Miami bankruptcy attorney Archives - Page 3 of 102

What Assets Can Creditors Seize in Bankruptcy?

Posted on October 8, 2024by Admin

Bankruptcy filers often fear losing everything they own when going through a Chapter 7 or Chapter 13 bankruptcy case. You may think that filing for bankruptcy means you have to give up your home, your car, and other important assets. This is simply not true. Laws are in place to help protect you, while also providing creditors with a portion of debt repayment.

All nonexempt assets may be used to repay your creditors in a Chapter7 bankruptcy. These include:

Vehicles
Land
Houses
Investment Properties
Items of value, like jewelry artwork.

However, many Chapter 7 cases are no-asset cases, meaning the debtor gives up no possessions. This happens for two reasons. First, you can allot for basic assets, called exemptions that are necessary for day-to-day living. For example, the homestead exemption that protects your primary residence. Your vehicle that you need to get to and from work. Personal items and household goods, tools of the trade (i.e. – items you own and use to make a living) are all protected.

The U.S. Bankruptcy Code and Florida bankruptcy laws protect a great deal of a consumer’s property, if used appropriately. The State of Florida has some of the most generous bankruptcy exemptions in the country, but these exemptions only apply to individuals who meet certain residency requirements. For these exemptions to apply, the consumer must have lived in the state for at least two years before filing. Otherwise, federal exemptions apply.

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.

Do I Have to Surrender My Car in Bankruptcy?

Posted on September 20, 2024by Admin

Filing for Chapter 7 bankruptcy can clear most unsecured debts, but it may also require selling or giving up some assets to pay debts. A fair question and one many people have is: “Will I be able to keep my vehicle if I file for bankruptcy?”

The answer is yes. Most filers will be able to keep their vehicle after filing for bankruptcy. Florida bankruptcy laws offer generous exemptions which allow individuals to keep various types of property, including their vehicle. Vehicles are often exempt if they are necessary for you to maintain a job and household.

In a Chapter 7 bankruptcy, if your car is financed, you can surrender it by returning it to the lender. With that, the loan will be discharged in bankruptcy but will leave you without a car.

If you file Chapter 7 bankruptcy and are current on payments, you can keep the car if your equity is protected under state law. Under the Florida Motor Vehicle Exemption, bankruptcy filers can exempt up to $1,000 in motor vehicle equity. This amount can be even more if a married couple is filing for bankruptcy jointly. In cases where you are keeping a car with a loan on it, make sure you continue to stay current on your payments. The lender can still assert its lien rights if you get behind on payments and you could lose your car.

Secured Loans

It helps to understand the nature of a car loan as compared to other debt in a bankruptcy case. Since a car loan is attached to an asset, this debt is labeled as a secured debt, which means the asset can be used to pay off the amount owed if the consumer cannot continue paying. This debt is not liquidated in a Chapter 7 case if the consumer wishes to keep the car after everything is over. Therefore, the filer must file Form 108 at the start of the case, which is known as a statement of intention. This form tells the court whether the consumer wishes to reaffirm the car loan, redeem the car, or surrender it. This statement of intention must be filed within 30 days of the bankruptcy case being filed, or the car loan is not considered part of the bankruptcy proceeding.

Status of Vehicle

Determining the status of the filer’s vehicle is important before determining if he or she can keep the car. The status can be either the person owns it free and clear, he or she is leasing the car, or the person is still paying a loan on the car. If the filer is still making monthly payments on a loan, the lender holds the title to the car as collateral. Once the car loan is paid in full, the title then shifts to the vehicle owner. If, during the loan payments, the filer cannot keep up with payments, the lender will then take the car back, which is also known as repossession.

Being current on the car loan’s payments is key in both Chapter 7 and Chapter 13 in terms of the ability to keep the filer’s car. It makes it more likely that the filer will be able to continue paying on the car even after the bankruptcy case is over.

Value of the Car

The value of the vehicle is also important in how it is treated in bankruptcy. In a bankruptcy case, the value of the car is determined by the actual cash value of the vehicle. This value is usually the retail replacement value of the car. The car’s make and model, mileage, and condition determine the actual cash value of the car. Equity is important, as well, which is determined by subtracting what the filer owes on the car from its current value.

Bankruptcy Exemptions

Equity is key when it comes to determining the exemption that allows the filer to keep the car. Florida has one of the most generous bankruptcy exemptions in the country. To use Florida’s exemptions, the filer must have resided in Florida for at least 730 days before filing his or her bankruptcy petition. To claim the full value of the homestead exemption in Florida, the filer must have owned the property for at least 1,215 days before the bankruptcy filing. Under Florida bankruptcy exemptions, the filer can exempt up to $1,000 in motor vehicle equity or more if the person is married and filing for bankruptcy jointly.

Redeeming the Car

In a Chapter 7 case, the filer may be able to keep the car by redeeming its current replacement value. To do this, the filer pays to the lender what is owed on the car, minus the car’s current replacement value to own the car outright. Unfortunately, not many filers are able to do this since most do not have this kind of money available, which is why fewer than two percent (2%) of all filers redeem their car.

Reaffirmation Agreement

The filer can also keep the car by reaffirming the debt. This means he or she will agree to a new payment plan with the lender. To reaffirm the debt, the filer must submit Form 108, which is a statement of intent. Approximately two-thirds of all filers take this route.

Surrendering the Vehicle

If the filer cannot pay the debt in full or is not able to feasibly reaffirm the debt, he or she may surrender the car. Filers normally surrender their vehicles when they are significantly behind on payments. When a surrender happens, the lender gets the car back and the debt owed on it is forgiven. Unlike a repossession, the consumer is no longer liable for the deficiency balance owed on the car, which is what occurs in a repossession when the lender resells the car for less than what is still owed on it.

Chapter 13 Bankruptcy

The above options are normally the choices available to consumers in a Chapter 7 bankruptcy case. However, if the consumer wishes to keep his or her car, Chapter 13 bankruptcy is usually the best route for him or her. In a Chapter 13 case, the consumer works with the bankruptcy trustee to create a repayment plan that takes three to five years to complete where he or she pays down debts over the course of the case, liquidating whatever is left at the end of this period.

If the consumer has a lot of equity in the vehicle and if he or she can pay past due payments while remaining current on all other payments, it is likely he or she will be able to keep the car in a Chapter 13 case.

Many times, the bankruptcy court can also get the lender to reduce the interest rate on a vehicle loan under Chapter 13. This reduction will lower the person’s monthly payments and will make it easier for him or her to make payments.

Additionally, in a Chapter 13 case, if the consumer has owned the car for more than 910 days, which is roughly about two and a half years, the bankruptcy court can rule that the loan balance owed will be based on what the car is worth now as opposed to what the balance of the original loan is.

Sources:

If I File Bankruptcy, Can I Keep My Car? (debt.org)

What Happens to My Car During Bankruptcy? – Experian

Bankruptcy Filings, Bankruptcy Trends

Bankruptcy Boom: Why More Young Adults are Filing for Bankruptcy

Posted on September 16, 2024by Admin

Bankruptcy filings among 18 to 29-year-olds have surged 17% from Q1 to Q2 of 2024 and are up 13% compared to last year.

While the pandemic produced a drop in filings due to relief measures, debt among young adults has since risen, reaching $1.12 trillion for 18- to 29-year-olds. Filings have jumped 50% since a 24-year low in early 2022.

This trend is aligned with other factors, including rising interest rates, which have driven up minimum credit card payments. Some people avoid filing for bankruptcy due to the fear of damage to their credit and the stigma of being labeled ‘financially irresponsible,’ even when it could offer a much-needed fresh start.

While bankruptcy is often considered damaging to a person’s credit score, that is not entirely accurate. Many people’s credit score is already struggling by the time they consider filing.

Filing for bankruptcy can actually give your credit score a boost once your debts are wiped out, as long as you have a solid plan to rebuild your credit strategically. There are two main types of consumer bankruptcies: Chapter 7 and Chapter 13, and choosing the right one depends on your financial situation. To see if bankruptcy is the right choice for you, start by talking with an experienced attorney who specializes in bankruptcy law.

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Consumer Debt, Credit Card Debt

Consumer Credit Card Debt Reaches an All-Time High of $1.14 Trillion

Posted on August 15, 2024by Admin

Consumers are carrying more debt than ever before on their credit cards, according to a new report from the Federal Reserve Bank of New York. Outstanding credit card balances in the U.S. have reached $1.14 trillion.

Credit card balances grew by $27 billion over the first three months of 2024, according to the report, and are up 5.8% over last year. Delinquency rates also increased for credit card holders with 9.1% of card holders now in default on their outstanding balances.

Earlier this week, new data released by Bankrate showed that 50% of U.S. credit card users are carrying a balance on their accounts, up from 44% in January. This is a rate not seen since the early days of the pandemic.

The average credit card interest rate now stands at 24.84%, according to Lending Tree. An individual’s credit score can have a significant impact on the rates charged by card issuers. For example, an applicant with exceptionally good credit can expect an average APR of 21.41% while someone with a poor credit history will see an average APR offer of 28.28%.

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 don’t even seem to make a dent.

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.

Please click here to read more.

student loan debt, Student Loans

Can Your Student Loan Forgiveness Be Taxed?

Posted on July 9, 2024by Admin

According to recent data from the Federal Student Aid Data Center, 43.6 million people have outstanding federal student loan debt. In February 2024, the Biden Administration canceled $1.2 billion for 153,000 borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment plan. And in March, 78,000 borrowers were granted student loan forgiveness through the public service loan forgiveness (PSLF) program, which included many teachers, nurses, firefighters, social workers, and other public servants, including the military.

For those struggling to afford their monthly payments, forgiveness on their student loans may seem like a dream come true. However, it is not always a clean break, and certain forms of student loan forgiveness are taxable.

Thanks to the American Rescue Plan Act of 2021 any student loan debt forgiveness that passes between December 31, 2020, and January 1, 2026, is considered tax-free. Previously, any forgiveness on student loan debt was treated as taxable income.

From Jan. 1, 2026, onward, how student loan forgiveness and discharge programs are taxed depends on the program.

Public Service Loan Forgiveness (PSLF)

Those who work for nonprofit organizations, government agencies, or public service groups may qualify for PSLF if they work for a qualifying employer full-time for 10 years and make 120 qualifying monthly payments. After reaching those milestones, borrowers can apply for debt forgiveness. Once approved, the government forgives the remainder of the balance. PSLF is one of the few programs that is excluded from federal income taxes; none of the forgiven loan amount is taxable as income.

Income-Driven Repayment (IDR) Discharge

IDR plans are for federal loan borrowers and extend the loan terms and base the borrower’s monthly payments on a percentage of their discretionary income.

The government will discharge the remainder if the borrower still has a balance at the end of their loan term. However, the forgiven loans are taxable as income at the federal and state levels.

Borrower Defense to Repayment Discharge

Borrower Defense to Repayment Discharge is a program that eliminates federal student loans belonging to borrowers who their college misled, or if their schools engaged in misconduct and violated state laws.

The IRS and the U.S. Department of the Treasury have issued notices that clarify that loans discharged through Borrower Defense to Repayment are not taxable as income.

Total and Permanent Disability Discharge (TPDD)

TPDD applies to borrowers who become totally and permanently disabled. The government will discharge the remaining loan balance for eligible federal loan borrowers. How and if these are taxed depends on when the loans were discharged. If you received discharge before January 1, 2018, the discharged loan amount is subject to federal income taxes.

Tax on student loan forgiveness for private student loans.

Private student loans are not eligible for federal loan programs like PSLF or TPDD. However, borrowers with private student loans may qualify for other loan forgiveness or discharge programs. For example, some private lenders will discharge the loans of borrowers who become totally and permanently disabled.

The American Rescue Plan specifies that forgiven private student loans are also exempt from federal income taxes through the end of 2025. However, they may be subject to state income taxes. According to the IRS, student loan amounts forgiven under PSLF are not considered income for tax purposes. You will not be taxed by the federal government, but your state may tax you. Any debt forgiven because of PSLF will not create a federal tax liability for you.

Click here to read more.

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.

SOURCES:

Reasons You Can or Can’t Be Taxed on Student Loan Forgiveness (aol.com)

Will I be taxed on student loan forgiveness? (yahoo.com)

Bankruptcy Law, Consumer Bankruptcy

The Bling Factor: Jewelry An Issue in Shilo Sanders Bankruptcy Case

Posted on July 5, 2024by Admin

Colorado defensive back Shilo Sanders filed for bankruptcy in October, hoping to discharge a $11.8 million court judgment against him in Texas.

The son of Football Hall of Famer and Buffaloes head coach, Deion Sanders, is now facing questions about his income. It will be up to the court whether to discharge that debt. If the discharge is denied that judgment is owed to a man who has been closely monitoring Sanders’ possessions that could be sold to collect on it, including Shilo’s many necklaces and the business deals that bring him income from his name, image, and likeness (NIL).

The court judgement is a result of the 2015 assault of John Darjean, a high school security guard at Focus Academies in Dallas, Texas. Shilo Sanders allegedly assaulted Darjean after Darjean tried to confiscate his phone at school when Sanders was 15 years old. Darjean said Shilo Sanders hit him so hard near his neck with his elbow that it left him with permanent injuries, nerve damage and incontinence.

“Flashing bling” is part of the Sanders family brand. According to Darjean’s attorneys, it was hard to miss after Shilo’s ‘displays of wealth on social media.”

But because of the bankruptcy, Shilo now has reason to tone down his image, while still being truthful in disclosing all that he owns in court, as required by law.

It is important to disclose all your assets in court, but do not give any potential debt collector more reasons to question where you are getting the money to buy new things or whether certain necklaces you are wearing were properly included in your court disclosures.

Jewelry has been an issue in Shilo’s bankruptcy case from the beginning. In his initial Chapter 7 bankruptcy filing in October, he listed $478,000 in assets, including necklaces he valued at $75,000. His attorney then amended the value of his assets in December down to about $320,000 and removed the necklaces from the list of assets he owned, changing it to say he had $75,000 in necklaces that were on loan pursuant to an NIL deal with Saki Diamonds.

Bankruptcy trustees are experts at finding undisclosed property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to hide assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing. In addition, the potential penalty for bankruptcy crimes includes fines and imprisonment of up to five years.

If you have any 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, 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.

SOURCE:

Bankruptcy case of Deion Sanders’ son Shilo has a bling factor (usatoday.com)

Bankruptcy Filings, Bankruptcy Law, Consumer Bankruptcy

Protecting Your Assets During Bankruptcy

Posted on May 20, 2024by Admin

People often fear losing everything they own when filing for personal bankruptcy. The good news is the U.S. Bankruptcy Code and Florida bankruptcy laws protect a great deal of a consumer’s assets and property, if used appropriately.

The State of Florida has some of the most generous bankruptcy exemptions in the country. For these exemptions to apply, the consumer must have lived in the state for at least two years before filing. Otherwise, federal exemptions apply.

How bankruptcy exemptions apply depends on the type of bankruptcy case being filed. In a Chapter 7 case, the bankruptcy trustee sells the filer’s nonexempt property, using the proceeds to pay off qualified debts and discharging the remaining debts at the end of the case.

In some cases, if you are not able to exempt an asset fully, the trustee may abandon it because the value is not significantly more than the exemption amount. Keep in mind, it is expensive to conduct a sale for an asset, and it is only worth selling the asset if there is money to pay back your creditors. Usually, goods and clothing are exempt unless they are worth a significant amount of money. In certain states, like Florida, there is an unlimited homestead exemption, which allows you to keep your home in its entirety.

Here is a list of the most common bankruptcy exemptions in Florida.

Homestead Exemption

The homestead exemption allows the filer to keep equity he or she has in the home. In Florida, the amount that is allowed to be exempted is unlimited, meaning the entire value of the house is protected. The filer can keep his or her home after the bankruptcy, so long as he or she can keep up on mortgage payments and can pay off any past due payments. Also, to use the unlimited exemption offered by Florida bankruptcy law, the consumer must have owned the home for at least 1,215 days prior to filing, which comes out to roughly three years and four months.

Wage Exemption

Money the filer earns through his or her paycheck can also be exempted up to a certain amount. The law allows wages of the head of household to be fully exempt up to $750 per week. This exemption applies to both paid and unpaid wages. Any wages deposited into the bank account for up to six months prior to filing can also be protected. Other members of the household can protect up to 75 percent (75%) of their wages or 30 times the federal minimum wage, whichever is higher.

Personal Property Exemptions

Personal property can also be protected to a certain amount. Florida’s bankruptcy exemptions protect up to $1,000 in personal property or $4,000 in personal property if the filer does not use the homestead exemption. This exemption covers art, electronics, jewelry, and furniture. Money in a health savings account and education savings account is also protected, as are prescribed home health aides.

Wildcard Exemption

If the filer does not use the homestead exemption, he or she can protect other property via the wildcard exemption. This exemption can be used on up to $4,000 of personal property or $8,000 if the consumer files his or her taxes jointly with his or her spouse. The wildcard exemption can also be used towards the consumer’s home if he or she owes more than the house is worth, to protect that amount of value in the residence.

Motor Vehicle Exemption

The law allows the filer to retain a certain amount of equity in the car he or she drives. Florida allows the filer to exempt up to $1,000 of the equity he or she has in a car, if the filer has any equity at all in the vehicle.

Retirement Savings & Pension Exemptions

Florida bankruptcy law will also protect certain types of retirement plans and pensions, including the following:

ERISA-qualified retirement plans, including 401(k)’s, 403(b)’s, IRAs, Roth IRAs, money purchase plans, and profit-sharing plans,
Public employee retirement benefits,
Firefighter and police pensions, and
Teachers’ retirement plans.

Insurance and Benefits Exemptions

Florida bankruptcy filers may also protect the following financial assets through bankruptcy exemptions:

Proceeds of a life insurance policy that are payable to a specified beneficiary,
Disability income benefits,
The cash surrender value on a life insurance policy,
Fraternal society benefits, and
Proceeds from an annuity contract, with the exception of annuities set up for lottery winners.

Public Benefits Exemption

Additionally, other benefits the consumer receives may also be exempt including the following:

Social Security benefits,
Veterans’ benefits,
Workers’ compensation and/or unemployment benefits,
Local public assistance benefits, and
Money received as crime victim’s compensation benefits.

Child Support and Alimony Exemptions

Money the consumer receives from an alimony or child support order are exempt from being seized in a bankruptcy so long as they are reasonably necessary the support of the filer and his or her child, in cases of child support.

To ensure that the consumer is properly using these bankruptcy exemptions to protect his or her property, a qualified bankruptcy attorney should always be consulted.

Please click here to read more.

Consumer Bankruptcy

How to Get a Home Loan After Bankruptcy

Posted on May 8, 2024by Admin

Filing for bankruptcy is not an easy decision. But while filing for bankruptcy can be emotionally challenging, it is a relatively common option to choose. Annual bankruptcy filings totaled 452,990 in 2023, according to a report from the Administrative Office of the U.S. Courts — an increase of nearly 17% compared to 2022, when 387,721 bankruptcy cases were filed.

Oftentimes, it is easier to reestablish credit after filing bankruptcy, because you are essentially given a “clean slate.”

Here are 5 Tips for Getting a Home Equity Loan After Bankruptcy.

Timing is everything. Depending on the type of bankruptcy filed, it is crucial to recognize that lenders typically become more willing to work with you as time passes. Be proactive about increasing your credit score after bankruptcy and lenders will view your financial situation more favorably.
Rebuild your credit. After filing for bankruptcy, obtain a copy of your credit report to confirm that everything is accurate. Rebuilding your credit should be a top priority. That means paying your bills on time, reducing outstanding debts and using a secured credit card.
Shop around. Home equity lenders have different requirements when it comes to lending ‘post-bankruptcy.’ It is in your best interest to take the time to research those lenders who offer terms that are most favorable to you. Compare interest rates, fees, terms and conditions of the loans.
Consider a co-signer. A co-signer with a strong credit history can significantly increase your chances of being approved for a home equity loan following bankruptcy. When you add a co-signer to the loan you are essentially vouching that they will repay the loan if you are unable. However, it is important to recognize that co-signers are equally responsible for the loan, and any default can negatively impact that person’s credit.
Highlight positive financial changes. When applying for a home loan after bankruptcy, it can be helpful to provide the lender with evidence of positive financial changes you have made since filing.

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:

6 tips for getting a home equity loan after bankruptcy – CBS News

Foreclosure Defense, Foreclosures

U.S. Foreclosure Activity Increases in Q1 2024

Posted on April 29, 2024by Admin

Real estate data by ATTOM, revealed its Q1 2024 U.S. Foreclosure Market Report, which showed a total of 95,349 U.S. properties with a foreclosure filing during the first quarter of 2024. These numbers were up 3 percent from the previous quarter.

The report also showed a total of 32,878 U.S. properties with foreclosure filings in March 2024, down less than 1 percent from the previous month and down 10 percent from a year ago.

Foreclosure starts to increase nationwide.

67,657 U.S. properties started the foreclosure process in Q1 2024, up 2 percent from the previous quarter and up 4 percent from a year ago.

States that had 100 or more foreclosure starts in Q1 2024 and saw the greatest quarterly increase included, New Hampshire (up 43 percent); Illinois (up 26 percent); Florida (up 22 percent); Rhode Island (up 21 percent); and Nevada (up 16 percent).

Major metros with a population of 200,000 or more that had the greatest number of foreclosure starts in Q1 2024 included, New York, New York (4,404 foreclosure starts); Houston, Texas (2,977 foreclosure starts); Chicago, Illinois (2,867 foreclosure starts); Los Angeles, CA (2,398 foreclosure starts); and Miami, FL (2,319 foreclosure starts).

Click here to read more.

Choosing the right attorney can make the difference between keeping your home or losing it in foreclosure. 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.

Credit Card Debt

How is Credit Card Debt Handled in Bankruptcy?

Posted on April 16, 2024by Admin

Credit card debt is treated as an unsecured debt in bankruptcy. Unsecured debt is debt that is not secured by any collateral. For example, a mortgage would be a secured debt guaranteed by your home; an auto loan would be a secured debt guaranteed by your car. Unsecured debts, like credit cards, medical bills, and personal loans can be easily discharged in bankruptcy.

Most consumer bankruptcy cases do not include any assets, and there is no property that can be liquidated to pay off creditors. Any funds from liquidated assets are paid to creditors based on priority. Credit card companies and other unsecured creditors are usually last on the list.

If you file Chapter 13 bankruptcy, your repayment plan will be approved if it repays most or all your creditors over a three-to-five-year period. But that doesn’t mean all creditors will be repaid, some not at all. Creditors are repaid according to priority in Chapter 13.

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 regarding income, assets, and expenses to file for Chapter 7 bankruptcy, which is determined by the bankruptcy means test.

SOURCE: Credit Card Debt Under Bankruptcy Law | Bankruptcy Law Center | Justia