Tag: consumer bankruptcy

Bankruptcy Law, Consumer Bankruptcy

Should You Hire a Bankruptcy Attorney?

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Bankruptcy can be a stressful and complicated process, but it doesn’t have to be something you do on your own. While consumers can pursue a bankruptcy case on their own, or file bankruptcy pro se, without the assistance of an attorney, it is not always wise to do so. In fact, the benefits of hiring an attorney far outweigh the negatives in the long run.

According to the American Bankruptcy Institute, less than 50 percent of filers who pursued a Chapter 7 bankruptcy case without the assistance of an attorney had their debts discharged. Alternatively, 94 percent of filers represented by an attorney had their debts discharged.

Bankruptcy Law

What Debts Are Not Discharged in Bankruptcy?

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Bankruptcy offers people who are overwhelmed by debt an opportunity for a financial fresh start, either through liquidation (Chapter 7 bankruptcy) or reorganization (Chapter 13 bankruptcy). However, not all debts are eligible for a bankruptcy discharge. In our latest blog, we delve into what kind of debts are not alleviated when you file for bankruptcy, and what kind of debts can be more difficult to discharge.

Child Support and Alimony

Child support and alimony are debts that will stay with the filer even after a bankruptcy discharge is issued.  The reason for this classification as nondischargeable debts has to do with public policy. These debts involve obligations to support dependents, and the court views these as important, which is why they must be fulfilled to provide for the well-being of the filer’s dependents.

Credit Card Debt

Credit Card Study Reports These States Have the Highest Credit Card Debt Increases

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Credit card spending among American consumers has hit a high of $1.2 trillion with $116 billion of this balance added during 2023 alone. Some areas of the country are adding to this debt balance more than others with California, Texas, and Florida being at the top of the list.

WalletHub recently conducted a study of all 50 states, using data reported from TransUnion and the Federal Reserve, adjusted for inflation. They found that certain areas of the country have been contributing significantly to the current national credit card debt while others have been contributing significantly less.

Bankruptcy Law

Can a Debt that was Discharged in Bankruptcy Still Be Collected?

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One of the biggest benefits of bankruptcy is the discharge of debt that comes with the successful close of a case. These debts are erased and wiped clean in bankruptcy, and the filer can walk away with a fresh financial start. However, what happens if a debt collector continues to try and collect on a debt that has otherwise been discharged?

The good news is the consumer has several defenses to help him or her in the event this does occur. For one, the consumer can report the debt collector to the bankruptcy court for violation of the order to not collect on the discharged debt. If the collector is found to have violated the court’s order, they may pay assessed fines, as well as the consumer’s damages and attorney’s fees for having to defend the claim.

Bankruptcy Law, Consumer Bankruptcy

Important Steps to Take After Bankruptcy

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Bankruptcy provides a financial fresh start for consumers seeking its help. But what does life look like after bankruptcy?

According to a study by LendingTree, 65 percent of people who filed for bankruptcy, had a credit score of 640 or higher in two years.  The following tips can help you bounce back quickly after bankruptcy.

One recommendation is to keep all bankruptcy paperwork from the case. It is possible this information will be needed again in the future if the consumer wishes to apply for a mortgage, loan or other financing. This paperwork should include the petition and submitted schedules, proof of income, any correspondence from the court and bankruptcy trustee, and the final bankruptcy discharge.

Consumer Bankruptcy, Credit, Credit Score

How to Repair Credit History After Filing for Bankruptcy

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Once a consumer has filed for bankruptcy, he or she will almost certainly notice a drop in their credit score. This drop is to be expected, and while it does temporarily affect a person’s credit, it is by no means permanent. In fact, with good financial habits a consumer can rebuild his or her credit to better than it was before filing for bankruptcy.

Following the closure of the bankruptcy case, certain steps can be taken to bring that credit score back to where it once was or even higher.

Bankruptcy Law

What Assets are Exempt in Bankruptcy?

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Bankruptcy filers often fear losing everything they own when going through a Chapter 7 or Chapter 13 bankruptcy case. You may think that filing for bankruptcy means you have to give up your home, your car, and other important assets.  This is simply not true. The vast majority of Chapter 7 cases are no-asset cases, meaning the debtor gives up no possessions. This happens for two reasons. First, you can allot for basic assets, called exemptions that are necessary for day-to-day living. What you can exempt varies from state to state, so be sure to discuss exemptions with an experienced bankruptcy attorney. For possessions that are not part of the exemption, creditors likely don’t want them.  Under Chapter 13, you keep all of your assets, but the value of them figures into your repayment plan.

The U.S. Bankruptcy Code and Florida bankruptcy laws protect a great deal of a consumer’s property, if used appropriately.

Consumer Bankruptcy, Legal Awards

Miami Bankruptcy Attorney Timothy S. Kingcade Named a Florida Super Lawyer 10 Consecutive Years

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Super Lawyers 2023

MIAMI (June 27, 2023)– Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade Garcia McMaken has been selected to the 2023 Florida Super Lawyers list. This is the tenth consecutive year Kingcade has been selected to the Florida Super Lawyers list (2014-2023) in the practice area of consumer bankruptcy. The recognition is awarded to only the top 5% of attorneys in the state.

Attorney Kingcade practices exclusively in the field of bankruptcy law, handling Chapter 7 and Chapter 13 filings for the Southern District of Florida.  As an experienced CPA and proven bankruptcy attorney, Kingcade knows how to help his clients take full advantage of their rights under the bankruptcy laws to restart, rebuild and recover.

Bankruptcy Trends, Consumer Bankruptcy, Consumer Debt

Five Reasons People Go Bankrupt

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The number of bankruptcy filings across the U.S. are on the rise. Common reasons that people file for bankruptcy include loss of income, medical bills, a mortgage payment that is too high, spending beyond their means, or lending money to loved ones.

Many times, it is not just one simple cause, but rather a combination of factors that contribute to why someone has filed for bankruptcy. Here are some common reasons people file bankruptcy.

Bankruptcy Law, Bankruptcy Trends, Consumer Bankruptcy

Bankruptcy Filings on the Rise

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With federal pandemic aid programs ending, many Americans are finding themselves in difficult financial situations. Rising interest rates and high inflation make these situations all that much worse. As a result, bankruptcy courts are now seeing a spike in bankruptcy filings.

According to data from Epiq, the total number of bankruptcy filings increased in January 2023 by 19 percent, to 31,087 filings from one year ago. Additionally, the number of American consumers who filed for bankruptcy in Chapters 7, 11, and 13 increased by 20 percent from one year ago.