Tag: Kingcade

Consumer Bankruptcy

Fear Holds Many People Back from Ever Filing Bankruptcy

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There are many people who can benefit from bankruptcy, but put off filing due to fear and the myths surrounding bankruptcy. Bankruptcy offers consumers a fresh financial start and relief from the burden of debt, but for many, it is the fear of the unknown that holds them back from ever taking the first step. Every year, only a small portion of consumers who could benefit from bankruptcy actually move forward with starting a case.

According to the Federal Reserve Bank of New York, approximately 14 percent (14%) of U.S. households or nearly 17 million consumers owe more than they own. While most of these individuals could benefit from bankruptcy, less than one percent (1%) of them file for bankruptcy annually. In 2020, there were only 752,160 personal bankruptcies filed. 

Foreclosures

Experts Warn of New Foreclosure Crisis in South Florida

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With the federal moratorium on evictions and foreclosures set to expire, housing experts are predicting a new foreclosure crisis in South Florida.

The crisis began for many last year as COVID-19 forced thousands of Floridians out of jobs. It was not until April 2020 when the Trump Administration and many states hit the pause on all foreclosure and eviction proceedings on federally backed loans. States and the federal government extended these moratoriums throughout 2020 and into 2021. These extensions allowed individuals to remain in their homes and postpone the foreclosure process. 

Consumer Bankruptcy

Post-COVID Debt Continues to Grow as Bankruptcy Filings Fall in 2021

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Financial analysts had predicted a bankruptcy surge following the COVID-19 pandemic. Courts were closed for the majority of 2020, but as they began to reopen, it was believed that a massive wave of bankruptcy filings would follow. Oddly enough, that surge never came, and the number of consumer bankruptcy filings continue to drop.

According to figures from the American Bankruptcy Institute (ABI), 181,000 bankruptcy cases were filed in the U.S. by May 2021, which is 29 percent lower than the number of cases filed by that time in 2020. As many people were forced out of jobs or laid off with businesses temporarily or even permanently closing, consumers are continuing to rely on credit cards to cover expenses.

Bankruptcy Law, Consumer Bankruptcy

The Three Most Common Fears People Have When Filing for Bankruptcy

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The fear of losing everything is a very real concern for those contemplating bankruptcy. However, this is one of the most common bankruptcy myths, and can keep individuals who are drowning in debt from obtaining a fresh financial start.

To make the bankruptcy process a little easier to understand, we have dispelled the top three fears people have when filing for bankruptcy.

Debt Collection

How Federal Laws Protect You When Dealing with Debt Collectors

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Dealing with debt collectors can be stressful. Their job is to get the consumer to pay on a debt at any means necessary, which can often mean through coercion, harassment, and fear. Many debt collectors have been known to use aggressive or illegal tactics to collect on a debt, leaving many consumers to feel like they have no choice but to make payment to get them to go away. However, federal law offers certain protections when it comes to debt collectors. It is important that consumers understand what these protections are so that they are aware of what rights they do have when dealing with debt collectors.

According to the Consumer Financial Protection Bureau (CFPB), nearly one in every four people have a debt in collections. Illegal debt collection practice is a common complaint made to the CFPB.  

Debt Relief

What is Debt Relief and When Should I Seek It?

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Debt can seem like an insurmountable burden, impossible to escape once a consumer has gotten too far in. Different options are available for dealing with credit card debt, student loan debt, and other consumer debts.  

Many times, consumers find themselves overwhelmed with several different types of debt in differing amounts.

Consumer Bankruptcy, Legal Awards

Miami Bankruptcy Attorney Timothy S. Kingcade Named a Florida Super Lawyer 8 Consecutive Years

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Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade Garcia McMaken has been selected for inclusion in Florida Super Lawyers 2021, in the practice area of consumer bankruptcy. This is the eighth consecutive year Kingcade has been selected to the Florida Super Lawyers list (2014-2021). The prestigious honor is awarded to only five percent of lawyers in the state.

After receiving one of the highest point totals, Kingcade was also selected to be on the Florida Super Lawyers Blue Ribbon Panel. Only those in each practice area with the highest point totals are asked to be part of the panel to evaluate the candidacy of fellow lawyers to enter the prestigious Super Lawyer rankings.

Debt Collection, Debt Relief

Understanding Zombie Debt and the Statute of Limitations

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Consumer debts have what is called a statute of limitations. This is the amount of time the creditor can use the court to force a consumer to pay a debt. After the statute of limitations has expired on a debt, it is no longer legally enforceable. Occasionally, however, a consumer may be contacted regarding an old debt by a collector who hopes the consumer will ‘restart the statute of limitations.’

Zombie debt is debt that the consumer thinks is “dead,” meaning it is past the statute of limitations that the debt collector is now trying to bring back to life. While the debt collector cannot take the consumer to court to collect on the debt, there are no laws saying they cannot continue to contact the consumer to collect what is owed. Many times, debt collection agencies will purchase expired debt to turn a profit. Since the cost to buy expired debt is exceptionally low, even if they collect on a handful of accounts, they are still earning a profit.

Credit Card Debt

Negotiating a Lower Interest Rate on Credit Cards

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Paying down a credit card balance can be difficult, especially if the card carries a high interest rate. According to CreditCards.com, the average credit card interest rate in the U.S. is 16.15 percent (16.15%), and for many consumers, their interest rate is significantly higher, which can make paying off large balances very difficult. The good news is credit card interest rates can be negotiated, so long as the consumer knows how to do it.   

It helps to do some preparation before contacting the credit card company. The consumer should first be aware of what his or her credit score is before making contact. The credit card company will closely examine the consumer’s credit score, as well as his or her payment history. Every consumer is entitled to a free annual credit report, which should be closely reviewed before calling the credit card company. Be aware of all missed payments or late payments in case these are brought up in conversation.  

Credit Card Debt

Credit Card Debt Drops a Staggering $56.5 Billion in First Quarter of 2021

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Credit card balances saw a record reduction during the first quarter of 2021, after a previous record-setting reduction year was seen in 2020.  According to a study published by the personal-finance website WalletHub, American consumers paid off $56.5 billion in credit card debt during the first quarter of 2021. 

WalletHub reported that American consumers paid off $82.1 billion in credit card debt in 2020, which is a significant accomplishment considering the challenges many people faced last year. However, this decrease in credit card balances does not necessarily mean that the credit card debt crisis has been solved. There is still a collectively $900 billion in outstanding credit card debt. The average household carries a balance of $7,519, and these figures are expected to rise. In fact, WalletHub is projecting consumers will add $60 billion to the nation’s total credit card balances.  

The quarter one decrease in credit card debt was 51 percent larger than the average credit balance paydown since the Great Recession.   

Certain U.S. cities did better than others in paying down credit card balances. Pembroke Pines, Florida, ranked number five on WalletHub’s list with an average household credit card debt of $16,549 and a total credit card debt of $948,650,144. Pembroke Pines citizens paid a total of $64,124,649 of this credit card debt with an average household balance paydown of $1,119.  

Fort Lauderdale came in 24th on the list of cities that did well in paying down their credit card balances. The average Fort Lauderdale household carried $14,400 in credit card debt with a total debt in the amount of $1,073,761,245. Of this amount, Fort Lauderdale residents paid down $72,581,618.  

Financial analysts believe that this data shows that U.S. consumers are in good financial shape in 2021. However, they do anticipate a $60 billion national increase by the end of the fourth quarter of 2021, considering the fact that COVID stimulus packages and additional unemployment benefits will phase out this year.  

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.  It is not surprising with the high interest rates, unreasonable fees, harassing debt collection calls, penalties and never-ending minimum payments that do not even make a dent in your actual debt.

Filing for bankruptcy is a viable option for those struggling with insurmountable credit card debt. Chapter 7 is the fastest form of consumer bankruptcy and forgives most unsecured debts like credit card debt, medical bills and personal loans.  There are certain qualifications a consumer must meet in regards to income, assets and expenses to file for Chapter 7 bankruptcy, which is determined by the bankruptcy means test.

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.