Miami Bankruptcy Law Blog

At Kingcade Garcia McMaken, we know that plenty of law-abiding Florida residents are the targets of ruthless-- and sometimes illegal-- harangues on the part of people to whom they owe money. There are even professional debt collection companies that make a sport and a business of hassling our neighbors.

While we do not begrudge anyone a living, even debt collectors, there are certain times when enough is enough-- and some companies go too far. If you have ever been contacted by debt collection agencies, then you know that the first call is often ominous, followed by communications that occasionally devolve into little more than threats. You might even see creditor harassment begin all over again if you regain debt after a bankruptcy. Overall, we find that the best way to scare these harassers away is to arm yourself with as much knowledge as possible.

The last thing that Florida residents want is to add more problems to their divorce process. Unfortunately, since the state's divorce courts divide debt in a similar manner to assets, financial stress is sometimes unavoidable. While no debt relief strategy is perfect, there are ways to minimize the impact of post-divorce debt.

Time magazine published a useful list of ways to manage debt after an unfavorable divorce agreement. One important point to consider is that divorce is a period of immense change. That change typically affects every aspect of a person's life, including their lifestyle. While some view this as an opportunity to embrace a fun single life, it is often more financially beneficial to think realistically about creating a new sustainable standard of living. 

Florida residents who have completed bankruptcy proceedings may wonder if the hard part is just ahead, namely rebuilding their credit score. To many people, bankruptcy feels like a scarlet letter, a sign of massive financial failure that is hard to ever recover from. However, according to Forbes, there are ways to rebuild a credit score following bankruptcy and to restore one's financial reputation.

First, credit reports should be carefully checked for errors. Mistakes on your record, if not challenged, will be taken as fact by any financial entity that reads them, which can be especially harmful if your expenses are inflated, harming your credit score. The Forbes piece recommends you scan your record yourself or enlist the help of credit counselors to help. However, be on alert for scammers who claim they can bounce your credit score. Be sure that your rights are fully explained to you before you commit to a counseling service.  

Florida residents who have run into a streak of bad luck and find medical bills piling up may find themselves tempted to file for bankruptcy. According to USA Today, Americans choose bankruptcy most often as a result of outstanding healthcare expenses. When emergency surgeries or other unexpected crises impact financial well-being, what should families do?

The Federal Trade Commission offers some advice, encouraging individuals to be proactive about money matters. Being up front with creditors is the first step. While some may not be able to negotiate new payment arrangements, others likely can, so it is a good idea to let them know the moment bills begin to feel overwhelming.