Tag: Kingcade Garcia McMaken

Consumer Bankruptcy

What to Expect Before, During and After Filing for Bankruptcy

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The process of filing for bankruptcy can seem daunting and unclear for many filers. The uncertainty behind the process often drives the fear of the unknown, which keeps many people from pursuing a bankruptcy case. Pulling back the curtain and knowing what to expect when filing for bankruptcy can help clear up any myths or misconceptions surrounding bankruptcy.

Making the decision to pursue a bankruptcy case is often the thing that holds people back the most. It can be difficult for someone to admit that they need financial help offered through a bankruptcy case. Many see it as admitting failure, which could not be any further from the truth.

Bankruptcy Law

Can I Keep My Retirement Accounts in Bankruptcy?

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No one wants to lose their hard-earned savings in a bankruptcy case, especially retirement accounts. In fact, the fear of losing everything is one of the main reasons why consumers hold off on filing for bankruptcy. Most people work hard over the course of many years to build up a nest egg that they hope will carry them through retirement. The good news is retirement accounts are protected in bankruptcy. A law was issued in 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which gave protection to all types of individual retirement accounts, otherwise known as IRAs.

The type of protection depends on the type of IRA. Traditional IRAs and Roth IRAs are protected to a value of more than $1 million. However, SEP IRAs, SIMPLE IRAs, and most rollover IRAs receive full protection from bankruptcy creditors, no matter how much is in each account.

Medical Debt

Medical Debt May No Longer Affect Your Credit Score

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Relief may be on the way for consumers struggling with medical debt. As of July 1, 2022, the three largest credit bureaus, TransUnion, Equifax, and Experian, are removing cleared medical debts from consumers’ credit reports.

What this means is if the consumer has paid his or her medical bill in full, and that debt is still plaguing his or her credit report, this negative mark will now be removed. This announcement comes as part of a larger endeavor by the Biden administration to either decrease or eliminate medical debt as part of government lending determinations.

Foreclosure Defense, Foreclosures

Zombie Properties Increase as the Number of Foreclosures Climb

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The number of homes abandoned by their owners just before foreclosure has continued to increase for a second consecutive quarter in 2022, as the number of foreclosure cases continue to rise. These types of vacancies are commonly referred to as “zombie homes” or “zombie properties.”

According to real estate data provider, Attom, a total of 7,707 residential properties facing foreclosures have been vacated by their owners in the third quarter of 2022, increasing by 1.8 percent from 7,569 from the prior quarter. These numbers are up 2.2 percent from 7,538 vacated in the prior year. This increase represents the second consecutive quarterly increase in the number of zombie properties.

Consumer Debt

Over 40 Percent of Consumers Plan to Take on More Debt Despite Rising Interest Rates

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Approximately 43 percent of American consumers say they intend to accrue more debt in the next six months.  This is despite interest rates increasing, making the cost of borrowing more expensive. This information comes from a recent study published by LendingTree.

LendingTree surveyed more than 1,000 individuals regarding their spending habits. They found that 61 percent of them already carry some level of debt. Approximately 80 percent of consumer debt is linked to expenses that are considered necessary, such as healthcare expenses or other emergencies.

Business Bankruptcy

6 Steps to Returning to the Business World After Bankruptcy

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After a bankruptcy case, the idea of returning to the business world can seem like a pipe dream or a near impossibility. While a bankruptcy case can certainly put a dent in an individual’s credit, it should not hinder that person from successfully starting a business or returning to an already-existing business.

The good news is succeeding in business after a bankruptcy can be and has been done. Many entrepreneurs have gone through personal bankruptcy and come back stronger and better. Several well-known companies, such as General Motors (GM) or Delta Airlines have filed for bankruptcy only to restructure their businesses and rebuild their brands successfully. The following tips can help an individual or business recover after filing bankruptcy.

Consumer Bankruptcy

Questions to Ask Yourself Before Filing for Bankruptcy

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The decision to file for bankruptcy is never an easy one. It takes careful consideration and depends on a number of factors. Before making the decision to file for bankruptcy, ask yourself these questions.

Have All Other Options Been Exhausted?

Bankruptcy is not the only option when it comes to debt relief.  It often helps to first meet with a bankruptcy attorney to discuss your options. A budget is one tool a consumer can use to see what unnecessary expenses can be eliminated, freeing up additional funds to pay off debts. The consumer may also have luck in selling some of his or her assets to pay off various debts. Another option is for the consumer to reach out to his or her lenders to see if some type of payment plan or debt settlement can be reached on the debt.

The consumer may also consider credit counseling. This step should be taken even if the consumer is considering filing for bankruptcy since credit counseling, including a two-hour financial management course from a government-approved agency, must be completed at least 180 days before a bankruptcy discharge is issued.

Consumer Debt, Credit Card Debt

How to Pay Down Credit Card Balances with High Interest Rates

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Credit card debt has traditionally been one of the more difficult consumer debts to conquer. This is in large part because most credit card balances come with significantly high interest rates. The larger a consumer’s balance gets, the more difficult it can be to tackle the debt. While paying down credit card debt can be a challenge, however, it is not impossible. It takes proper planning and discipline but paying down a credit card balance on a card with high interest rates is possible.

According to LendingTree, the average annual percentage rate on a new credit card is over 20 percent, and rates only seem to be increasing over time, especially as the cost of living continues to rise.  This trend presents a major problem for American consumers with high credit card balances. In fact, according to reports from the Federal Reserve Bank of New York, credit card balances reached a high of $841 billion in the first quarter of 2022.

Foreclosures, Housing Market Trends

Florida’s Mortgage Delinquency Rates Increase, Slightly Higher than National Average

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Mortgage delinquencies slightly increased from April to May 2022, but Florida’ mortgage delinquency rates have increased more than the national average. Nationwide, one in every 4,549 housing units had a foreclosure filing in May 2022, according to a recent report issued by Knight Data & Analytics. Florida led all 50 states with a high rate of one in every 2,788 housing units.

The national delinquency rate decreased in May 2022 to a low of 2.75 percent. However, Florida’s delinquency rate stayed at a consistent 2.0 percent. Lenders initiated foreclosure proceedings on 22,099 properties in May 2022. While this number may be down one percent from the previous month, it is up 274 percent from one year ago.

Consumer News, Credit, Credit Card Debt

The Best Ways to Handle Your Credit During Inflation

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The cost of living has continued to rise throughout the first half of 2022, leaving many consumers struggling to make ends meet. It seems the cost of everything has skyrocketed, from groceries to gas. As a result, three in five American consumers say they are living paycheck to paycheck. Many of these individuals are relying on credit cards to pay for necessary expenses, but unfortunately, adding to their credit card debt only complicates financial problems.