Tag: repossession

Auto Loan Debt

Subprime Borrowers Face Record Number of Car Loan Defaults

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A significant group of Americans are falling behind on their car loan payments.

The percentage of subprime borrowers – those with credit scores below 670 – who are at least 60 days late on their car loans has doubled since 2021 to 6.43%, according to Fitch Ratings.

Cars are being repossessed at the highest rate since the Great Recession of 2008 and 2009.

Experts believe this is an economic warning sign of things to come.

Car loans are often the last payment Americans are willing to miss. Cars are simply too important to their livelihood. Cars are essential for most people to get to work, drive their families, and access food.

Many subprime borrowers have no choice but to default. They are unable to sell their car because they owe more than it’s worth. They oftentimes have already missed payments on other financial obligations, such as mortgage or rent, as well as payments due on credit cards and student loans.

The repo business has been busy. Subprime lenders have built GPS features into cars to make it easier for teams repossessing the vehicles to find them. Lenders can even disable the ignition of the cars to prevent owners from driving them once they’ve defaulted on the loan.

Filing for bankruptcy can stop repossession of your car and offer options to keep it or surrender it. An automatic stay goes into effect the moment you file, which legally prevents creditors from repossessing your car, property, and other assets. The best course of action depends on your financial circumstance and whether you can realistically afford to keep the vehicle.

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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.

Foreclosure Defense, Foreclosures, Kingcade Garcia McMaken

Florida Moves Up to No. 2 Status as State with the Highest Foreclosure Rate

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Attom released its November 2024 U.S. Foreclosure Market Report this week. The report includes the total number of properties nationwide that have at least one foreclosure filing.  The report showed that 29,390 properties had foreclosure filings in November. That represents a 3% decrease from October and a 9% decrease from November 2023.

While foreclosure filings are down month-over-month and year-over-year, the data reveals states, such as Florida, Nevada, and Connecticut, remain high.

Nevada maintains its status as the state with the highest foreclosure rate (one in every 2,941 homes). Florida moved up to No. 2 with one in every 3,047 homes in foreclosure, followed by Connecticut (one in 3,210), Maryland (one in 3,535) and Indiana (one in 3,567).

The city of Miami has one of the highest foreclosure rates (one in 2,551 homes), among metros with more than 1 million residents. Foreclosure starts – means lenders have started the process but have yet to repossess the home.

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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.

REMEMBER: In Florida, the homeowner has rights when it comes to foreclosure! But do not delay.

Related Resource:
Kingcade & Garcia, P.A.- Foreclosure Defense (youtube.com)

Bankruptcy Law, Consumer Bankruptcy

Will a Bankruptcy Filing Remove a Vehicle Repossession?

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A bankruptcy discharge will relieve the filer of his or her debts, which means that the person can walk away with a clean financial slate.  However, a bankruptcy case does not remove all debts from the consumer’s credit report. In fact, certain debts and the legal proceedings associated with them can be difficult to remove, including vehicle repossession.

A consumer bankruptcy case, including Chapters 7 and 13, should remove negative marks on the consumer’s credit report. In a Chapter 7 bankruptcy case this is accomplished by liquidating the consumer’s assets that are not otherwise protected under a bankruptcy exemption and using those funds to pay off the consumer’s debts. Those not paid are then discharged at the end of the bankruptcy. Under a Chapter 13 bankruptcy case, the consumer works with the bankruptcy trustee on a repayment plan that lasts between three to five years. At the end of that time, the remaining debts are discharged from the consumer’s record.

Bankruptcy Law

How Long Does the Bankruptcy Automatic Stay Remain in Effect?

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One of the benefits of filing for bankruptcy is the automatic stay and the protections it offers filers who are facing a multitude of collection calls from their creditors. It can also protect a person from lawsuits, wage garnishment, repossession, and losing valuable property.  As soon as the bankruptcy petition is filed, the automatic stay goes into effect. After this point, creditors and debt collectors are legally barred from attempting to collect on any debt owed by the filer.

The automatic stay will remain in effect throughout the duration of the bankruptcy case from filing to discharge. However, certain factors can affect the automatic stay and how long it remains in effect.