Tag: Kingcade

Foreclosures, Timothy Kingcade Posts

Foreclosure Rates Reach Pre-Recession Record Low

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Good news has come from the housing market involving mortgages and delinquencies across the nation. According to a recent report, the rate of foreclosures and loan delinquencies is now at the lowest it has been since before the 2008 financial crisis.

The report comes from the Data and Analytics division of Black Knight, Inc. and showed that just shy of four percent of mortgages nationwide were delinquent as of 2018, which is down 18 percent from 2017. One word of caution from the report was that it was possible that these figures could be inflated by the after-effects from the 2017 and 2018 hurricanes. The effect could not be too significant, however, since areas that were not impacted by hurricanes were also down 11 percent from 2017. It is anticipated that these rates will decrease even more and could even go lower than they were before the recession.

Mortgages that were seriously delinquent also went down as of the end of 2018. A mortgage is said to be seriously delinquent when the payment is more than 90 days past due. Foreclosure starts, as well as foreclosure sales, were at an 18-year low, according to Black Knight’s reports.

Of all of the states, Colorado reported the lowest serious delinquent rate at 0.37 percent, while Mississippi was at the highest at 3.06 percent. The national foreclosure rate was also down 19 percent over 2018, dropping 0.52 percent from 2017. Even more promising were reports that five states experienced more than 30 percent declines in their foreclosure rates, including New Jersey, Oregon, Nevada, Washington, Utah and D.C.

States that reported the highest number of non-current home loans, meaning loan obligations that were in some level of delinquency or were past due, were from southern states, including Mississippi, Alabama, West Virginia, Arkansas, and Louisiana. Colorado, North Dakota, Idaho, Washington and Oregon reported the lowest number of non-current loans.

As of the end of 2018, 60,000 loans were in foreclosure to the point where the borrower had not made a payment in over two years. Over 40,000 loans had not received a payment in at least five years. These figures may seem high, but the report also showed that the aged foreclosure inventory rate was dropping, as well.

In fact, foreclosures that were ongoing for five or more years dropped by 35 percent from 2017 to 2018. Interestingly enough, the aged foreclosures seem to be from two states, including New York and Florida. These two states alone claim 40 percent and 20 percent respectively of aged foreclosure loans.

Many borrowers are taking this opportunity to refinance their mortgages. The report indicated that the lower rate of mortgage foreclosures in the last two months alone led to a 50 percent increase in the number of borrowers seeking a refinance on their mortgages.

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure, please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Medical Debt Still the Leading Cause of Bankruptcy for Many Floridians

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Medical debt is a major issue that burdens many Floridians. In fact, it is one of the top reasons that Americans in general struggle with debt they can never quite seem to conquer. For many of these individuals, bankruptcy is the only way out. However, the process of getting to that decision can be stressful.

As healthcare costs rise, many people are struggling to pay for their regular medical expenses incurred every year. Add one major medical crisis on top of those regular bills, and the expenses can get out of control quickly. With the repeal of Obamacare and the fact that individuals are no longer required to carry health insurance, the number of individuals filing for bankruptcy due to medical debt is expected to increase.

According to the Kaiser Family Foundation, it is estimated that 25 percent of all U.S. adults struggle to keep up with their medical bills. If your medical costs are getting out of hand and you find that you are not able to keep up with payments, what are your options? You should never simply ignore the bills and calls from collectors, hoping they will go away.

One option is to work with the medical provider on a possible payment plan to pay the debt off over time. Many providers are more than willing to work with someone so long as the individual contacts the company sooner rather than later. As soon as the account goes into default and a collection case is filed, it may be too little too late to work with them.

The problem is many of these individuals are not able to even communicate with the provider quickly because of their medical conditions which led to the debt to begin with. Many of them are already struggling in terms of health, which can make keeping up with financial matters extremely difficult.

If someone has an otherwise stellar credit score but suddenly falls ill and faces thousands of dollars in medical bills, it can be a major hit to the ego to decide that the situation calls for filing for bankruptcy. However, it often is the best decision to make. If the debt will likely be discharged in a bankruptcy case, it can be fruitless for someone to struggle paying the bills and delay the inevitable filing. While bankruptcy can put a mark on your credit, it can easily be fixed through positive financial habits and proper budgeting. The fear of what filing will do to your credit report should not keep you in a stressful financial situation, especially if you are already overwhelmed with a medical situation. A bankruptcy attorney can evaluate your situation and advise you on the best way to proceed, whether it be working directly with the medical provider or filing for bankruptcy.

How is Medical Debt Handled in Bankruptcy?

In bankruptcy, medical debt is treated the same as credit card debt. Medical bills are listed as general unsecured debt and can be easily wiped out in a Chapter 7 bankruptcy filing.  Making the decision to file for bankruptcy is never an easy one.  It can be difficult to get past some of the myths associated with filing for bankruptcy.  Sometimes by waiting, an individual facing a lot of debt can find himself or herself in an even worse situation. Filing for bankruptcy can help protect valuable assets, including your home, pension, IRA and social security.  It will put an end to wage garnishment and any lawsuit being filed to collect on the debt, thanks to the protections of the automatic stay.

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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 website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Understanding the Risks Associated with Debt Settlement

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Carrying large amounts of debt can be debilitating. It can affect every aspect of a person’s life, to the point where you would do just about anything to find a way out. So, if someone approaches you with an offer to reduce or eliminate your debt for less than the full amount you owe, it can seem too good to be true, right? The problem is, with debt settlement, it usually is. It is important to understand the risks associated with debt settlement.

The Process Is Not Quick.

One thing many debtors do not fully realize is the process of debt settlement is not actually quick. In fact, it can take anywhere from months to years to be completed. The first step is to accumulate enough money to offer a settlement to creditors. You first must enroll in a settlement program with a debt settlement company. The company opens a type of savings account to gather funds that you pay them monthly to use towards settlement offers. The debt settlement company will normally instruct you to pay them instead of your creditors. After you have reached the threshold determined by the company to begin making payments for creditors, the debt settlement company will negotiate with your creditors and collectors, if accounts have gone into collections, on a settlement. The company will use the money in your “savings” account to make these payments. This process can take anywhere from 12 to 48 months, depending on how much you owe and the monthly payments you are able to make.

Your Credit Score Will Take a Hit.

One major problem a with debt settlement program is the hit it will make to your credit score. For one, if your debt is successfully settled, your account status will read as “settled in full” instead of “paid in full,” which is less favorable on a credit report. Additionally, if a debt is settled, this mark will stay on your credit report for seven years from the date of final discharge or settlement of the debt. However, even more significant than this issue is what happens when you suddenly stop paying your debts. You take the risk that your creditors will put your accounts into past-due status or even turn them over to collections if you do not pay on them for more than 30 days. You assume that these debts will eventually be settled and cleared, but the damage that is done to your credit report in that time period can be quite significant.

Settlement Fees Are High.

Debt settlement companies do not perform this work out of the goodness of their hearts. After all, they are ‘for profit’ businesses, so they are performing this service with the intent of making money. Most of these companies charge a settlement fee that is either based on a percentage of the total debt settled or a flat fee taken at the end. According to a Federal Trade Commission (FTC) rule enacted in 2010, no debt settlement company can require a fee be charged upfront before settling or reducing a person’s credit card or other unsecured debt. They must be taken at the end. The fees can be high, however, so that can be a negative aspect to proceeding with debt settlement.

Do Creditors Have a Motivation to Settle?

Another problem with debt settlement is the fact that creditors have little motivation to settle the debt. They are under no obligation to work with the debt settlement company, and the debt settlement company cannot guarantee that their negotiations will be successful. In fact, if a company tells you that they guarantee they will be able to reduce or settle your debts, this statement should raise a red flag that the company may not be legitimate.

You can also negotiate with creditors on your own. You do not need to rely on the assistance of a third-party company to negotiate a lower payment on your debts or a lump sum reduction in what is owed. You will save yourself the fees that come along with working with a debt settlement company and can just as easily accomplish what you are trying to accomplish when retaining a debt settlement agency.

Debt Settlement or Bankruptcy?

Many times, debt settlement is simply avoiding the inevitable. You can spend years working with a debt settlement company to pay down a debt that would otherwise be liquidated in a bankruptcy case. If you are struggling to pay mostly unsecured debt, which includes personal loans, credit cards, and medical debt, this debt is what is normally discharged in a Chapter 7 or Chapter 13 bankruptcy case. With a bankruptcy filing, you get the benefit of an automatic stay, which essentially puts all collection matters on hold until the bankruptcy case is completed. If you choose to proceed with debt settlement first, you do not get this protection, and many of your accounts that would otherwise be liquidated in bankruptcy will go into collections or even be brought to a judgment, resulting in a wage garnishment against you. The result is you will take a significant hit to your credit score and pay monthly payments to a debt settlement company to negotiate on a debt that you would otherwise be able to discharge in a bankruptcy case. It may be more practical to proceed with the bankruptcy instead of other options, especially if the majority of your debt is unsecured. An experienced bankruptcy attorney can review your situation and discuss possible options that are available for handling the debt and eliminating it.

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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.

 

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

What Happens When You Stop Paying Your Credit Cards?

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Missing credit card payments can come with some serious financial consequences. How a credit card delinquency is handled depends on how long the bill has gone unpaid. A credit card payment is considered “late” if it has been unpaid for at least 30 days after the due-date. However, credit reports list delinquencies in different ranges as to how late the payment may be, and includes the following categories:

  • 30 to 59 days late;
  • 60 to 89 days late;
  • 90 to 119 days late;
  • 120 to 149 days late;
  • 150 to 179 days late;
  • Over 180 days late.

Your credit report will not show a missed credit card payment so long as it has been made no later than 29 days past the due date. After 30 days has passed, the credit card company will likely charge a late fee and potentially increase the interest rate on the card. This fee and interest rate hike will be reflected in the next month’s bill.

However, if a genuine mistake was made or a valid reason exists for why the payment was missed, you should contact your credit card company immediately to see if they will waive the fee as a courtesy. If you have been a good customer up until this point and have a good payment record, most credit card companies will understand and be willing to work with you.

Whether they waive the fee is one issue, but the credit card company will likely report the fact that you missed the payment to the three major credit reporting agencies, Equifax, Experian and TransUnion. Your credit score will likely drop once this report has been made. If you have an otherwise stellar credit score, you can see the hit more noticeably as opposed to someone who has a lower credit score. This single missed payment can remain on your report for up to seven years, but if you are able to continue making your payments on time after this mistake, your score will rebound, and creditors will see that you are not a future risk.

If you are 60 days late in making your payment, the financial consequences will be more severe. You will incur late fees and a likely a higher interest rate, even more than the one you received when 30 days late. The credit card company may also bump the interest rate to a penalty APR, which can be expensive and can get as high as 29.99 percent. It is likely that this penalty APR will stay with you for up to six months before the card holder decides to lower the interest rate. The higher the interest rate, the longer it will take for you to pay down your credit card debt completely. You may find that the high interest rate is all you are paying with monthly payments and that you are not making any dent in the principal.

Payments that are 60 days late can hurt your credit, but just like with payments that are 30 days late, you can eventually bounce back from this slip so long as you demonstrate smart financial behavior.

However, as soon as your payments are past 90 days late, the credit card company will likely turn the account over to a collection agency. Many will wait until the payments are more than 180 days past-due before turning the account over to a collection agency and will simply try to collect on the debt themselves first. As soon as you are past 90 days, you will either be notified that the card company has sent the account to an in-house collection department of outside collection agency. After 90 days, not only will fees and penalties increase, but the cardholder may also lower your card’s credit spending limit.

If the account is more than 120, 150 or even 180 days late, this means you have missed at least four payments. You will see many of the same consequences that come along with being 90 days past-due, but the consequences are understandably harsher. Debt collections calls will increase significantly. If, at this point, the account was not previously sent to collections, the debt will likely be sold to a third-party collection agency. This step of selling the debt to a third-party collector is known as a “charge-off,” which basically means the credit card company has written the debt off as a financial loss on their books. It does not mean the debt is forgiven or gone, but it means a new company that has the right to collect on the debt owns the account. If your debt has been charged-off, this will reflect very negatively on your credit report.

You can work with the debt collectors on settling the account, potentially paying for a less than full balance, or you may consider consulting with a bankruptcy attorney. It is important that you act quickly, however, in the event the debt collector files a collection action and obtains a judgment against you on the debt and a wage garnishment. So long as the debt is within the Florida statute of limitations for collections, which is five years, the debt collector is within its rights to file a legal action against you to pursue collection on the debt. However, if a bankruptcy case is filed before a judgment is issued, the automatic stay will put an immediate halt to the collection matter to allow for the bankruptcy process to occur. Since credit cards are unsecured debts, bankruptcy is often the best option for an individual struggling with insurmountable credit card debt.

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. We offer additional tips for eliminating credit card debt on our blog.

Click here to read more.

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.

 

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Do you have enough debt to file for bankruptcy?

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One of the common misconceptions surrounding bankruptcy has to do with how much debt you must have to qualify for bankruptcy. Bankruptcy laws do not have a set minimum debt requirement for someone to be able to file for bankruptcy. Ultimately, it depends largely on the person’s financial circumstances, including the type of debt he or she has, as well as the person’s ability to pay back the debt, along with other factors.

When it comes to debt levels, how much debt you have is only one consideration made when determining whether you should proceed with a bankruptcy filing.  Unlike a Chapter 7 bankruptcy case, a Chapter 13 bankruptcy does have a maximum debt amount for debtors considering this form of bankruptcy. Currently, you cannot hold more than $1,184,200 in secured debt or $394,725 in unsecured debt when filing a Chapter 13 bankruptcy case. These numbers do fluctuate depending on inflation and can change from year-to-year.

Filers are limited in how many times they can receive a bankruptcy discharge within a set amount of time. For example, if you filed for Chapter 7 bankruptcy and received a discharge, you must wait eight years before being able to file for Chapter 7 again. Therefore, if you do not have a significant amount of debt, you may want to consider whether you will anticipate needing to file in the future. Is it worth it to file for bankruptcy now on a smaller amount of debt and be barred from filing again, if needed? A bankruptcy attorney can talk through these options with you to help you make the best choice.

Bankruptcy looks at the different types of debts you carry and whether these debts can be discharged. Certain debts are considered non-dischargeable, including priority tax debts, student loans in most cases, child support, spousal support, and any obligations arising from a personal injury case caused by wrong actions, which can include drunk driving. For instance, if most of your debt is in student loans, a bankruptcy may not be your best option, while a person who carries mostly credit card and medical debt will find bankruptcy beneficial.

If you are filing for Chapter 7 bankruptcy in Florida, you can use Florida bankruptcy exemptions to protect your property. In addition, residents are provided unlimited exemptions for homestead, annuities, and the cash surrender value of a life insurance policy. Florida has one of the most generous homestead exemptions in the country.

Even if you do not have a large amount of debt, if you are being sued or the matter is being referred to collections, it may be best to file for bankruptcy now instead of later. As soon as you file for bankruptcy, an automatic stay will be issued, putting a stop to all collection actions. If you wait too long, and a judgment is issued on the debt, resulting in wage garnishment, it may be too little too late. It is for this reason that it is important you meet with an experienced bankruptcy attorney to talk about your financial situation and whether bankruptcy is right for you.

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.

Related Resources: https://www.alllaw.com/articles/nolo/bankruptcy/do-i-have-enough-debt-to-file-for-bankruptcy.html

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief

Residents in Southern States Struggle the Most with Credit Card Debt

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Credit card debt is a problem for many Americans, but it seems it is a bigger problem for those living in southern states. According to research produced by creditcards.com, the large majority of credit card debt is carried by individuals living below the Mason-Dixon line.

According to the creditcards.com study, approximately 40 percent of Americans earn enough money to pay their balances off in full every month. However, for the remaining 60 percent, those balances grow more each month, and the cardholder only ends up paying interest on the card through monthly payments, never quite making progress in paying it down.

The study ranked the states not necessarily based on the total debt held by individuals in those states. They were also ranked by the number of months it would take to pay down the average total credit card debt by making payments on the balances equal to 15 percent of that state’s monthly income.

While New Mexico tops the list of states when it comes to credit card debt, with the average balance is $8,323, southern states including Louisiana, West Virginia, Alabama, Arkansas, Mississippi, and Georgia follow New Mexico in terms of high balances being carried from month-to-month. The researchers that conducted the study correlate the high credit card balances with lower income in these states.

In the states with higher income levels, these cardholders are more likely to be able to pay off their balances in full every month. The lower the income and higher the balance, the less likely the cardholder will be able to ever conquer his or her debt. Further, the study showed that in the wealthier states, a credit card payment that was equal to 15 percent of that state’s median monthly income will be much more manageable than it would be in states with lower income. It just so happens that the states with the lower income were also southern states.

People living in the Miami metro area, which includes both Fort Lauderdale and West Palm Beach, carry the second-highest credit card debt balances in the country, second to San Antonio, Texas. Texas was reported as being a state with three of the five cities that reportedly had the highest credit card debt.

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. We offer additional tips for eliminating credit card debt on our blog.

Please click here to read more.

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.

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

South Florida Bankruptcy Court Surviving Government Shutdown

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The partial government shutdown has had some far-reaching effects, but many of the offices that were affected are still operating despite Congress’s failure to pass a spending bill. South Florida’s Bankruptcy Court is one of those entities that is continuing to operate.

The bankruptcy court has three different locations in Miami, Broward and West Palm Beach, all three of which are still open as usual and will continue to operate.

The court has the ability to remain open due to non-appropriated funding that it receives from sources outside of congressional funding. Because of this funding, business can keep running, and these three offices have remained open with regular business hours.

Here is how the government shutdown has affected the United States Bankruptcy Court for the Southern District of Florida Operations.

The trustee’s office has been able to offer limited staff for tasks, including scheduling Section 341 creditor meetings, making sure that trustees are appointed to cases, handling means testing for bankruptcy cases, and handling emergencies as they have come up.

Section 341 meetings are continuing as scheduled. These meetings are important for ensuring that bankruptcy cases move smoothly and do not get backlogged during the shutdown.  In the event the judiciary does shut down, the court will maintain its online electronic filing system, PACER, for all bankruptcy filings.

Government Shutdown Update: After submitting to mounting pressure amid growing disruption, President Trump signed a bill to reopen the government for three weeks, backing down from his demand that Congress give him money for his border wall before federal agencies get back to work.  Trump said he would sign legislation funding shuttered agencies until February 15 and try again to persuade lawmakers to finance his long-sought wall. The deal he reached with congressional leaders contains no new money for the wall but ends the longest shutdown in U.S. history.

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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.

 

 

Debt Relief, Timothy Kingcade Posts

Simple Steps to Help Reduce Your Debt

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Debt can cause a lot of problems in life. It can not only cause damage to your credit score, but it can also affect your emotional well-being, even your relationships.  It can make the person feel like he or she is drowning with no possible relief in sight.  Given the 126.2 million American households, the average household has around $8,161 in revolving debt, approximately $6,577 of which is credit card debt. With nearly 248 million Americans over the age of 18, that comes out to a total of $3,353 in credit card balances per US adult, according to cardrates.com.

Here are some steps to take to help manage and reduce your debt.

Step 1: Review Your Debt

The first step is to take an inventory of what type of debt you owe. This inventory can be done by creating a master list of what all is owed, from credit card debt to loans to medical bills. A person’s credit report can be the best source for getting a clean list of what is owed. For this list, write down the name of the creditor, how much owed on each bill, the minimum monthly payment, the payment due date, and the interest rate on the debt. This list will give you a good picture of what all is outstanding and how to then attack the debt.

Step 2: Decide How Much Can Be Paid

The next step before conquering the debt is to put together a monthly budget and decide how much can be paid towards the expenses. Add up all of your monthly costs, including living expenses, car, food, utilities, and any minimum payments on debts. Make sure to leave some wiggle room for unexpected expenses, such as emergencies that may arise. The remaining amount on your budget should be what you can put towards your debt repayment plan every month.

Step 3: Contact Creditors

Once you have determined how much you can pay towards your outstanding debts, the next step is to reach out to your creditors to discuss repayment. Many lenders are more than willing to work with debtors on a repayment plan or to even lower interest rates on outstanding obligations. See if any of them will negotiate with you on a debt repayment plan or will settle the debt for a flat amount. However, be cautious when negotiating debt settlement with third-party agencies, as scams exist to take advantage of those looking to get out of debt.  If you cannot afford to pay the debt, tell the debt collector that.  Never promise to pay an amount you cannot afford and never provide them with your bank account and routing information.

Step 4: Attack One Bill at a Time

Looking at all of those debts can seem daunting, but the best method is to often tackle one bill at a time. Taking the bill with the highest interest rate or the one with the smallest balance is best. By taking on the card with the highest interest rate, you can save yourself a great deal of money on interest payments. However, taking the smallest debt first can help give you some momentum in that you will feel a sense of accomplishment after paying off a debt completely in full. Once that first debt is tackled, take on the next debt and so on, until all of the outstanding debts are paid in full.

Step 5: Keep Paying on Other Bills

While you are paying off the targeted bill, it is important that you continue paying the minimum monthly payment on the other debts. In addition, keep paying the full amount that you decided would go towards your debt in your prepared budget. As you eliminate debt, simply put that extra money towards another debt, taking the snowball effect. This tactic will make it possible for you to pay off your debt quicker than you would if you only made the minimum payments on all of the accounts.

Step 6: Be Creative with Your Options

Staying disciplined to your plan is the best method for attacking the debt, but it also helps to be a little creative. For example, use your annual tax refund or a job bonus to pay down the debt or enlist the help of an experienced bankruptcy attorney to eliminate the debt. Try to come up with extra ways to earn money and use that extra income to go towards paying down debt.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial difficulties.  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 begin to make a dent in the actual debt owed. We offer additional tips for eliminating credit card debt on our blog.

Click here to read more.

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.

 

Debt Relief, Timothy Kingcade Posts

Debt Collections for Furloughed Vets Suspended by VA

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The government shutdown has been a nightmare for many federal employees and those who receive direct government benefits. An estimated 800,000 federal government employees have not been paid during the shutdown. The New York Times reports that the typical government worker has gone without $5,000 in pay so far. Just last week, Trump recalled 46,000 furloughed staffers to work without pay.

One group has been hit particularly hard, and that group includes federal employees and their family members who have debts with the Department of Veterans Affairs. As no end seems to be in sight for the government shutdown, the VA has announced that those affected by the shutdown will be eligible for a temporary suspension of collection activity.

Additionally, any veterans who owes money to the VA based on over-payment of a benefit, including compensation or GI benefits, can also request the VA automatically suspend any collection attempts up to 90 days.

These types of stays of collection actions are normally only available during a bankruptcy automatic stay. The VA has said that veterans who are furloughed employees or family members of a furloughed federal employee can request this suspension of collection activity up until April 1, 2019.

If these individuals are interested in receiving a collection activity suspension, they need to prepare and submit a completed VA Form 5655 (Financial Status Report). This form can be submitted by mail, fax or electronically.

When completing the form, it is important that the individual completes all information fully and accurately. In block 36, indicate that you are a furloughed federal employee or a family member of a furloughed federal employee. Additionally, any veterans who has medical debts can also request a suspension of collection actions.

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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.

 

Bankruptcy Law, Debt Relief, Student Loans

Homeownership Out of Reach for 400,000 Young Families Burdened with Student Loan Debt

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Student loan debt presents a major problem for many different reasons, but for 400,000 Americans in their 20s and 30s, student loan debt is now preventing them from purchasing a home. These numbers come from a new report released from the Federal Reserve, which has shown an 8.8 percentage decrease in homeownership for individuals in their 20s and 30s between the years 2005 and 2014.

Between the years 1989 and 2016, the amount of American families that carried student loan balances went from 8.9 percent to 22.4 percent according to information produced by the Fed’s Survey of Consumer Finances. For Floridians, the amount of student loan debt incurred every year has consistently been going up, as well. According to this research, the average family has a student loan debt balance of up to $19,000. The problem is what is going to happen to these young borrowers after they enter the workforce and wish to make a big purchase, such as buying a home? Will these individuals also be able to save up for retirement? According to the research from the Federal Reserve, approximately 3.6 percent of Americans between the ages of 65 and 74 are still paying on their student loan obligations.

While going to college and securing a college degree can benefit the borrower in many ways, such as securing a job in that person’s chosen career field with a better chance of earning a good income, this education almost always comes at a high cost. Students are graduating with loan balances well into five figures with no end in sight. If the student goes on to earn a graduate or professional degree after receiving his or her undergraduate degree, that balance can even reach six figures. Many researchers argue that tuition costs need to be decreased significantly to make college a less costly choice for students graduating high school. However, tuition costs only seem to be rising every year.

The study showed that the borrowers who have higher student loan debt early in life tended to have a lower credit score later. A lower credit score can hurt that person’s chances of getting a home, but also accessing other types of credit for a car purchase or acquiring a personal loan.

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For borrowers who are struggling with student loan debt, relief options are available.  Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all 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.