miami Bankruptcy Attorney Timothy Kingcade’s client reviews on AVVO. Timothy has also earned a “Superb” 10.0 AVVO rating in the area of bankruptcy law, the highest rating an attorney can receive.  The rating is calculated using a mathematical model, which takes into consideration the years an attorney has practiced law, their professional achievements, discipline history and industry recognitions.  The rating is completely objective and unbiased.  Attorneys cannot pay or petition the site to have their rating changed, which makes AVVO one of the most respected lawyer rating services in the country and an invaluable legal resource for consumers.

Attorney Timothy S. Kingcade founded Kingcade Garcia McMaken, a prominent law firm that handles a substantial number of bankruptcy filings each year. Timothy, along with his dedicated team, provide comprehensive legal representation to clients throughout South Florida. Kingcade Garcia McMaken is committed to helping clients navigate the complexities of bankruptcy law. Their experienced attorneys guide individuals in understanding recent changes in bankruptcy regulations and the critical distinctions between filing under Chapter 7 or Chapter 13 bankruptcy. The firm also handles foreclosure cases alongside bankruptcy matters. Throughout South Florida, Kingcade Garcia McMaken has earned a solid reputation as a dependable and effective advocate for clients from diverse backgrounds. The firm’s commitment to providing personalized service is evident, with their attorneys taking the time to clearly explain the available options based on each client’s unique circumstances. The personalized approach ensures that clients receive the individual attention and care they deserve during the legal process.

###

Miami-based Kingcade Garcia McMaken, P.A. was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade Garcia McMaken P.A. specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish. For more information, visit https://www.miamibankruptcy.com/ or call (305) 285-9100.

Consumer News, Credit Card Debt

Credit Card and Car Loan Defaults Hit 10-Year High

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A number of consumers are defaulting on their credit cards and car loans to the point where the number of defaults reported are the highest seen since the financial crisis. With inflation not nearing an end any time soon and interest rates continuing to rise, the number of consumers defaulting is expected to grow.

This information comes from data provided by the credit agency, Equifax. The agency found that credit card delinquencies have hit 3.8 percent while car loan defaults have hit 3.6 percent. These figures are the highest ones seen in more than 10 years.