Archive for: ‘December 2013’

Parents Accrue Additional Debt for “Happier” Holidays

December 23, 2013 Posted by kingcade

According to a recent survey done by Lexington Law, 57% of parents are willing to take on credit card debt to make their children happy this holiday season. For those of us who have children, this comes as no surprise. As parents, we would go to the ends of the earth to make our children happy.

The survey revealed that parents with a household income of $35,000 or less were willing to accrue $700 in holiday debt. The surprising fact was that parents with a household income of $75,000 or more were only willing to take on $300 of debt for holiday expenditures.

The consumers who were surveyed said that last year they averaged $1,100 in charges for the holiday season. More than half of the parents said they had not saved for holiday purchases as of September, and 36% said that buying presents was more important than sticking to a budget.

One in five adults participating in the survey opened a new credit card last year during the holidays, and 5% of consumers reported they had opened three or more store cards last year. The holiday season is an easy time to pick up bad financial habits, which can lead to damage to your credit score in the New Year.

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If you are in a financial crisis and are considering filing 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.

Casey Anthony’s Debts Discharged in Bankruptcy

December 20, 2013 Posted by kingcade

Bankruptcy Judge K. Rodney has ruled that Casey Anthony’s debts will be discharged- except those relating to student loans and criminal fines. Anthony filed for bankruptcy in Florida earlier this year, claiming about $1,000 in assets and $792,000 in liabilities. Court papers list her as unemployed, with no recent income. Most of her liabilities are related to legal bills. Anthony has been in hiding since she was acquitted of murder in 2011 in the death her 2-year-old daughter, Caylee.

Texas Equusearch Mounted Search and Recovery will be allowed to have an unsecured claim of $75,000 in Anthony’s bankruptcy case under the terms of the settlement.

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If you are in a financial crisis and are considering filing 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.

Mortgage Forgiveness Debt Relief Act Set to Expire: Underwater Homeowners will likely Face New Tax Bill

December 19, 2013 Posted by kingcade

Beginning in January, homeowners with “underwater” mortgages will likely face a new tax bill if they sell their house, modify their mortgage or lose their home in foreclosure. The 2007 federal law that waived income taxes on unpaid mortgage debt is set to expire December 31, 2013.

Without the waiver, homeowners will be forced to pay income taxes on any mortgage amount forgiven by the lender, including foreclosure. Homeowners also will have to pay tax on mortgages that are unpaid because of a short sale or a loan modification, which lowers monthly payments. So this means that a typical homeowner who sells a house for $100,000 but still has a $200,000 mortgage could face a tax bill of $28,000.

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Choosing the right attorney can make the difference between whether or not you can keep your home. 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 website at www.miamibankruptcy.com.

College Executive Pay Soars at the Expense of Students

December 18, 2013 Posted by kingcade

40 college presidents took in more than $1 million each in 2011, according to a recent report published by The Chronicle of Higher Education. The data provided in the report outlines the compensation provided to 550 chief executives at 500 private nonprofit colleges in the U.S. during the 2011 calendar year.

Out of the 550 college executives, 180 of them received more than $500,000 in compensation during 2011, while the top 42 received more than $1 million. Much of the compensation came from bonus pay, deferred compensation, and nontaxable benefits, similar to how many corporate CEO’s are paid.

Robert Zimmer, the president of University of Chicago, was the top earner of 2011 receiving a total compensation of $3,358,723. His base pay, $917,993, made up only 27 percent of his total earnings. Joseph Aoun of Northeastern University took in $3,121,864, making him the second highest paid college president. His base pay was $674,498, a mere 21.6 percent of his total compensation.

Meanwhile, a report published recently by the Institute for College Access & Success Project on Student Debt reported that the average college graduate in 2012 left school with an average of $29,400 in student loan debt. This amount increased from an average of $26,600 in 2011. In addition, it was reported that seven of every ten college seniors graduated with student loan debt, one fifth of which was owed to private lenders who charge exorbitant interest rates.

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If you are in a financial crisis and are considering filing 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.

Trend Alert: U.S. Mortgage Trouble Threatens

December 17, 2013 Posted by kingcade

Mortgage trouble threatens as U.S. borrowers are reportedly missing payments on home equity lines of credit taken out during the housing bubble. The loans are a problem now because many are hitting their 10-year anniversary, at which point borrowers usually are required to start paying down the principal on top of the interest, they have been paying all along.

This trend could deal another blow to the country’s biggest banks, as more than $221 billion of these loans from Bank of America Corp, Wells Fargo & Co, Citigroup Inc, and JPMorgan Chase & Co will hit this mark over the next four years. Approximately 40 percent of the home equity lines of credit are now outstanding. This shift could more than triple the average consumer’s monthly payment. Another problem, these loans usually carry floating interest rates.

For example, a consumer with a $30,000 home equity line of credit and an initial interest rate of 3.25 percent would see their required payment jumping to $293.16 from $81.25, analysts from Fitch Ratings calculate.

Banks aggressively marketed home equity lines of credit before the housing bubble burst. Big banks, including Bank of America Corp, Wells Fargo & Co, Citigroup Inc, and JPMorgan Chase & Co have more than $10 billion of these home equity lines of credit on their books each, and in some cases more than that.

That is why the loans are starting to be problematic: For home equity lines of credit made in 2003, missed payments have already started increasing. A high percentage of home equity lines of credit went to people with poor credit — more than 16 percent of the home equity loans made in 2006, for example, went to people with credit scores below 659, seen by many banks as the dividing line between prime and subprime.

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Choosing the right attorney can make the difference between whether or not you can keep your home. 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 website at www.miamibankruptcy.com.