Archive for: ‘May 2017’

Divorce Court Cannot Decide on Bankruptcy Obligations

May 23, 2017 Posted by kingcade

A Superior Court judge in Georgia could not order that a divorce settlement be wiped out in bankruptcy, a federal bankruptcy judge has ruled.  Even though the divorce decree provided that “the property division payments to the Plaintiff shall not be dischargeable in bankruptcy,” Judge W. Homer Drake of the Northern District of Georgia makes it clear that the Georgia court lacked jurisdiction to decide the effect of bankruptcy on the divorce.

There are certain kinds of debts that are non-dischargeable in bankruptcy.  However, these bankruptcy exceptions include support obligations arising from divorce, but do not include property settlements distinct from support.

The divorce decree included provisions that the defendant would pay his ex-wife $1,300 a month for child support and $53,000 “as part of the property division,” the court said. But the decree also said that “the property division payments to the plaintiff shall not be dischargeable in bankruptcy,” it said.

The bankruptcy court rejected the Georgia court’s decree that the obligation would not be dischargeable because it violated public policy. In addition, it found that the state court lacked jurisdiction to make that call.

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.

Government Pays $1B a Year on Student Loan Debt Collectors

May 22, 2017 Posted by kingcade

According to a recent report, the federal government has spent $1 billion a year to pay debt collectors to help struggling borrowers make regular monthly payments on their student loan debt.  But based on the data, their efforts have been a waste of money.

Nearly half of the student loan borrowers who had defaulted on their student loan payments and worked with the debt collectors defaulted again in three years, according to a report in Bloomberg News.

The data came from the Consumer Financial Protection Bureau (CFPB), which also found that debt collectors get up to $1,710 in payments from the Department of Education in the U.S. each time a borrower makes good on a debt after working with a debt collector through a process known as “rehabilitation.”  The debt collector keeps the money, even if the borrower defaults again.

The CFPB told Bloomberg that the government should reexamine whether the program and the contractors awarded to private debt collection are working to truly help the millions of Americans suffering with crippling student loan debt that now stands at $1.4 trillion.

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.

Public Service Student Loan Forgiveness Program- Here’s how you qualify

May 19, 2017 Posted by kingcade

The government’s Public Service Loan Forgiveness Program promises to cancel any remaining student debt for those who work government jobs or for non-profit organizations and have been making continuous payments for 10 years. The first borrowers to receive forgiveness will be eligible in October of this year, which is 10 years from the launch of the program.

Many teachers, public defenders, Peace Corps workers, and law enforcement officers may qualify for forgiveness. More than 400,000 people have applied for the program so far, but signing up for the program can be a confusing, (and not surprisingly) complicated process.

Here are 5 steps you can take to help ensure your eligibility:

  • Find out if your job qualifies. There are three different types of jobs eligible.
  1. Government jobs, which include federal, state, local and tribal government entities, as well as the military, Peace Corps and AmeriCorps positions.
  2. People who work for a 501(c)(3) non-profit.
  3. People who work for a non-profit that does not have 501(c)(3) status, but provides a public service.
  • Turn in the Employment Certification form annually. Ask your loan servicing company to certify that your employer qualifies on an annual basis and keep detailed records. Otherwise, you risk finding out that your job does not qualify after making years of payments.
  • Verify you have the right kind of loan. Only Direct Loans qualify for this forgiveness program.
  • Enroll in an income-driven repayment plan, each year. You must be enrolled in an income-driven repayment plan for at least a portion of your repayments.  These plans cap your monthly bill at a certain portion of your income.
  • Make 120 qualifying monthly payments. FedLoan Servicing will tell you how much you need to pay each month for the payment to count toward the 120 needed to receive debt forgiveness. If you pay any less, it will not count. And if you pay more, it will only count as one payment. Payments must be made no later than 15 days after the due date. Any payments you make while in school, during the six-month grace period after school, or while in deferment or forbearance do not count toward the 120.

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.

Supreme Court Supports Bids to Collect Expired Debts in Bankruptcy

May 18, 2017 Posted by kingcade

Voting 5-3, the U.S. Supreme Court has ruled that debt collectors can use bankruptcy proceedings as a means to collect old debts, where the statute of limitations has expired. The court ruled that this was not a violation of the U.S. Fair Debt Collection Practices Act.

Consumer advocates accused debt collectors of violating the law by filing tens of thousands of outdated claims with bankruptcy courts in hopes that some debtors would not object.

Justice Sonia Sotomayor filed a dissenting opinion in which Justices Ruth Bader Ginsburg and Elena Kagan joined. “Professional debt collectors have built a business out of buying stale debt, filing claims in bankruptcy proceedings to collect it, and hoping that no one notices that the debt is too old to be enforced by the courts.  Debt collectors do not file these claims in good faith; they file them hoping and expecting that the bankruptcy system will fail,” Sotomayor wrote.  This practice is both “unfair” and “unconscionable,” she added.

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.

 

Miami–Dade has Second Highest Rate of Repeat Foreclosures in the Nation

May 17, 2017 Posted by kingcade

Miami-Dade County has the second-highest rate of repeat foreclosures of any major market, according to a newly released report from Attom Data Solutions.  New York City took the number one spot.

Miami-Dade’s rate was 32 percent, followed by Los Angeles County with 39 percent and Maricopa County (Phoenix), with 26 percent, according to Attom’s April 2017 report.  New York’s rate was 54 percent.

A repeat foreclosure is defined as a foreclosure start filed in 2016 on a property with an address and owner’s last name combination that also showed a previous foreclosure start with the same property address and owner combination in the last 10 years, according to Attom.

Nationwide foreclosure activity in April dropped to the lowest level since November 2015. Miami-Dade saw its foreclosure rate fall 35 percent in April, year-over-year, to 986 foreclosure filings from 1,509 filings in April 2016.

Miami-Dade’s rate of foreclosures still remains higher than Broward County, which had 730 and Palm Beach County 578 in April.

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.