Tag: Miami bankruptcy attorney

Credit Score

Credit Scores Drop at Rates Not Seen Since the Great Recession

Posted on by Admin

As Americans struggle to keep up with the cost of living and the return of student debt payments, their credit scores are taking a hit. The national average FICO score dropped by two points this year, the highest since 2009, according to recent data.  These numbers are down for the second year in a row.  FICO also found that delinquency rates on auto loans, credit cards and personal loans are at or near their highest levels since 2009.

Younger Americans are facing even more financial pressure with high student loan debt and low entry-level hiring. Gen Z borrowers experienced an average credit score drop of three points — the biggest decline of any age group since 2020 during the pandemic, according to FICO.

FICO found that 14% of Gen Zers have had a large credit score decline of 50 points or more in the past year — more than any other year and double the decline of 2021.

The US Department of Education’s COVID-19 relief for student loans has ended. The 0% interest rate ended Sept. 1, 2023, and payments restarted in October 2023. The Department of Education restarted collecting federal student loans in default in May. Student loan delinquencies were not reported on credit files until February.

Between February and April, 6.1 million consumers had a student loan delinquency added to their credit file, according to FICO. That means the student loan delinquency rate has climbed to a record high of 29% among the 21 million borrowers with a student debt payment due.

The impact of these late student debt payments and the fact that Gen Z doesn’t have a long track record of making credit payments, which builds their credit scores. This makes their credit scores vulnerable to more volatility, both up and down.

FICO found that 64% of Gen Z and 61% of Millennials with student loans rely on credit cards, buy-now-pay-later loans or personal loans to bridge financial gaps.

Click here to read more on this story.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced 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.

Bankruptcy Law, Consumer Bankruptcy

Personal Loans After Bankruptcy. Can You Get One?

Posted on by Admin

YES, it is possible to get a personal loan after bankruptcy.

The good news is that after bankruptcy, you can immediately take steps that can have a positive impact on your credit history. While each lender will have certain eligibility requirements, for example, a minimum credit score and minimum income.  A descent income and a low debt-to-income ratio can be compensating factors. Especially, if you have taken steps to rebuild your credit.

Here are some important tips for rebuilding your credit after bankruptcy.

  1. Pull a copy of your credit reports for free by visiting https://www.annualcreditreport.com/.
  2. Make sure your credit reports are accurate. The accounts that were discharged in bankruptcy should be closed. If any discrepancies are found, these errors should be reported right away to the credit bureaus via a formal dispute.
  3. Prioritize making future payments on time. It sounds simple, but on-time payments and responsible credit card use can significantly help you recover from bankruptcy.
  4. Creating a budget is important after completing a bankruptcy case. Write down all necessary living expenses and track how much of the consumer’s income can be used to go towards paying these costs. A good rule of thumb when budgeting is to follow the 50/30/20 rule. What this entails is 50 percent of the consumer’s income goes towards meeting his or her needs. Another 30 percent would be set aside for items that are considered not necessary or are wanted, while 20 percent of the monthly income goes towards savings.

Getting a personal loan after bankruptcy.

If you are interested in applying for a personal loan after bankruptcy, here are some important steps to take.

  1. Review your credit report. If you find mistakes, contact the credit bureau before applying for the loan.
  2. Know your loan amount. A personal loan can be helpful, but it still needs to be repaid. That means borrowing within your means and only for what you need.
  3. Research lenders. Look at minimum and maximum loan amounts, eligibility requirements, APRs, repayment terms, fees, and customer reviews.
  4. Get prequalified: Once you have your list of potential lenders, see if you can get prequalified online.
  5. Have all your documents ready. Make sure you have pay stubs, tax statements, and bank statements ready to support your application. After that, it’s in the lender’s hands. You may get a response immediately, or within a couple of days, or up to a week, depending on the type of lender.

 

Click here to read more.

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.

Credit Card Debt

Credit Card Debt Report for 2025

Posted on by Admin

Credit card interest rates are at an all-time high, averaging above 20 percent.  The implications of credit card debt are far-reaching.  Here are several key insights from Bankrate’s 2025 Credit Card Debt Report.

  • 46% of credit cardholders report having a credit card balance. About a quarter (23%) do not think they will ever be able to pay it off.
  • Emergency and day-to-day expenses, such as groceries, childcare and utilities, are the most common reasons for credit card debt.
  • Credit card debt causes Americans to hold off on important money milestones. Saving for an emergency (34 percent), investing (23 percent) and buying a vehicle (21 percent) are the most likely to be set back.

Approximately how long have you been carrying a balance on your credit card(s)?

Note: Among respondents who carry a balance on their credit card(s). Source: Bankrate surveys, June 2-4, 2025, November 13-15, 2024.

Credit Card Debt

Credit Card Stats 2025

Click here to read more.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.

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 regard 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.

Bankruptcy Filings, Consumer Debt, Foreclosures, Medical Debt

Study Links This Health Condition to Higher Rates of Debt, Bankruptcy and Foreclosure

Posted on by Admin

A recent study revealed that patients with diabetes have more adverse financial events on average than patients without diabetes.  Researchers used a unique dataset to show that patients with Type 2 Diabetes have worse financial outcomes than other patients.  Findings showed diabetes patients fared worse on all seven financial outcomes studied, including below-prime credit scores, medical and non-medical debt in collections, 60-plus-day delinquent debt, debt charge-offs, bankruptcy filings and foreclosure.

The study’s co-author, and professor and chair of consumer sciences at The Ohio State University, Cäzilia Loibl, found that patients with diabetes were more burdened financially than other patients. The diabetes patients in the study were compared to people who had a blood test to check for diabetes but who were not diagnosed with diabetes.

Researchers used data on 166,285 patients being treated at the Wexner Medical Center at Ohio State from October 2017 through December 2021.

While other research has “suggested” that diabetes patients often face financial difficulties, this most recent study sets it apart.  Researchers were successfully able to link credit, employment and medical data, providing a unique look at the connection between “physical and financial health” in diabetes patients.

Click here to read more.

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.

Medical Debt

Consumer Financial Protection Bureau’s Medical Debt Rule Delayed

Posted on by Admin

A U.S. District Court judge in the Eastern District of Texas has twice ordered a stay of the medical debt rule, which was supposed to take effect on March 15. The rule would have wiped out $50 million of medical debt from credit reports. At the time, benefitting 15 million Americans. An independent agency had calculated that the new credit reporting rules would result in an additional 22,000 mortgages every year and boost Americans’ credit scores by an average of 20 points.

U.S. District Judge Sean Jordan, who was appointed by President Trump during his first term, argued in his decision that the Fair Credit Reporting Act does not allow the Consumer Financial Protection Bureau (CFPB) to remove medical debt from reports. New leadership appointed by President Trump now runs the CFPB. And the agency did not just reverse its position on the consumer protection rule; it joined forces with the plaintiffs who filed the suit trying to block it.

The outcome of the lawsuit, filed on the same day the rule was issued, has important financial implications for millions of Americans whose medical debt has negatively impacted their credit scores.

Click here to read more on this story.

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 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.

Bankruptcy Trends, Credit Card Debt

More People Filing for Bankruptcy Have Retail Credit Card Debt

Posted on by Admin

Store credit cards, which most major retailers offer, carry a much higher interest rate than traditional credit cards. Since 2021, the number of people with retail credit card debt that file for bankruptcy has been rising at a faster rate than new filings overall, according to proprietary data and analytics from Stretto.

Between 2023 and 2024, new consumer bankruptcy filings rose 5.8% but the number of cases that included retail credit card debt rose 12%, a CNBC analysis of the data shows.

Click here to read more on this story.

While each consumer’s financial situation is different, there are ways to determine if your credit card debt is too high.  Consider your answers to the following questions:

  • Is your credit card debt impacting your financial and emotional health? Carrying large amounts of credit card debt can damage your credit score and cause you to experience financial and emotional stress. A good rule of thumb is to ensure your monthly payments are not more than 10 percent of your monthly income.
  • Are you paying only the minimum? Credit cards typically have low monthly minimum payments, but that doesn’t mean they are affordable just because you can cover that amount. If you are only able to make the minimum payment, that can be a sign you have too much credit card debt.
  • Is your credit card debt impacting your credit score? Credit cards can help your credit score- or hurt it, depending on how you use them. It is recommended that you keep your credit utilization below 30 percent. Having significant credit card debt can have a negative impact on your credit score. This can make other debts, like your mortgage and car payments more expensive.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.

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 regard 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.

Bankruptcy Law, Consumer Debt, Debt Relief

When Is an Emergency Bankruptcy Filing Necessary?

Posted on by Admin

An emergency bankruptcy filing is a streamlined process used in situations where the filer urgently needs to stop a creditor from collecting on a debt. It is often referred to as a skeleton bankruptcy filing because it’s so simplified.

The filer receives the same benefits and protections they would in a standard bankruptcy case. Like the automatic stay, which puts an immediate halt to all collection activity. The emergency filing gives the same protection after completing certain online forms and submitting the remaining required documents later.

The shortened process allows you to start a bankruptcy case by submitting an incomplete, otherwise “bare bones” filing. The best part about an emergency bankruptcy filing is that it can be completed online and in a matter of minutes.

A specific emergency isn’t required for a skeleton filing. Anyone who needs to file quickly to prevent an unwanted event from happening can use the process. For instance, bankruptcy can stop:

After filing the petition, the bankruptcy automatic stay goes into place and stops these types of issues immediately.

When is an emergency bankruptcy filing appropriate? It is appropriate when a debtor is facing an imminent foreclosure on his or her home or a repossession of his or her vehicle. Since the amount of paperwork needed to formally open a bankruptcy case is significant and cannot be done overnight, it may not be done quickly enough to stop the foreclosure or repossession from happening. However, with an emergency bankruptcy petition, it is possible to be done quickly enough to get the automatic stay and protect the filer’s assets. The key is the filer must file the additional documents within 14 days or his or her bankruptcy petition will be dismissed. The filer must also comply with other rules, which will be provided on the court’s website.

Certain documents are required for an emergency bankruptcy filing. The bankruptcy petition is the essential part of the bankruptcy case, which will determine which chapter of the bankruptcy code forms the basis of the filing. The creditors’ contact information is also required with the emergency bankruptcy filing, along with a credit counseling certificate of completion or a waiver request, along with a Form B121. The filing will also be accompanied by a filing fee, although the filer can submit a request for a fee waiver. It is also possible to submit the fee in installments if this makes the situation more financially feasible.

Occasionally, the filer may also need to complete additional paperwork, as required by the court. It is important that the filer complies with these requirements, or the court will dismiss the bankruptcy petition within a certain required period, usually within 14 days.  

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.

Source: JUSTIA.com

Auto Loan Debt, Consumer Debt

Auto Loan Debt Rising in the U.S. – Here are Cities with the Most

Posted on by Admin

People in the U.S. collectively owe over $1.64 trillion in auto loan debt, with the average household owing nearly $14,000. These loans have become significantly more expensive, and interest rates have surged.

WalletHub has identified the cities where auto loan debt is growing the fastest and those where the increases are more modest by examining proprietary consumer debt data.  Here are the findings:

Cities with the Most Auto Loan Debt

Hialeah ranks in the Top 5 cities where auto loan debt is increasing the most. Miami comes in at #43 on the list. In most of the Top 10 cities on the list, this extra debt is a bad sign because those cities tend to have high debt delinquency rates and a lot of people experiencing financial distress.

Click here to read more.

If you have questions on this topic or are in a 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 Filings, Bankruptcy Trends, Consumer Bankruptcy

Experts Warn of a Summer Bankruptcy Spike Amid Economic Instability

Posted on by Admin

A recent report suggests that bankruptcy filings could soon be on the rise due to the economic hardships many families are facing.

The average American household carries over $105,000 in consumer debt. LegalShield’s Bankruptcy Index suggests that filings this summer could spike to a level not seen since the start of the COVID-19 pandemic.

If you are borrowing to make ends meet every month, bankruptcy can provide you with a way out. There are two paths for individuals considering personal bankruptcy. Filing for Chapter 7 involves liquidating assets to pay off debts, while Chapter 13 allows individuals to keep some assets and restructure their debt.

Certain debts, such as alimony and child support, cannot be discharged in bankruptcy. Student loan debt might be included, but only under specific circumstances. Credit counseling is another option. By following a strict budget and negotiating lower interest rates on outstanding debt, it is possible to get your finances under control.

Click here to read more.

If you have questions on this topic or are in a 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 Filings, Bankruptcy Trends, Consumer Bankruptcy, Consumer Debt, Timothy Kingcade Posts

Consumer Bankruptcy Inquiries Reach Highest Level Since the Pandemic

Posted on by Admin

People inquiring about filing for bankruptcy have reached its highest level since 2020.  Insurmountable debt, years of steep inflation, costly mortgages, and a weakened housing market remain the driving factors.

Legal Service provider, LegalShield, reported bankruptcy legal inquiries jumped in Q1 following three quarters of “high consumer stress.” The index is based on a survey of more than 25 million legal requests.

Prolonged financial stress combined with price pressures driven by tariff uncertainty will likely contribute to a surge in bankruptcy filings this summer.

These bankruptcy warning signs come amid a third straight quarter of elevated consumer stress measured by LegalShield’s Consumer Stress Legal Index (CSLI), pointing to a heightened financial strain that has become a “new normal” for American households.

Tariffs are driving up costs on everything from food and clothing to electronics and cars. The increased costs are typically passed on to consumers.

The share of households more than 90 days late on credit cards and car loans hit a 14-year high at the end of 2024, according to The Federal Reserve Bank of New York, and delinquencies are still climbing. Credit card balances also hit a record high of $1.21 trillion.

Click here to read more.

If you have questions on this topic or are in a 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.