Tag: debt

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Why Waiting to File Bankruptcy Can Hurt You

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The decision to file for bankruptcy is never an easy one to make. There are a number of myths surrounding filing for bankruptcy, which can oftentimes lead people to wait.  It often can seem like an admission of personal or financial failure, and for this reason, many filers will hold off on filing for bankruptcy for years, allowing their financial issues to only worsen. In fact, the longer people wait to file for bankruptcy, the more likely they will end up struggling, according to a law review study recently published. By the time the individual files for bankruptcy, their personal life and well-being, as well as their financial situation will be damaged to the point where getting a fresh start can be extremely difficult.

Waiting Can Be Draining

The period of time before an individual files for bankruptcy is often referred to as a “financial sweatbox.” The filers are already under an immense amount of stress, are facing debt collector phone calls and lawsuits and are going without basic necessities to avoid the inevitable: having to file for bankruptcy. This “sweat it out” period can end up lasting for years before the person finally comes to the decision that bankruptcy is best for him or her. A recent Notre Dame Law Review piece titled “Life in the Sweatbox” focused on this period of time, showing how waiting it out can be more damaging than making the leap to file for bankruptcy sooner rather than later.

The study used data from the Consumer Bankruptcy Project, which is a long-term academic research project that focus on people who end up filing for bankruptcy, reviewing the reasons why they file, as well as the consequences. The data includes information from approximately 3,200 bankruptcy cases between the years 2013 and 2016. “Life in the Sweatbox” focuses on 910 of the 3,200 filers.

Of those surveyed, over 66 percent of them were determined to be “long strugglers,” meaning they had been in the sweatbox for over two years. Approximately one-third of them waited five years or more to file for bankruptcy. They reviewed statistics from 2007 which showed that the number of people who were “long strugglers” doubled in numbers.

The problem is the longer the people waited, the worse their financial situation became. Those who waited had half the median assets compared to other debtors who did not wait or did not wait as long. In addition, the median debt-to-income ratio of these long strugglers was over 40 percent higher than other debtors. Approximately 50 percent of the long-term strugglers were facing debt collection lawsuits while only 35 percent of the others were facing them.

It was discussed that the stigma that exists around filing is what keeps people from making that decision to file for bankruptcy. However, bankruptcy laws provide the ability for debtors to get a fresh start. Prolonging the decision to file only allows for assets to be depleted making it even more difficult for the person to get a true fresh start.

When to File for Bankruptcy

If a person’s debts are more than 40 percent of his or her income, it is recommended that he or she reaches out for financial guidance. Also, if the person is using debt to pay for basic necessities or other debts, this is another red flag that perhaps that person is in over his or her head.

A bankruptcy attorney can review what debts are crippling the individual. If they are unsecured consumer debts, including credit cards, personal loans or medical bills, these can all be wiped out in bankruptcy.  Lastly, if the individual is forgoing basic necessities such as food or medical care, it is highly recommended that he or she discuss options with a consumer bankruptcy attorney.

Click here to read more on this story.

If you have 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.

 

 

 

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Are Lawsuit Judgments Discharged in Bankruptcy?

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Some filers enter into bankruptcy with collection cases already at judgment level, with the hope that these judgments along with their other debts can be discharged through bankruptcy. However, getting a judgment discharged is not always so simple, and it depends on a number of factors, including:

  • What kind of case the judgment was for; and
  • Whether the creditor who has the judgment over the debtor has already placed a lien on the individual’s property.

Bankruptcy Discharge for Most Judgments

Generally, a judgment from a lawsuit involves unpaid debts. If the bankruptcy filer has not paid his or her medical bills, personal loans or credit cards, the next step for the unpaid creditor is usually filing a lawsuit against the borrower. If a judgment is obtained, the creditor can garnish the borrower’s wages or even go after a personal asset and have a lien placed on it to satisfy the outstanding debt.

Filing for bankruptcy activates what is known as the automatic stay, giving the filer reprieve from further collection calls and attempts.  It can also put a stop to wage garnishment and can wipe out the borrower’s obligation to pay back certain debts, even in a judgment. Once a bankruptcy case is filed, if a collections lawsuit is pending, the automatic stay in the bankruptcy will put a stop to the lawsuit. Even if a judgment has been entered against the borrower, the final discharge in the bankruptcy case will get rid of that judgment for most purposes, except in certain cases. If the judgment is for a debt that is considered nondischargeable, the bankruptcy will not get rid of the debt.

Nondischargeable Judgments

Some debt is non-dischargeable in bankruptcy. If the creditor has gotten a judgment against the bankruptcy filer for a debt obligation that includes one of the following debts, a bankruptcy discharge will not get rid of that judgment. These categories include:

  • Judgments connected to domestic support obligations, including child support or spousal support/alimony;
  • Judgments for criminal penalties, fines and/or restitution;
  • Most tax judgments;
  • Most student loan obligation judgments;
  • Judgments for any debts that were acquired under false pretenses or by fraud;
  • Judgments for injuries that were willful and malicious caused by the debtor; and
  • Judgments for any injury or death that was caused by the debtor’s drunk driving.

If you have 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.alllaw.com/articles/nolo/bankruptcy/lawsuit-judgments-discharged.html

 

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Floridians Hold Some of the Highest Amounts of Credit Card Debt in the Nation

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Credit card debt is a problem for many Americans, but according to a recent study, it seems to be a more significant problem in Florida.  In fact, the Sunshine State has been ranked among the top three states where residents hold the highest amount of credit card debt.

Florida residents carry a total balance of $59.2 billion in credit card debt, as of the end of 2017. The State of California tops the list with its residents holding $106.8 billion in credit card debt, followed by Texas at $67.3 billion.

Interestingly enough, California has traditionally been known to be a state where individuals need to earn the most income to be considered “wealthy” by most standards. Considering the high level of credit card debt residents in California carry, this leads one to conclude that this “income” involves resorting to the use of credit cards, instead of solely relying on earnings.

According to the report, the states with the highest amounts of credit card debt in 2017 were:

  1. California $106.8 billion
  2. Texas $67.3 billion
  3. Florida 59.2 billion
  4. New York $58.1 billion
  5. Pennsylvania $33.2 billion
  6. Illinois $32.2 billion
  7. New Jersey $29.6 billion
  8. Ohio $26.7 billion
  9. Virginia $26.5 billion
  10. Georgia $26.3 billion

Florida residents were also in the top ten for credit card delinquency rates, meaning balances were left unpaid for 90 or more days. Nationally, approximately 7.5 percent of credit card debt was delinquent by these standards. Florida was above this average figure and ranked third in terms of delinquency reported.

The report stated that credit card balances on a national level declined between the years 2008 and 2013 but began to rise again in 2014. As of 2017, more than 470 million credit card accounts were open, totaling $3.5 trillion. The total debt figures were compiled by the Federal Reserve Bank of New York.  The full report can be viewed here.

If you are struggling with credit card debt 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://patch.com/florida/southtampa/florida-among-states-highest-credit-card-debt

 

Bankruptcy Law, Credit, Timothy Kingcade Posts

Steps to Take if Your Personal Debt Goes to Collections

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When someone is facing serious amounts of debt, it can feel like there is no end in sight. Odds are the individual is fielding continuous calls from debt collectors, all of whom are threatening legal proceedings if the person does not pay the debt owed. However, certain steps can be taken to help handle personal debt issues and hopefully avoid a lawsuit.

1. Review the Debt in Question.
The first step is to review the debt amount. Do not automatically trust what the debt collector is telling you, the debt they are attempting to collect could be expired or past the statute of limitations. It is recommended that the person facing the debt collection action first examine the information provided, research the collection agency that is reporting the debt and see if any discrepancies exist. The debtor has 30 days to verify that the amount is correct after the collection agency has contacted him or her. Take advantage of this time and carefully review the debt before making any payments.

2. Dispute an Incorrect Debt.
If, during this 30-day period, the individual discovers any figure that is inaccurate or unusual, it is recommended that he or she report this and provide proof that it is inaccurate. It is possible that the debt collection agency will clear up any discrepancy and adjust it as necessary.

3. Be Aware of the Fair Debt Collection Practices Act.
Not many individuals are aware that they do, in fact, have rights when it comes to collections. Simply because someone has missed a payment and has fallen delinquent does not mean that he or she has no rights. The Fair Debt Collection Practices Act is a federal law that protects the rights of consumers against harassment and aggressive collection practices by third-party collection agencies. Take the time to review the law and to understand what these rights include.

4. Discuss Payment Options.
If the debt is valid, it can help to talk with the collection agency about payment options. At the end of the day, these companies would rather be paid than have the debt be discharged in bankruptcy. Talk with the company to see what payment options are available. The consumer should examine his or her household budget to see what can be done to make payments to repay this debt.

5. Negotiate the Debt.
Another option that many consumers do not realize they have is to negotiate the debt. Many debt collectors or creditors are quite open to discussing other options for payment. If the individual is facing extreme circumstances or hardships, the creditor or collector may be willing to at least reduce the amount of debt owed or extend the deadline for payment.

6. Know the Statute of Limitations.
Every legal matter comes with its own set deadline for when legal claims can be made. Every state has its own statute of limitation for how long debts can be pursued. It is important that the consumer research what his or her timeline is and know what actions affect this timeline.

7. Be Aware of the Timeline.
After the collection proceeding is over, the debt will stay on the person’s credit report for seven years. This seven-year timeline does not start from when the delinquent account was originally opened but rather seven years from the time it became delinquent. Being aware of this fact can help when negotiating a payment on the debt since a paid debt will be viewed more favorably than one that continues to remain unpaid.

8. Understand the Consequences.
It is equally as important that the individual know what the consequences are to leaving a debt unpaid for too long. It also helps to know what the consequences are of ignoring a legal action if one is eventually filed. If the person is sued, it is extremely important that he or she at least appear in court and respond. It can be tempting to just ignore the matter, but by not appearing in court, the individual is likely to lose by default judgment and could have their wages garnished.

Click here to read more on this story.

If you have 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.

Bankruptcy Law, Credit, Debt Relief

Rent-A-Center Accused of Kicking in Doors and Crushing Customers’ Credit

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Rent-A-Center has recently made headlines due to its unethical treatment of customers and harassing debt collection practices.  In fact, it has gotten so out of hand that the complaints and harassment lawsuits have grown in numbers.

Rent-A-Center customers throughout the U.S. are now complaining that Rent-A-Center has virtually destroyed their finances after they have leased electronics, appliances and furniture from the company.

Rent-A-Center is a Texas-based publicly-traded company. The company started in 1986, offering consumers a way to purchase electronics and other household items that they would not be able to afford otherwise. The customers rent these items, making payments on a monthly, semi-monthly or even weekly basis. At any time during the lease, the customer can terminate the lease and return the household goods, or they can keep making payments until they own the items in full. The company’s mission aims to help those in lower-income households by allowing them to purchase items they would not otherwise be able to afford.

Once a customer begins to fall behind on his or her payments, that is where issues arise. Just one missed payment, missed by something as small as a day, can trigger aggressive collection efforts.

One federal lawsuit, brought by a Florida resident, claimed that she was forced to hide in a closet with her two young sons while a Rent-A-Center employee pounded on her door to collect payment on her rented household items. Another lawsuit claims that a Rent-A-Center worker kicked in her front door after she fell behind on payments for her laptop computer.

Even debt collectors are complaining about the practices of Rent-A-Center. In 2014, the collection company, Acceptance Now, took on accounts from Rent-A-Center, but as soon as debt collectors began making efforts to collect on the accounts, customers continually informed the agents that their debts had already paid. The problem was Rent-A-Center’s records did not reflect these payments.

Many states allow rent-to-own companies, like Rent-A-Center to file criminal charges against customers who do not pay on their rental agreements and do not return items when asked to do so. The collectors are well aware of this information, and Rent-A-Center regularly uses these threats to scare customers into making payments. It can make customers feel trapped in a no-win situation, not only fearing for their safety against aggressive collectors but fearing jail time if they are not able to make payments.

Between January 2016 and June 2017, the Federal Trade Commission received 2,779 complaints regarding both Rent-A-Center and Acceptance Now. Out of these complaints, 90 percent of them involve aggressive collection tactics, involving employees banging on customer’s houses and blasting car horns outside of homes.

Know your rights when it comes to creditor harassment. The Fair Debt Collection Practices Act (FDCPA) was designed to help prevent creditor abuse and harassment.

Click here to read more on this story.

If you have 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.

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

New Survey Reveals the Hidden Cost of Debt

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A survey of more than a thousand U.S. adults conducted by Harris Poll revealed that over half of the respondents said debt had negatively impacted their life.  Some of the top sources of concern among respondents included: “relationship tension” with a spouse or partner (21%) causing them to mislead family or friends about their “financial situation” (11%), many worried about their debt in general, (31%), at work, (18%) and before they went to bed (25%), according to the survey.

All of these worries led many to stress about everyday financial decisions because of their debt (28%). Some of the respondents received letters and calls from collection agencies (19%).

However, it was Millennials who showed the greatest signs of stress, with 68% saying debt has had a “negative impact” on their everyday life, a higher percentage than other generations surveyed such as Baby Boomers (48%) and GenXers (59%).

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Debt Questions you may be Afraid to Ask

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Talking about debt can bring up all sorts of emotions, leaving some to worry in silence about their own debt or a family member’s finances.  Here some answers to some of the most common questions about debt.

Can I inherit my spouse’s or family member’s debt after they die?  This depends on the debt. The assets left behind after a death typically go towards paying off that individual’s debt.  After that runs out, the creditor typically suffers the loss.  Co-signers when it comes to student loans, mortgage debts and joint credit cards will likely be on the hook for any remaining balance.  Know the dangers co-signing a loan and make sure and carry enough life insurance to cover all of your debts.

Is there a limit to the amount of debt I can take on?  The answer is no, but it depends largely on the type of debt.  Lenders sometimes offer you more credit than you can pay back.  Think of a loan you would take out to start a new business or taking out a mortgage to purchase a new home.  Even if you qualify for the loan, be realistic about what you can afford to repay.

Can I be arrested for outstanding debt?  The answer is no.  The Fair Debt Collection Practices Act (FDCPA) bars debt collectors from harassing and threatening you with arrest or jail.  However, they can sue you for payment.  Know your rights when dealing with debt collectors and consult with an experienced bankruptcy attorney before receiving a court summons or being sued by a creditor.

If I file for bankruptcy, will ALL of my debt be erased?  Alimony and child support obligations cannot be erased in bankruptcy.  Student loans, certain tax debts and judgments against you can be difficult to get discharged as well.

Click here to read more on this story.

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.

Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Good News for Home Buyers with Student Loan Debt

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Mortgage lender Fannie Mae has just made significant rule changes that should make it easier for former students with costly student loan debts to purchase their first home or do a “cash-out” refinancing to pay off debt.

These new policies could be game changers for a large number of consumers. Approximately 43 million Americans are carrying student loan debt, totaling $1.4 trillion nationwide. Costly student loan debt not only impedes on borrowers’ ability to save money for a down payment, but it is also a key reason why so many young, potential home buyers remain renters or are living with their parents.

Below are three big changes that Fannie Mae has made that could affect you:

  • If you’re one of the 5 million borrowers who participate in federal-reduced payment plans on your student loan, your actual monthly payments, as reported to the credit bureaus, will count toward your debt-to-income (DTI) ratio calculations. For example, if your payments were originally supposed to be $500 a month but you have had them reduced to $100 through an income-based repayment plan, only the $100 will be added to your monthly debts for DTI purposes. Previously, lenders were required to factor in one percent of your student loan balance as your monthly payment on the student loan, even though you were actually paying a fraction of that.
  • For an estimated 8.5 million American homeowners who are still carrying student debt, Fannie Mae has lowered the costs of a “cash out” refinancing, provided the extra cash you pull out from your equity is used to retire your student debt. Among the potential beneficiaries: parents participating in “parent plus” programs that help pay off their kids’ student loan debts, and parents who have co-signed for their children’s student loans. Fannie is eliminating the usual extra fee it charges for cash-outs, as long as the funds that borrowers withdraw pay off student loan debts.
  • If you have nonmortgage debts that are being paid for by someone else such as your parents, these will no longer be included in your DTI computation, provided the payments have been made steadily for 12 months. This should improve the DTI ratios of young buyers who are still getting a little help from their parents.

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

Puerto Rico Files for Largest U.S. Municipal Bankruptcy

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Last week Puerto Rico filed for municipal bankruptcy with a total of $123 billion in debt and pension obligations. It is the largest municipal bankruptcy filing in U.S. history, far exceeding Detroit’s $18 billion bankruptcy filing in 2013.

Governor Ricardo Rossello said, “Given the deficit that we inherited, it is my responsibility to guarantee the best interests of the Puerto Rican people.”

The court proceedings could potentially make the island solvent again for the first time in decades. However, many of the prominent Wall Street firms who own Puerto Rico’s bonds are not too happy about the bankruptcy filing because they fear they won’t get paid back the money they are owed.

Puerto Rico has been in an economic recession for more than a decade and the unemployment rate is 11.5 percent.  The island’s financial crisis is so bad that Congress installed a Fiscal Oversight Board last year to call the financial shots. However, the board stopped negotiations with creditors last week and filed for bankruptcy.

While on the campaign trail, Donald Trump said he would not “bail out” Puerto Rico. He repeated that again in a recent tweet. His budget director also said that the White House pushed hard to ensure no federal dollars would go toward paying the island’s debts in the latest Congressional budget deal.

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.

Related Resources:

http://money.cnn.com/2017/05/03/news/economy/puerto-rico-wants-to-file-for-bankruptcy/

https://www.nytimes.com/2017/05/03/business/dealbook/puerto-rico-debt.html?_r=1

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

5 Last Minute Tax Tips You Need Before Tax Day

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Tax filing day is rapidly approaching us on April 18th as countless Americans are scrambling to gather up their paperwork and get their returns in on time. Here are five last minute tips that can reduce what you owe or increase your refund.

  1. Report all of your income. If you try to hide some of your income that you have received throughout the year, you may end up on the IRS audit list. Any time you receive income, whether it’s payment for a freelance job, a dividend check or interest from your bank, you’re required to report that income and pay taxes on it. In fact, you should receive a 1099 form from each issuer that pays you.
  2. Know your tax credits. Tax credits work by reducing your tax liability dollar-for-dollar. For example, a $1,000 tax credit means you get to automatically deduct $1,000 from your tax bill in full. As you prepare to file your return, take some time to read up on the various tax credits out there. For example, there are tax credits geared toward parents, students and low earners that can add up to huge savings.
  3. Don’t estimate your deductions. On the other hand, tax deductions can save you money by excluding a portion of your income from taxes. Some of the deductions that are available to tax filers include: mortgage interest deductions, medical expense deductions and deductions for charitable contributions. However, you need to check your records and make sure your numbers are 100% accurate.
  4. Contribute to last year’s IRA. If you failed to put money into an IRA last year, here’s some good news: it’s not too late! You can make a contribution that counts for the 2016 tax year. In fact, you have until Tax Day, April 18th, to make a contribution to the previous year’s account.
  5. File Electronically. Filing electronically can help to eliminate math errors. If your return contains a major mistake, you could get audited or cause your refund to be delayed. In 2014, the IRS identified almost 2.3 million math errors from the previous year’s returns.

 

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.