Tag: wage garnishment

Bankruptcy Law, Timothy Kingcade Posts

How Do Bankruptcy Courts Handle Income Tax Debt in Chapter 7 Bankruptcy?

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We have all seen or heard the advertisements promising to significantly reduce or even eliminate tax debt. Many of these companies are offering just that – empty promises, while charging clients unethical fees. Of all the types of debts handled in a bankruptcy case, income tax debt tends to be one of the non-dischargeable categories, along with student loan debt and child support obligations.

However, there are certain tax obligations that can be discharged in a Chapter 7 bankruptcy case depending on the following factors:

When You Can Have Your Tax Debt Discharged in Bankruptcy:

  • You must have filed a tax return. This must have occurred at least two years prior to the bankruptcy filing;
  • The taxes must be income taxes. Taxes other than income tax, including payroll taxes and fraud penalties are non-dischargeable in bankruptcy;
  • You must not have committed fraud or willful evasion. If you filed a fraudulent tax return or attempted to evade paying taxes (i.e. – using a false social security number on your tax return) your tax debt cannot be discharged in bankruptcy;
  • The debt must be at least three years old. For the tax debt to be eliminated in bankruptcy, the debt must have been originally due at least three years before filing for bankruptcy;
  • The tax debt must have been assessed by the IRS at least 240 days before you file for bankruptcy.

A Chapter 7 bankruptcy can wipe out your personal obligation to pay the debt and prevent the IRS from garnishing your wages. Whether you should file for bankruptcy may be a matter of timing, depending on the age of the income tax debt.  An experienced bankruptcy attorney who specializes in this area of law can best advise you on the next steps to take.

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.

Related Resources:

https://www.nolo.com/legal-encyclopedia/bankruptcy-tax-debts-eliminating-29550.html

Bankruptcy Law, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

The Top Ways To Get Out Of Debt

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Debt is a weight that can drag you down and make you feel like you are drowning without any way out.  Having extreme debt can affect your health, happiness and personal relationships.  Getting out of debt can be an even bigger struggle, if you do not devise a plan that works for your specific situation.

Debt Consolidation

One popular method of paying off debt is through debt consolidation. What consolidation means is the consumer’s debt is combined into one, single debt amount owed. Debt consolidation can be done through many different methods. A consumer can apply for a personal loan or consolidation loan to pay off all of the debts with the monies from the loan. This method allows you to only make one payment to one creditor rather than multiple creditors.  With this method, we strongly advise that you do your research. Not all debt consolidation companies are reputable, and it is important you understand the terms of the loan before signing on the dotted line. For most debt consolidation loans, you need good credit to be approved. If you are already struggling financially, many lenders will see you as a risky bet and will avoid lending to you without a co-signer or at least some collateral to secure the debt.

Credit Counseling

Many different credit counseling resources exist, and they usually involve a professional counselor who will work with the debtor on understanding his or her financial situation and researching possible options to get out of debt. Credit counselors often will work with the individual to organize and manage their debt, and the counselor will also contact the debtor’s creditors on payment arrangements, including creating payment plans or negotiating lower interest rates. Credit counselors can also put together a debt management plan that allows the debtor to make lower monthly payments through the debt counselor who, in turn, pays the individual’s creditors.

Like debt consolidation companies, it is important that you do your due diligence in choosing a credit counselor. Less-than-reputable agencies do exist, so make sure you choose someone who has your best interests in mind. Know that a credit counselor cannot make certain promises, such as guaranteeing that your creditors will work with them or that they will be able to directly reduce your debt. While they can certainly work towards that goal, lenders are not obligated to work with credit counselors. If a ‘credit counselor’ is promising you this or telling you that they can completely eliminate your debt by having you pay a low monthly payment to them, this is a BIG red flag.

Debt Settlement

Another potential option for paying off debt is through debt settlement. This process normally involves a third-party company that works with a debtor’s creditors to allow the debtor to pay a lower amount than what is owed. However, with this option the likelihood of scams is very high. Many of these companies have been reported for taking the debtor’s money and never negotiating on the debt. Additionally, debt settlement can result in a person’s credit taking a rather serious hit due to the fact that the debtor will normally have to stop making payments to the creditor, pushing the accounts into default. Unless the creditor agrees to work with the debt settlement company, a judgment can easily be issued against the debtor, resulting in wage garnishment to satisfy the debt.

Filing for bankruptcy

Debt can be complex and oftentimes frightening to deal with. Many times, people are hesitant or feel ashamed to ask for help. However, not properly dealing with debt can only make problems worse. Rather than run the risk of being sued by a creditor or have your wages garnished, it is best to deal with your debt head on. There are a number of debt relief options available, including filing for bankruptcy, which can completely wipe out unsecured debts like credit cards, medical bills, personal loans and more- and give you a fresh financial start. Exploring these options with the guidance and support of an experienced attorney can help you make the right decision.

Do not let your debt cost you another sleepless night. Here are some of the signs that bankruptcy is right for you. 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. The consultation is free, the relief is real! You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

 

Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Do Not Believe the Lies Debt Collectors Tell You

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Debt collectors will tell you just about anything to get you to pay on a debt. They are persistent, to the point of being rude or even harassing at times. One thing that many debt collectors, especially the less-than-reputable collectors bank on is the fact that you will not know when your rights are being violated or when you are being lied to.

How do you know whether you are being fed a line or whether you are being told the truth by a debt collector?   Here are some of the most common lies debt collectors will tell you.

Threatening to take you to court – even jail.

Under the Fair Debt Collection Practices Act (FDCPA), third-party debt collectors cannot threaten to take you to court on a debt if they have no intention of actually doing this. Many also will threaten to garnish your wages if you do not pay. Wage garnishment does not occur that easily. It only happens after a debt collector files a formal legal claim against you, a hearing is held where you have the right to present your side of the story, and a judgment is issued. Only then can a debt collector file a wage garnishment, which still has to be granted by the judge before your wages can actually be garnished. Many collectors, however, will make these statements in hopes that they will scare you enough into paying them.

The debt collector does not have to prove you owe the debt.

This lie is another one that goes directly against the FDCPA. If you are contacted by a debt collector who claims you owe money on a debt, you have the right to request written proof or validation of the debt. You then have 30 days normally to dispute the debt, if you do not believe you owe it. In fact, under the FDCPA, consumers have the right to send the debt collector a formal letter known as a “debt validation letter,” requesting more information on the debt to see what amount is owed.

This validation includes a complete payment history, a copy of the original loan agreement or credit application and proof that a third-party debt collector has the right to contact you on the debt, if someone other than the original creditor has contacted you. Many collectors will say they do not have to legally provide you this proof, but that statement is completely untrue.

Additionally, according to the Federal Trade Commission (FTC), if a creditor cannot validate a debt, the creditor cannot collect on the debt, is not permitted to contact you on the debt, and is not allowed to report your debt to creditor bureaus. Violating this provision is a violation of the Fair Credit Reporting Act and can result in a $1,000 fine.

Paying off the debt immediately will improve your credit score.

Mentioning your credit score is often a quick way to get you to act, and debt collectors know this fact. Many collectors will claim that you can immediately improve your credit score if you pay them immediately. The problem is, once your debt is in collections or is considered 90 days past due, this blemish will stay on your credit reporting even if you make an immediate payment to the debt collector. They cannot promise that your credit score will improve with that payment because it simply is not possible. It is possible, however, to get a written agreement from the creditor or collector that they will remove all negative information from them on your credit report, but most consumers are not aware of this possibility, so it is rarely utilized.

Threaten to expose your debt to others.

Debt collectors may also threaten to expose you and the fact you owe this debt to others you know, including family members, friends, even your employer. However, under the FDCPA, debt collectors are prohibited from revealing any information about the debt to anyone other than the debtor. This protection is meant to keep the debtor free from intimidation or harassment from debt collectors and to keep this information private, as it is personal information only to the debtor. If the collector makes this threat, report the company immediately to the FTC as they are violating federal law.

Please 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.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

What Happens When You Stop Paying Your Credit Cards?

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Missing credit card payments can come with some serious financial consequences. How a credit card delinquency is handled depends on how long the bill has gone unpaid. A credit card payment is considered “late” if it has been unpaid for at least 30 days after the due-date. However, credit reports list delinquencies in different ranges as to how late the payment may be, and includes the following categories:

  • 30 to 59 days late;
  • 60 to 89 days late;
  • 90 to 119 days late;
  • 120 to 149 days late;
  • 150 to 179 days late;
  • Over 180 days late.

Your credit report will not show a missed credit card payment so long as it has been made no later than 29 days past the due date. After 30 days has passed, the credit card company will likely charge a late fee and potentially increase the interest rate on the card. This fee and interest rate hike will be reflected in the next month’s bill.

However, if a genuine mistake was made or a valid reason exists for why the payment was missed, you should contact your credit card company immediately to see if they will waive the fee as a courtesy. If you have been a good customer up until this point and have a good payment record, most credit card companies will understand and be willing to work with you.

Whether they waive the fee is one issue, but the credit card company will likely report the fact that you missed the payment to the three major credit reporting agencies, Equifax, Experian and TransUnion. Your credit score will likely drop once this report has been made. If you have an otherwise stellar credit score, you can see the hit more noticeably as opposed to someone who has a lower credit score. This single missed payment can remain on your report for up to seven years, but if you are able to continue making your payments on time after this mistake, your score will rebound, and creditors will see that you are not a future risk.

If you are 60 days late in making your payment, the financial consequences will be more severe. You will incur late fees and a likely a higher interest rate, even more than the one you received when 30 days late. The credit card company may also bump the interest rate to a penalty APR, which can be expensive and can get as high as 29.99 percent. It is likely that this penalty APR will stay with you for up to six months before the card holder decides to lower the interest rate. The higher the interest rate, the longer it will take for you to pay down your credit card debt completely. You may find that the high interest rate is all you are paying with monthly payments and that you are not making any dent in the principal.

Payments that are 60 days late can hurt your credit, but just like with payments that are 30 days late, you can eventually bounce back from this slip so long as you demonstrate smart financial behavior.

However, as soon as your payments are past 90 days late, the credit card company will likely turn the account over to a collection agency. Many will wait until the payments are more than 180 days past-due before turning the account over to a collection agency and will simply try to collect on the debt themselves first. As soon as you are past 90 days, you will either be notified that the card company has sent the account to an in-house collection department of outside collection agency. After 90 days, not only will fees and penalties increase, but the cardholder may also lower your card’s credit spending limit.

If the account is more than 120, 150 or even 180 days late, this means you have missed at least four payments. You will see many of the same consequences that come along with being 90 days past-due, but the consequences are understandably harsher. Debt collections calls will increase significantly. If, at this point, the account was not previously sent to collections, the debt will likely be sold to a third-party collection agency. This step of selling the debt to a third-party collector is known as a “charge-off,” which basically means the credit card company has written the debt off as a financial loss on their books. It does not mean the debt is forgiven or gone, but it means a new company that has the right to collect on the debt owns the account. If your debt has been charged-off, this will reflect very negatively on your credit report.

You can work with the debt collectors on settling the account, potentially paying for a less than full balance, or you may consider consulting with a bankruptcy attorney. It is important that you act quickly, however, in the event the debt collector files a collection action and obtains a judgment against you on the debt and a wage garnishment. So long as the debt is within the Florida statute of limitations for collections, which is five years, the debt collector is within its rights to file a legal action against you to pursue collection on the debt. However, if a bankruptcy case is filed before a judgment is issued, the automatic stay will put an immediate halt to the collection matter to allow for the bankruptcy process to occur. Since credit cards are unsecured debts, bankruptcy is often the best option for an individual struggling with insurmountable credit card debt.

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 do not even make a dent in your actual debt. We offer additional tips for eliminating credit card debt on our blog.

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.

 

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Do you have enough debt to file for bankruptcy?

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One of the common misconceptions surrounding bankruptcy has to do with how much debt you must have to qualify for bankruptcy. Bankruptcy laws do not have a set minimum debt requirement for someone to be able to file for bankruptcy. Ultimately, it depends largely on the person’s financial circumstances, including the type of debt he or she has, as well as the person’s ability to pay back the debt, along with other factors.

When it comes to debt levels, how much debt you have is only one consideration made when determining whether you should proceed with a bankruptcy filing.  Unlike a Chapter 7 bankruptcy case, a Chapter 13 bankruptcy does have a maximum debt amount for debtors considering this form of bankruptcy. Currently, you cannot hold more than $1,184,200 in secured debt or $394,725 in unsecured debt when filing a Chapter 13 bankruptcy case. These numbers do fluctuate depending on inflation and can change from year-to-year.

Filers are limited in how many times they can receive a bankruptcy discharge within a set amount of time. For example, if you filed for Chapter 7 bankruptcy and received a discharge, you must wait eight years before being able to file for Chapter 7 again. Therefore, if you do not have a significant amount of debt, you may want to consider whether you will anticipate needing to file in the future. Is it worth it to file for bankruptcy now on a smaller amount of debt and be barred from filing again, if needed? A bankruptcy attorney can talk through these options with you to help you make the best choice.

Bankruptcy looks at the different types of debts you carry and whether these debts can be discharged. Certain debts are considered non-dischargeable, including priority tax debts, student loans in most cases, child support, spousal support, and any obligations arising from a personal injury case caused by wrong actions, which can include drunk driving. For instance, if most of your debt is in student loans, a bankruptcy may not be your best option, while a person who carries mostly credit card and medical debt will find bankruptcy beneficial.

If you are filing for Chapter 7 bankruptcy in Florida, you can use Florida bankruptcy exemptions to protect your property. In addition, residents are provided unlimited exemptions for homestead, annuities, and the cash surrender value of a life insurance policy. Florida has one of the most generous homestead exemptions in the country.

Even if you do not have a large amount of debt, if you are being sued or the matter is being referred to collections, it may be best to file for bankruptcy now instead of later. As soon as you file for bankruptcy, an automatic stay will be issued, putting a stop to all collection actions. If you wait too long, and a judgment is issued on the debt, resulting in wage garnishment, it may be too little too late. It is for this reason that it is important you meet with an experienced bankruptcy attorney to talk about your financial situation and whether bankruptcy is right for you.

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.

Related Resources: https://www.alllaw.com/articles/nolo/bankruptcy/do-i-have-enough-debt-to-file-for-bankruptcy.html

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

How Filing for Bankruptcy Can Reinstate Your Driver’s License

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Filing for bankruptcy can provide different forms of relief for individuals facing financial crisis. Bankruptcy can help lift the burden that comes with facing collection calls, wage garnishment and related lawsuits, and provide you with a fresh financial start. However, many people are surprised to learn that you have options to have your driver’s license reinstated through bankruptcy.

The Florida Department of Motor Vehicles (DMV) can suspend your driver’s license for a number of different reasons, and one of those reasons for suspension can include debt, although many individuals are not aware of this as a possible consequence.  If your license was suspended due to outstanding debt, it is possible that bankruptcy can help eliminate this debt, allowing your license to be reinstated.

The most common reason for why an individual’s license would be suspended due to debt is if the person was involved in a car accident and either did not have insurance or was under-insured. If he or she was found to be at-fault for the accident and did not have the money to pay for the other person’s injuries or property damages, the at-fault driver could end up losing his or her license, especially if a judgement is entered against them.

The consequences of losing your license can be far reaching. Not having the ability to drive can put you in an even more difficult financial situation, especially if you depend on driving to get to and from work or take your children to school or daycare. If you do not have adequate public transportation available to get you to your job and are not able to rely on the assistance of others, not having a license can result in you losing your job, thus making your financial situation even worse. It can be nearly impossible to make the money to repay the debt, digging that person further into a debt hole.

If your driver’s license has been revoked due to your debt, you can either pay the debt in full, or, if you do not have the funds available, consider filing for bankruptcy. Debts that are associated with car accidents are often considered dischargeable debts and are thus discharged when the bankruptcy case is successfully closed.

As long as you include the car accident and insurance company in your list of debts, you can have your driver’s license reinstated through bankruptcy. However, it is required that your license be eligible for reinstatement. For example, if you were not carrying auto insurance before the accident you will have to show proof of insurance before your license is reinstated.

See what one of our clients has to say about having their license reinstated through bankruptcy and their debt burden lifted…

Posted by Daniel on AVVO.com on December‎ ‎11‎, ‎2018
‎

Driver License Back – Thanks to the professional work from Timothy Kingcade I enjoy the pleasure to have My Driver’s License back. Now to make money selling cars… Thanks…

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, Debt Relief, Student Loans, Timothy Kingcade Posts

Can Student Loan Lenders or the IRS Garnish Your Social Security?

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If you are facing collection actions by your student loan lender or by the IRS, one of the first questions you may have is how far can they go to secure payment?  Beyond the incessant calls and collection letters, can they garnish your social security?

Social Security income and retirement income are protected from garnishment under federal law by most collectors. However, does this protection include student loan creditors and the IRS? The IRS and public student loan lenders are authorized to garnish a portion of a senior’s Social Security income, this amount being capped at 15 percent of that person’s income. If the collection efforts are on behalf of state tax collectors or a private student loan entity, they cannot garnish Social Security of seniors’ retirement income. Before garnishing a senior’s Social Security income, the IRS or public student loan collector is required to notify the senior in advance via U.S. mail.

When it comes to pensions or Veteran’s Affair’s benefits, the IRS or public student loan collectors do not normally garnish these forms of income, so these benefits are, in fact, protected.

Once you have been notified that your Social Security income will be garnished, you do have options. The collection from these benefits from lower-income seniors can be stopped or at least the payments reduced significantly.

Seniors who are on the lower-income spectrum can apply and be approved for a Currently Not Collectible (CNC) status for past-due IRS taxes. These individuals must fall within a certain level of income, which is normally under 200 percent of the poverty line in most states. If they qualify, they will not have to pay for past IRS taxes, meaning their Social Security incomes will be protected from garnishment. It is important that seniors investigate whether they do qualify before paying. Many of them falsely assume that they have no choice but to pay. It helps to talk to a credit counselor or a bankruptcy attorney who can advise the individual on what his or her rights are.

When it comes to public student loans, lower-income individuals, including senior citizens, can attempt to qualify for an income-based repayment plan to help prevent the garnishment of their Social Security income. They may not be able to completely avoid the garnishment altogether, but they can at least reduce the amount being paid in accordance with their incomes. The process is somewhat more complicated than the IRS process, but it can be accomplished with proper guidance. If you can qualify for an income-based repayment plan, this savings can be just what you need to stay afloat financially.

Federal law explicitly states that Social Security benefits are exempt and such funds are protected in bankruptcy. If you are filing for Chapter 7 bankruptcy in Florida, you can use Florida bankruptcy exemptions to protect your property, your social security, retirement savings and more.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

5 Signs it’s Time to File for Bankruptcy

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Filing for bankruptcy is a complicated process and a decision that should not be taken lightly.  But for some, it is the only solution that will get them out of debt and serious financial problems.  So how do you know if bankruptcy is right for you?  Here are five signs it’s time to consider filing for bankruptcy:

You are being sued by debt collectors.  When you fail to make payments on a debt, that debt gets turned over to a collection agency.  If the collection agency’s calls and letters go unanswered they may file a lawsuit against you.  Fighting these lawsuits can be difficult and if you lose, you will likely end up paying more in attorneys’ fees and court costs.  It is best to not let it get to this point.  Filing for bankruptcy provides you legal protection against creditors and debt collectors.  Once the automatic stay is issued, it bars any additional collection attempts, including lawsuits being filed against you.

Your credit cards are maxed out.  This not only is affecting your credit score negatively, but you are likely trapped in a cycle of making only the minimum payment on these cards while the interest accrues to amounts you will never be able to pay off.  Credit card debt is one of the easiest kinds of debt to discharge in bankruptcy.

Your wages are being garnished. If a creditor obtains a court order for a wage garnishment, your employer is required by law to abide by the order and withhold money from your check each pay period until the debt is paid off.   If your wages are being garnished you can still be protected by the automatic stay, which will halt further wage garnishment.

You cannot afford your bills.  If you were recently laid off from your job or had an unexpected medical expense, for many Americans it is just a matter of time before even a small amount of debt can spiral into something much greater.   Chapter 7 bankruptcy is specifically designed for individuals and families whose income level is not sufficient to pay their debts.

You are in danger of losing your home.  If your financial situation has reached the point where you are behind on mortgage payments and facing possible foreclosure, filing for bankruptcy can help you get caught up on those payments while staying in your home.

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 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.

Related Resources:

https://smartasset.com/credit-score/4-signs-its-time-to-file-bankruptcy

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

Student Loan Debt Forgiven, but Tax Bill Remains

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Wounded war veteran Will Milzarski’s student loan debt was forgiven, but the IRS wants him to pay $62,000 in income taxes on the loan cancellation.  The retired 1st Lt. is a lawyer specializing in disability rights and took a leave from his state job to return to the Army to attend Officer Candidate School.

His two tours of duty in Afghanistan left him with a traumatic brain injury, post traumatic stress disorder and hearing loss. The Department of Veterans Affairs considers him totally and permanently disabled, which lead to a cancellation of $223,000 in student loan debt.

But what he didn’t expect was the IRS notice that followed.  Milzarski is facing $8,000 in Michigan taxes, penalties and interest in addition to federal taxes- that’s $70,000 in total. Milzarski’s high student debt is largely attributed to his law degree, which he earned in 2002 from Cooley Law School.

He was able to subtract his other debts to bring down the amount of income attributed to the loan forgiveness to $161,000. But that pushed him into the top tax brackets.

While there are some exceptions, canceled debt is often considered income.  Milzarski said he is facing garnishment of his disability pay and a lien against his home.  Milzarski led soldiers on 244 combat missions and 43 engagements with the enemy. Among his 18 awards are Purple Heart and Meritorious Service medals.

Click here to read more on this story.

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 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 website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

When Filing for Bankruptcy- Timing Matters

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Timing the filing of your bankruptcy is important to obtain the best possible outcome in your case.  For example, waiting to file after creditors have already taken action against you can result in unnecessary legal costs and potential loss of property.  Filing shortly after transferring money or property to someone else, can run you the risk of being accused of bankruptcy fraud.

Here are a few points to remember when timing the filing of your bankruptcy:

Filing for bankruptcy will stop litigation.  It is best to file before a creditor receives a judgment against you.  This will save you the cost of legal fees and giving the creditor more rights to your property.

Prevents wage garnishment.  A creditor who has obtained a judgment against you can force your employer to deduct money from your check, even require your bank to withdraw the funds directly from your account.  You can save this money by discharging the debt before such actions can be taken.

Puts an end to creditor harassment & collection calls. As soon as you file for bankruptcy, creditors must stop contacting you and deal only with your attorney.  Creditors who continue to contact you are in violation of the U.S. Bankruptcy Code’s Automatic Stay and face sanctions by the Court.

Allows you to stay in your home. Filing for bankruptcy will stop the foreclosure process and allow you additional time to stay in your home.

Divorce & Bankruptcy: If you are in the middle of a divorce, it is best to file a joint bankruptcy with your spouse to discharge all debt before the marriage ends.  However, if your income is too high to qualify as a married couple you will need to decide whether the best option is to file individually while you are still married or wait until after the divorce.  When it comes to timing your bankruptcy filing while going through a divorce, you cannot go wrong setting up an appointment with an experienced bankruptcy attorney to discuss the best path for your financial future.  Many offer free consultations and Saturday appointments.

If you 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.

Related Resources:

http://bankruptcy.lawyers.com/bankruptcy-basics/time-matters-when-filing-chapter-7-bankruptcy.html