Tag: Kingcade

Debt Collection, Wage Garnishment

Understanding Wage Garnishment

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Wage garnishment is a common tool used by creditors and third-party debt collectors to satisfy a judgment on an outstanding debt. Consumers who are facing the possibility of a wage garnishment should understand what exactly a garnishment means for him or her.

A wage garnishment is a legal procedure ordered by a judge after a court issues a judgment on a debt. The garnishment order allows the consumer’s employer to take a portion of his or her wages prior to the check being given to the consumer to pay back a creditor. Some common types of debt that can lead to a person’s wages being garnished include: unpaid taxes, overdue child support, defaulted government student loans, delinquent credit card loans, and outstanding medical bills.

Bankruptcy Law, Wage Garnishment

How to Stop a Wage Garnishment in Florida

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Wage garnishment is a legal process in which a person’s earnings are required by court order to be withheld by an employer for the payment of a debt.

Filing for bankruptcy in Florida puts an automatic stay on wage garnishment, which immediately stops Florida wage garnishment. The automatic stay lasts for as long as the bankruptcy. With the automatic stay in place, you will be able to take home your entire paycheck.

Foreclosure Defense, Foreclosures

Foreclosure Filings Increase Following End of CFPB Restrictions

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Foreclosure filings reported in January 2022 were up by nearly 30 percent from a month prior and up by over 139 percent from a year ago, according to figures from the U.S. Foreclosure Market Report. A total of 23,204 U.S. properties were reported as having foreclosure filings.

The fact that foreclosure filings were on the rise does not come as a surprise for financial experts who have been keeping an eye on the housing market. Normally, foreclosure filings slow down around the holidays, picking up again after the first of the year. However, this year, the filings were a little more than in previous years, showing more of a spike in filings than a slow increase.

student loan debt

A Divorce May Not Free You from your Ex-Spouse’s Student Loan Debt

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Most people assume that when they get a divorce, they will walk away free and clear from their spouse’s student loan debt. After all, it was the spouse who incurred the debt, so why should the other spouse be on the hook for this debt? Unfortunately, a divorce decree may not be enough to free someone from their ex-spouse’s student loan debt.

One reason a person might find themself responsible for their ex-spouse’s student loan debt has to do with joint consolidation. This federal program was short-lived, but many people took advantage of it while it was available. In fact, nearly 14,000 student loan borrowers participated in the joint consolidation program, which Congress ended in 2006. Joint consolidation allowed married couples to take their separate student loan debts and combine them into one monthly payment with a lower interest rate. However, once these debts are combined, it can be difficult to separate them in the event of a divorce.

Consumer Debt, Credit Card Debt

Consumer Debt Reaches a Record-Breaking $15.6 Trillion

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Consumer debt hit an all-time high at the end of 2021, reaching a total of $15.6 trillion. According to figures from the Federal Reserve New York district, this figure represents a year-over-year increase of $333 billion during the fourth quarter of 2021, as well as a $1 trillion increase for the entire year.

This quarterly consumer debt increase is the largest one seen since 2007. Looking at it from an annual perspective, this increase is the largest one since 2003.

Credit Card Debt

Red Flags That Indicate Dangerous Credit Card Habits

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Credit card spending can quickly become a bad habit that can get out of control. Certain behaviors can end up dragging the consumer deeper into debt. It is important that the consumer identify these spending habits ahead of time and spot red flags before falling deeper into a debt trap.

Many consumers fall into the trap of only making the minimum monthly payment listed on their credit card statements. It can be tempting to make that small payment instead of paying off the balance in full or making at least a substantial payment towards the principal. However, minimum monthly payments only end up covering the interest accrued during that month. In the end, the consumer makes absolutely no progress towards paying down the balance owed, and the consumer will find that the balance never goes down. At the very least, the consumer should make more than the minimum payment on a monthly basis in order to avoid falling into this debt trap.

Bankruptcy Law, Consumer Bankruptcy

Understanding Bankruptcy

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Many people view bankruptcy as an intimidating and complicated process. While bankruptcy can have its complications, many of the fear surrounding it has more to do with consumers not fully understanding the process itself. Bankruptcy is a legal proceeding that allows individual consumers or businesses who are struggling with debt to eliminate these debts and start over. The process is meant to help consumers and is not something to be feared.

All bankruptcy filings are heard in special federal courts set up throughout the 50 states. Bankruptcy procedures are governed by the U.S. Bankruptcy Code, although states, including Florida, can enact their own rules that preempt federal procedures.

Credit Card Debt, Debt Relief, Medical Debt

Recent Study Reveals the Burden Debt Has on Mental Health

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Carrying any amount of debt can be stressful, but carrying substantial amounts of debt can be debilitating to a consumer’s emotional well-being.  Debt can cause anxiety and depression, and the longer a person carries it, the more likely he or she will feel physical and emotional effects from it. A recent study highlighted just how severe the effects of insurmountable debt can be.

The data reviewed comes from the 2021 BC Consumer Debt Study released by BC Licensed Insolvency Trustees Sands & Associates. They surveyed over 1,700 consumers throughout British Columbia who declared personal bankruptcy or legally consolidated a debt.

The survey noted two specific trends regarding consumer debt. The largest proportion, approximately 32 percent, of people who responded to the survey said that they had had $25,000 to $49,999 of debt, not including mortgages or car loans.

Four out of five surveyed said they found that the main causes of their debt were completely outside of their control. For example, 18 percent reported that their debt grew to the amount it was due to them needing to rely on credit to pay for essential costs of living that their income could not cover. Additionally, others reported that their debt was caused by other issues outside of their control, such as illness or health-related problems, the breakdown of a marriage or relationship, and job-related issues.

Of the consumers surveyed, more than 56 percent of them said that credit card debt was their largest source of debt before they entered formal proceedings to eliminate their debts. Payday loans were the main source of debt for approximately six percent of those polled.

Individuals surveyed reported that being in such deep debt negatively affected their well-being. In terms of emotional well-being, 77 percent said their mental health suffered. Four out of five individuals said they constantly worried about being in debt. Three in four surveyed said debt caused them anxiety.

Even more concerning, one in six individuals surveyed said that the stress of carrying large amounts of debt resulted in them contemplating or thinking of suicide.

Mental health was not the only thing affected by debt. Fifty-three percent said that their physical health likewise suffered.

One major issue occurs when the consumer is not truly aware of how much he or she actually owes, resulting in the individual’s finances spiraling out of control. The stress that results from this debt can be debilitating to the person’s mental well-being. Approximately 68 percent reported that they concluded that debt was a major problem when it became a source of major stress in their lives. Sixty percent (60%) said they realized debt was a problem when they could only make minimum payments, while fifty percent (50%) said they realized debt was a major problem when their balances never went down from month to month. Unfortunately, at that point, their debt had grown to a figure that they could not control, forcing them into either bankruptcy or other sources of debt relief.

For more information, the full study can be accessed here.

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.

Medical Debt

CFPB Provides Details on No Surprise Act with Bulletin on Medical Debt Collection

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The Consumer Financial Protection Bureau (CFPB) released a bulletin regarding the recently passed No Surprise Act, specifically relating to both consumer reporting requirements and medical debt collection. This CFPB bulletin provides consumers with information on compliance requirements in a hope to clarify the new law for consumers and third-party debt collectors.

The No Surprise Act was enacted to protect consumers from being forced to pay for out-of-network through what is known as surprise billing. Surprise billing occurs when the customer receives a medical bill showing that a medical expense is much more than anticipated. Unfortunately, circumstances do exist where a consumer receives medical services from a hospital or other medical provider that he or she believes is in-network. However, the consumer soon receives an unwarranted surprise in the form of a bill showing that the doctor within that hospital is actually out-of-network.

In the bulletin, the CFPB warns debt collectors about how the Fair Debt Collection Practices Act (FDCPA) intersects with the No Surprise Act. Specifically, the CFPB expressed concerns regarding debt collection practices where the collector uses “false, deceptive or misleading representations” to get the consumer to pay on the debt. For example, a debt collector may feel compelled to make certain misrepresentations to the consumer that he or she must pay a debt that would otherwise fall under the No Surprise Act, when, in fact, the person is able to dispute the out-of-network charges made. Additionally, collecting an amount that far exceeds what is owed for medical care could also be considered a violation of the FDCPA.

The bulletin also expressed concerns regarding consumer reporting agencies (CRAs) publishing information regarding any unpaid medical debts that would otherwise fall under the provisions of the No Surprise Act. Under the Fair Credit Reporting Act (FCRA), CRAs are required to ensure that the information provided is accurate. CRAs and furnishers of consumer credit reporting information must establish and abide by reasonable procedures to ensure all information is accurate, and if there is any possibility that information published is not accurate, the CRA and furnisher must conduct a reasonable and timely investigation. Given that the No Surprise Act deals with situations where consumers may be told they owe a large amount of debt on a medical expense that would otherwise be covered, ensuring that CRAs are being diligent and careful when reporting this information is important.

Given the implications involved, it is important that both sides know what steps need to be taken to reduce the risk for liability in dealing with these debts. Additional guidance and information is anticipated as both consumers and debt collectors navigate the provisions of this new law.

Please click here to read more.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney 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, 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 McMaken, P.A. website at www.miamibankruptcy.com.

Medical Debt

New Law Will Protect Patients from Surprise Medical Bills

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Medical debt is the single largest cause of bankruptcy in America, according to the National Consumer Law Center (NCLC). Even if a person has medical insurance, most consumers have high deductible plans which require them to pay thousands of dollars upfront before their insurance will cover their medical expenses.

This fact could be why approximately 18 percent of all American consumers have some type of medical debt that is currently in collections, according to a recent study by the Journal of the American Medical Association. Between the years 2009 and 2020, unpaid medical bills were the largest source of debt being serviced by third-party debt collection agencies.

One of the biggest reasons for these debts being in collection involves a practice known as surprise billing. Surprise billing occurs when the customer receives a medical bill showing that a medical expense is significantly more than anticipated. The last thing a consumer wants to experience is an unpleasant surprise in the mail in the form of a bill showing that a hospital that he or she thought was in-network was, in fact, not in the person’s insurance network.  The U.S. Department of Health and Human Services reports that millions of American consumers have experienced surprise medical billing.

Often, even if a consumer believes that he or she is being seen at an in-network hospital, many times the doctors at that hospital are not in-network. They may be working at the hospital on a contract basis, being employed by a staffing firm and not the hospital itself. Once the individual is healthy and out of the hospital, he or she may soon discover that the expenses incurred during that stay were not covered by his or her insurance. This practice has become more common as private equity firms invest in the healthcare industry and look for methods to increase billing charges.

Consumers will find themselves protected from this billing practice in the near future, as of January 1, 2022, under the new “No Surprise Act.”

The No Surprises Act protects people covered under group and individual health plans from receiving surprise medical bills when they receive most emergency services, non-emergency services from out-of-network providers at in-network facilities, and services from out-of-network air ambulance service providers. It also establishes an independent dispute resolution process for payment disputes between plans and providers, and provides new dispute resolution opportunities for uninsured and self-pay individuals when they receive a medical bill that is substantially greater than the good faith estimate they get from the provider.

TIt is expected that the No Surprise Act will reduce overall healthcare costs, ensuring that consumers are paying a reasonable market rate for any medical services received.

Please click here to read more.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney 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, 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 McMaken, P.A. website at www.miamibankruptcy.com.