Tag: Kingcade Garcia McMaken

Bankruptcy Law, Credit, Credit Score

The Impact Bankruptcy Has On Applying for Loans and Credit Cards

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While not all bankruptcies cause a huge drop in a person’s credit score, it is possible a person’s score could rise after bankruptcy.

A consumer’s FICO score is one of the biggest determining factors in whether a person will receive approval for credit or financing. The FICO score will also help determine the interest rate a person receives on a credit card. Some lenders are willing to accept credit applications even with lower scores. However, if this happens, it is unlikely that the terms of the credit application will be favorable to the consumer.

The bankruptcy filing may or may not have a significant impact on the consumer’s credit score, depending on what the score was before the filing. The consumer’s payment history makes up approximately 35% of the person’s credit score. If the person had a poor payment history to begin with, the bankruptcy filing will not have as much of a noticeable impact on the score. If the person had an excellent credit score previously, the effect the bankruptcy will have on the credit score will be more significant.

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.

Credit Card Debt

Credit Card Debt Tops $1 Trillion

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Total credit card debt reached $1.03 trillion in the second quarter of 2023, according to the Federal Reserve Bank of New York.  That’s a 5% increase, or about $45 billion in consumer credit card debt. With student loan payments resuming in the fall, this can present challenges for borrowers going forward.

Not only are credit card balances higher, but more cardholders are also carrying debt from month-to-month, according to a separate Bankrate report, adding to the financial stress. Another rate hike by the Federal Reserve, which occurred last month, made the average credit card rate over 20%.

Bankruptcy Trends, Business Bankruptcy, Consumer Bankruptcy

Bankruptcy Filings on the Rise

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Local courts are seeing a 10 percent increase in bankruptcy filings, according to a recent United States Courts report.

According to the report issued on July 31, the number of personal and business bankruptcy filings increased by this percentage in the 12-month period ending on June 30, 2023. The Administrative Office of the U.S. Courts reported that a total of 418,724 bankruptcy filings were made in the year ending June 2023, as compared to the 380,634 filed in the year ending June 2022.

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.

Bankruptcy Law, Consumer Bankruptcy

Why DIY Bankruptcy Might Not Be a Good Idea

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Filing for bankruptcy yourself, or without an attorney, is known as filing bankruptcy “pro se”.  Representing yourself throughout the bankruptcy process is a risky decision and there are a number of pitfalls associated with the same.  Filing for bankruptcy has a complex set of rules, forms, statutes, and judicial decisions.

Some people choose to represent themselves because they think they cannot afford to hire a bankruptcy attorney, or they may think they have a simple case.  Whatever the reasoning, it is not a wise decision. Even the simplest bankruptcy case could soon become complicated, resulting in the filer’s case being dismissed or thrown out. Often it is worth the extra cost to hire a professional to assist the consumer in filing for a Chapter 7 or Chapter 13 consumer bankruptcy as it saves a lot of hassle in the long run.

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.

Consumer Bankruptcy

What Property Can You Keep in a Chapter 7 Bankruptcy?

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The fear of losing everything is a very real fear for many bankruptcy filers. However, this is one of the most common bankruptcy myths, and can keep individuals who are drowning financially from filing for bankruptcy. One concern many filers have is, what will happen to my property during bankruptcy?

The good news is Florida bankruptcy laws offer generous exemptions which allow individuals to keep various types of property. If an item of property falls under one of these exemptions, this means that the person can keep the property after filing for bankruptcy. Property that does not fall under one of these exemptions is considered nonexempt and can be sold by the bankruptcy trustee and used to pay down qualifying debts.

Credit Card Debt

Consumers Add a Record $179.4 Billion in Credit Card Debt

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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.