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

Class Action Lawsuit May Offer Hope to Student Loan Borrowers in Bankruptcy

Student loan servicer, Navient has agreed to stop collection attempts on certain borrowers who filed for bankruptcy, providing at least temporary relief for thousands of people and signaling there may be a chance of discharging student loan debt in bankruptcy.

As part of an ongoing class-action lawsuit, Navient has voluntarily agreed to stop collection activities on loans used by borrowers who filed for bankruptcy after October 2005 and used the loans to attend non-accredited schools.

Under the voluntary agreement filed with the court this month, Navient can still continue to send borrowers monthly statements, but the company will no longer aggressively call borrowers multiple times a day.

Plaintiffs in the case allege Navient attempted to collect on loans that were discharged in bankruptcy, including calling their relatives and employers multiple times a day.

The judge overseeing the class-action has not made a ruling yet, so it is unclear if he believes the debts should be discharged. But in a hearing to discuss whether Navient would stop collection on the loans at issue in the case, he pushed the company to do so, expressing sympathy for the borrowers.

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.

Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

New Lawsuit Accuses Ocwen Financial Corp. of filing bad foreclosures… Again

A lawsuit filed by the State of Florida alleges Ocwen Financial Corp.’s errors have resulted in “significant harm to borrowers, including but not limited to improper late fees, inaccurate negative credit reporting and borrower frustration.”

Twenty states have filed similar actions, along with the federal Consumer Financial Protection Bureau. The Florida lawsuit, filed by the state Attorney General and the Florida Office of Financial Regulation, says the West Palm Beach-based company filed illegal foreclosures, mishandled loan modifications, misapplied mortgage payments, failed to pay insurance premiums from escrow and collected excessive fees.

“When Ocwen has sent escrow statements, in many instances the escrow statements have contained inaccurate information pertaining to the borrowers’ account histories, escrow balances, and escrow payments,” the lawsuit said.

The complaint filed in federal court in West Palm Beach alleges violations of the Real Estate Settlement Procedures Act, the Florida Deceptive and Unfair Trade Practices Act and Chapter 494, Florida Statutes.

This is not the first time Ocwen has been accused of foreclosure misconduct. In 2014, a court approved a $2.1 billion settlement between Ocwen and 49 states, as well as the District of Columbia and the Consumer Financial Protection Bureau, to address allegations of Ocwen’s mortgage servicing misconduct.

Click here 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.

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Who Actually Files for Bankruptcy? The Answer May Surprise You

Many people feel guilty about filing for bankruptcy, but the reason they file is often beyond their control.  The majority of people who file for bankruptcy do so because they lost their jobs, became sick or had a medical emergency, or got a divorce.   Financial mismanagement is becoming a less common factor in bankruptcy filings, while job loss is one of the biggest factors.

Even if someone is able to get a new job after being laid off, oftentimes they are already too far behind on their mortgage, car and credit card payments, and their debt spirals.  Exorbitant medical bills are another factor that are out of a family’s control.  Even with health insurance, there are still out-of-pocket expenses and co-pays that can add up quickly.

Divorce causes two incomes to be taken down to one, with separate homes, additional bills and possible child support payments.  Predatory lending and the misuse of credit during these desperate times can play a role in consumer bankruptcy filings.

Chapter 7 bankruptcy allows you to discharge your debt and get a fresh start.  Common categories of dischargeable debt include:

  • Credit card debt (including overdue and late fees)
  • Collection agency accounts
  • Medical bills
  • Personal loans from friends, family, and employers
  • Utility bills (past due amounts only)
  • Dishonored checks (unless based on fraud)
  • Student loans (only if undue hardship can be proven)
  • Repossession deficiency balances
  • Auto accident claims (except those involving drunk driving)
  • Business debts
  • Money owed under lease agreements (includes past due rent)
  • Civil court judgments (unless based on fraud)
  • Tax penalties and unpaid taxes past a certain number of years
  • Attorney fees (except child support and alimony awards)
  • Revolving charge accounts (except extended payment charges)
  • Social security over-payments, and
  • Veterans’ assistance loans and over-payments.

In most cases, Chapter 7 bankruptcy filers automatically receive a discharge at the end of their case. A discharge releases you from personal liability for the debt and prevents the creditor from taking any collection actions against you. In other words, you are no longer legally required to pay any debts that are discharged. In Chapter 7, the court usually grants the discharge 60 days after the 341(a) Meeting of Creditors. Typically, this means you will obtain a discharge about four months after filing your Chapter 7 bankruptcy petition.

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.thenewsstar.com/story/money/2017/04/21/who-files-bankruptcy-answer-surprise-you/100565822/

http://www.nolo.com/legal-encyclopedia/debt-discharged-chapter-7-bankruptcy.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What happens when credit card companies sell your debt?

Barclaycard sold $1.6 billion of credit card balances in the first quarter of 2017 to the personal-loan company, Credit Shop Inc.  Oftentimes, the accounts that are sold are ones that the card issuer has determined to be too risky for its business or are already in delinquency.  In these type instances, a card issuer can sell the account balances for pennies on the dollars.

Here is what you need to know if your credit card company sells your debt.

The reasons card issuers buy and sell debt.  Some debts are more “reliable” than others.  For this reason, cardholders pay widely different interest rates, depending on how risky the lender judges them to be.  “Subprime” borrowers tend to pay substantially higher interest rates to make up for the possibility that they might not be able to pay back the debt.

How will you know if your debt has been sold?  In many you will only find out if your debt has been sold when you hear it from the new owner or a debt collector calls you and demands payment.

What if a debt collector calls? If you receive a call from a debt collector, the Fair Debt Collection Practices Act protects you from abuse and harassment.  A debt collector is not allowed to call you excessively or make any threats.  They are also prohibited from calling you before 8 a.m. or after 9 p.m. and cannot misrepresent the amount you owe.  By law, you have the right to demand documented proof of the existence of the debt and the amount you reportedly owe. This request must be made in writing within 30 days of the first contact from a debt collector. During the time it takes to investigate and reply to your request, all calls from the debt collector must stop.

You also have the right to request that all future contact be made in writing. This can prevent disruptive and embarrassing calls at home or at work.  You have the right to sue if a debt collector violates any of these rules.

What responsibilities do credit card companies have? Under the federal CARD Act, which went into effect in 2010, credit card companies are required by law to give cardholders 21 days from the date the statement mails to make a payment.  Credit card companies are also required to provide a 45-day written notice before any rate increases. If you receive this notification, consider paying off the account if you are able to or transferring your balance to a low-interest credit card or zero-percent interest card, which overtime will be less costly to repay.

If you have any questions on this topic or 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.nasdaq.com/article/what-happens-when-credit-card-companies-sell-your-debt-cm776572

Debt Relief, Foreclosures, Timothy Kingcade Posts

Florida Couple Triumphs in Foreclosure Appeal

A Florida couple won an appeal in a foreclosure ruling by the 4th District Court of Appeal of Florida.  The appeals court determined the couple had a valid case and overturned the trial court’s decision, favoring the borrowers and that the bank, “failed to establish standing.”

In 2008, the couple defaulted on a loan three years after they signed a mortgage with the original lender, Bankers Mortgage Trust Inc. The couple was accused of two counts: 1. mortgage foreclosure and 2. “reestablishing” a note that was allegedly lost. A piece of paper attached to the copy of the note approved the new owner of the loan from the original lender to GreenPoint Mortgage Funding Inc. The claim about the lost note was dismissed after the bank failed to prove that it was the “legal and/or equitable owner and holder of the Note and Mortgage and (had) the right to enforce the loan documents.”

It didn’t help the bank when their sole witness, Pamela Bingham, who worked as a home lending research officer, couldn’t determine when the approval for GreenPoint Mortgage to take over the loan was included in the note or whether it was on the back or on another piece of paper, according to court documents.

The couple filed an appeal alleging the bank never provided valid evidence that it received the note from the original lender, and therefore it could not win the case as a non-holder in position with the rights of the holder.

“There was nothing, however, connecting the bank the endorsee of the note, GreenPoint Mortgage, to EMC Mortgage or the Bank,” according to the court. “In other words, the Bank failed to prove the series of transactions through which it purportedly acquired the note from the endorsee.”

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The IRS is Using Private Debt Collectors- Here’s what Consumers Need to Know

The IRS has entered into contracts with four private debt collection agencies- Conserve, Pioneer, Performant and CBE Group.  These agencies will only take over accounts if several criteria are met:

  1. The tax debt has been removed from the IRS’s active inventory due to a lack of resources or an inability to find the taxpayer;
  2. More than one-third of the applicable limitation period has passed and no IRS employee has been assigned to collect the debt;
  3. The debt has been assigned for collection, but more than 365 days have passed without interaction with the taxpayer for purposes of furthering collection of the debt.

These collection agencies are required to abide by the consumer protection provisions of the Fair Debt Collection Practices Act.  This means they cannot call you before 8 a.m. or after 9 p.m.; they cannot contact you at work if you have told them not to; they cannot falsely claim you have committed a crime; they cannot misrepresent the amount you owe or threaten you with harm or arrest for lack of payment.

Consumers need to be aware of tax scammers looking to capitalize on this new IRS protocol.  Tax scammers oftentimes ask their victims pay their alleged debts by purchasing prepaid cards and then call back with the cards’ codes. Another common scam involves having large amounts of money sent via wire transfer.

This will never be the case with the listed contracted debt collectors, according to the IRS.  In fact, taxpayers will not be asked to pay the private debt collectors anything. Instead, these collectors will provide information about electronic payment options for taxpayers on IRS.gov/Pay.  Even written checks will need to be made payable to the U.S. Treasury and sent directly to the IRS, not the private collection companies.

Click here to read more on this story.

If you have any questions on this topic or 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.

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

Student Loan Forgiveness Letters May be Invalid

More than 550,000 student loan borrowers who signed up for a federal program that promised to repay their student loans after they work 10 years in a public service job may be invalid, according to the Department of Education.

In a court filing last week, the Education Department suggested that borrowers could not rely on the program’s administrator to say accurately whether they qualify for student loan debt forgiveness. Even more appalling, the thousands of approval letters sent out by FedLoan Servicing are considered to be non-binding and can be rescinded at any time.

The filing adds to questions and concerns about the student loan forgiveness program, which offered major benefits and incentives for student loan borrowers who took public service jobs instead of more lucrative work in the private sector.

The American Bar Association and several borrowers have filed suit in the U.S. District Court in Washington against the department.  The plaintiffs in the case held jobs that they initially were told qualified for the debt forgiveness program; only later to find out the decision was reversed. The lawsuit seeks to have their eligibility for the forgiveness program reinstated.

The student loan debt forgiveness program covers people with federal student loans who work for 10 years at a government or nonprofit organization, and includes public school employees, museum workers, doctors at public hospitals and firefighters. The federal government approved the program back in 2007.  The first potential beneficiaries of the program reach the end of their 10-year commitment this October.

Approximately 25 percent of the nation’s workforce may qualify for the program, according to the Consumer Financial Protection Bureau.

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, Foreclosures, Timothy Kingcade Posts

Why are mortgages getting cheaper?

The average rate of a 30-year fixed mortgage fell to 4.08% this week, the fourth consecutive week of declines and the lowest level this year, according to Freddie Mac.

A higher Federal Funds rate makes it more expensive for banks to borrow money, which can translate into higher borrowing rates for consumers. But recent global uncertainty and signs that the White House might not be as productive with its agenda as many thought has caused yields to recently fall. The 10-year Treasury yield is around 2.23%, down from around 2.62% nearly a month ago. Mortgage rates have moved lower as well.

Freddie Mac predicts that we will see rates increase to around 4.5% by the end of the year.  Potential home buyers should welcome the drop in rates with open arms as the busy buying season heats up.

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.

 

Debt Relief, Timothy Kingcade Posts

How to Spot a Real IRS Debt Collection Call from a Scam

The IRS recently announced that it will be making collection calls to collect on delinquent taxes, something they maintained for years would never happen.  Not surprisingly, scammers are making the most of the opportunity.  According to the IRS, losses have mounted to more than $20,000,000, as a result of the IRS Imposter Scam.

If you receive a call from someone claiming to be from the IRS, consider these important tips to determine if the call is real or a scam.

  • There are only four authorized firms nationwide, which include:
  1. CBE Group of Cedar Falls, Iowa;
  2. Conserve of Fairport, N.Y.;
  3. Performant of Livermore, Calif.; and
  4. Pioneer of Horseheads, N.Y.
  • If you owe taxes, only one of these firms will contact you.
  • You likely know who you are. You will not receive a call if you pay your taxes on-time and regularly. If you are delinquent in tax payments, you will receive multiple written notifications from the IRS, before your case is turned over to one of the listed debt collection firms.
  • The IRS will send a letter to notify you that your case has been turned over to one of these companies. The collection company will also send you a letter regarding their authorization to call on behalf of the IRS.
  • The company will not ask for payment to be made to them, nor will they ask for payment on a Money Card.
  • These companies will not threaten you.

If you are still unsure if you have unpaid tax debts from previous years, you can go to IRS.gov and check your account balance. If the account balance says zero that means nothing is due, and you should not be receiving calls from the IRS or one of these collection companies.

Click here to learn more on the IRS Imposter Scam.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

400 Percent Increase in Scams this Tax Season

According to the IRS, there has been a 400 percent increase in tax scams during this year’s filing season, compared to last year. The IRS has issued warnings about the growing threat of scams as the end of tax season nears. Scammers use tax season to trick taxpayers into disclosing confidential information so they can access bank accounts, make fraudulent purchases, apply for loans and steal tax refunds.

The most common way scammers steal W-2s is through phishing emails. Hackers create a fake email address, posing as a CEO or CFO of a company and send a request to an employee in payroll asking for a PDF of all employees’ W-2s.

According to the Department of Justice, stolen identity tax refund fraud has affected hundreds of thousands of taxpayers and has cost the United States Treasury billions of dollars.

Other common scams claim there is an urgent situation requiring taxpayers’ immediate attention, such as an issue with processing refunds, additional forms or an audit warning.

The best way to protect yourself from tax scams is to know the signs:

  • Emails that appear to be from the IRS with suspicious links and attachments
  • Text messages that instruct you to call a toll-free number
  • Phone calls with pre-recorded messages that ask for confidential information

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.