Tag: Miami Bankruptcy

Bankruptcy Law, COVID-19, Small Business Bankruptcy

Personal and Business Bankruptcies Increase in the Month of July

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The number of individuals and businesses seeking bankruptcy protection increased last month, while the coronavirus (COVID-19) pandemic continues. Financial experts have predicted this jump for months since states began to shut down in mid-March.

According to the legal-services firm, Epiq Systems Inc., the number of businesses that have filed for Chapter 11 bankruptcy increased by 52 percent when compared to July 2019. Additionally, the number of personal bankruptcy cases have gone up. The number of personal bankruptcy filings are expected to increase, when the Covid-19 economic stimulus relief is cut or reduced.

student loan debt, Student Loans

5 Anticipated Student Loan Changes on the Horizon

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Student loan debt has become a hot topic in Congress and on the 2020 presidential campaign. The current COVID-19 crisis further highlighted the issue, which has student loan experts anticipating several potential changes when it comes to student loan debt.

Temporary Pause for Payments

One of the more immediate changes comes with the federal stimulus package, the Coronavirus Aid, Relief, & Economic Security Act (CARES Act). This $2.2 trillion stimulus bill offered many different benefits, one of them being a pause for all payments due on federal student loans. This temporary stop is set to last through September 30, 2020. In addition, interest will not accrue on outstanding federal student loans during this period. However, this coverage only includes loans serviced directly by the federal government and not by private providers. If borrowers have loans that were originally federal but later consolidated through a private entity, no immediate pause will occur on these debts. This fact has not stopped many states from working out arrangements with student loan servicers to include private student loans in the temporary relief. Given the fact that the COVID-19 pandemic seems to be holding on, this forbearance period could potentially extend beyond September 30, 2020. The Heroes Act has already included a provision to extend the forbearance by one year, but it is not decided yet whether the extension will occur.

Credit Card Debt

The Most Common Credit Card Fees and How to Avoid Them

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Most Americans have at least one credit card, if not more, that they use on a regular basis. These credit cards can be useful when paying for monthly expenditures, so long as the balances are kept to a minimum and paid in full. Additionally, most credit cards come with fees that make it nearly impossible to pay the card down if the balance becomes too high. According to a 2019 Consumer Reports study, one-third of American credit card consumers say that they struggle with the fees that came along with their credit cards. It is important that consumers be aware of these fees and take steps necessary to avoid them if possible.

Read the Fine Print

One of the best ways to determine what fees come with a credit card is to carefully review the fine print that comes with the consumer’s credit card contract. If any fees will be charged to the card, this information will be found in that fine print.

Bankruptcy Law, Lawyers in the News

Bankruptcy Attorney Timothy S. Kingcade Interviewed by The Miami Herald

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With about one out of every nine Miami-Dade workers — and nearly one out of every six in Broward — still out of a job due to the coronavirus pandemic, a question lingers in South Florida: How long can the region stave off an even worse economic disaster?

After a rough start, Florida’s unemployment system has come online to furnish tens of thousands of local workers with as much as $875 per week in unemployment insurance — the state’s standard $275, plus an extra $600 through the emergency U.S. CARES Act passed in March. But Florida’s unemployment insurance lasts only 12 weeks. And the extra $600 from Congress is set to expire July 31. Greater Miami ranks as one of the hardest hit metros in the country, thanks to its reliance on a tourism industry that has instantly dried up.

Bankruptcy Law

The Benefits of Filing Chapter 7 Bankruptcy

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A bankruptcy case can mean different things to different clients. For many of our clients, it means a chance at a fresh financial start. It also means freedom from crippling debt and an unending barrage of collection calls. It is for this reason that many individuals choose to file for Chapter 7 bankruptcy due to the many benefits this type of bankruptcy offers.

The benefits of filing for bankruptcy can include relief from debt collectors through the automatic stay issued at the start of the case, as well as relief of most of the filer’s debts, including medical bills, credit cards, personal loans, and other unsecured debts. By discharging these debts before they become legal judgments against the filer, he or she can avoid wage garnishment and repossession.

Debt Collection

Consumer Groups Dispute Proposed Debt Collection Rule

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A new rule is being proposed by the Consumer Financial Protection Bureau (CFPB) that would require debt collectors to notify consumers as to whether they can be legally sued for a debt they are attempting to collect. This rule follows complaints made by consumers regarding debt collectors threatening to collect on debts that they otherwise would not be able to pursue legally.

Every state has statutes of limitation which control how long an individual or entity can bring a legal action. For collection of debt, this timeline in Florida is five years for debts resulting from written contracts, such as personal loans, and four years for oral contracts or revolving accounts, including credit cards. If a creditor contacts a consumer regarding a debt past that deadline, the consumer is not under any legal obligation to pay.

Debt Relief, student loan debt, Student Loans

President Trump Vetoes Student Loan Forgiveness Bill

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A recent move by President Trump has student loan borrowers, as well as Veteran’s and Consumer groups, concerned and disheartened after he sided with Education Secretary Betsy DeVos and vetoed the bipartisan Borrower Defense to Repayment legislation.

The Borrower Defense to Repayment program is a student loan forgiveness program that was created during the Obama administration as part of an effort to provide debt relief for students who were taken advantage of by predatory colleges and for-profit universities.  Many of the borrowers who fell prey to these predatory tactics were veterans.

student loan debt

The Hidden Cost of Student Loan Debt

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According to a recent report from the Student Borrower Protection Center (SBPC), student loan debt may lead to additional interest paid on other forms of debt, including credit cards and mortgages. Borrowers may not realize just how much their debt can influence these other payments and may be paying higher prices without even realizing it.

The effects of student loan debt are far-reaching. Approximately 44 million Americans carry a collective $1.6 trillion in student loan debt. Most of these individuals also carry other forms of debt, the most common of these being mortgages and credit card debt. According to this SBPC study, these individuals are also forced to pay up to tens of thousands more in extra costs when purchasing a home or car or even using their credit card.

Credit Card Debt, Debt Collection, Debt Relief

How to Continue Paying Debt While Unemployed During COVID-19

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The coronavirus (COVID-19) pandemic has caused countless Americans to lose their jobs. More than 30 million Americans have filed for unemployment in the wake of the outbreak. Paying for basic expenses can be difficult enough but paying down debt while unemployed can seem impossible.

However, with proper planning and by taking advantage of opportunities available during this time, it can make things a little easier. The first step is to evaluate all expenses coming out monthly and create a budget to see what payments can be made. Additionally, the Coronavirus Aid Relief and Economic Security Act (CARES) provides some relief, as well, that can make this process easier.

Coronavirus, COVID-19, Debt Relief

How to Avoid a Big Tax Hit on Coronavirus Unemployment Benefits

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Man fills in Unemployment benefits application form.

A record 33 million American workers are currently collecting unemployment benefits amid the coronavirus (COVID-19) pandemic. And with these benefits come the inevitable tax repercussions. Here are some ways to lessen the impact.

Unemployment benefits received through the state, as well as the $600 coming from the CARES Act, provided by the federal government through July 31, are all considered taxable income. While Social Security and Medicare costs do not come out of unemployment benefits immediately like they do with normal paychecks, the recipient will be taxed by both the state and federal government. This can result in the person winding up paying in the long run when it comes to tax season if he or she has not paid enough tax throughout the year. However, this little “surprise” can be avoided by taking a few extra steps when receiving unemployment benefits.