Archive for: ‘December 2015’

Student Loan Debt: The Next Crisis Facing Elderly Americans

December 23, 2015 Posted by kingcade

The number of student loan borrowers age 60 and up has increased to 2.2 million, from 700,000 in 2005, according to the Federal Reserve Bank of New York.  Twenty-seven percent of education loans held by people age 65-74 were in default in 2013, which means they have not made a payment in 270 days or more. In fact, more than half of education loans held by people 75 and older were in default.

The government has the ability to garnish wages for non-payment of student loans- even take your tax refund, but with seniors they have added leverage- their social security.  In 2013, 155,000 seniors lost part of their retirement benefit to repay education debt, up from 31,000 in 2002, according to the GAO.

This has left many seniors helpless, as most forms of consumer debt can be discharged in bankruptcy- student loan debt cannot.  Congress said in the 1970s that such debt can go away only if a debtor can prove repaying it would impose an “undue hardship.”

However, Congress never defined undue hardship, so it has been left to the courts discretion to determine just how desperate someone needs to be to qualify for relief. Bankruptcy judges have said that to get education loans discharged, borrowers must show their entire lives would otherwise be characterized by a “certainty of hopelessness” or that repaying the debt “strips [the debtor] of all that makes life worth living.”

Click here to read more on this story.

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, 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.

Tips to Avoid Medical Debt- While You Are Still Healthy

December 22, 2015 Posted by kingcade

Financial experts are advising Americans to save for a rainy day when it comes to their healthcare costs.  The last thing you want to deal with when you are battling a serious illness is financial stress.  Consider getting insurance for your credit cards and mortgage.  Understand your insurance; know what it covers and what it does not cover.

Prepare a budget while you are still healthy.  Know what it costs to run your household and the expenses that are coming out every month.  If you spend $1,500 a month on living expenses, experts say you should put six to nine months worth of that money away in the bank.

For example, the treatment for what you have been diagnosed with or a family member has been diagnosed with- you will need to have cash on hand to travel for treatment, get a hotel, see doctors while still covering your monthly bills and expenses.

If you or a family member have been diagnosed with a serious illness, call your creditors and let them know immediately if you are having difficulty paying your bills.  There are programs offered that can give you time to make those payments and if you find yourself falling too far behind, reach out to a reputable bankruptcy attorney in your area.

Click here to read more on this story.

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, 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.

Former NFL Running Back Clinton Portis Files for Bankruptcy

December 21, 2015 Posted by kingcade

Clinton Portis, former Washington Redskins and Denver Broncos running back, who made more than $40 million during his NFL career, has filed for bankruptcy.  With that amount, most of us would be set for life, but Portis is flat broke.  This shouldn’t come as a huge surprise, since studies have shown that a high percentage of NFL players declare bankruptcy after their game days are over.  A Sports Illustrated (SI) article from 2009 indicated that after two years of retirement, a whopping 78 percent of former NFL players went bankrupt or suffered financial stress due to joblessness or divorce.  Taken in total, almost 16 percent of the players studied declared bankruptcy during the first twelve years of retirement.

The federal bankruptcy filing showed Portis owes nearly $5 million to creditors, including $500,000 to his own mother. Portis, 34, also lists debts of $500,000 to Entertainment Tonight correspondent and former sideline reporter Nischelle Turner, $412,000 in “domestic support obligations” to four different women, and $175,000 in car loans, according to court records.

But Portis’ biggest debt is owed to a mortgage company.  The debt is listed as a “mortgage deficiency” of $1,023,020. Portis also owes the IRS $390,000, an amount he is disputing. The MGM Grand Hotel and Casino has also won a judgment of $287,178 against Portis.

Some of the running back’s failed business ventures attributed to his bankruptcy filing, which included sinking $8 million into a casino that went belly-up, and putting $2 million into a ‘wealth management’ firm that was later termed a Ponzi scheme.

Portis rushed more than 1,200 yards during his nine-season NFL career.  He finished with 9,923 rushing yards and 80 total touchdowns.  Portis’ final NFL game was with the Redskins in November 2010.  A hearing is scheduled for Portis’ bankruptcy case on February 4, 2016 at the U.S. Courthouse in Gainesville, FL.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, 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, 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.cbsnews.com/news/1-in-6-nfl-players-go-bankrupt/

SunTrust to Pay Florida Homeowners as Part of Multi-State Mortgage Abuse Settlement

December 18, 2015 Posted by kingcade

More than 4,000 Florida residents will be receiving checks this week from SunTrust Mortgage as part of a multi-state settlement over mortgage origination, servicing and foreclosure abuse. SunTrust has agreed to a $550 million joint state-federal mortgage settlement. The banking giant began mailing checks to claimants on December 8, totaling more than $1,300 for each valid claim.

SunTrust entered into the three-year settlement that provides direct payments to Florida borrowers for past foreclosure abuses, loan modifications and other relief for borrowers in 2014. The bank also had to agree to more stringent mortgage servicing standards and to oversight authority by an independent monitor.

According to the agreement, Florida, 48 other states, the District of Columbia and the federal government required SunTrust to provide $550 million in various forms of relief to homeowners, including a $40 million fund to payments to certain borrowers who lost their homes in foreclosure.

Click here to read more on this story.

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.

Make Managing Your Student Loan Debt an Objective this New Year

December 17, 2015 Posted by kingcade

It’s almost the New Year and if managing your student loan debt is one of your resolutions in 2016- this post is for you.  Student loan debt is the only form of consumer debt that has grown since the peak of consumer debt in 2008.  Balances of student loans have surpassed both auto loans and credit cards, making student loan debt the largest form of consumer debt outside of mortgages, according to the Federal Reserve Bank of NY.

Below are some actionable items that can help you start off on the right foot when it comes to managing your student loan debt in 2016.

Take Inventory of your Debt. Create a detailed list of all of your liabilities starting with the highest cost debt, first.  Private loans are often more costly than federal loans, due to their higher interest rates and less flexible repayment terms.  Begin to pay down the highest cost obligations more aggressively.

Alert your Lender and Prepay your Loans. Even if it is a small amount each month, a prepayment will reduce the amount of interest you pay and the length of time you have the loans outstanding. You may need to let your lender know that you want to pre-pay your loan with the extra payments.

Check and See if your Loans are Tax Deductible. In certain cases, student loan debt is tax deductible. Your deduction can reduce the amount of your income subject to tax by up to $2,500 subject to income limitations. Remember, the student loan interest deduction is claimed as an adjustment to income.

Consider Consolidation. If your goal is to purchase a home this year, you may want to lower your monthly student loan payment to qualify for better mortgage terms.  Consolidating your loans and lengthening your repayment schedule can help improve your mortgage approval prospects.

Live Below your Means.  A sound financial plan begins with spending less than you make. This can be difficult to do- but once you are free of debt imagine the possibilities of what you can do with the extra cash- savings, vacations, etc.

Consider Borrowing against Home Equity while Creating a Repayment Plan. If you own your home, you should consider a “cash out refinance” to benefit from potentially lower cost debt that may be tax deductible. You should also consider a home equity line of credit as you may qualify for a lower interest rate and tax deduction.

Whatever you decide, make sure the approach you take is a methodical one.  Write down a list of your financial obligations and think measurable objectives.  You have options and help is here.

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, 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/markavallone/2015/12/16/6-ways-to-better-manage-your-student-debt-in-2016/