Chapter 7 Bankruptcy Archives - Page 18 of 28

The Cost of Bankruptcy and How to Pay for It

Posted on August 2, 2017by Admin

You are struggling financially and need to file for bankruptcy. A common question is how I can afford the cost of hiring an attorney when I can’t even meet my bills? Many people think they cannot afford to file for bankruptcy. However, bankruptcy laws allow you to eliminate some debts and lower payments on others. This now “freed-up” money, oftentimes hundreds of dollars a month, can be used to cover the cost of your bankruptcy attorney and filing fees.

The U.S. Federal Bankruptcy Laws were designed to give you a fresh start and a second chance when it comes to your finances.

When it comes to the cost of bankruptcy, you will face two expenses: the court filing fees to handle your case and the attorney fees for your bankruptcy lawyer who files your case and represents you in court.

There are several types of bankruptcies to choose from, but the most common consumer bankruptcies are Chapter 7- where most of your debts are forgiven, and Chapter 13- where your debt is reorganized and restructured into a payment plan.

Filing fees remain the same nationwide, but your attorney fees can vary greatly, depending on location, the complexities of your case and your attorney.

	Chapter 7	Chapter 13
Filing fees	$335	$310
Attorney fees*	$500 – $3,500	$1,500 – $6,000
Total	$835 – $3,835	$1,810 – $6,310

Here are some tips on how to pay for your bankruptcy:

Work out a payment plan with your attorney. Payment plans can vary. Some lawyers allow you to spread the payments over six months, others over three months. Most will want payment in full before filing your case. The simple reason: Chapter 7 bankruptcy eliminates most of your debts, so you would not be legally obligated to pay your attorney any outstanding fees after filing.
Raise the money. Try to earn some additional income. Consider having a garage sale, selling items on consignment, on Ebay or Craigslist (i.e. – think old electronics, hand bags, etc.) or taking on a part-time job to earn some fast cash.

Consumers who owe debt know the fear associated with going to the mailbox, answering the phone when it is an unknown number. This fear is eliminated once hiring an experienced bankruptcy attorney. Debt collectors must stop contacting you immediately and communicate only with your attorney- thanks to the protections in the Fair Debt Collection Practices Act (FDCPA).

If you have any questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, 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.

Related Resources:

https://www.nerdwallet.com/blog/finance/bankruptcy-costs-pay/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Changes to Healthcare could lead to More Bankruptcies

Posted on August 1, 2017by Admin

Thanks to the Affordable Care Act, personal bankruptcy filings dropped about 50 percent, from 1,536,799 in 2010 to 770,846 in 2016. Studies have shown medical debt as the leading cause of personal bankruptcy filings. As legislators and the executive branch renew their efforts to repeal and replace the Affordable Care Act, there is concern about what that will do to coverage and premiums.

A study conducted by the American Medical Association in 2007 found that 67% of those who filed for bankruptcy cited medical debt as a major factor. For middle class homeowners, the issue of medical coverage was even more influential, with half of all foreclosures caused in part by medical debt. The uncertainty about the fate of healthcare coverage for many Americans may cause the number of bankruptcies and foreclosures to increase in the coming years.

The current healthcare bill that is being debated may result in 22 million to 32 million Americans losing a portion of their current healthcare benefits.

Click here to read more on this story.

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, 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.

Related Resources:

https://www.consumerreports.org/personal-bankruptcy/how-the-aca-drove-down-personal-bankruptcy/

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

Student loan debt has grown 250% in the last 10 years

Posted on July 31, 2017by Admin

Student loan debt has skyrocketed, as much as 250 percent across the U.S., according to a new report. This puts total student loan debt at $1.4 trillion. Between 2004 and 2014, the U.S. saw an almost 90 percent increase in the number of student loan borrowers, and a nearly 80 percent increase in average balance size. The average amount of debt per borrower is now $26,700. Value Penguin, the consumer spending site that published the report ranked the states where the average amount of student debt is the highest.

New Hampshire

Number of graduates with debt: 76 percent
Average debt: $36,101

Pennsylvania

Number of graduates with debt: 71 percent
Average debt: $34,798

Connecticut

Number of graduates with debt: 64 percent
Average debt: $34,773

Delaware

Number of graduates with debt: 65 percent
Average debt: $33,849

Rhode Island

Number of graduates with debt: 64 percent
Average debt: $32,920

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, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Bankruptcy & Divorce: Which comes first?

Posted on July 14, 2017by Admin

Going through a divorce can be stressful enough, but when you pile on financial issues the effects can be overwhelming. Your financial situation can be greatly affected by a divorce, as divorce is commonly cited as the leading cause of bankruptcy. Here are some important facts you should know when it comes to bankruptcy and divorce.

Do not file for divorce and bankruptcy at the same time. This is for the sake of simplicity. People typically file bankruptcy before divorce for several reasons. Once you file for bankruptcy an “automatic stay” is put in place. This is a court order that prohibits creditors from contacting you and protects your property and assets. This hold is in effect throughout the bankruptcy process.
Chapter 7 bankruptcy is ideal for a quick divorce. One of the benefits of filing for Chapter 7 is the timeline. A Chapter 7 bankruptcy typically eliminates all dischargeable debts within three to six months, allowing you to file for divorce relatively soon after. In comparison, a Chapter 13 bankruptcy establishes a three- to five-year payment plan for you to pay off your debt, which can drag your divorce out longer.
Conditions of Bankruptcy. Abiding by the rules listed in the Bankruptcy Code is critical for having your debts discharged. A Chapter 7 discharge may be denied if the debtor:

Fails to provide requested tax documents;
Hides property for the purpose of defrauding creditors;
Destroys financial books or records;
Commits perjury in connection to the bankruptcy case;
Violates a court order;
Fails to complete the mandatory credit counseling course.

Bankruptcy and divorce are chances for you to make a fresh start for you and your family. However, both of these processes can be extremely complex and detailed in nature. You should consult with an experienced bankruptcy attorney and have a strong divorce attorney on your side who can guide you through the process and obtain the most successful outcome for 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, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

When Filing for Bankruptcy- Timing Matters

Posted on July 7, 2017by Admin

Timing the filing of your bankruptcy is important to obtain the best possible outcome in your case. For example, waiting to file after creditors have already taken action against you can result in unnecessary legal costs and potential loss of property. Filing shortly after transferring money or property to someone else, can run you the risk of being accused of bankruptcy fraud.

Here are a few points to remember when timing the filing of your bankruptcy:

Filing for bankruptcy will stop litigation. It is best to file before a creditor receives a judgment against you. This will save you the cost of legal fees and giving the creditor more rights to your property.

Prevents wage garnishment. A creditor who has obtained a judgment against you can force your employer to deduct money from your check, even require your bank to withdraw the funds directly from your account. You can save this money by discharging the debt before such actions can be taken.

Puts an end to creditor harassment & collection calls. As soon as you file for bankruptcy, creditors must stop contacting you and deal only with your attorney. Creditors who continue to contact you are in violation of the U.S. Bankruptcy Code’s Automatic Stay and face sanctions by the Court.

Allows you to stay in your home. Filing for bankruptcy will stop the foreclosure process and allow you additional time to stay in your home.

Divorce & Bankruptcy: If you are in the middle of a divorce, it is best to file a joint bankruptcy with your spouse to discharge all debt before the marriage ends. However, if your income is too high to qualify as a married couple you will need to decide whether the best option is to file individually while you are still married or wait until after the divorce. When it comes to timing your bankruptcy filing while going through a divorce, you cannot go wrong setting up an appointment with an experienced bankruptcy attorney to discuss the best path for your financial future. Many offer free consultations and Saturday appointments.

If you 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.

Related Resources:

http://bankruptcy.lawyers.com/bankruptcy-basics/time-matters-when-filing-chapter-7-bankruptcy.html

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

OJ Simpson Defense Attorney F. Lee Bailey Files Again for Bankruptcy

Posted on July 5, 2017by Admin

F. Lee Bailey, OJ Simpson’s former defense attorney has filed for bankruptcy once again; this time to create a payment plan to resolve a federal tax debt owed.

Bailey recently filed for Chapter 13 bankruptcy, which allows a person who has a steady income to create a payment plan with creditors. His latest bankruptcy filing will allow Bailey to discharge certain debts he could not eliminate in his Chapter 7 personal bankruptcy filing last year.

Bailey resolved his personal IRS debt through the earlier bankruptcy filing, but the federal government retained liens on some of his property that could not be discharged in the prior case.

His attorney said he estimates the IRS liens on Bailey’s property are worth about $100,000, but the government could dispute that as federal officials previously estimated their secured claims against Bailey at around $600,000.

Bailey owed the IRS approximately $5 million, in total. Bailey’s filing in the Chapter 13 case states that he has assets worth between $100,000 and $500,000 and debts between $1 million and $10 million.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How a debt avalanche strategy can eliminate your debt

Posted on June 28, 2017by Admin

One of the smartest and fastest ways to eliminate your debt is a strategy known as a debt avalanche. To start, you must first take inventory of your debt- meaning you need to write down all outstanding debts- including credit card balances, student loan payments, car payments, etc. and determine the interest rates you are paying on each of the balances.

The debt avalanche strategy begins by ranking each of your debts by interest rate, from highest to lowest. No matter the size of the loan balance, it will always be less expensive (and faster) to pay off your debts in order from highest to lowest interest rates.

For example, your interest rate on a credit card is probably going to run much higher than the interest rate on your vehicle. Tackle those debts with the highest interest rates, first and save as much money on interest payments as possible.

Finally, if the debt inventory process reveals an overwhelming or confusing amount of debt, consider meeting with a financial expert who can discuss your options in greater detail. Sometimes a simple debt consolidation can reduce your payments by thousands, just by reducing the interest amount. If you fear you might be at risk of personal bankruptcy, it is best to meet with a professional as soon as possible to know exactly where you stand. Many bankruptcy attorneys offer free consultations and have appointments available on the weekend.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The Surprising Debts Holding Many Americans Back

Posted on June 15, 2017by Admin

According to a recent survey, student loans and credit card bills are not the only debt holding many Americans back. Credit Sesame, a site consumers can use to check their credit score, analyzed more than 5,000 user accounts and found they had significant amounts of debt from medical expenses, utility bills and cell phone charges.

Consumers whose medical debt had gone into collections had an average of three accounts, with a combined total of $3,670 in collections. The average balance for customers who had cell phone bills in collections totaled $887 per account. Customers whose utility bills were in collections owe $368 on average per account, the study concluded.

Not surprisingly, having those bills in collections hurt consumers’ credit scores. The average credit score for someone whose medical debt is in collections is 552. Those who have delinquent cell phone accounts have average scores of 550. And those who have outstanding utility bills have a score of 542.

Lenders see applicants with lower credit scores as riskier than applicants with higher credit scores. They oftentimes make you pay for this risk by charging a higher interest rate. A poor credit score can affect your ability to rent an apartment, as landlords often check an applicant’s credit score before allowing you to sign a lease.

Utility companies may require you pay a deposit before setting up your service. Even certain jobs and employers can discriminate against applicants who have a less than perfect credit report. Certain jobs, particularly those in upper management or the finance industry, require a good credit history. Note: employers check your credit report and not your credit score. They are not necessarily checking for bad credit, but for items that could affect your job performance.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

“Disappearing” Bankruptcies Could Prompt new wave of Home Buying

Posted on June 6, 2017by Admin

Approximately 6 million Americans will have their bankruptcies disappear from their credit reports over the next five years. Chapter 7 personal bankruptcies peaked in 2010 during the housing market crash then decreased over the next few years before leveling off in late 2015 – 2016.

The number of Chapter 7 bankruptcies, the most common type of bankruptcy, which involves no repayment plan and in most cases is a complete discharge of debt, increased to nearly 1.14 million, in 2010.

Now seven years later, millions of Americans are seeing these bankruptcies fall off their credit reports, improving their credit scores and allowing them to re-enter the housing market and purchase a home.

Credit scores reached a record high this spring, which we discussed in a recent blog. This will create even more buyers in an already competitive market. With home prices continuing to increase as inventory levels drop, experts do not expect it to let up anytime soon.

Hispanic homeownership could also see an increase in the next few years as the President and his administration seek to “dismantle” the Dodd-Frank Wall Street Reform Act, which could give lenders more freedom to originate loans outside traditional qualified mortgages.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, 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, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Credit Scores Hit Record High as Economy Continues to Improve

Posted on June 2, 2017by Admin

U.S. consumers’ credit scores reached a record high this spring thanks to falling unemployment and continued economic growth. An added bonus: The passage of time since the recession and housing market crash has helped many household balance sheets. Bankruptcies and foreclosures are now falling off Americans’ credit reports.

More than six million U.S. adults will have personal bankruptcies disappear over the next five years, according to a recent Barclays PLC report. Wiping away these events helps boost consumers’ credit scores. Lenders rely on both credit reports and scores when qualifying consumers for loans and determining interest rates.

The higher scores lead to more available credit and more activity in terms of loan approvals and credit card approvals. The average credit score nationwide was 700 in April, according to data from Fair Isaac Corp. Average credit scores have not been that high since 2005.

The share of consumers deemed to be the most risky, with credit scores below 600, hit a new low of roughly 40 million, or 20% of U.S. adults who have FICO scores. That is a decline from 20.5% in October and a peak of 25.5% in 2010.

Consumers who filed in 2007 for Chapter 7 bankruptcy protection, the most common type of bankruptcy, in which certain debts are discharged and creditors can get paid back from sales of consumers’ assets are starting to see those events fall off their credit reports. Some 500,000 Chapter 7 bankruptcy cases were filed in 2007, a figure that ballooned to nearly 1.1 million in 2010, according to the Administrative Office of the U.S. Courts.

As credit scores rise, banks and other lenders are likely to make credit more widely available to consumers, and at a lower cost. Consumers who have a bankruptcy filing removed from their credit report experience a near $1,500 increase in spending limits and $800 more in credit-card debt within three years, according to the Federal Reserve Bank of New York.

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