How to Recover After Bankruptcy

April 20, 2018 Posted by kingcade

Even the most financially responsible people can fall on hard sometimes, whether it be a sudden illness, job loss or divorce.  As many as 78 percent of full-time workers said they live paycheck-to-paycheck and 71 percent are already in debt, according to a recent study by CareerBuilder.  With statistics like this it is not surprising how quickly finances can spiral out of control.

Having to file for bankruptcy can take an emotional and financial toll, but sometimes it is the only option. In 2017 alone, there were 765,863 non-business bankruptcy filings, according to the Administrative Office of the U.S. Courts.

While you cannot offset the impact of bankruptcy to your credit, there are things you can do to improve it over time.

While each case is different, bankruptcy can completely wipe out credit card debt, medical bills, personal loans, past-due utility bills and even rent.  Rebuilding your credit after bankruptcy can start by sticking to a budget and paying all of your bills on time.

A powerful tool to help improve your credit score is a secured credit card. These cards require a deposit, which can be equal to your spending limit. Applying for new credit too soon or having multiple denials can hurt your credit even more.

One of the biggest myths about filing for bankruptcy is that it will ruin your credit score and your financial future forever.  To the contrary, after filing for bankruptcy you can begin restoring your credit immediately.

Still not convinced?  A testimonial from one of our clients in regards to their credit score after filing for bankruptcy.

My credit score said on all three reports 775, I couldn’t believe that I had such a great score before 10 years. Tim for me was the best move I have made for my situation. I have no regrets, I am glad the past is the past. – Bill T.

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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 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.

Disabled Veterans Could See Their Student Loan Debt Cancelled

April 19, 2018 Posted by kingcade

The Department of Education announced this week that it will work together with the Department of Veteran Affairs to identify disabled student loan borrowers who are eligible for debt forgiveness. Borrowers will be notified of their potential eligibility in the mail and will also receive a Total and Permanent Disability Discharge application.

Many veterans are unaware that they may be eligible for student loan debt forgiveness.  There have also been recent changes in tax law that benefit those whose loans are discharged. A provision in the new tax code waives federal income taxes on forgiven education debt for permanently disabled people.

Previously, the IRS considered the cancelled debt as taxable income.  For example, in a 2017 case a veteran who had his $223,000 in student loan debt forgiven, received a tax bill of $62,000.

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There are ways to file for bankruptcy with student loan debt.  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 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.

Household Debt Continues to Climb- Here’s the Categories that have seen the Biggest Jump

April 18, 2018 Posted by kingcade

As a nation, household debt is continuing to increase.  Debt is increasing in all major categories, except for auto loans during the last quarter of 2017.  The two categories with the most significant growth were mortgage debt, which increased by more than $3,000 per household and credit card debt that went up by $250 per household.

The growth in credit card debt can be partially attributed to holiday spending. The last quarter of 2017 credit card debt per household stood at $15,983.  Mortgage debt totaled $178,037 per household.

Credit card debt often comes with high interest rates, which means carrying debt month to month can create significant financial stress.  Carrying this debt for many years can cause thousands of dollars in interest to accrue.  Some quick tips to pay off credit card debt include: Finding out your total balance, doing a balance transfer to stop the accruing interest and powering through the balance (i.e. – take advantage of the interest-free period of your new card).

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If you are struggling with insurmountable credit card debt 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.

Judge Finalizes $25 Million Settlement for Students Who Claim Fraud by Trump University

April 17, 2018 Posted by kingcade

A $25 million dollar settlement in the class action lawsuit against Trump University has been finalized by a judge, providing relief for thousands of former students who attended the now defunct real estate seminar.  Despite its name, ‘Trump University,’ which shut down in 2010, was not a licensed university.  It promised to teach students the “secrets of success” in the real estate industry.

The 9th Circuit Court of Appeals in San Francisco finalized the settlement after it was first approved by a judge last March following an appeal by Sherri Simpson, a Florida woman who said she spent approximately $19,000 on Trump University workshops. Simpson had wanted to opt out of a class action suit in order to pursue a separate suit against Trump, but the court rejected that.

Just days after the election, Trump agreed to settle three lawsuits filed against his real estate school that argued the program used false advertising and high-pressure sales techniques.  Students were allegedly lured into free investor workshops where they would be sold expensive seminars and told they would be mentored by real estate experts, leading to the loss of thousands of dollars in tuition.

Trump has always denied the fraud claims and said that he could have won at trial, but has said that as President he did not have time because he wanted to focus on the country.

“This settlement marked a stunning reversal by President Trump, who for years refused to compensate the victims of his sham university,” said New York Attorney General Eric Schneiderman, whose office filed one of the three lawsuits.

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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 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.

Class Action Lawsuit Brings Hope to Student Loan Borrowers in Bankruptcy

April 16, 2018 Posted by kingcade

A Texas bankruptcy judge has denied a request by student loan giant, Navient, to dismiss a class-action lawsuit accusing the firm of illegally collecting on loans that were discharged in bankruptcy. The decision means the case can move forward and allow the opportunity for an appellate court to consider whether loans historically viewed as exempt from bankruptcy can be discharged.

The ruling is an important one, as the Department of Education is currently reviewing the high standard student loan borrowers must meet to have their student loan debt discharged in bankruptcy.  The case in question focuses on a specific type of private loan debt (i.e. – money loaned to borrowers to pay for unaccredited programs, such as bar exam study courses and K-12 educational expenses).  However, if the appellate court rules in favor of the plaintiffs, it could mean that borrowers with similar student loans from other companies could qualify for the same relief.

Before this ruling, bankruptcy courts have determined that the types of loans in question in this case cannot be discharged because they were received as an “educational benefit.”  Recently however, lawyers and judges have started to challenge whether loans to help borrowers study for the bar exam and other similar debts truly fit into the category.

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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 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.