Tag: Chapter 13 Bankruptcy

Bankruptcy Law, Credit Card Debt, Debt Relief

Debt Consolidation vs. Bankruptcy: The Pros and Cons

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If someone is struggling with large amounts of debt, they may be weighing their options between debt consolidation and bankruptcy. There are positives and negatives to both- but ultimately, it depends on a person’s specific financial situation and life circumstance as to which choice is the right one for him or her.

What is Debt Consolidation?

Debt consolidation involves combining a person’s older debt from various sources into one new debt. This consolidation could be done by taking an unsecured personal loan to pay for the total amount owed or by transferring balances from multiple credit cards into one credit card.

Debt consolidation involves making payment to one lender, oftentimes at a lower interest rate.  These are two of its appealing factors.  However, we can tell you that debt consolidation rarely provides a long-term solution.  Our attorneys have helped many clients who were promised one result from a debt consolidation company only to receive far less, and stuck with the remaining debt.

Here are some of the disadvantages of debt consolidation.  

  • The debt cycle continues: While this option allows the consumer to consolidate multiple sources of debt, it only pays off that debt to combine it into one larger balance. Many consumers make the mistake of utilizing debt consolidation only to continue the cycle of debt.
  • Delaying the inevitable: Debt consolidation is oftentimes used as a ‘temporary’ fix, only delaying the inevitable. If a person is struggling to pay off various forms of debt, particularly if that debt is medical debt, credit card debt or personal loans- bankruptcy might be a better option, as the consumer would receive a complete discharge of these debts.

Choosing Bankruptcy as an Option.

Depending on an individual’s income and amount of debt, pursuing a Chapter 7 bankruptcy case may be the wisest option to discharge the debt or a Chapter 13 bankruptcy case to reorganize and pay down qualifying debt. One factor to keep in mind is debt consolidation is a big business. It can be successful for some people, but for others, it may not provide the long-term solution the consumer needs.  The attorneys at Kingcade Garcia McMaken have helped thousands of people restart, rebuilt and recover through bankruptcy.

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.

Related Resources:

https://studentloanhero.com/featured/debt-consolidation-vs-bankruptcy/

 

 

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

How Much Debt Is Required To Qualify for Chapter 7 Bankruptcy?

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One of the common misconceptions surrounding bankruptcy has to do with how much debt you must have to qualify for bankruptcy. Bankruptcy laws do not have a set minimum debt requirement for someone to be able to file for bankruptcy. Ultimately, it depends largely on the person’s financial circumstances, including the type of debt he or she has, as well as the person’s ability to pay back the debt, along with other factors.

When it comes to debt levels, how much debt you have is only one consideration made when determining whether you should proceed with a bankruptcy filing.  Unlike a Chapter 7 bankruptcy case, a Chapter 13 bankruptcy does have a maximum debt amount for debtors considering this form of bankruptcy. While there is no minimum debt amount required to file for bankruptcy, you cannot have more than $1,257,850 in secured debt or $419,275 in unsecured debt if you want to file for Chapter 13 bankruptcy (these amounts, which are adjusted periodically to account for inflation, are valid as of April 2019).

Filers are limited in how many times they can receive a bankruptcy discharge within a set amount of time. For example, if you filed for Chapter 7 bankruptcy and received a discharge, you must wait eight years before being able to file for Chapter 7 again. Therefore, if you do not have a significant amount of debt, you may want to consider whether you will anticipate needing to file in the future. Is it worth it to file for bankruptcy now on a smaller amount of debt and be barred from filing again, if needed? A bankruptcy attorney can talk through these options with you to help you make the best choice.

Bankruptcy looks at the different types of debts you carry and whether these debts can be discharged. Certain debts are considered non-dischargeable, including priority tax debts, student loans in most cases, child support, spousal support, and any obligations arising from a personal injury case caused by wrong actions, which can include drunk driving. For instance, if most of your debt is in student loans, a bankruptcy may not be your best option, while a person who carries mostly credit card and medical debt will find bankruptcy beneficial.

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. Florida has one of the most generous homestead exemptions in the country.

Even if you do not have a large amount of debt, if you are being sued or the matter is being referred to collections, it may be best to file for bankruptcy now instead of later. As soon as you file for bankruptcy, an automatic stay will be issued, putting a stop to all collection actions. If you wait too long, and a judgment is issued on the debt, resulting in wage garnishment, it may be too little too late. It is for this reason that it is important you meet with an experienced bankruptcy attorney to talk about your financial situation and whether bankruptcy is right for you.

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: AllLaw.com

Bankruptcy Law, Debt Relief

BEWARE: The Dangers of “Do It Yourself” Bankruptcy Kits

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If someone is considering filing for bankruptcy, odds are he or she is already in a tough financial situation. The thought of hiring an attorney to file their case can seem out of reach. It is for this reason many consumers turn to the Internet for alternative solutions. Oftentimes, these come in the form of debt consolidation, credit repair and credit consolidation.  All come with their own set of inherent risks and are oftentimes a temporary band-aid to a bigger problem.

“Do It Yourself” Bankruptcy kits are also flooding the Internet and promote a cheap alternative to eliminate your debt. One such software program, Upsolve, created by two Harvard graduates, promotes itself as a non-profit organization committed to helping low-income Americans get a fresh financial start through Chapter 7 bankruptcy.

Sounds great, right?  Well it is obvious the creators of the software (and others like it) overlooked one very important detail.  The importance of the bankruptcy Means Test. To qualify for Chapter 7 bankruptcy, a filer must first pass the bankruptcy means test. This test is basically a formula that takes into account various factors, such as income, living expenses and family size, to determine if the filer can afford to repay his or her debts through a Chapter 13 reorganization bankruptcy in lieu of Chapter 7 bankruptcy. It is not a one size fits all type of test and can be very subjective, depending on the filer’s life circumstances.

It is important that people are aware of the risks of using this type of “do it yourself” bankruptcy software and filing Bankruptcy Pro Se. Changes to bankruptcy law enacted in 2005 added some complicated requirements to the field of bankruptcy.  While most bankruptcy documents are form-based, this does not mean that they are easy to fill out.

When filing for bankruptcy, you will have to fill out much more than a standard bankruptcy petition.  You will be expected to submit dozens of supporting documentation, listing every single debt, all of your creditors and all of your assets.  If you make a mistake or miss something, costly delays can result.  Not to mention, you run the risk of losing valuable property and possessions and your case being completely thrown out altogether.

An experienced bankruptcy attorney can also discuss the pros and cons of proceeding with a Chapter 7 or Chapter 13 bankruptcy. The best piece of advice for these types of situations is “if it seems too good to be true, it likely is.”

While “do it yourself” projects may be a good idea around the house, let a professional handle your bankruptcy filing. Most bankruptcy attorneys offer free initial consultations to assess your financial situation to determine if bankruptcy is right for you. In addition, our firm offers affordable payment plans and Saturday appointments.

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.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Understanding the Bankruptcy Process in Florida

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Making the decision to file for bankruptcy is never an easy one. The steps taken during a bankruptcy case vary depending on the type of person or entity filing for bankruptcy. Once you decide to file for bankruptcy, it is important that you avoid mistakes that could impact your case or jeopardize your debts from being discharged.

Business filers are limited normally to a Chapter 11 bankruptcy, unless the business is a sole proprietorship. In this situation, the business may be able to proceed with a Chapter 7 or Chapter 13 bankruptcy. If the filer is an individual, depending on qualifications, he or she may be able to do either a Chapter 7 or Chapter 13 bankruptcy.

To qualify for a Chapter 7 bankruptcy case in Florida, the debtor needs to pass the means test. The means test takes into account your income, expenses and family size to determine whether you have enough disposable income to repay your debts. If the debtor does not pass the means test, the next option is a Chapter 13 bankruptcy, which is also known as a repayment or reorganization bankruptcy. In Chapter 13, the debtor works with the bankruptcy trustee on a three-to-five-year-long repayment plan whereby the debtor’s debts are negotiated down and consolidated into one single monthly payment. The debtor will normally get to keep all of his or her assets in this type of bankruptcy.

Many people fear that filing for bankruptcy will result in them losing everything they own. Do not believe this myth.  Many Chapter 7 cases are “no-asset” cases, which means that the debtor gives up no possessions due to the allotted bankruptcy exemptions.  Florida has one of the most generous homestead exemptions in the country. To use Florida’s exemptions, you must have resided in Florida for at least 730 days before filing your bankruptcy petition. To claim the full value of the homestead exemption in Florida, you must have owned the property for at least 1,215 days before the bankruptcy filing.

The state also allows the filer to exempt personal property up to $1,000, education savings and health savings, tax credits and refunds, and up to $1,000 in motor vehicle equity if the filers are married and filing jointly. Additionally, Florida allows for wages of the head of family to be exempt for up to $750 weekly or the greater of 75 percent or 30 times the minimum wage. Florida exemptions also cover different types of pensions and retirement funds, as well as annuities and insurance policies.

If a debtor passes the means test and is able to file a Chapter 7 bankruptcy case, the next question is whether the filer’s debt is dischargeable. For the most part, bankruptcy involves debt that is unsecured and not connected to collateral, such as medical bills or consumer credit card debt. Other debt, such as child support payments, tax debt and spousal support are not dischargeable. If the filer’s debt is mainly unsecured, Chapter 7 bankruptcy can be the better option for him or her to discharge the debt. If the filer’s debt is connected to another asset that the filer wishes to keep, a Chapter 13 filing may be the better option.

It helps to have the assistance of an experienced bankruptcy attorney to guide you through the process. A bankruptcy attorney can review the debtor’s situation, advise him or her on the best route to take with respect to bankruptcy and can ensure that all paperwork is completed correctly to avoid any unnecessary delays.

Please click here for more information.

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.

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

IRS Tax Lien? Chapter 13 Bankruptcy Can Help

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If you are facing an IRS tax lien, you may wonder what your options are to discharge the debt.  For many individuals, the most common method to get rid of a tax debt is through a Chapter 13 bankruptcy. Chapter 13 bankruptcy offers unique debt solutions not available in a Chapter 7 bankruptcy.  Through a Chapter 13 bankruptcy, clients are required to restructure their debt and create a repayment plan that is better designed to fit their ability to pay. The money will go towards the debts that matter the most, like your mortgage, car loan, support obligations, taxes, etc.  The remaining debts, such as your credit cards, medical bills and utility bills will only get a fraction of what is owed.

Chapter 13 bankruptcy allows you to:

  • keep all property;
  • avoid foreclosure and vehicle repossession;
  • pay the fair market value for a car, and;
  • stop lawsuits, wage garnishments, and bank levies.

Tax debt that is secured by an IRS tax lien, the personal liability on that debt may also be discharged, although the lien will be treated differently. It depends largely on the timing of the bankruptcy case, as well as the classification of the debt when it comes to whether the tax debt can be discharged.

What Is the Status of the Tax Debt?

The first question to ask yourself is what the timing or status of the tax debt is? Your IRS tax account transcripts will be able to provide this information, including the date of the filing of the tax return, the date the tax was assessed and whether any events have occurred that could have stopped time periods for the debt, as well as whether any liens have been recorded against the property the taxpayer owns. If the IRS has secured a lien on the taxpayer’s land, county land records should be able to pull this information up, as well.

IRS Lien as a Secured Debt

If the IRS has properly secured a tax lien on your property, this means the debt is a secured one for purposes of bankruptcy. The taxpayer’s personal tax debt may be able to be discharged, but the lien will remain on the property. What this means is if you are not able to pay off the entire amount owed on the lien, with interest, during the Chapter 13 bankruptcy case or repayment plan, the IRS retains the right to seize the property once bankruptcy is finalized to receive payment on the debt.

Can Tax Debt Be Unsecured?

Tax debt can also be unsecured and discharged, but for this to happen, certain requirements must be met, including:

  • The due date for the most recent tax return must be more than three years before the filing for bankruptcy;
  • The tax return must have been filed at least two years prior to the bankruptcy filing;
  • The tax claim must have been assessed at least 240 days before filing for bankruptcy;
  • The tax return must also be from a non-fraudulent filing; and
  • The taxpayer must not have engaged to willfully evade or defeat the tax debt.

If all these requirements are met and the debt is not otherwise secured by a lien, it will be classified as an unsecured debt. This classification is ideal for debtors who are looking to discharge the debt completely.

During a repayment plan through Chapter 13, these unsecured debts are normally paid at a pro rata distribution, which means they are paid after secured and priority debts are paid first. Anything that is not paid at the end of the repayment period is then discharged.

List All Tax Debts

When filing for bankruptcy, it is important you list all your tax debts, including tax authorities to whom you owe the debt. That authority has 180 days to then file a proof of claim where they indicate what the tax debt is it that you owe. If the taxing authority does not file an official proof of claim, the claim may be discharged without any payment. This situation is rare, but it occasionally does occur.

Incurring Debts Post-Filing

Life does not stop simply because you have filed for bankruptcy. If you do incur additional tax debt after filing for Chapter 13 bankruptcy, that debt may then be added to your case as a post-petition debt. That debt will then be lumped in and paid back as part of your Chapter 13 repayment plan.

Not all bankruptcies are the same. It is important to understand the difference between Chapter 7 and Chapter 13 bankruptcy when considering your options. It is equally important to have a Miami bankruptcy lawyer on your side that will take the time to help you find the best plan to work for you.

If you are facing an IRS tax lien, we can help. 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.

Related Resources:

https://www.irs.gov/businesses/small-businesses-self-employed/declaring-bankruptcy

https://www.alllaw.com/articles/nolo/bankruptcy/tax-debts-chapter-13-bankruptcy.html

https://www.thebankruptcysite.org/resources/bankruptcy/chapter-13/tax-debts-chapter-13-bankruptcy

 

 

 

Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

If you are facing foreclosure, Bankruptcy can help.

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Every month, there are a number of Americans who fall behind on their mortgage payments. Some homeowners are able to work out loan modifications with their lenders, but many are not. 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.

How a Chapter 7 Bankruptcy can Help:

Chapter 7 bankruptcy cancels all the debt secured by the home, including mortgages and home equity loans. This type of bankruptcy also goes a step further, thanks to a new law, Chapter 7 also forgives the homeowner for tax liability for losses the mortgage or home-improvement lender incurs because of the homeowner’s default.

How a Chapter 13 Bankruptcy can Help:

If you want to stay in your home and do whatever possible to get caught up on past-due mortgage payments, a Chapter 13 bankruptcy may be the best option. A Chapter 13 bankruptcy is also known as a reorganization bankruptcy. It allows you, as the bankruptcy filer, to work with the bankruptcy trustee to create a repayment plan to catch up on qualifying payments. Chapter 13 bankruptcy plans normally last anywhere between three to five years.

Florida’s Bankruptcy Exemptions

Florida has one of the most generous homestead exemptions in the country and allows homeowners to claim an unlimited value of their primary residence (if the property is not larger than half an acre in a municipality or 160 acres in a non-municipality). To use Florida’s exemptions, you must have resided in Florida for at least 730 days before filing your bankruptcy petition.

Although bankruptcy and foreclosure can be damaging to your credit, sometimes filing for bankruptcy can be the start of rebuilding your credit because it allows you to obtain a fresh start.  Foreclosure not only damages your credit, but you are left with the mortgage debt, which will likely result in creditors not considering you for future mortgages.  If you find yourself facing foreclosure and are concerned about your financial future, remember that filing for bankruptcy may help save your home.

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.

 

 

 

Bankruptcy Law, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

When Is the Right Time to File for Bankruptcy?

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Making the decision to file for bankruptcy is never an easy one.  For some, it can be difficult to get past some of the myths associated with filing for bankruptcy.  Sometimes by waiting, an individual facing a lot of debt can find himself or herself in an even worse situation. So, when is the right time to file for bankruptcy?

A recent study from the Consumer Bankruptcy Project and an article from the Notre Dame Law Review highlighted that the longer people wait to file bankruptcy, the more they end up struggling- not only financially, but in their personal lives as well.

The following factors are indicators that you should consider filing for bankruptcy, or at least sit down with an experienced bankruptcy attorney to discuss your options in more detail.

  • If your debt amount is more than 40 percent of your income. The higher the debt-to-income ratio a person has, the less likely it is he or she will earn enough money to ever pay back the debt;
  • If you are using debt, such as credit cards or unsecured personal loans, to pay for other debts;
  • If your debts include items that can be liquidated in bankruptcy, such as medical debt, credit cards or personal loans;
  • You are using payday loans to help cover necessities before your next paycheck. This is oftentimes a sign your expenses are exceeding your income;
  • If you are forgoing necessities such as healthcare, prescriptions, or food;
  • If the collection calls have reached a breaking point;
  • If you have been threatened with a lawsuit, are being sued by a creditor or your wages are being garnished.

If someone is on the fence as to whether to file for bankruptcy, he or she should schedule a free consultation with a bankruptcy attorney.

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.

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

The Dangers of Filing Bankruptcy Pro Se

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Filing for bankruptcy “pro se” means that an individual represents himself or herself in the bankruptcy process.  It is a risky decision and there are a number of pitfalls associated with the same.  Filing for bankruptcy has a complex set of rules, forms, statutes and judicial decisions.  Some people choose to represent themselves because they think they cannot afford to hire a bankruptcy attorney or they may think they have a simple case.  Whatever the reasoning, it is not a wise decision.

Here are some of the most common problems with filing for bankruptcy pro se (without an attorney):

Filing the wrong type of bankruptcy– Each type of bankruptcy is designed to solve specific problems.  Property is treated very differently when it comes to Chapter 7 and Chapter 13.  If you file the wrong Chapter bankruptcy, you run the risk of losing valuable property or end up not being able to discharge certain debts.

Losing property you should have been able to keep– Filing for personal bankruptcy allows you to claim “exemptions,” which can save your home, even your business.  If you are filing for Chapter 7 bankruptcy in Florida, you can use Florida bankruptcy exemptions to protect your property.  Florida has one of the most generous homestead exemptions in the country. To use Florida’s exemptions, you must have resided in Florida for at least 730 days before filing your bankruptcy petition. Here are the most common Florida bankruptcy exemptions.

Not properly filling out the bankruptcy forms– When filing for bankruptcy, you will have to fill out much more than a standard bankruptcy petition.  You will be expected to submit dozens of supporting documentation, listing every single debt, all of your creditors and all of your assets.  If you make a mistake or miss something, costly delays can result.  Not to mention, you run the risk of your case being completely dismissed and rejected all together.

Continued creditor harassment– When you hire an attorney to file your bankruptcy, creditors are required by law to only speak with your attorney and may no longer harass you about your debt.  If you choose to represent yourself in bankruptcy, the lender may try and lift the automatic stay, which is what protects your from continued creditor calls while your bankruptcy is ongoing.   A consumer has specific rights when a creditor violates the automatic stay.

Failing to take required education courses– In Chapter 7 and Chapter 13 bankruptcy filers must take approved credit counseling courses before filing for bankruptcy, and complete a financial management course before receiving their bankruptcy discharge. Many pro se filers get confused about these requirements and if they fail to file the proper certificate, their entire case can be dismissed.

Failure to understand the above concepts will be problematic if a creditor challenges the dischargeability of a debt or if the bankruptcy trustee alleges you have committed fraud—or anything else that could crop up during the case. When you find yourself on the receiving end of a complaint or motion, an attorney is essential to your success.

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.

Related Resources: https://www.nolo.com/legal-encyclopedia/pitfalls-filing-chapter-7-bankruptcy-without-attorney.html

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.

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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, 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.