Kingcade Garcia McMaken, Legal Awards

TIMOTHY S. KINGCADE RATED ONE OF THE TOP 3 BANKRUPTCY LAWYERS IN MIAMI for 2024

MIAMI –Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy law firm of Kingcade Garcia McMaken  has been rated one of the Top 3 bankruptcy lawyers in Miami, FL by Three Best Rated® for 2024.

“It is an honor to have received this award,” said Timothy S. Kingcade. “We know what our clients are going through when they come into our offices, and we treat them with the upmost care and respect during their most difficult financial times.”

Kingcade Garcia McMaken’s culture of care makes clients feel comfortable and confident about their legal representation when filing for bankruptcy.

Credit Card Debt

Ways to Avoid Christmas Credit Card Debt

It can be easy to fall deeper into debt during the holiday season. Those celebrating the holidays are four times more likely to expect to spend the most money on gifts for family and friends (80%) compared to dining out (21%), social events (20%), travel (17%) and holiday decorations (16%) this year.

According to a survey by investment bank D.A. Davidson, 40 percent of American consumers are starting the holiday season with more credit card debt than they did a year ago, and 48 percent of them will end the holiday with even more debt. The fact that average credit card interest rates are at an all-time high doesn’t help.

Bankruptcy Trends, Business Bankruptcy, Consumer Bankruptcy

Bankruptcy Filings Increase by 13 Percent Despite Historic Low Level of Filings

According to statistics from the Administrative Offices of the U.S. Courts, the total number of bankruptcy filings increased by 13 percent in the 12 months ending on September 30, 2023. Business bankruptcies during this time increased by approximately 30 percent.

Annual bankruptcy filings were 433,650 as of September 30, 2023, as compared to the 383,810 in September 30, 2022.

Factors contributing to the uptick in filings include rising interest rates and inflation.

Credit Card Debt

U.S. Debt Levels Are on the Rise as More Americans Fall Behind on Their Credit Cards

American consumers are adding more to their credit card balances and falling behind on current payments, according to data from the Federal Reserve Bank of New York’s latest Quarterly Report on Household Debt and Credit.

According to this report, credit card balances hit a high of $1.08 trillion, increasing $48 billion from the previous quarter and increasing a record $154 billion from the previous year. This year-over-year increase is the largest one seen since the New York Fed began tracking this data back in 1999.

Credit Card Debt

Four Ways to Get out of Credit Card Debt

Credit cards are among the most expensive ways to borrow- especially these days. The Federal Reserve’s war on inflation, marked by interest rate hikes, has lifted credit card rates to record highs. According to a recent NerdWallet American Household Credit Card Debt Study, the average amount of revolving credit card debt owed per American household is $7,486. Getting out of this debt can be difficult, but it is not impossible with proper planning. The following strategies are proven to be successful when getting out of credit card debt.

Determine a Payment Strategy

The first step to paying down credit card debt is to determine what type of payment strategy would work best for the consumer.  Paying more than the minimum monthly payment posted is always the best place to start since the monthly minimum payment is normally only two percent of the balance and pays more for interest accrued every month than the principal owed.

Bankruptcy Law, Consumer Bankruptcy

Should You Hire a Bankruptcy Attorney?

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.

student loan debt, Student Loans

Student Loan Payments Resume for the First Time Since 2020

Federal student loan payments are due for the first time since 2020. Approximately 28 million borrowers are now having to pay on loans they have not touched since before the COVID-19 pandemic. Many borrowers have not made a single payment on their loans and are not sure what to expect with this change.

Federal student loan payments have been on hold since the enacted forbearance on payments and interest at the start of the COVID-19 pandemic. Interest began accruing on these loans on September 1, but payments did not begin until October 1.

Bankruptcy Law

What Debts Are Not Discharged in Bankruptcy?

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.

Medical Debt

Can a Bankruptcy Case Be Filed Over Medical Bills?

The cost of healthcare has become a growing problem for many. One that has pushed patients to the brink of financial crisis. According to the Centers for Medicare and Medicaid Services, spending on healthcare in the U.S. has reached a record $4.1 trillion. The good news is bankruptcy can be used as an effective tool to eliminate medical bills, giving the consumer a fresh financial start.

According to figures from the 2021 U.S. Census, approximately one in every five households, or roughly 19 percent of all households, were not able to pay for medical care when it was needed. Many of these bills go unpaid and result in collections actions against the consumer. In fact, according to the Consumer Financial Protection Bureau (CFPB), in 2022, whenever debt collectors contacted consumers, medical debt was the main reason for this communication.

Consumer News, Credit Card Debt

Credit Card and Car Loan Defaults Hit 10-Year High

A number of consumers are defaulting on their credit cards and car loans to the point where the number of defaults reported are the highest seen since the financial crisis. With inflation not nearing an end any time soon and interest rates continuing to rise, the number of consumers defaulting is expected to grow.

This information comes from data provided by the credit agency, Equifax. The agency found that credit card delinquencies have hit 3.8 percent while car loan defaults have hit 3.6 percent. These figures are the highest ones seen in more than 10 years.