Bankruptcy Filings, student loan debt, Student Loans

Student Loan Overhaul Could Lead to More Bankruptcy Filings, Says Judge

After nearly three decades as a bankruptcy judge, Sarah Sharer Curley details what she calls the unfairness of the legal process in her new book, “The Price of Forgiveness: Debt, Bankruptcy, and the Future of Fairness in America.”

She calls Trump’s “Big Beautiful Bill” an “attack” on student loan borrowers and predicts an increase in bankruptcy filings. She says the law sets unrealistic federal student loan caps, potentially pushing students toward private loans that lack federal guarantees and often carry higher interest rates.

For example, let’s say a student needs a $300,000 loan to go to medical school. If the individual has a lower credit score, their interest rate may jump to 16%, leading to a payment of $5,017 per month over 10 years, or $302,040 in interest.

These expenses are not sustainable for most individuals. The rate of bankruptcy filings will most likely increase. One of the most painful cases she witnessed in her three decades presiding over bankruptcy cases, involved a 73-year-old woman who stood before her in 2012 with a student loan balance of more than $584,000.

The debt dated back to the 1970s and had grown throughout the woman’s public sector career. She had “never made a lot of money,” Curley said, and by the time she sought debt relief, the woman was living in poverty, with Social Security as her only income. Even so, strict bankruptcy laws can make student loans nearly impossible to discharge.

There were attempts by the U.S. Department of Education to work out repayment plans for student loan borrowers who could not repay their debts. There was also the possibility that the Education Department would agree to forgive at least a portion of the student loans.

However, once the Education Department was gutted in 2025, there were few, if any, employees who could approve the debt modifications through one of the offered programs. As a result, it has become harder to reach a settlement with the Department of Education.

In 2025, more than half a million personal bankruptcy cases were filed — an almost 50% rise from three years prior, according to the Administrative Office of the U.S. Courts.

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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.

Filing Bankruptcy, Life After Bankruptcy, Rebuilding Credit

What Happens After Bankruptcy?

After filing for bankruptcy, you will likely have questions about how it will affect your credit and what steps you can take to move forward.

What can I expect the first year after filing bankruptcy?

A bankruptcy discharge releases you from personal liability for qualifying debts. In Chapter 7, you can be free and clear of your debts within a few months after filing; in Chapter 13, it generally comes after you complete the repayment plan.

Prioritizing your financial stability should be a top priority one year after filing. Avoid taking on any new debt. Many people receive credit card offers in the mail soon after filing bankruptcy. And while it can be tempting, it’s best to avoid these offers. Instead, focus on managing your monthly expenses, building an emergency fund, and reducing any major expenses.

A reason people hold off on filing bankruptcy is the fear of what it will do to their credit and financial future. While filing for bankruptcy will impact a person’s credit score, this damage is not irreparable.

After bankruptcy, you can begin taking steps right away to improve your credit history.

  1. Pull a copy of your credit reports for free by visiting https://www.annualcreditreport.com/.
  2. Make sure your credit reports are accurate. The accounts that were discharged in bankruptcy should be closed. If any discrepancies are found, these errors should be reported right away to the credit bureaus via a formal dispute.
  3. Prioritize making future payments on time. It sounds simple, but on-time payments and responsible credit card use can significantly help you recover from bankruptcy.
  4. Open a new line of credit. After some time has passed and you feel financially stable, consider opening a new line of credit with a reputable lender to reestablish healthy credit habits.
  5. Creating a budget is important after completing a bankruptcy case. Write down all necessary living expenses and track how much of the consumer’s income can be used to go towards paying these costs. A good rule of thumb when budgeting is to follow the 50/30/20 rule. What this entails is 50 percent of the consumer’s income goes towards meeting his or her needs. Another 30 percent would be set aside for items that are considered not necessary or are wanted, while 20 percent of the monthly income goes towards savings.

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Facing financial hardship and considering bankruptcy? An experienced Miami bankruptcy attorney can guide you through the process. Timothy Kingcade combines his experience as a CPA and bankruptcy lawyer to help clients protect their assets and achieve successful results under bankruptcy law. Since 1996, Kingcade Garcia McMaken, P.A., has helped people from all walks of life build a brighter future. Each year, our firm helps thousands of people use bankruptcy protection to restart, rebuild, and recover. We contact your creditors the day you hire us to stop the harassment. Find more consumer information at www.miamibankruptcy.com.

Foreclosure Defense, Foreclosures

These 2 Southern States Lead the Nation with the Highest Number of Foreclosures

Foreclosure rates have been on the rise, signaling homeowners are struggling with the cost of homeownership.  There was a total of 36,033 U.S. properties with foreclosure filings, up 0.4% from the prior month and 13.9% from a year ago, according to the U.S. Foreclosure Market Report from ATTOM.

The report revealed that Florida, South Carolina, and Illinois had the worst foreclosure rates in the nation.

High foreclosure rates can be attributed to a range of factors, including economic pressure, local housing market dynamics, and state-specific foreclosure procedures. Of the three states, only Florida, with a median home list price of $440,000, is above the national median at $431,250.

The report revealed that two-thirds of the 50 counties around the U.S. considered most exposed to potential fallbacks were in Florida, California, Illinois, and the New York region.

South Carolina saw 1 in every 2,311 housing units with a foreclosure filing; Illinois had 1 in every 2,405 housing units; and Florida had 1 in every 2,526 housing units.

Among those major metropolitan statistical areas with a population of at least 200,000, those with the greatest number of foreclosure starts in April 2025 included Houston (1,202), Chicago (1,139), New York City (1,099), Miami (739), and Atlanta (665).

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Choosing the right attorney can make the difference between keeping your home or losing it in foreclosure. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure, please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Foreclosure Defense, Foreclosures

This Florida Metro Has Been Named the Foreclosure Capital of the US

According to real estate data from ATTOM, Florida’s Lakeland region has the nation’s highest number of foreclosures. One out of every 172 housing units had foreclosure filings, according to the real estate data firm.

There is a combination of factors that attribute to this rating. One being a population influx. Another factor is the price of home insurance, and rising insurance premiums. Floridian’s pay an average annual premium of $5,292 for a home worth $3000,000, according to Bankrate. That’s nearly two-and-a-half times the national average of $2,267.  Other factors, include increased property taxes, regulatory changes that impact older condominiums, elevated mortgage rates, inflation, and job losses.

Foreclosures can oftentimes be a precursor to bankruptcy, and both have risen drastically over the last 12 months.   The key is to respond quickly to avoid losing your home through foreclosure. It may seem counter-intuitive, but when someone is facing foreclosure and is in the middle of a major financial crisis, bankruptcy can be a viable option to help save that person’s home. Ultimately, it depends on your specific financial situation and the type of bankruptcy you file – but bankruptcy can be used as a tool to help keep your home.

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Choosing the right attorney can make the difference between keeping your home or losing it in foreclosure. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure, please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Foreclosure Defense, Foreclosures

Home Foreclosures in Florida on the Rise

Foreclosure numbers from the analytical firm, ATTOM reveal an increase in foreclosure filings in Florida. According to the leading provider of nationwide property data, the three biggest areas where foreclosures are on the rise are in Lakeland, Orlando and Miami.

This year’s numbers in South Florida are up nearly 50% compared to February 2022, according to the South Florida Business Journal.

When Can Foreclosure Start?

Foreclosure cannot start until the homeowner is more than 120 days past due on his or her payments. The purpose of this length of time is to give the homeowner time to submit a loss mitigation application before the foreclosure process begins.

If you are not able to make your monthly mortgage payments, you have options available to you that can keep you from losing your home.

REMEMBER: In Florida, the homeowner has rights when it comes to foreclosure! But do not delay.

Choosing the right attorney can make the difference between keeping your home or losing it in foreclosure. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure, please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

SOURCE: Home Foreclosures in Florida Rising – Florida Daily

Bankruptcy Filings, Bankruptcy Trends

U.S. Corporate Bankruptcy Filings Hit 13-Year Peak

Total bankruptcy filings rose 13 percent, and business bankruptcies rose nearly 30 percent, in the twelve-month period ending Sept. 30, 2023, according to the U.S. Courts. This continues a moderate rebound after more than a decade of sharp decline. Corporate bankruptcy filings in the U.S. rose again in December 2023, ending the year with the most filings since 2010.

S&P Global Market Intelligence recorded 50 bankruptcy filings in the month. The total was an increase from the 33 recorded in November.

There were 642 total filings in 2023, significantly above the previous two years and marginally more than in 2020, which saw an influx of Covid-19 related filings.

Seven industrial companies and seven consumer discretionary companies filed for bankruptcy over the month, followed by six filings among information technology companies and six from the healthcare sector.

Consumer discretionary companies recorded the most bankruptcies in 2023 with 82 filings. Many of the companies attributed their filings to rising interest rates and inflation, which impacted their post-pandemic operations.

There were bankruptcy filings in 19 states and the District of Columbia in December, with the greatest number originating from California, Texas, and Florida.

During the year, 95 California companies sought bankruptcy protection, followed by 75 from Texas and 68 from Florida. New York added 58 filings in 2023, while New Jersey registered 31.

Additional states with 15 or more filings in 2023 included Massachusetts, Georgia, Nevada, Illinois, North Carolina, and Pennsylvania.

Source: U.S. Bankruptcies hit 13-year peak in 2023; 50 new filings in December. (January 9, 2024)

Credit Card Debt

Consumers Add a Record $179.4 Billion in Credit Card Debt

U.S. consumers have hit a record high when it comes to credit card debt. According to a recent WalletHub study, American consumers added a record $179.4 billion in new credit card debt to the already-existing credit card debt in 2022. These numbers are expected to increase as we move into the second half of 2023.

The largest increase was seen in the fourth quarter of 2022 with an increase of $84.9 billion in that quarter alone. A fourth-quarter increase is not unusual, as it is usually followed by a first quarter pay-down. However, once 2023 began, WalletHub found that American consumers only paid down their credit card debt by $24 billion, which is the second smallest first-quarter credit card debt paydown seen in the last decade.

Credit Card Debt

U.S. Cities with the Least-Sustainable Credit Card Debt

High interest rates and high inflation are making it harder than ever to pay down credit card debt. American consumers started the year with over $1 trillion in outstanding credit card debt.

According to a recent study, the average U.S. household has over $8,900 in credit card debt, which is up 4.5 percent (4.5%) from last year. Consumers in certain cities seem to struggle more than others. This fact was recently documented in a study produced by personal finance website, WalletHub, listing which American cities had the least sustainable credit card debt.

Consumer Bankruptcy, Consumer News

DeSantis Vetoes Florida Bankruptcy Relief Bill

Gov. Ron DeSantis vetoed a measure last week that would have provided some much-needed relief for those struggling financially in Florida.  The specific measure, HB 265, was passed unanimously by both the state senate and legislature during the most recent legislative session, where it was quickly vetoed by DeSantis. This bill represents the third bill vetoed by the governor.

This bill would have given Floridians facing bankruptcy relief by providing them credit for any equity they may have had in their vehicle. The law would increase the bankruptcy exemption provided to debtors in their cars from $1,000 to $5,000.

Bankruptcy Law, Lawyers in the News

Bankruptcy Attorney Timothy S. Kingcade Interviewed by The Miami Herald

With about one out of every nine Miami-Dade workers — and nearly one out of every six in Broward — still out of a job due to the coronavirus pandemic, a question lingers in South Florida: How long can the region stave off an even worse economic disaster?

After a rough start, Florida’s unemployment system has come online to furnish tens of thousands of local workers with as much as $875 per week in unemployment insurance — the state’s standard $275, plus an extra $600 through the emergency U.S. CARES Act passed in March. But Florida’s unemployment insurance lasts only 12 weeks. And the extra $600 from Congress is set to expire July 31. Greater Miami ranks as one of the hardest hit metros in the country, thanks to its reliance on a tourism industry that has instantly dried up.