Archive for: ‘September 2016’

The Consumer Financial Protection Bureau Handled One Million Complaints in Five Years

September 30, 2016 Posted by kingcade

The Consumer Financial Protection Bureau (CFPB) recently published the September 2016 Monthly Complaint report. The report revealed that more than five years after opening its doors, the CFPB has handled more than one million complaints.

“Since opening our doors in 2011, we have handled over one million complaints from consumers about their problems with financial products and services. Not only have we achieved substantial relief for consumers, but hearing directly from consumers is fundamental to our mission. We can better protect all consumers because of what we learn from those who have submitted complaints and shared their experiences with us,” said CFPB Director Richard Cordray.

The CFPB was initially handling complaints regarding credit cards, upon opening its doors in July 2011. However, it later expanded to handle complaints in several other areas of finance, such as: mortgages, bank accounts and services, private student loans, vehicle and other consumers loans, credit reporting, money transfers, debt collection and payday loans.

Debt collection recently surpassed mortgages to become the top complaint the CFPB receives. Out of the one million complaints, the CFPB has received 244,008 mortgage complaints and 264,123 complaints regarding debt collection.

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

The 4 Critical Mistakes that Lead Businesses to Bankruptcy

September 29, 2016 Posted by kingcade

We have all seen the headlines of some of the largest retailers filing for bankruptcy.  From Sports Authority to popular brands like Aeropostale and Pacific Sunwear, these are just a few of the apparel players that have filed for bankruptcy this past year.

According to experts, a variety of factors have played a part in these business bankruptcies.  Here are four missteps that lead businesses to financial collapse.

  1. Failure to adapt. While e-commerce has created an exciting new environment for brands and retailers to promote and sell their apparel, difficulties with adaptation have hurt businesses that lack the support and expertise to manage change in today’s digital and mobile arena. Teens and millennials are driving a massive migration online and are also less brand-focused than previous generations.
  2. Expanding too soon and high real estate costs. There is a good reason why closing stores is often the first line of defense in a retail bankruptcy and restructuring plan. These excessive brick-and-mortar expansions can destroy profit margins across the board, and retail analysts say U.S. retail is at the peak of over-expansion. Expensive rents played a key role in the collapse of Sports Authority and Pacific Sunwear.  PacSun successfully emerged from bankruptcy this month after reducing its debt, closing some of its stores and negotiating lower rent.
  3. Outdated business concepts. Not keeping up with the times can cost a business (and a brand) dearly. A number of businesses file for Chapter 11 bankruptcy because their concept is no longer of interest or their consumers’ tastes have changed. On the other hand, there is the issue of “oversaturation,” where a marketplace becomes too competitive and there is an overabundance of similar businesses and products.
  4. Poor mergers and ownership challenges. The past year and a half has brought a strong wave of mergers-and-acquisitions, particularly in the footwear and apparel industry. Who owns the business plays a big role. Is it a family-owned business that has a vested interest in keeping the company going or is the business owned by a private equity firm, who owns a variety of other businesses? In the case of Sports Authority it was said that new ownership played a pivotal role in the company’s downfall.

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://footwearnews.com/2016/business/retail/bankruptcy-chapter-11-brands-retailers-mistakes-reasons-business-analysis-258911/

 

What happens to my car when I file for Chapter 7 bankruptcy?

September 28, 2016 Posted by kingcade

In most cases, when you file Chapter 7 bankruptcy you have the option to either keep your vehicle or surrender it to the lender.  If your vehicle is paid off, you will likely be able to keep it after filing for bankruptcy- as long as its value is below your state’s vehicle inspection amount.

If you are still making payments on the vehicle, you have two options: (1) you can return the car to the lender and assume no liability, or (2) you can keep the vehicle and continue making payments on it.

If you choose to keep your vehicle, you will have to prove to the court that it is in your best interest to do so.  Probably the easiest way to keep a vehicle that you still owe money on during in bankruptcy is through redemption.

With redemption, you pay the trustee the current value of the vehicle in one lump sum. This is a beneficial option for those who are underwater, because the filer only has to pay the current value of the car, even if the loan amount is greater.

For example, if you still owe $10,000 on your car loan, but the vehicle is only worth $6,000, if you pay $6,000 to redeem the car, you will not be responsible for the remaining loan balance.

If you are current on your payments, but cannot afford to redeem your vehicle, you can continue to make payments by entering into a reaffirmation agreement. The lender will then send you an agreement that may be similar to the original loan contract.

At this time, with the help of an experienced bankruptcy attorney, you may be able to negotiate a better deal. The lender knows that you have the option to surrender the car and assume zero liability. This usually gives them an incentive to at least get some money out of the car.

A hearing will then be scheduled to determine whether or not the reaffirmation agreement is in your best interest.  In making the decision, the judge will consider your income, the value of the car and the amount you still owe on the loan. This is important, because the whole point of filing for Chapter 7 bankruptcy is to eliminate the burden of debt.

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:

https://www.autocreditexpress.com/blog/your-car-in-chapter-7-bankruptcy/

Seasonality Plays a Part in the Increase in U.S. Foreclosure Starts

September 27, 2016 Posted by kingcade

Total U.S. foreclosure starts numbered 68,800 for the month of August with a 12.23 percent increase from July. While this may seem like a large increase, the 12 percent rise in foreclosure starts in August is actually more a product of just how low starts were in July, which saw the second lowest volume of foreclosure starts in over 10 years, according the Data & Analytics division of Black Knight Financial Services, Inc.

August still remains the fifth lowest month for foreclosure starts in 10 years.  90-day defaults tend to rise in the summer months, showing the effect seasonality has on foreclosure starts.

The report states that inventory of loans in foreclosure has been on the decline for 19 consecutive months and in 51 of the past 52 months with total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure) currently sitting at 4.24 percent. This is a decrease of 6.04 percent from the previous month as well as a 11.41 percent increase from the past year.

Finally, the report states that the number of properties that are 30 or more days past due or in foreclosure sat at 2,678,000. This was a decrease of 158,000 properties in July and 483,000 properties in August of 2015.

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.

6 Percent Increase in New South Florida Foreclosure Cases

September 26, 2016 Posted by kingcade

For the past six months, new foreclosure cases have increased 6 percent in South Florida.  Miami-Dade, Broward and Palm Beach counties had 7,354 new cases from March through August, compared with 6,934 during the same period of 2015, according to a report from ATTOM Data Solutions.

The recent increase is a sign that there is still distress in the South Florida housing market.  Despite the increase, the number of new cases still remains below pre-recession levels. The number of foreclosures peaked in South Florida during 2009, when 133,250 new cases were filed, according to ATTOM Data Solutions.

Home prices bottomed out by the end of 2011, causing an increase in sales to buyers looking to capitalize on the bargains, which ultimately helped the housing market recover.  During that time, the job market and the economy improved as well.  With home sales leveling in recent months, some analysts predict the housing market has peaked and is facing an inevitable slowdown, which could mean more delinquencies.

But thanks to better underwriting standards, interest rates remaining low and incomes gradually increasing; this will not come close to mirroring the housing collapse of 2006-2011.

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.