Chapter 7 Bankruptcy Archives - Page 14 of 28

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

New Study Reveals- 24 Percent of Americans have more Credit Card Debt than Savings

Posted on February 8, 2018by Admin

The new statistic comes from a 2017 Bankrate study, which also revealed only 52% of Americans have emergency savings that exceed their outstanding credit card balances. Meanwhile, the average U.S. household owes $7,136 in credit card debt and an estimated 57% have less than $1,000 in the bank.

There are ways to break the cycle of debt and boost savings simultaneously. It starts by creating a budget. Without a budget, you will have no idea where your money is going each month and where you can cut corners. Downsizing your living space can free up several hundred dollars a month. But keep in mind, cutting back on leisure purchases, eating out and clothing can do the same.

Taking on a side-job to earn extra income is another way to pay down debt and boost savings. Of the 44 million Americans who currently have a second job for supplemental income, more than one-third bring home upwards of $500 a month as a result.

Getting out of the debt cycle begins with creating a realistic budget and getting a grasp on your current financial situation. There are specific ways you can deal with high interest credit card debt. If you are struggling with insurmountable debt, whether it is credit card debt, medical debt or student loan debt, consider sitting down with an experienced Miami bankruptcy attorney for a free consultation who can assess your financial situation in more detail and let you know if bankruptcy is right for you.

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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

What happens to my 401(k) if I file for bankruptcy?

Posted on January 30, 2018by Admin

Some people think that filing for bankruptcy means they will lose everything. That is one of the biggest bankruptcy myths out there. To the contrary, you will likely get to keep a lot of your possessions including homes, cars and other assets. A vast majority of Chapter 7 cases are “no-asset” cases, which means the debtor is not required to give up any of their possessions.

Another asset protected in bankruptcy is individual retirement accounts. In fact, social security, 401(k)’s and pensions worth up to $1.245 million are all exempt from creditors during bankruptcy. This means that retirement income and savings are out of reach and protected under federal law.

We have filed bankruptcy petitions for clients with more in their retirement accounts than on their credit card statement. A Chapter 7 bankruptcy allows you to hold onto all of your retirement savings and keep every penny of your 401(k).

However, this is only the case if the money remains in your 401(k) retirement account. Removing funds from the 401(k) or any retirement account before filing for bankruptcy turns the funds from a protected asset to an unprotected asset. It is important to speak with an attorney, especially if you have recently lost your job and have considered pulling from your retirement savings to help pay for day-to-day living expenses.

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:

http://time.com/money/4367416/bankruptcy-myths/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

5 Steps for Buying a Home after Bankruptcy

Posted on January 29, 2018by Admin

Purchasing a home after bankruptcy may seem out of reach. However, all hope is not lost. If you recently filed for bankruptcy and wish to purchase a home in the future, there are certain steps you can take to speed up the process.

Step One: Keep an Eye on your Finances

If someone has just completed bankruptcy, he or she is going to soon discover that the free credit report is a lifesaver. It is an easy way to keep a close eye on your finances, ensuring that all debts have been discharged and that no additional liabilities are out there. After all, no one wants to be surprised at the last minute, especially right before trying to purchase a home. Make it a regular practice to get a credit report reviewed annually to ensure that progress is being made and that your credit score is going up rather than down. In addition, prepare a budget and keep to that limit to ensure that all monthly expenses are paid in a timely manner.

Step Two: Grow a Savings Account

One recommendation financial advisors almost always make is to pay yourself first, meaning that when you create a budget, enough money is taken out of every paycheck and put into savings in the event it is needed for an emergency at a later date or for larger purchases down the road. This can be done through an automatic savings account method meaning money immediately is transferred from one account to another automatically before you have a chance to access it.

Step Three: Develop a Plan

Come into the situation with a plan in mind. Survey what the home prices are for the area in which you wish to buy. See what home values are and what these will be for monthly payments. Calculate what you can afford, based on your budget. Schedule an inspection to ensure that you are not purchasing a home that is going to be a money pit requiring multiple renovations at a later date.

Step Four: Organize the Documents Needed

Odds are if the person wanting to purchase the home has recently filed for bankruptcy, he or she knows what it takes to get all of the required financial documents put together. It can take a lot of time, so why not begin the process now if you anticipate purchasing a home soon? Organize all financial records, including pay information, paystubs or taxes. Make sure that tax records are easily accessible, as well as bank, credit card or loan statements, legal documents, such as the bankruptcy documents, and insurance documents.

Step Five: Shop Around

It is important that you research all of the options out there and shop around for the best one available. The first way to go about this is to figure out what type of loan is needed, whether it be an Federal Housing Administration (FHA) loan or one offered through a private bank. You will need to discuss these options with the lender and find the option that fits best, and it may not always be the easiest or first option. It does help to go into the meeting prepared, knowing what types of loans are out there before making any decisions.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Coordinating the Timing of Your Bankruptcy and Tax Refund

Posted on January 25, 2018by Admin

If you are considering filing for bankruptcy, timing can be everything. The last thing you want to do is file for bankruptcy, receive a large tax refund and have to hand it over to the bankruptcy trustee. If you are anticipating a refund, it is important to time your Chapter 7 bankruptcy filing just right.

In a Chapter 7 bankruptcy, all assets are considered to be part of the bankruptcy estate which is controlled by the bankruptcy trustee. If the asset is tied to what is known as an exemption, the asset can be protected. Otherwise, the asset can be liquidated and used to pay off the qualifying creditors. A tax refund is one of those assets that is not tied to a bankruptcy exemption, which means that this sum of money can be used by the trustee to pay back creditors before the remaining debt is liquidated.

Any unspent tax refund the year before bankruptcy will go to the bankruptcy estate because this money is considered to be unnecessarily paid to the IRS, just like cash in a bank account. If the refund is received during the year of Chapter 7 bankruptcy, the amount of tax refund that is based on the income earned before filing for bankruptcy will go to the bankruptcy estate. If the refund is based on income earned after the date of filing, the debtor can keep this money. Any refund received for income earned the year after bankruptcy is safe.

What this means is the timing of when you file bankruptcy is key. A bankruptcy attorney can discuss these options with you. If someone is anticipating filing, that person can adjust his or her withholding on paychecks to the minimal amount so that the debtor pays only the tax that is owed. He or she can also spend the refund on what are considered to be necessary expenses. These expenses can include mortgage payments, food, utilities, medical care, education or car payments. Necessary expenses do not include purchases for luxury items, repayment of a credit card or paying back a friend or family member.

It is possible to keep your tax refund as part of an exemption. In every bankruptcy case, each debtor is allowed to exempt a certain amount of property, depending on the state. It is possible that a tax refund can be included in this exemption. A bankruptcy attorney can discuss this possibility with you, addressing the pros and cons of utilizing this option.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

The Best Ways to Deal with Out-of-Pocket Medical Expenses

Posted on January 19, 2018by Admin

Americans spent on average $1,054 in out-of-pocket medical expenses, according to the most recent numbers provided by Peterson-Kaiser. The findings also revealed that 27 million Americans are paying their medical bills with credit cards.

What is interesting about the findings is the people who are falling into medical debt are not the uninsured, it is the people with health insurance. Medical debt affects those making less than $10,000 a year to those making in excess of $100,000 a year. Accidents, illness, even pregnancy can generate unexpected medical expenses. Some patients are faced with tens of thousands of dollars in medical debt. For others, a few thousand dollars can prove to be unaffordable when money is already tight.

Here are some ways to deal with unexpected medical debt:

Set up a payment plan. Avoid putting medical expenses on a credit card. More than half of adults over the age of 50 put medical bills on their credit cards, according to a AARP. Request an affordable payment plan from your medical provider, first. See if the hospital or medical provider will accept monthly payments, free of interest.
Scrutinize the bill. Medical bills can be complicated and sometimes include errors. In fact, a recent study found that 49 percent of Medicare medical bills contain errors or unnecessary charges. When you receive a bill for a procedure, hospitalization or nursing care, take time to review it for accuracy. If you received only a total due, request an itemized list of services provided. Request a copy of benefits from your insurance company and confirm they have covered everything promised in your plan.
Open a health savings account (HSA). These accounts are typically only allowed with high-deductible healthcare plans. Putting money into a HSA will give you a current tax benefit. The money will earn interest tax free either as an investment or as a simple savings account. You can then spend it on deductibles and additional medical expenses tax free.

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Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney who can advise you of all of your options. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney 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

The Most Common Florida Bankruptcy Exemptions

Posted on January 12, 2018by Admin

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. 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.

Personal Property Exemptions:

Personal property up to $1,000. Personal property can include such items as furniture, art, and electronics. (Art. 10 Sec. 4, Fl. Constitution)
Education savings, health savings, and hurricane savings. (Fla. Stat. Ann. § 222.22)
Prescribed health aids. (Fla. Stat. Ann. § 222.25)
Prepaid medical savings account and health savings account deposits (Fla. Stat. Ann. § 222.22(2))
Tax credits and refunds (Fla. Stat. Ann. § 222.25(3))
Funeral costs per Florida’s Preneed Funeral Contract Consumer Protection Trust Fund (Fla. Stat. Ann. § 497.456)
Particular partnership property (Fla. Stat. Ann. §§ 620.153, 620.8307)

Florida Motor Vehicle Exemption:

Bankruptcy filers can exempt up to $1,000 in motor vehicle equity, more if you are married and filing jointly.

Exemptions for Wages in Florida:

Wages of a head of the family are entirely exempt up to $750 per week, or the greater of 75% or 30 times the federal minimum wage.

Pensions and retirement funds are exempt in Florida:

ERISA qualified retirement plans and pensions (including 401(k)’s, 403(b)’s, profit sharing and money purchase plans, SEP and SIMPLE IRA’s, and other defined benefit plans) are fully exempt. (11 U.S.C. Section 522; Fla. Stat. Ann. § 222.21.)
IRA’s and Roth IRA’s are exempt up to $1,171,650. (11 U.S.C. Section 522(b)(3)(C)(n).)
Public employee retirement benefits. (Fla. Stat. Ann. §§ 121.131, 121.055(6)(e).)
State and County officers and employees retirement system benefits. (Fla. Stat. Ann. § 122.15.)
Firefighter pensions. (Fla. Stat. Ann. § 175.241.)
Municipal police pensions. (Fla. Stat. Ann. § 185.25.)
Teachers’ retirement benefits. (Fla. Stat. Ann. § 238.15.)

Alimony and Child Support Exemptions:

Alimony and child support, to the extent reasonably necessary for the support of the debtor (the bankruptcy filer) and any dependent of the Debtor, are exempt. (Fla. Stat. Ann. § 222.201.)

Exemptions for Insurance Policies and Annuities:

The proceeds of a life insurance policy payable to a specific beneficiary are fully exempt. (Fla. Stat. Ann. § 222.13.)
The cash surrender value of a life insurance policy and the proceeds of an annuity contract are fully exempt. However, annuity proceeds resulting from lottery winnings are not exempt. (Fla. Stat. Ann. § 222.14.)
Disability income benefits are exempt. (Fla. Stat. Ann. § 222.18.)
Fraternal benefit society benefits are exempt. (Fla. Stat. Ann. § 632.619.)

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If you have any questions on the topic of bankruptcy exemptions 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 website at www.miamibankruptcy.com.

Credit, Student Loans, Timothy Kingcade Posts

How To File For Bankruptcy with Student Loan Debt

Posted on December 26, 2017by Admin

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, Timothy Kingcade Posts

Beware of these Holiday Debt Traps

Posted on December 22, 2017by Admin

The holidays are officially here and if you have some last minute shopping to do this weekend, make sure and avoid these common holiday debt traps. Last year shoppers took on an average of $1,003 worth of debt, up from $986 in 2015. The merriment and excitement of holiday shopping can be replaced with anxiety and fear of debt in the New Year.

Keeping up with the Joneses. The pressure to purchase the latest and greatest holiday gifts ranging from expensive electronics to brand new cars all contribute to holiday debt. From the tree, to elaborate light displays and decorations, if not limited to a budget can all leave you with debt in the New Year.

Hot holiday toy crazes. On average, parents plan to spend $495 per child, according holiday shopping data from Rubicon Project. When the ‘must-have’ toy items start to run out, prices increase. Plan accordingly, and budget throughout the year for holiday spending.

Store credit cards. Avoid store credit cards at all costs. The 10% off the day of purchase can have big consequences if a single payment is missed on one of these cards, such as 29.99 percent APR.

Holiday parties. Hosting hordes of holiday visitors and entertaining guests can cost hundreds of dollars, not only adding to your grocery bill, but your utilities in the month of December.

Indulgent spending. The problem is that many consumers do not plan for holiday spending. Sometimes, they mentally plan to go into debt. We advise planning ahead for the next season, start checking items off the list in February or in the summer months when fewer people are buying and prices are lower.

Related Resources:

http://www.wbir.com/article/money/magnify-money/watch-out-for-these-holiday-debt-traps/507-493900752

Bankruptcy Law, Credit, Debt Relief

Steps to Take if a Creditor Has Seized Your Bank Account

Posted on December 21, 2017by Admin

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.

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.
Contest the Lawsuit. You may be successful in contesting the lawsuit if you were not properly served.
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

Posted on December 20, 2017by Admin

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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