Debt Relief, Foreclosures, Timothy Kingcade Posts

FHA’s New Guidelines Help Struggling Homeowners Remain in their Homes

New procedures put in place by the Federal Housing Administration (FHA) will help strengthen the process mortgage services currently use and help struggling families stay in their homes and avoid foreclosure.

The updated procedures will streamline the process servicers use to engage borrowers, specifically when evaluating them for the FHA-Home Affordable Modification Program (FHA-HAMP) These changes will reduce the number of steps that a servicer and borrower must take to resolve a delinquency and enter into a loss mitigation home retention product.  In addition, FHA is removing certain obstacles that will allow servicers greater flexibility for evaluating an unemployed borrower for a special forbearance agreement.

Here is what homeowners need to know about the new provisions. Specifically, the FHA will:

  • Require servicers to convert successful 3-month trial modifications into permanent modifications within 60 days instead of the average four-to-six months;
  • Allow borrowers with three missed mortgage payments to qualify for a partial claim to bring their payments current versus the previous requirement for a minimum of four missed payments;
  • End the traditional stand-alone Loan Modification option so struggling borrowers can access the FHA-HAMP option, to receive payment relief quicker;
  • Eliminate the required 12-month term for FHA’s special forbearance option.  This will allow servicers to offer this option to more unemployed households.

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:

www.fhfa.gov

https://rismedia.com/2016/08/28/fha-streamlines-process-to-help-delinquent-homeowners-stay-in-homes/

 

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Credit Card Use Increasing Among Consumers with Low Credit Scores

According to the latest quarterly report on household debt, credit cards are making a comeback in a big way.  In the second quarter, total household debt increased by $35 billion to $12.3 trillion. The two driving factors: auto loans and credit cards.

While auto loans have been on a steady incline for the past six years, rising credit-card balances are a new development. After the 2007 Great Recession, households cut back on credit-card use until 2014. This was also in part to financial institutions strengthening credit requirements for risky borrowers.

Since that time, card balances have risen by about $70 billion. From 2008 to 2013, total household debts dropped by more than $1.5 trillion. However, first student loan and auto loan balances began to rise, and then mortgages and finally credit cards.

The report reveals that credit cards are returning among individuals with low credit or subprime credit scores below 660. Among people with credit scores between 620 and 660, the share that had a credit card increased to 58.8% in 2015 from a low of 54.3% in 2013. Among those with scores below 620, the number of people with a credit card increased to 50% from a low of 45.6% two years ago. Both figures for 2015 are the highest since 2008.

These figures were generated from the New York Fed’s Consumer Credit Panel that analyzed millions of consumer credit reports from Equifax.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

5 Times you should Never Use a Credit Card

Using a credit card responsibly is an excellent way to boost your credit score, build your credit history, track spending, even take advantage of cash-back and other reward programs.  However, if you are unable to pay your bill off every month the high interest rates will cost you.

Here are five times you may want to put the credit card away and opt for another method of payment:

Paying for a BIG expense– Moving to a new city, remodeling your home or going on a vacation are all purchases you will want to save up for ahead of time.  Using more than a third of your available credit on a card can have a negative effect on your credit score.

To consolidate credit card debt– If you are trying to consolidate all of your consumer debts into one payment, the best option depends on your credit score, how much debt you have and, most importantly, your ability to pay down the debt.  If you cannot reasonably pay off your consumer debt in five years, most experts advise debt reorganization or bankruptcy. If your credit score is average, you can tap into your home equity or take a loan against your retirement account or life insurance policy. However, the consequences of defaulting on these loans come with severe penalties.

To fund emergencies– In an emergency situation, a credit card should be your last resort. If you do not have an emergency fund, start one today.  Budget to have the money automatically transferred from your checking account into a savings account- even if it is only $50 a month. This can add up over a year.

To pay for your wedding– Do not start your married life in debt.  Taking out a  personal loan to help pay for a portion of the wedding expenses is a smarter option because these come with fixed interest rates, making it easier for the payments to be factored into your monthly budget.  Depending on your credit, these can come with lower interest rates and allow you to pay overtime.

To pay your taxes– Avoid using a credit card to pay your taxes.  It is better to take from savings or utilize the IRS installment plan option to avoid paying a fee on top of your tax bill. Vendors that the IRS authorizes to accept card payments charge a convenience fee of 1.87% to 2.25% of the amount you owe. E-filing software companies charge even higher rates for credit card payments.

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.

Related Resources:

http://www.usatoday.com/story/money/personalfinance/2016/08/20/5-times-you-shouldnt-use-credit-card/88945872/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Business Owners Convicted of Bankruptcy Fraud

Two Louisiana business owners were convicted by a federal jury of concealing assets during their bankruptcy and making false statements under penalty of perjury.  According to the testimony, Brian and Debra Spurin filed for Chapter 7 bankruptcy in September 2005 and submitted various bankruptcy schedules and a statement of financial affairs, all signed as true and correct under penalty of perjury.

However, they failed to disclose real property as required, nor did they list all of the businesses they established and had an interest in, which included Golden Choice Financial, LLC; Golden Athletics Financial Services, LLC; J&S Management and Marketing, Inc.; and International Oil, Gas and Mineral Management, Inc.  The assets of these companies were never listed, including the home in which the couple lived in and the vehicles they used.

In total, the couple fraudulently concealed approximately $400,000 worth of assets from the bankruptcy proceeding.

The defendants each face a fine of $250,000, imprisonment for not more than five years, or both, for each count of concealment of bankruptcy estate assets and making a false statement under penalty of perjury.

Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to hide assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing. In addition, you can face serious fines, even jail time.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The South has the highest rates of personal bankruptcy filings in the country

Personal bankruptcy filings fell to levels not seen since before the Great Recession of 2007, according the American Bankruptcy Institute.  However, this is not the case for some parts of the country.  Recent federal data from U.S. courts reveals the median bankruptcy rate among the 587 counties examined was 224 filings per 100,000 residents. Among the 50 states and Washington, D.C., the median bankruptcy rate was 226 filings per 100,000 residents.

Six of the 10 states and eight of the 10 counties with the highest personal bankruptcy filings were in the South. Many of the areas had lower to median annual incomes. Eight of the 10 states with the highest rates of bankruptcy filings had annual household incomes lower than the 2014 U.S. median of $53,657.

Another downside, states with the highest bankruptcy rates offer the least amount of protections for consumers. For example, Alabama and Kentucky, allow debt collectors to seize nearly everything a debtor owns, according to the National Consumer Law Center.

These are the states with the highest rates of personal bankruptcy filings:

Tennessee, 553 bankruptcy filings per 100,000 residents

Alabama, 529 bankruptcy filings per 100,000 residents

Georgia, 483 bankruptcy filings per 100,000 residents

Illinois, 432 bankruptcy filings per 100,000 residents

Utah, 392 bankruptcy filings per 100,000 residents

Indiana, 387 bankruptcy filings per 100,000 residents

Mississippi, 361 bankruptcy filings per 100,000 residents

Kentucky, 345 bankruptcy filings per 100,000 residents

Arkansas, 344 bankruptcy filings per 100,000 residents

Ohio, 322 bankruptcy filings per 100,000 residents

While seeking relief through bankruptcy may not have been your first choice, it may be your best financial strategy, when compared to the alternatives of wage garnishment, lawsuits and endless collection calls. In addition, depending on the type of bankruptcy filing, there is no more overwhelming debt. The majority of personal bankruptcy filings are for Chapter 7, which erases most unsecured debts, such as your credit card debt and medical bills.

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.

Related Resources:

http://www.csmonitor.com/Business/Saving-Money/2016/0816/The-South-has-the-highest-bankruptcy-rates-in-the-country

 

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

CFPB Stops Illegal Practices by Student Loan Servicers & U.S. Dept. of Education Debt Collectors

The Consumer Financial Protection Bureau (CFPB) has taken action against debt collectors and servicers who took advantage of student loan borrowers by making illegal garnishment threats and using illegal auto default provisions in loan contracts.

The violations include:

1. CFPB examiners found that one or more debt collectors threatened wage garnishment against federal student loan borrowers who were not eligible for garnishment. The National Consumer Law Center (NCLC) documented abuses by private collection agencies that the U.S. Dept. of Education hires to collect federal student loans in its 2014 report.

2. CFPB examiners found that one or more servicers of private student loans were unfairly invoking “auto-default” clauses to treat both the borrower and the co-signer in default if either of them died or filed bankruptcy. Auto-default clauses allow the servicer to demand payment of the entire loan balance even if all payments on the loan are up to date.

The Department of Education terminated the contracts of five private collection agencies after finding abuses in February 2015, but more needs to be done through enhanced monitoring and guidance for all private collection agencies to ensure they are consistently providing borrowers with accurate information regarding their loans.

Too many student loan borrowers have already been harmed by this abusive practice, which penalizes student borrowers who are current on their payments, simply because the co-signer has died or filed bankruptcy.

NACBA President Ed Boltz said: “This positive step by CFPB puts an end to an outrageous guilty-until-proven-innocent situation where individuals faithfully paying off student loans are thrown into default because of the status of their co-signer. The fact that a co-signer on a student loan has filed for bankruptcy to deal with other debts is in no way a basis for putting into default a student loan that is being paid on time. It is time that the federal government stands up for student loan borrowers who are doing everything right but nonetheless could see their credit ruined as the result of an unrelated action of a co-signer.”

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.

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Ads Promote Fake ‘Obama Student Loan Forgiveness’

If you have student loan debt, you have probably already seen the advertisements online promoting “Obama’s New Loan Forgiveness Program.”  Companies are charging borrowers upfront fees for services they can receive for free from the Department of Education.

Nine percent of student loan borrowers have used debt-relief companies, according to a recent survey by borrower advocacy group Student Debt Crisis and personal finance website NerdWallet. These consumers paid an average of $613 for income-based repayment plans and loan consolidation that they could have received at no cost from the federal government, the survey found. Sixty-five percent said the services did not improve their financial situation.

The Consumer Finance Protection Bureau has shut down three companies and the Department of Education has sent cease-and-desist letters to five just this year.

The Obama administration did expand repayment options for federal student-loan borrowers. In 2012, the Department of Education offered the “Pay-as-you-Earn” plan that reduced monthly payments to 10 percent of a borrower’s discretionary income, which was lower than the 15 percent required under the original income-based repayment plan.

Last year, an update was made to the plan, giving more than 1.6 borrowers more affordable student loan repayment options entitled, “The Revised Pay-as-you-Earn” plan. The percentage of borrowers enrolled in income-based repayment plans has quadrupled over the past four years from 5 percent in 2012 to nearly 20 percent in 2016.

The Department of Education offers four income-based repayment options for federal student loans. To enroll in any one of these plans, borrowers must complete an application from their loan servicer or online at StudentLoans.gov to verify their income.

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.

 

Foreclosures, Timothy Kingcade Posts

Florida Attorney General Filed Court Action to Stop Foreclosure Fraud

A court action has been filed to stop foreclosure fraud.  Attorney General Pam Bondi filed the action to stop a group of non-lawyers from operating an illegitimate foreclosure defense and loan modification law firm.

“Florida homeowners facing the stress of foreclosure should not have to worry about scammers posing as lawyers and making false promises of relief to get what little money the homeowners may have. Thanks to the great work and dedication of my Consumer Protection Division, we will continue to fight foreclosure rescue fraud and protect homeowners,” said Attorney General Bondi.

The attorney general’s office alleges three men- Adam Forman, Joseph Hilton (a.k.a – Joseph Starr), and Victor Spagnuolo operated eight firms that were used to scam homeowners into paying large upfront fees for legal services.  Another problem, not one of them was an attorney.

The named firms are Asset Protection Law Firm, Heritage Law Group, Liberty Law Group, Consumer Legal Resources, Consumer Legal Advocates, Legal Referral Services, Galler Lehman Law and Selective Housing Solutions.

According to the office, the men also face possible criminal charges for the unlicensed practice of law from the Coral Springs Police Department, Boca Raton Police Department, the Broward County State Attorney’s Office and the United States Secret Service.

There were 37 complaints received from consumers about the defendants’ “deceptive and unfair practices.” Some of the allegations included misleading representations regarding the law firms’ expert legal services, charging unlawful up-front fees prior to the services being completed, failing to protect the consumers’ homes from foreclosure and failing to obtain loan modifications as promised.

Full restitution is being demanded for consumers who have been affected by the crime.  The complaint also seeks an injunction that will prevent the defendants from engaging in future loan modification, foreclosure defense and legal services.

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.

Uncategorized

The Medical Debt Crisis: Americans still struggling to pay off Massive Healthcare bills

Recent data shows that Americans are forgoing medical care and using extreme measures in an effort to pay off their medical debt. Although, the Affordable Care Act is helping reduce the burden of medical debt for some American consumers- for states that have not expanded Medicaid, millions of Americans still lack insurance and many of the affordable plans offer minimal coverage. The result is that in 2014, 64 million people were struggling with medical debt, the number one cause of bankruptcy in the United States.

Two surveys (in 2008 and 2012) explored the finances of lower to middle-income households carrying credit card debt. It was found that households carrying medical debt on their credit cards were more likely to take extreme measures to pay off their debts and forgo necessary medical treatment. Even for the insured, medical debt can negatively impact household finances.

In the 2008 and 2012 surveys, the average total credit card debt fell from $11,019 in 2008 to $8,762 in 2012, a 20 percent decline. Medical debt alone fell from $2,055 in 2008 to $1,679 in 2012, an 18 percent decline. A possible reason for the decline could be the Credit Card Accountability Responsibility and Disclosure Act (CARD Act). Studies show that the CARD Act dramatically reduced fees for credit card users. Research by the Consumer Financial Protection Bureau suggests the CARD act reduced hidden fees, saving consumers billions of dollars. It is also possible the Affordable Care Act played a role along with the improving economy.

Costly medical procedures can quickly lead to a household’s debt spiraling out of control. A key contributor is the out-of-pocket costs, not covered by insurance. The survey revealed dental expenses were the most frequently cited as a contributor to credit card debt; of those respondents who report they experienced a dental expense, a large share said that the expense contributed to their credit card debt. Many basic insurance plans do not include dental.  Emergency room visits and purchasing prescription medication contributed to nearly half of the reported credit card debt.

There are some legislative options in the works. The Medical Bankruptcy Fairness Act, proposed by Senators Sheldon Whitehouse (D-RI) and Elizabeth Warren (D-MA), would help families dealing with medical debt keep their homes by providing them with bankruptcy protection, and would forgive student debt. It also waives the requirement that individuals who file for debt relief receive credit counseling, if the debt is medical-related. The Medical Debt Responsibility Act, introduced by Senator Jeff Merkley (D-OR) and Rep. Maxine Waters (D-CA), would require that fully paid medical debt be removed from credit reports within 45 days.

Click here to read more on this story.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney 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.

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Unauthorized Practice of Law by National Bankruptcy Law Firm

A woman filed a Chapter 13 petition signed by attorney Joseph Kosko, a former partner in the law firm of Volks Anwalt, who solicited her via direct mail. After the law firm missed numerous deadlines, the bankruptcy court held a contempt hearing regarding the representation by Kosko, Volks Anwalt, and its sole owner and managing partner, Jessica McClean.

The court issued a Notice of Deficient Filing on November 9, 2015 because the Debtor’s petition was a “bare bones” filing and did not contain all of the required schedules, statements, summaries, declarations, and local forms.  Federal Rule of Bankruptcy Procedure (“Bankruptcy Rule” or “Rule”) 1007(c) requires any missing documents to be filed within 14 days of the filing of the petition or, in this case, by Friday, November 20, 2015.

The bankruptcy court found that Volks Anwalt’s business plan developed by McClean included a marketing strategy that used direct mailings targeting individuals subject to foreclosure. In the specific case, Kosko and Volks Anwalt not only failed to file the bankruptcy in time to save the woman’s home, but also failed to include her Social Security number in pleadings, did not provide her with the proper disclosures required by 11 U.S.C. §§ 342 and 527, nor intended to appear at her §341 Meeting of Creditors.

Volks Anwalt operates in 43 states.  As of February 2016, the firm had handled approximately 400 bankruptcy cases since it opened in May 2015. The bankruptcy court found that Kosko violated the North Carolina Rules of Professional Conduct in terms of competence, diligence and failure to communicate with the client. In addition, Kosko, McClean and Volks Anwalt had engaged in the unauthorized practice of law, as McClean is only licensed in Florida and New York.

In the end, the court disbarred Kosko from practicing in bankruptcy court for one year, McClean for five years, and ordered all fees be emitted. Kosko and Volks Anwalt must pay the client $5,000.00.

To read the opinion in its entirety, click here.

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.

Related Resources: http://ncbankruptcyexpert.com/2016/08/17/bankr-w-d-n-c-in-re-banner-unauthorized-practice-of-law-by-national-bankruptcy-law-firm/