Filing for bankruptcy has often been linked with a social stigma for many individuals, often causing those who are on the verge of filing, personal guilt, fear about the future, and morality struggles. But in fact, filing for bankruptcy can often be an economically wise choice for many Americans who have found themselves in financially overwhelming situations. A recent article in the Minneapolis Star-Tribune reported that over 60 percent of all Americans who file for bankruptcy have done so as a result of excessive medical bills. This comes as no surprise to anyone who has had difficulty qualifying for health insurance or was unable to afford their monthly premiums.
At my practice, I have seen a significant increase in the number of senior citizens filing for bankruptcy as a result of having to put their monthly prescriptions on credit cards. Many of these individuals are already on fixed financial budgets and Medicare/Medicaid applies only after a certain amount is covered out of pocket. The article also noted that the average Chapter 7 bankruptcy filer has an income of only $20,000 per year, which isn’t exactly a lot of money, and can easily disappear when one is faced with an unexpected financial burden. Job loss and divorce also play a huge role in bankruptcy filings. Along with medical costs, these two factors account for the vast majority (about 90 percent) of all bankruptcy filings.
The bottom line here is that bankruptcy exists to protect those who truly need its protections. Without it, the American economy would likely not flourish with as much innovation as it does today—thanks to the security that bankruptcy provides, entrepreneurs can take risks that they might not otherwise have.
Filing for bankruptcy is emotionally and mentally exhausting. The day you hire our firm, we will contact your creditors to stop the harassment. We offer free office consultations and will listen and evaluate your individual situation, taking immediate action to help get you back on your feet. If you need relief from creditors calling and are considering bankruptcy as an option contact our experienced and compassionate team of attorneys today for a free consultation at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.info/.
Tag: Bankruptcy
5 Ways to Rebuild your Credit after Bankruptcy
Filing for bankruptcy can be an unfortunate blow to your credit score. However, the good news is there are ways you can rebuild this, it’s just a matter of knowing how. Nothing in credit is “forever.” Adopting responsible credit habits such as paying your bills on time, using only a small portion of your available credit and not applying for too much credit at once can rebuild your credit gradually.
1.) Learn from your mistakes. If your problem was overspending, create a budget and stick to it. If medical bills caused you to file bankruptcy, seek a job with adequate health insurance coverage.
2.) Establish an emergency fund to help get you through a job loss or other financial setback. Try to save at least 25% of your paycheck and get a second job if necessary. This also may require you to live below your means for the first 6 months to save as much as possible.
3.) Open a checking or savings account, preferably through a large bank. 
4.) Attain a secured credit card. To quickly rebuild your credit you need to establish two types of credit: Installment (i.e. – auto loans, student loans or mortgages) and Revolving (i.e. – credit cards or home equity lines of credit). Light, regular use of a credit card will help rebuild your credit.
5.) Become familiar with your credit report. The most important thing is for you to attain positive reports from your credit card issuer through Experian, TransUnion and Equifax- ALL three. Check your credit reports every 4 to 6 months, making sure all information is accurate.
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. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.info/.
5 Things to NEVER do after Filing for Bankruptcy
1.) Do not pay your bills automatically from your checking account. Automatic bill pay can overdraft your account if you are not monitoring it carefully and can hurt your efforts of trying to rebuild your credit.
2.) Never use payday loans. The fees and interest rates are high and it is easy to get into trouble using them.
3.) Do not try to erase bankruptcy from your credit report, it is not possible and will only make matters worse.
4.) Do not enlist credit counseling agencies to clean up bad credit, no matter how legitimate they seem. Too often these companies are more likely to take advantage of the situation than help you.
5.) Do not immediately go out for a $150 dinner or buy a $200 pair of jeans. Curb your spending habits to avoid repeating the same mistakes twice.
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. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.info/.
Renter’s Rights Violated by Foreclosed Property Owners
Many renters, particularly in the Miami-Dade area are under an increasing amount of pressure due to foreclosures placed on the property they are renting. A recent federal law passed by President Obama, called Help Families Save Their Homes Act states that following the date of foreclosure, the renter has 90 days before vacating, if they are renting month-to-month, or until the end of their lease. However, many landlords are taking matters into their own hands and are disregarding the law, evicting tenants before the end of their lease.
A large part of the problem is lack of knowledge on the part of the owner and the tenant. New owners are taking advantage of the fact that lawmakers are not enforcing these laws. A lot of my clients are unaware that only an order by a judge can force them out of their home before their lease ends. In July of 2009, the Affordable Housing Task Force created a packet for individuals in the Miami-Dade area explaining their rights as a tenant and their landlord’s rights as a property owner. The packet is complete with scenarios and different routes you can take in addressing this legally if you have been violated of your rights. http://www.miamidade.gov/foreclosure/library/Know_Your_Rights_Handbook.pdf
If you have any questions on this topic or are facing foreclosure, please feel free to contact Bankruptcy and Foreclosure attorney, Timothy Kingcade at (305) 285-9100. He 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. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.info.
– Timothy Kingcade
