Tag: Chapter 7

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Miami bankruptcy attorney Timothy S. Kingcade Obtains Successful Order for Chapter 7 Bankruptcy Client

Posted on by Admin

Court Finds in Favor of Kingcade Garcia McMaken Client- Plaintiff’s Objections to Defendant’s Bankruptcy Discharge Denied

Bankruptcy Attorney Timothy S. Kingcade, founding partner of Miami-based Kingcade Garcia McMaken successfully obtained an Order for his client in a Chapter 7 case (In re: Mirta M. Ramos Case No. 16-27127-BKC-RBR) determining Objection to Discharge. Florida Bankruptcy Judge, Raymond B. Ray signed an order in our client’s favor on July 24, 2018.

“We are extremely pleased with this win for our client.  The Court found that the amount of litigation demonstrated the plaintiff’s personal animosity towards our client, especially after he went as far as to request our client’s bankruptcy discharge be revoked,” Kingcade said.

The matter came before the court for trial on April 20, 2018, upon the Plaintiff’s (Anderson Triggs) Complaint seeking revocation of the Defendant’s bankruptcy discharge. The Plaintiff and Defendant are the parents of a minor child with autism and have multiple other pending family law cases with the Court. In addition, the Plaintiff filed a lawsuit against our client in the State Court alleging civil conspiracy, defamation (libel and slander), tortious interference with a business relationship, intentional infliction of emotional distress and invasion of privacy.

The Defendant was the sole witness at trial and a first-time bankruptcy filer. The Court found that she provided credible testimony with honest answers and displayed no intention to deceive the Court.  In the end, the Court found in favor of our client and the Plaintiff’s attempts to have her bankruptcy discharge revoked were denied.

###

Miami-based Kingcade Garcia McMaken was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade Garcia McMaken specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

For more information visit, https://www.miamibankruptcy.com/.

Bankruptcy Law, Student Loans, Timothy Kingcade Posts

Judges Would Not Consider Forgiving Student Loan Debt until Now

Posted on by Admin

Bankruptcy judges have traditionally refused to forgive student loans as part of the bankruptcy process, no matter how severe the debt may be for the borrower. However, this mindset is slowly beginning to change as some judges are beginning to give some relief to borrowers who are drowning in student loan debt.

According to the Wall Street Journal, more than 50 current and former bankruptcy judges have been reported as being frustrated with the lack of relief they see borrowers receiving when it comes to student loan debt. These individuals come into bankruptcy with six-figure student loan balances but are oftentimes turned away due to lack of resources or the legal ability to help these borrowers.

Once such bankruptcy judge is U.S. Bankruptcy Court Judge John Waites from South Carolina who has expressed the belief that if the law is not going to change, it is up to the courts to offer that help.

It is reported that approximately 45 million individuals carry some form of student loan debt in the United States. The amount of this debt has jumped to $1.4 trillion, and the majority of this debt is backed by the federal government. Student loan debt has surpassed credit cards as the largest source of consumer debt, following mortgages. However, the problem is that most other forms of debt can be liquidated in bankruptcy. For years, the legal standard has made student loan debt essentially untouchable.

The current Presidential Administration is reviewing whether to fight the requests to cancel student loan debt through bankruptcy less aggressively than they have in the past.  However, until that happens, bankruptcy lawyers are noticing that judges are being more lenient when these requests are made in court.

The latest review was done in 2017 and involved judges’ ruling on student loan debt 16 times. Out of these cases, 12 of them ended with the judges preserving the debt with only three canceling. In one case, the borrower was granted partial relief.

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. There are ways to file for bankruptcy with student loan 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

Millennials Struggle to Keep up Financially with Previous Generations

Posted on by Admin

The financial crisis may have hit the ’80s generation the hardest. Americans who were born in the 1980s, otherwise known as “millennials,” are finding themselves struggling financially more than generations before them. Following the Great Recession, which began in 2007, individuals born in the ‘80s are at wealth levels which are 34 percent below where they would be had the financial crisis not occurred. Most millennials have to save longer to buy a home, struggle with student loan debt and rising home prices.

The generation known as “millennials” is categorized as being born between 1981 and 1996. According to a report issued by the Federal Reserve Bank of St. Louis, people in this generation are at risk of being termed “the lost generation.”

“Not only is their wealth shortfall in 2016 very large in percentage terms, but the typical 1980s family actually lost ground in relative terms between 2010 and 2016, a period of rapidly rising asset values that buoyed the wealth of all older cohorts,” the report says.

This can be attributed to a number of factors. One major setback this generation faced was entering the workforce as the financial crisis was beginning. In fact, this generation seems to have been hit the hardest for this very reason. Entering the workforce at the time of a recession put these young workers at an immediate disadvantage for earning an income, as well as saving money towards big purchases or retirement.

Once the recession passed and the economy began to improve, these individuals faced difficulty in recovering from the hard hit.

Millennials have been on the receiving end of a 67 percent increase in wages since 1970, but this increase in pay has not kept up with the rising costs of living, including rent, home prices, college tuition, costs for childcare, healthcare, and entertainment.

This generation also has to deal with large amounts of credit card debt, on top of six figure student loan debt. After graduating from college at a time when jobs are not as prevalent, these individuals have had to resort to credit to pay for these expenses.

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 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://www.businessinsider.com/1980s-millennials-wealth-the-great-recession-2018-5

https://blogs.wsj.com/economics/2018/05/21/crisis-hits-1980s-generation/

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

Changes on the Horizon for Bankruptcy and Student Loan Debt

Posted on by Admin

In the past it has been nearly impossible to discharge student loans in bankruptcy. This issue has kept many individuals from filing for bankruptcy as they have seen it as not helping relieve them of the biggest debt they carry: student loan debt. That all could change after the U.S. Department of Education announced this year that it will be reviewing its policies and potentially changing the way student loan debt is treated in bankruptcy.

It is estimated that student loan borrowers in the U.S. owe a total of $1.5 trillion in student loan debt. According to the Brookings Institute, around 40 percent of these individuals will end up defaulting on their loans by the year 2023.

The current test for showing that student loan debt should be discharged bankruptcy is the undue hardship test. However, this standard is very subjective, and does not leave a definitive standard across the board of what amounts to undue hardship. Even Florida bankruptcy courts vary in their determination on what defines undue hardship.

The most commonly-used test is the “Brunner Test,” which requires the borrower to show that he or she cannot maintain a basic standard of living while making student loan payments. The borrower has to show that this undue hardship would last throughout the entire repayment period in a Chapter 13 bankruptcy, and he or she will need to show that efforts have been made to try to repay federal loans.

The Department of Education is looking for ways to clearly define the undue hardship standard. According to Clare McCann, a deputy director of higher education policy at New America, it is likely the Department will broaden the definition.

The Chair of the Federal Reserve, Jerome Powell, recently testified before Congress that the student debt crisis has the possibility of seriously hurting the economy if changes are not made.

A date has not been given for when the determination will happen, but it is one step closer to a change that will make a difference in the current student loan debt crisis in the country.

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. There are ways to file for bankruptcy with student loan 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

Steps to Take if You Want to Buy a Home after Bankruptcy

Posted on by Admin

After filing for bankruptcy, you are going to want to begin rebuilding your credit as soon as possible.  You can start by checking your FREE annual credit report on AnnualCreditReport.com to get reports from the three major credit bureaus: Equifax, TransUnion and Experian.

Your report may show late and missed payments on credit cards, mortgages and credit accounts you may have opened or closed.  Bankruptcy provides you with a clean slate, which means you have a second chance to pay your bills on-time and in full.

If your credit score is in the low 600s, your credit is still too low for most decent loans with good terms, but you can work quickly to get it back up in the mid-700s.

After bankruptcy, when accessing and utilizing credit again, keep your credit card balances relatively low compared to the card’s limit.  For example, less than 30% is typically advised while using just 10% of the available credit is even better.

Once your credit score improves, you can then find the right mortgage lender, real estate agent, and the right attorney to move forward with the purchase of your new home.

Still not convinced?  A testimonial from one of our clients in regards to their credit score after filing for bankruptcy.

My credit score said on all three reports 775, I couldn’t believe that I had such a great score before 10 years. Tim for me was the best move I have made for my situation. I have no regrets, I am glad the past is the past. – Bill T.

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.washingtonpost.com/news/where-we-live/wp/2018/03/05/financial-steps-to-take-if-you-want-to-buy-a-home-after-a-bankruptcy/?utm_term=.83d7fe172cc1

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

How to Know If You Qualify for Chapter 7 Bankruptcy

Posted on by Admin

The bankruptcy Means Test determines whether your income is low enough to file for Chapter 7 bankruptcy. The test is designed to keep high-income earners from filing Chapter 7 bankruptcy and limited to consumers who truly need it and cannot afford to repay their debts.

If the Means Test proves your income is too high to file Chapter 7 bankruptcy, you can file Chapter 13 bankruptcy and repay a portion of your debts (typically over a three-to five-year period).  Even with the requirements to pass the Means Test, it does not mean you have to be penniless to file Chapter 7.  In fact, you can earn significant monthly income and still qualify for Chapter 7- depending on the expenses you have.

The Means Test determines if you qualify for Chapter 7 by deducting specific monthly expenses from your “current monthly income” (i.e. – your average income over the six calendar months before you file for bankruptcy) to arrive at your monthly “disposable income.” The more disposable income you have, the more likely you will be required to repay your creditors.

The first step of the Means Test is to determine whether your income is more or less than the median income in your state.  Median income levels vary by state and household size.  Also, each county and metropolitan region has different allowed amounts for categories of expenses, such as necessities, housing, and transportation.  You can enter your zip code into the Means Test Calculator to determine the income requirements for your specific location.

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/chapter-7-bankruptcy-means-test-eligibility-29907.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How long does bankruptcy stay on my credit report?

Posted on by Admin

A common question you might have after filing for bankruptcy is how long will it remain on my credit report?  When you file for bankruptcy, it is considered “public record” and is maintained by the court where the case was filed.

Under the federal Fair Credit Reporting Act, bankruptcies can be reported for 10 years from the filing date.  The three major credit reporting agencies will remove Chapter 13 bankruptcies seven years from the date the case was filed.  This type of bankruptcy involves paying some or all of the debt back over time.

Chapter 7 is a more straightforward bankruptcy and eliminates almost all unsecured debts, including credit card debt and medical bills allowing consumers to gain a fresh start financially. Chapter 7 bankruptcy can remain on a consumer’s credit report for up to 10 years.

However, there are ways to speed up the removal process.  Removing a bankruptcy requires filing a separate dispute with each of the three major credit bureaus. This dispute can either be over inaccurate information in your credit report or an inquiry to the credit bureau about how your bankruptcy was verified.  This process is lengthy, but it can be worth it.

While you are waiting for your bankruptcy to be removed from your credit report, make an effort to rebuild and improve your credit.  It is a bankruptcy myth that you cannot rebuild your credit after filing for bankruptcy.  Make sure you have accurate and positive credit information moving forward.

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 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.

Related Resources:

http://blog.credit.com/2013/04/when-can-i-get-a-bankruptcy-off-my-credit-report-65750/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Beware of these Holiday Debt Traps

Posted on by 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.

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

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Reasons to File Bankruptcy before Divorce

Posted on by Admin

Financial stress caused by the way couples view and spend money can ultimately lead to divorce.  If you are facing both of these issues, does it make sense to file for bankruptcy or divorce, first?  The bottom line: Divorce will most likely not make the financial pressure go away, oftentimes it compounds it.

Here are some reasons why you should file bankruptcy before divorce.

You will save money filing jointly. If you are still married, you can file your bankruptcy case together.  This will allow you to pay one court filing fee, one set of documents and scheduling, one meeting of the creditors and one attorney fee.

Filing for bankruptcy together will free you of any liability on joint debt.  If you file for bankruptcy before divorce you will be off the hook for paying joint debt acquired during the marriage.  However, if you file for divorce first and receive a divorce settlement, you may still be responsible for some (or all) of the joint debt.  Essentially, you may have to cover your spouse’s liability.

Filing jointly doubles the exemption amounts.  When you file for bankruptcy, you are allowed to keep some property in order to regain a fresh start.  These exemption amounts are usually limited or capped.  However, if you file a bankruptcy case with your spouse, in most states you and your spouse will each be able to claim a full set of exemptions.

It saves you time. If one spouse files for bankruptcy in the middle of the divorce case, the bankruptcy judge may take jurisdiction of any property settlements, which can cause delays.  Filing a joint bankruptcy will eliminate most (if not all) unsecured debt, such as credit cards, medical bills and personal loans for both spouses, allowing the divorce to go much smoother when negotiating debt and property division.

It reduces stress.  Eliminating debt and reducing financial pressures can in turn reduce stress in the marriage.  If the marriage ultimately cannot be saved, it can help the divorce proceed more amicably.

Keep in mind, if your spouse files for bankruptcy before or during the divorce case and you do not, you may ultimately be responsible for all of the marital debt. This is because your spouse used the bankruptcy case to eliminate his or her liability on your joint debts.

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.thebalance.com/six-reasons-to-file-bankruptcy-before-the-divorce-316343

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Subprime Warning Issued by the Fed As Household Debt Hits New All Time High

Posted on by Admin

U.S. household debt has grown $605 billion in the past 12 months, with $116 billion, accumulating in the latest quarter, according to the Federal Reserve Bank of New York.  Debt is ballooning on mortgages, student loans and auto loans.  Credit card debt has increased 3.1 percent in the latest quarter.

Total U.S. household debt was $12.96 trillion in the three months to September, up $116 billion from the prior three months. Debt levels were $605 billion higher than during the third quarter of 2016.

Auto loans grew by $23 billion and credit card balances increased by $24 billion, while student loans saw a $13 billion increase. Credit card balances increased by $24 billion. The combined credit card limit rose for the 19th consecutive quarter, with a 1.5% increase.

Some financial experts are saying this build-up is reminiscent to the financial crisis of 2007 and 2008.  Federal data shows an increase in credit cards and auto loans moving into delinquency.

Aggregate household debt increased for the 13th consecutive quarter, rising by $116 billion (0.9%) to a new all time high.  As of September 30, 2017, total household indebtedness was $12.96 trillion, an increase of $605 billion from a year ago and equivalent to 66% of US GDP, versus a high of around 87% in early 2009.

If you are struggling with debt, know your rights and what debt collectors can and cannot do. The Fair Debt Collections Practices Act (FDCPA) limits the tactics that debt collectors can take to collect on a debt.   

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 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://www.zerohedge.com/news/2017-11-14/fed-issues-subprime-warning-household-debt-hits-new-all-time-high