Bankruptcy Law, Credit, Timothy Kingcade Posts

Debt Collectors Paying the Price for Every Time They Call

Thanks to a new ruling, consumers who have requested debt collectors not call their cell phones are entitled to collect damages of up to $1,500 per call. In the recent 11th Circuit case, Osorio v. State Farm Bank, the court reinforced restrictions under the Telephone Consumer Protection Act that prohibits debt collectors from using automated dialing systems (i.e. – “robocalls”) to contact consumers on their cell phones without their permission.

The Telephone Consumer Protection Act has been federal law since 1991. However, this ruling is significant because in the past, courts have been divided as to whether consumers who have given their cell phone number to a creditor or collector can revoke that privilege, and if so, whether they can do so verbally. In this case, the court ruled in favor of consumers, giving them permission to revoke their consent verbally.

For consumers who are receiving calls for the wrong person, for debts they believe are not owed or for debts that are too old, this ruling proves extremely helpful. However, it important to remember that ignoring collection calls is not a good strategy. Keep accurate records of the collection calls and consider speaking with an experienced bankruptcy attorney who can guide you in the right direction and determine whether you qualify for bankruptcy protection.

If you are in a 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://blog.credit.com/2014/06/judge-debt-collectors-could-be-fined-1500-every-time-they-call-85374/

Bankruptcy Law, Credit, Timothy Kingcade Posts

Personal Bankruptcy Filings Down

Bankruptcy filings are down 11 percent compared to the 12-month period ending March 31, 2014, according to statistics released by the Administrative Office of the U.S. Courts. March 2013 bankruptcy filings totaled 1,170,324 compared to 1,038,280 bankruptcy filings in the 12-month period ending March 31, 2014.

However, filings in April and May of this year have been most similar to the number of filings in April and May of 2013. The May 2014 daily bankruptcy filing rate was 4,079, which was a 7.0% decline on a year-over-year basis. There have been just over 405,500 bankruptcy filings in the first five months of 2014. With these latest numbers, the year-over-year bankruptcy filing rate has declined for forty-three straight months.

Some financial experts attribute the decline in consumer filings to “a low-interest rate environment” and consumers utilizing more government assistance programs, such as the Home Affordable Refinance Program (HARP), which has helped many underwater homeowners.

If you are in a 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://news.uscourts.gov/bankruptcy-filings-down-11-percent-march-2014

http://www.creditslips.org/creditslips/2014/06/900000-bankruptcy-filings-this-year-maybe.html

Foreclosures, Timothy Kingcade Posts

New Foreclosure Cases Rapidly Decline in South Florida

New foreclosure filings fell a whopping 75 percent across Broward County last month, another indication that the housing market crisis is a thing of the past.  Broward had 275 new cases filed last month, compared with 1,087 in May 2013, according to RealtyTrac, Inc. It was the 10th month in a row that foreclosure filings have dropped. New cases also declined 75 percent last month in Palm Beach County.

Real estate experts attribute this drastic decline to the new state law that took effect last year, which resulted in lenders delaying foreclosure filings until they have all of their paperwork in order.

Florida had the nation’s highest foreclosure rate for the eight month in row, an indicator of just how hard the state was hit as a result of the housing market crisis.

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.

Credit, Foreclosures, Timothy Kingcade Posts

Florida Borrowers entitled to $40 Million from SunTrust Mortgage Abuse Settlement

Florida Attorney General Pam Bondi joined 48 other state attorneys general, the District of Columbia and other federal agencies in reaching a $550 million nationwide settlement with SunTrust over mortgage and foreclosure abuses.

The civil charges accuse SunTrust of improper documentation of loans, lost paperwork and robo-signing. Approximately 8,421 Florida borrowers who had SunTrust loans or lost their homes from 2008-2013 to foreclosure, can apply for a portion of the $40 million designated to the state. This money could take the form of a cash payout, principal reductions or refinancing of underwater mortgages.

SunTrust has the responsibility to contact borrowers and has agreed to the following terms:

• Making foreclosure a last resort and evaluating homeowners for other loss mitigation options, first.
• Restricting foreclosure while the homeowner is being considered for a loan modification.
• New procedures and timelines for reviewing loan modification applications.
• Providing homeowners with the right to appeal denials.
• Requiring a single point of contact for borrowers seeking information about their loans.
• Maintaining adequate staff to handle calls.

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.

Related Resources:
http://www.bizjournals.com/southflorida/blog/morning-edition/2014/06/florida-borrowers-to-collect-40-from-suntrust.html?ana=e_sflo_rdup&s=newsletter&ed=2014-06-18&u=um2Eyo72dYSImvglWn/0xO6wsIE&t=1403093430

Bankruptcy Law, Timothy Kingcade Posts

Are Inherited IRA’s protected in Bankruptcy?

The U.S. Supreme Court recently answered this question. In an opinion written by Justice Sonia Sotomayor the Court found that Heidi Heffron-Clark, who inherited an IRA from her mother in 2001 and filed for bankruptcy nine years later, could not protect the account from her creditors.

The court’s analysis in Clark v. Rameker ruled that there were key legal distinctions between inherited IRAs and those you set up for yourself through annual contributions or company plans. The fact that inheritors cannot put additional funds into the inherited IRA account and the beneficiary can withdrawal money at any time without incurring a penalty make these inherited IRA accounts unique and “suggest that they are not retirement assets,” the court notes.

Another key distinction: Non-spousal IRA heirs must either withdraw the entire account balance within five years of the original owner’s death, or take out a minimum amount each year, starting December 31st the year after the IRA owner died.

The Supreme Court’s decision does not affect bankruptcy protection for retirement accounts of your own, which were expanded by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

The decision does have important ramifications for spouses. A spouse who inherits their husband or wife’s IRA has an option not available to other inheritors. The surviving spouse can roll the assets into his or her own IRA and postpone distributions from a traditional IRA until they turn 70½. However, there is a catch to this. Just like other IRA owners they may have to pay a 10% early-withdrawal penalty if the money is taken out before age 59½ from the surviving spouse’s own IRA.

If you have any questions on this topic or are in a 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://www.forbes.com/sites/deborahljacobs/2014/06/12/supreme-court-finds-inherited-iras-not-protected-in-bankruptcy/

Bankruptcy Law, Credit

President Obama Extends Student Loan Debt Relief

On Monday, President Obama signed an executive order allowing millions of student loan borrowers to cap their monthly payments at 10 percent of their monthly income. “The cost of college and burden of student loan debt are suffocating middle-class families and putting students at an economic disadvantage before they enter the workforce,” Obama said.

Many borrowers already have the option to limit payments to 10% of their income. Obama’s order on Monday extended that option to about 5 million others who were not covered by the previous changes, including those who took out loans before October 2007.These new regulations are expected to be implemented in December 2015 at the earliest.

Student loan debt has reached $1.2 trillion. The average debt per borrower from the class of 2012 ranged from $17,994 in New Mexico to $33,649 in Delaware. President Obama has also endorsed legislation sponsored by Senator Elizabeth Warren (D-Mass.) that would allow students to refinance both public and private loans. This would be paid for by closing a tax loophole currently available to the wealthy. In another effort to help ease the burden for struggling borrowers, Obama ordered the Education Department to renegotiate its contract with student loan providers and give financial incentives to borrowers who make their payments on time.

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 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://www.washingtonpost.com/politics/obama-extends-caps-on-student-loan-payments-to-about-5-million-people/2014/06/09/10a6ab20-efe4-11e3-9ebc-2ee6f81ed217_story.html

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Miami Bankruptcy Attorney Timothy S. Kingcade Named a Florida Super Lawyer of 2014

MIAMI – Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade & Garcia, P.A. (www.miamibankruptcy.com) has been recognized as a Florida Super Lawyer in the area of consumer bankruptcy law. This prestigious honor was awarded to only six attorneys in the entire State of Florida.

“It is a true honor to have received this award,” said Timothy S. Kingcade. “It is a testament to the commitment my firm and I make every day to each and every one our clients.”

Attorney Kingcade practices exclusively in the field of bankruptcy law, handling Chapter 7 filings and foreclosure defense cases for the Southern District of Florida. As an experienced CPA and proven bankruptcy attorney, Timothy Kingcade knows how to help clients take full advantage of their rights under bankruptcy protection to restart, rebuild and recover.

Super Lawyers is a listing of outstanding lawyers who have attained a high degree of peer recognition and professional achievement, representing the top 5% of Florida lawyers. The goal of the Super Lawyers selection process is to create a credible, comprehensive and diverse listing of lawyers to be used as a resource to assist lawyers and sophisticated consumers in the search for legal counsel.

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Miami-based Kingcade & Garcia, P.A. was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care. All partners and associates at Kingcade & Garcia, P.A. specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

Bankruptcy Law, Timothy Kingcade Posts

Find out what your Debt is really Costing You

Thanks to the CARD Act, those who carry credit card debt are reminded on their monthly statements just how long it will take to pay it off in full. For many consumers, this is not a pretty picture. Most do not realize that by being in debt, purchases you make on those credit cards are actually costing more than what you pay the merchant. It’s a vicious cycle. Each dollar you do not pay over the fixed minimum payment ends up costing you much more in the end.

For example, if you have a $1,000 credit card balance at a 20 percent APR and you plan on making a payment of $20 a month until it’s paid off, it will take you just over nine years and you will have paid approximately $1,168 in interest. The key is to make more than just the minimum monthly payment. Even low-interest rate debts like student loans, which can be extended out 30 years, by making only the minimum payment you are increasing the time you carry those balances because of the compound interest.

Here’s some advice…
• If possible, start paying off the debt in full, beginning with those cards that have the highest interest rates. Also, paying off the smallest debts first can give you motivation to tackle the larger debts.

• Do not let purchases made on credit cards become invisible spending. Switch to a debit card and sign up for balance notifications and alerts on your phone and email.

• Consolidate credit card balances. If you qualify, consolidate your credit card balances to low-interest or 0% interest cards to reduce the cost of your debt. You may also want to consider a personal loan that offers a low interest rate.

• Avoid paying consolidation or consulting fees. Avoid paying fees to credit consolidators. Much of what they are doing for a fee, you can do yourself.

• Understand credit effects. There is a common misconception that carrying debt is good for your credit score. This is absolutely false. To achieve your best possible credit score, it is important to keep your debt ratio to under 30%, 10% is even better.

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.

Related Resources:
http://abcnews.go.com/Business/avoiding-paying-debt-costing/story?id=23101519

Bankruptcy Law, Credit, Timothy Kingcade Posts

Dept. of Education Urged to Clarify Policy on Student Loan Bankruptcies

Democratic members of Congress are urging for clarity and leniency when it comes to how the Department of Education forgives student loan borrowers who are bankrupt and unable to pay back their student loan debt. Federal law treats student loan debt as being non-dischargeable in bankruptcy unless “undue hardship” can be proven.

Oftentimes, attempts to prove undue hardship are “aggressively challenged” by the loan service provider and the Department of Education. According to the letter, the department needs to create clear standards for borrowers to qualify for discharging their student loan debt.

“While we recognize the department’s prerogative to fairly collect on student-loan debts owed to it, we do not find it sensible or cost-effective for the department or its contractors to engage in lengthy legal challenges and appeals against bankrupt student-loan borrowers who have demonstrated a clear and legitimate inability to repay their loans,” the letter says.

Other recommendations in the letter include:

• Clarifying the criteria for “undue hardship” to include borrowers who receive disability benefits under the Social Securtity Act;

• If the secretary of veterans affairs has determined the borrower is unable to work because of disability connected with military service;

• If the borrower’s household income has been less than 175 percent of the official poverty guidelines during the five-year period before filing a bankruptcy petition.

The letter states the urgency for action when it comes to the student loan debt crisis. This new guidance would bring consistency to the application of the undue-hardship standard.

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 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://chronicle.com/article/Education-Dept-Is-Urged-to/146679/

Foreclosures, Timothy Kingcade Posts

U.S. Investigates Possible Overcharging by Banks for Foreclosure Fees

An investigation is underway of at least five banks over whether they overcharged the government for expenses incurred during foreclosures on federally backed home loans, filings and interviews. The banks under investigation include: PNC Financial Services Group Inc, PHH Corp, MetLife Inc, Santander Holdings USA Inc and Citizens Financial Group Inc, the U.S. unit of Royal Bank of Scotland. The U.S. Attorney’s office is seeking information on claims on foreclosed loans insured by the Federal Housing Administration or guaranteed by Fannie Mae and Freddie Mac, according to Reuters.

Two of the banks, PNC and MetLife, said federal authorities are looking at foreclosure-related costs incurred by law firms. Foreclosures generally cost between $1,000 and $3,000, depending on the state and type of foreclosure, with the bulk going to legal fees. Other expenses, including posting and mailing notices, court filing costs and title searches are separate.

The law firms under investigation allegedly represented expenses that were much higher than their actual costs, in some cases by hundreds of dollars. One firm charged $150 for posting a notice on the door of a property in foreclosure, even though the market rate for the service is about $25, according to the allegations. Another allegedly inflated court filing costs.

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.

Related Resources: http://www.reuters.com/article/2014/05/29/us-usa-housing-investigation-insight-idUSKBN0E91RN20140529