Chapter 7 Bankruptcy Archives - Page 16 of 28

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Filing for Bankruptcy: Important Things You Need to Know

Posted on October 31, 2017by Admin

For any individual or company contemplating filing for bankruptcy, the decision should not be taken lightly. It is important to understand what to expect once you initiate the process. Here are some important things you need to know before filing:

Types of bankruptcy. Chapter 7 and Chapter 13 are the two basic options individuals have when filing for bankruptcy. There are key differences between the two and choosing the right one is critical for the success of your bankruptcy case. Chapter 7 bankruptcy is a liquidation form of bankruptcy that can discharge all or most of your debts. Chapter 13 bankruptcy is a form of reorganization that involves creating a payment plan to pay back creditors over a period of time. This process can take between three and five years. Businesses can file for Chapter 7 bankruptcy, but at the end of the process the business will cease to exist. The most popular type of business bankruptcy is Chapter 11, which allows businesses to reorganize their debts and continue operating.

Bankruptcy is not free. Some people are surprised to hear this. As opposed to a straightforward Chapter 7 bankruptcy, the cost of filing Chapter 13 bankruptcy is typically more because it is stretched out over the course of several years. You cannot go wrong scheduling an appointment with an experienced bankruptcy attorney to discuss the best path for your financial future. Many offer FREE consultations and Saturday appointments to best assess your financial situation and provide guidance moving forward.

Bankruptcy does not eliminate all of your debts. Bankruptcy will discharge your unsecured debts, such as medical bills, payday loans, outstanding utility bills, and credit card debt, but it will not eliminate the following:

Student loans
Alimony
Child support
Taxes
Real estate liens

You will also have to attend something called a meeting of creditors before completion of the bankruptcy process. Creditors have one final opportunity to dispute the discharge of any debts that you owe.

When in doubt, meet with a professional. How do you know if filing for bankruptcy is right for you? It can be difficult to make this decision without consulting with an experienced bankruptcy attorney, first. Receiving this professional guidance can help ensure you will take the right financial steps, complete all of the proper forms and avoid doing anything that could disqualify you from getting your debts discharged.

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.forbes.com/sites/larrymyler/2017/10/03/filing-for-bankruptcy-3-most-important-things-you-need-to-know/#81d8d257fe66

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

Student Loan Debt is Taking a Mental Toll on Young People

Posted on October 30, 2017by Admin

Over the last decade, student loan debt has jumped to an all time high of $1.4 trillion. The average outstanding balance for college students is $34,144. According to a recent survey, 80 percent of working professionals with student loan debt said it is a source of “significant” or “very significant” stress.

Many millennials said student loans have impacted their ability to go on vacation, buy a car, pay rent or afford necessities like food and clothing. Then there are the long term effects, such as buying a home, getting married or having children. A number of young adults have to put these major milestones on hold.

For a graduate with a bachelor’s degree, the typical student loan payment is approximately $265 a month, but some students have $400, $800 or even $1,200 a month in student loan payments.

According to a separate report, more than 60 percent of those surveyed said they fear their student loan debt worries are spiraling out of control, even more reported suffering from headaches or lack of sleep from the stress.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken, 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Foreclosures

Life After Bankruptcy: Getting a Credit Card Again

Posted on October 25, 2017by Admin

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:

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.
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.
Monitor your credit score. If you do get a secured card, do not spend more than 30 percent of the credit limit and pay off the balance every month. If you follow these two rules, your credit score should improve in time.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Key Differences Between Chapter 7 and Chapter 13 Bankruptcy

Posted on October 20, 2017by Admin

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What is Considered Harassment by a Debt Collector?

Posted on October 19, 2017by Admin

According to the Fair Debt Collection Practices Act (FDCPA), debt collectors cannot harass, oppress or abuse consumers or anyone else they contact. Harassment by a debt collector can come in different forms.

Here are some examples of harassment:

Repetitious phone calls that are intended to annoy, abuse or harass you or any person answering the phone
The use of obscene or profane language
Threats or violence or harm
Publishing lists of people who refuse to pay their debts
Calling you without telling you who they are
Threats of arrest
Calling you before 8 a.m. and after 9 p.m.

If you have been harassed by a debt collector, you can sue for violations of the FDCPA. If you sue and win, the debt collector must pay your attorney’s fees and may also have to pay damages.

Debt collectors are also prohibited from using false, deceptive or misleading practices including misrepresentations about the debt.

Here are some examples of misrepresentations of debt:

The amount owed
That the person is an attorney if they are not
False threats to have you arrested
Threats to do things that cannot legally be done
Threats to do things that the debt collector has no intention of doing

Related Resources:

https://www.consumerfinance.gov/ask-cfpb/what-is-harassment-by-a-debt-collector-en-336/

http://timothykingcade.com/?p=6622

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

Steps to Take if You Are Facing a Medical Debt Lawsuit

Posted on October 17, 2017by Admin

If you have been sued by a debt collector or medical service provider, you know how stressful it can be. According to the National Consumer Law Center, half of the collection items on consumers’ credit reports are from medical debt. You may be tempted to ignore a medical debt lawsuit and hope it goes away. But this is one of the worst things you can do, because the debt collector will automatically win by default.

Here are some steps you can take if you are facing a medical debt lawsuit:

Confirm the debt. You cannot properly address the lawsuit if you do not understand where the debt came from. Look back at all past medical bills and find the date of service and itemized list of services rendered. Mistakes can happen, so make sure and confirm all details are accurate.
Seek advice. Consumers sometimes make the mistake of representing themselves in these type cases. Hiring an attorney to advise you is a wise move and does not have to cost a lot. Many lawyers provide a free consultation before taking you on as client. During this consultation, they will advise you on the best course of action for your particular situation.
Prepare for court. You must first prepare an answer to the lawsuit, including any defenses and countersuits. This will involve filing paperwork, mailing paperwork and showing up on the initial court date.
Understand wage garnishment. If you are found liable for the debt or you fail to answer the lawsuit, the judge will rule against you and the court may issue an order allowing the debt collector to garnish your wages. By federal law, they cannot leave you with less than 75% of your income or $217.50 per week — whichever is greater. Medical debt collectors are able to garnish your wages, but they cannot garnish Social Security benefits, disability insurance payments, unemployment insurance payments, VA benefits, pension distributions, child support payments, or public assistance benefits.
Watch out for balance billing. This happens when your hospital or medical provider bills you instead of (or in addition to) Medicaid or Medicare. This is a forbidden practice and you are not responsible for any amounts due when this happens. You can prove if you were a victim of balance billing by requesting an “Explanation of Benefits” from your insurer that states the amount they covered and the amount you still owe.
Stop lawsuits before they happen. Make sure the hospital did not make an error that resulted in a larger bill. Have your bill examined by a medical bill advocate, who is familiar with medical billing and coding and request they review the charges. You can start your search with the National Association of Healthcare Advocacy Consultants. Debt collectors, hospitals, and other medical providers do not want to take you to court. It costs them money, too and the odds of getting the full amount owed is slim. They are almost always willing to work with you before filing a lawsuit. Try to negotiate and apply for financial assistance. You can also set up zero-interest payment plans directly with your healthcare provider. Most importantly, keep the lines of communication open.
Consider bankruptcy as an option. At any point in the process, you can choose to file for bankruptcy, which can completely discharge your medical debt. There are two types of bankruptcy: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is often considered the most straightforward kind of bankruptcy and allows consumers to gain a financial fresh start. This requires you sell off your assets to discharge your debts. Despite what many people believe, it does not automatically mean you will lose your home, your car or your retirement savings. If you file for Chapter 13, you do not have to sell off any assets, but the debt will not disappear. Instead, you will be put on a 3-5 year payment plan in order to settle.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. 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, 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

http://www.wftv.com/consumer/clark-howard/clark-your-life/before-you-respond-to-a-medical-debt-lawsuit-take-these-10-steps/616709645

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Nearly Half of U.S. Carries Credit Card Debt for At least Two Years

Posted on October 6, 2017by Admin

A new survey by CreditCards.com reveals that 43% of adults have carried credit card debt for more than two years, and 23% have been carrying debt for five years or longer.

Those most likely to carry credit card debt were older Baby Boomers (age 63-71) at 63%, while the Silent Generation (ages 72+) was at 57%. What was more surprising was that out of the 2,000 some adults surveyed, those with more education were less likely to pay their credit card bill in full every month. Only one in five cardholders with a high school degree or less carry a credit card balance, but one in three college graduates admit carrying one.

Everyday spending, such as grocery shopping and utilities, were the leading contributors to their credit card debt- not luxury purchases. Other reasons included medical bills, home repairs, retail purchases, and vacation expenses.

When it comes to income, Americans earning less are actually more likely to pay off their balances. Only 24% of cardholders who earn less than $50,000 a year carry a credit card balance, compared to 38% of cardholders with an annual salary of more than $50,000.

Florida is in the top 5 states with the highest credit card debt burden, according to CreditCards.com. Here are some tips on how to tackle long-term credit card debt.

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, 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

https://www.creditcards.com/credit-card-news/card-debt-survey.php

https://www.forbes.com/sites/reneemorad/2017/09/30/why-43-percent-of-adults-have-carried-credit-card-debt-for-more-than-two-years/#4a75fdb5e263

http://www.foxbusiness.com/features/2017/09/28/nearly-half-americans-carry-credit-card-debt-for-at-least-2-years.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

New Rule makes it Harder for Medical Debt to Impact your Credit Score

Posted on October 5, 2017by Admin

Consumers are getting some good news when it comes to their credit scores. A new set of rules have taken effect this week that will make it more difficult for medical debt to damage your credit score, it will also not hurt your chances of qualifying for new credit.

The three credit reporting agencies now have to wait 180 days before putting an unpaid medical bill onto your credit report. Going back and forth with your insurance company over an outstanding medical bill? Unpaid medical bills that later get paid by your insurance must be removed from your credit report as well.

This new rule builds additional time between patients and insurance companies to resolve such matters. Up until this point, there was no grace period and medical debt could appear on your credit report as soon as it was reported as an unpaid debt. Medical offices tend to do this on their own schedule, sometimes as early as 30 days, while insurers may take longer to fully process claims.

The new waiting period carves out time for patients, their doctors, and insurers to work through legitimate grievances, and makes it harder for unpaid bills to hurt your credit score. It also allows much-needed time for those suffering from illness and injury to sort out who owes what.

Credit bureaus have taken steps to remove medical bill collections that are less than 180 days old. One out of five credit reports contain overdue medical debt, according to a 2014 report by the Consumer Financial Protection Bureau. That means 43 million Americans have unpaid medical debt negatively affecting their credit.

If you are on a fixed income or struggling financially, letting the medical provider know you are not able to pay will give them a reason to offer you a discount or be placed on a reasonable payment plan. If you cannot pay, tell them why you cannot pay. Some states require hospitals provide free or reduced care to consumers within certain income limits. Florida is one of these states.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Debt Settlement vs. Filing for Bankruptcy: The Pros and Cons

Posted on October 3, 2017by Admin

If you are having trouble affording your monthly expenses and are in over your head in debt, you may consider reaching out to a debt settlement company to alleviate some of the burden. The commercials are appealing enough, touting promises of getting your debt negotiated with the lender for a fraction of what you owe.

Here’s how a debt settlement works and some of the risks involved:

The process starts by explaining your financial situation to the debt settlement company. You provide the names of the creditors and the amount you owe. The debt settlement company then gives you an estimate for reducing your debt along with a new lower monthly payment. As advised by the settlement company, you stop paying your creditors and instead send payments directly to the company.

The debt settlement company puts your monthly payments into a savings account. Once the account has grown to a certain amount, the debt settlement company calls your creditors and begins negotiating a settlement. If the creditor agrees to a settlement amount, the settlement company pays the creditor and assesses a fee for the settlement.

Creditors typically do not settle debts until they are a few months past due, which means if you have not already done so you must stop paying on your accounts and allow them to become past due. During this time, late payments will be reported to credit bureaus, your credit score will drop and you will begin receiving collection calls. Late payments will remain on your credit reports for up to seven years and during this time you will have difficulty qualifying for new credit.

Debt settlement companies typically tackle the smallest debts, first which means your larger debts will continue to accumulate interest and additional fees. Add all that interest you are accumulating to the fees and you do not really end up saving much. If you are unable to meet the terms of the debt settlement, ignore the debt or try and repay the debt and ultimately fail you run the risk of being sued.

Many consumers who have researched debt settlement options should also consider Chapter 7 bankruptcy, which erases credit card balances, medical bills, personal loans and other unsecured debts in three to four months. Filing for bankruptcy will impact your credit score more than a debt settlement, but it legally erases the debts and prevents creditors from filing a lawsuit against you.

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, 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

https://www.thebalance.com/the-dangers-of-debt-settlement-960622

http://www.latimes.com/business/la-fi-montalk-20171001-story.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How Can I Verify Whether or Not a Debt Collector is Legitimate?

Posted on September 12, 2017by Admin

Debt collection scams are becoming more difficult for Americans to detect. However, the Consumer Financial Protection Bureau (CFPB) offers consumers a few ways to recognize a real debt collector from a scammer.

According to the CFPB, the first thing you should ask the caller is for their name, company name, street address, telephone number and professional licensing number. The next thing you should do is tell the caller is that you refuse to discuss any debt until you receive a “validation notice” in writing, which debt collectors are required to provide. An important thing to keep in mind is do not give out any personal or financial information to the caller until you have confirmed it is a legitimate debt collector.

Below are a few warning signs that could indicate a debt collection scam:

The caller threatens you with criminal charges. If the caller is a legitimate debt collector, they should not claim they will have you arrested.
The caller refuses to give you information about your debt. You have the right to ask a debt collector about the debt.
The caller is trying to collect a debt that you do not recognize. If you do not recognize the debt, this is a red flag, the caller might be involved in a scam.
The caller refuses to give you a mailing address or phone number for the company.
The caller asks you for sensitive personal financial information. Do not provide your financial or personal information unless you are certain the caller is legitimate.

Click here to read more on this story.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.