Tag: Miami Bankrupcy Attorney

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Struggling with Student Loan Debt after 50? You’re not alone

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Student loan debt is no longer limited to the young.  In fact, Americans age 60 and older are the fastest-growing population of student loan debtors.  Those seniors who are living month-to-month on fixed incomes are the most likely to default.  When this happens to borrowers 65 and older, the government can seize a portion of their social security benefits, even if this pushes them into poverty.

Approximately 20,000 Americans 50 years of age and older had their Social Security checks cut below the poverty line in 2015 because of student loan debt.

Many have accumulated the debt helping their children or grandchildren, either by borrowing directly or co-signing on loans.  As these borrowers age, it becomes more difficult to afford their loan payments while also paying for food, housing, prescriptions, and dental and medical expenses.

Many seniors who are carrying federal student loan debt are eligible for income-based repayment plans, where borrowers can pay as little as zero dollars per month or may even qualify to have their loans forgiven after a specified period of time.

But loan servicing companies have not made it easy for borrowers to enroll in the programs or even let them know it was an option.  This deprives seniors of information about payment plans that would allow them to meet their loan obligations without having to skimp on food or necessary medical care.

The federal government needs to make this group a priority, which means ending the practice of garnishing the Social Security benefits of poor or disabled student loan debtors.

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. 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, 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.

Related Resources:

https://www.nytimes.com/2017/02/13/opinion/haunted-by-student-debt-past-age-50.html?_r=0

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The U.S. States that Struggle the Most with Credit Card Debt

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When it comes to managing debt, the Sun Belt states are struggling more than others: Florida, Georgia, Texas and New Mexico have the heaviest credit card debt burdens in the nation, according to CreditCards.com.

The Southern states struggled more with low incomes than high debts.  For example, Florida’s average credit card debt per bank cardholder ranks 18 among 50 states, but its median income ranks 41.  It would take a typical Florida cardholder nearly 13 years to pay off the state’s average credit card debt of $5,603 and they would pay more than $3,600 in interest.

Here are the states with the highest amount of credit card debt burdens, ranked by the number of months it would take to pay off the debt if 15 percent of their gross monthly income went towards payments.

  1. Florida

Average credit card balance: $5,603

Median earnings: $28,381

Months to pay off: 18

Interest to pay off: $678

  1. Texas

Average credit card balance: $6,009

Median earnings: $31,038

Months to pay off: 18

Interest to pay off: $712

  1. Georgia

Average credit card balance: $5,953

Median earnings: $30,284

Months to pay off: 18

Interest to pay off: $716

  1. New Mexico

Average credit card balance: $5,615

Median earnings: $26,244

Months to pay off: 20

Interest to pay off: $743

  1. Alaska

Average credit card balance: $7,552

Median earnings: $35,552

Months to pay off: 20

Interest to pay off: $992

If you are in financial crisis and considering filing for bankruptcy, 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, 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.

Related Resources:

http://www.cnbc.com/2016/12/22/the-us-states-that-carry-the-heaviest-card-debt-burdens.html

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

Social Security Checks Being Garnished for Unpaid Student Loan Debt

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In an effort to recoup millions of dollars in unpaid student loan debt, the government has resorted to taking money from borrowers’ social security checks.  Since 2001, the government has collected about $1.1 billion from recipients of all ages.  In 2015 alone they collected $171 million. This has left thousands of retired or disabled Americans with below-poverty incomes, according to a recent report from the Government Accountability Office.

As of September 2015, 114,000 Americans who were 50 and older had their Social Security benefits reduced to offset defaulted student loans, according to the report. Since 2002, the figure has increased by 440%.

The report identifies an increasing trend of baby boomers entering retirement with student loan debt. According to the report, approximately 43% of people whose Social Security checks were decreased have held their student loans 20 years or more.

Borrowers who are determined to be permanently and totally disabled are entitled to have their student loan debt forgiven, though many are unaware of the option, according to the Wall Street Journal. Currently, the government’s student-loan portfolio is $1.26 trillion, with an increasing number of people continuing to fall behind on their payments.

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. 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, 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.

Related Resources:

http://www.wsj.com/articles/social-security-checks-are-being-reduced-for-unpaid-student-debt-1482253337

http://fortune.com/2016/12/20/social-security-checks-garnished/

Bankruptcy Law

Timothy Kingade on Trends in Bankruptcy Law

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Recently, it has come to my attention the increase in my clients’ emotional exhaustion over losing their homes due to foreclosure.  Unfortunately, for those facing foreclosure here in South Florida, President Obama’s “Mortgage Rescue” plan has not yet materialized.  I have been able to help those facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives.  I also help those with the removal of mortgages in Chapter 13 bankruptcy filings.

Other bankruptcy trends I have noticed in my practice include an increase in the amount of senior citizens filing as a result of having to put their monthly prescriptions on credit cards.  Many of these individuals are already on fixed financial budgets and Medicare/Medicaid coverage applies only after a certain amount is covered by the consumer.  There has also been an increase in bankruptcy filings among college/graduate school educated individuals as a result of the 2005 law no longer discharging private student loans.

If you need relief from creditors calling and are considering bankruptcy as an option contact our experienced and compassionate attorneys today for a free consultation.  At Kingcade & Garcia, P.A. our attorneys have many years of legal experience and handle over a thousand bankruptcy filings each year.  We are sensitive to your financial issues and offer reasonable fees and payment plan options to clients in bankruptcy and foreclosure defense cases.

– Timothy Kingcade