Posts Tagged: ‘statute of limitations’

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Consumer advocates accused debt collectors of violating the law by filing tens of thousands of outdated claims with bankruptcy courts in hopes that some debtors would not object.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

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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.

 

U.S. Supreme Court Agrees to Hear Debt Collection Appeal

October 21, 2016 Posted by kingcade

The U.S. Supreme Court has decided to hear an appeal filed by Midland Funding, a subsidiary of Encore Capital Group, which was sued by an Alabama debtor named Aleida Johnson. Johnson entered into bankruptcy in 2014 and claims Midland Funding has sought payment of $1,879 in debt that Johnson had incurred more than a decade earlier. Alabama has a six-year statute of limitations for debt to be collected.

Supreme Court Justices will decide whether or not people can sue companies who have attempted to collect debts that they are not legally required to pay back due to their state’s statute of limitations.

It is common practice for some debt collection companies to attempt to collect on an old debt that is not legally recoverable under state law. However, if a debtor does not object to the payment, claims can be made against them when they enter into bankruptcy.

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.

Florida Supreme Court to Rule on Statute of Limitations in Foreclosures

February 17, 2016 Posted by kingcade

In Florida, there is a five-year statute of limitations that prevents banks from proceeding with a foreclosure beyond that time period, even after a lengthy court process. However, some mortgage servicers are making payments on behalf of their borrowers to help keep the accounts active in an attempt to preserve their foreclosure rights.

These servicers are waiting on the Florida Supreme Court’s decision on the case U.S. Bank v. Bartram. This case will determine if servicers can restart foreclosures after five years or if they will be barred by Florida’s statute of limitations.

If the court rules that mortgage servicers cannot restart the clock, some foreclosures could be permanently barred, forcing banks to accept less, give deals or greatly lower the monthly payment, according to the article by Moody’s Investors Service. Banks may also opt for a short sale in order to get any recoveries.

According to the report, the court’s ruling will impact a minor amount of cases. “Only approximately three percent of private label loans backed by properties in Florida had a prior foreclosure dismissed and are greater than 60 days delinquent or in foreclosure.”

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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.

High Profile Foreclosure Case moves to Florida Supreme Court

November 30, 2015 Posted by kingcade

The Florida Supreme Court is in the final stages of determining when the clock starts ticking on mortgage foreclosure cases.  In the case of Bartram v. U.S. Bank, the now defunct law firm of David J. Stern filed a mortgage foreclosure lawsuit against Lewis Bartram of Ponte Vedra Beach back in 2006.  Years later, after the law firm shut down, with tens of thousands of foreclosure cases in limbo, U.S. Bank missed a case management conference and its foreclosure case was dismissed.

Thanks to the five-year statute of limitations on mortgage foreclosures, the case was revived and Bartram received another favorable judgment. But U.S. Bank appealed that ruling, and in 2014 Florida’s Fifth District Court ruled in favor of the bank, disregarding Florida’s five-year statute of limitations on mortgage foreclosures.

This was a sad day for struggling homeowners and a victory for the banks in Florida who continue to foreclose on loans that defaulted years ago. Many of those loans are referred to as “zombie mortgages,” or a foreclosure that has been started but not completed.

The issue in this case comes  down to mortgage acceleration. Most mortgage contracts carry an acceleration clause, which allows the lender to sue for the entire loan amount immediately, starting a five-year clock on the foreclosure process. But the Fifth District ruled that the court’s dismissal of U.S. Bank’s lawsuit in 2011 negated the loan’s original acceleration date that had been set in 2006, effectively resetting the acceleration date to 2011.

Two other Florida courts have issued similar rulings that uphold the Fifth District decision, but a court in Miami recently ruled against it, leaving it up to Florida’s Supreme Court to decide.   We will keep you posted – A ruling on this case is expected in the next couple of months.

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.