Archive for: ‘June 2014’

President Obama Extends Student Loan Debt Relief

June 11, 2014 Posted by kingcade

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

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

June 10, 2014 Posted by kingcade

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.

Find out what your Debt is really Costing You

June 6, 2014 Posted by kingcade

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

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

June 3, 2014 Posted by kingcade

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/

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

June 2, 2014 Posted by kingcade

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