Month: July 2015

Bankruptcy Law, Timothy Kingcade Posts

Benefits of Bankruptcy Receives Praise from Donald Trump

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For those uncertain as to whether or not they should file for bankruptcy, Donald Trump appears to have stepped up as a spokesperson on why filing for bankruptcy is a wise move. Although the multi-million dollar real estate investor claims to have never filed for bankruptcy personally, he fully supports how bankruptcy can be a smart and legal move when needed.

Last month on Twitter, Trump stated, “Out of hundreds of deals & transactions, I have used the bankruptcy law a few times to make deals better. Nothing personal, just business.” He also stated that nearly every major dealmaker has used bankruptcy laws as a business tool. According to Trump, buying deals and then immediately placing them into bankruptcy for a better deal is effective and commonly used.

Despite his positive reviews of utilizing bankruptcy for better business deals, Trump is deeply irritated by others thinking that he has personally filed for bankruptcy. In 2013, Trump vehemently denied this in an angry post directed at the journalist, Touré Neblett.

In the past, Trump’s corporations have filed for bankruptcy, if the enterprise was failing or struggling. It seems that if business tycoons can use bankruptcy laws to their advantage, so can the average consumer. While bankruptcy may help in business transactions, there is still a negative stigma attached for some individuals.

Bankruptcy continues to provide a fresh start for struggling consumers buried in debilitating debt. According to the Federal Reserve Bank of New York, those who file for bankruptcy are better off financially than those who do not. Keeping this in mind, some of the common myths of filing for bankruptcy are simply not true.  It is important consumers keep an open mind.  Whether it is business or personal, filing for bankruptcy is indeed a smart and useful tool for people to consider.

If you are in a financial crisis and are considering filing 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.

Source:
http://www.huffingtonpost.com/steve-rhode/donald-trump-praises-beneficial-power-of-bankruptcy_b_7746322.html

Student Loans, Timothy Kingcade Posts

Student Loans and Bankruptcy: What the Department of Education Has to Say

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Last week, the Department of Education provided guidance on how it will deal with bankruptcy discharge requests for government backed student loan debt. The Department of Education hopes to provide a balance when collecting on student loans, taking possible undue hardship on the debtor into consideration.

The July 7th document has broken down the updated Undue Hardship Formula, which will be used to help the Department of Education find a suitable balance between collecting debts versus allowing debt to be discharged.

The following factors will be considered regarding undue hardship when it comes to the discharge of student loan debt:

• If a debtor has filed for bankruptcy;

• If a debtor asserts undue hardship due to physical or mental impairment;

• If a debtor is a veteran who is unemployable, as determined by the Department of Veterans Affairs;

• If a debtor is approaching retirement, taking into consideration the debtor’s age at the time student loans were borrowed;

• If a debtor’s health has significantly changed since the student loan debt was incurred;

• If significant time has elapsed since the debt was incurred;

• If a debtor’s expenses are reasonable, without unnecessary expenses to provide funds for student loan repayment;

• If a debtor had the mental and/or physical capacity to pursue discharge or aid;

While the Department of Education has provided guidance to clarify the process, developments are still underway.  If a debtor cannot discharge student loan debt as an undue hardship, there is still the opportunity to “agree to discharge of a portion of the amount owed.”

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 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.

Source:
http://www.huffingtonpost.com/steve-rhode/department-of-education-r_1_b_7753076.html

Foreclosures, Timothy Kingcade Posts

South Florida Sees a Decline in Zombie Foreclosures

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RealtyTrac reports that zombie foreclosures have dropped across South Florida. In the past, homeowners were forced to abandon their homes during foreclosure proceedings—creating the term “zombie foreclosures.” However today, thousands of homeowners remain in their homes while foreclosure proceedings take place.

In last year’s second quarter, approximately 7,021 residents left their homes behind once the foreclosure process began. This was 46% less than the year before, according to RealtyTrac’s Zombie Foreclosure Alert. Increased consumer awareness and knowledge of the law appears to be the reason for this rapid change. Unless the home has sold, homeowners are not required to move out; therefore, they opt to stay.

The average value for owner-occupied homes is $251,236, while zombie homes averaged at $195,856. This data indicates that the foreclosing bank would actually benefit from the home being occupied during the process. In the past, the number of zombie foreclosures was negatively affecting neighborhoods across the nation. Overgrown yards, disrepair and code violations only caused problems for lenders seeking to recover the property.

With homeowners staying put and keeping the home maintained, lenders are eager to offer loan modifications to keep borrowers in their homes. The foreclosure process is very lengthy in South Florida, and lenders seem to be fed up. Statistics reveal that on average, a foreclosure in Florida can take over 2½ years to litigate. The decline in zombie foreclosures is good news for all as the economy slowly improves.

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.

Source:
http://www.dailybusinessreview.com/home/id=1202731962896/RealtyTrac-Zombie-Foreclosures-Decline-in-South-Florida?mcode=1202617073880&curindex=3

Credit, Foreclosures, Timothy Kingcade Posts

Surviving Spouses Receive Assistance on Reverse Mortgages

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Reverse mortgage loans handled by the Department of Housing and Urban Development (HUD) are the most common type available, representing more than 90% of reverse mortgage loans in the United States. However, HUD’s rules and regulations regarding these loans have sparked much criticism and even lawsuits. The issue concerns spouses whose names are not included on reverse mortgage documents.

A reverse mortgage allows those who are 62 and older to withdraw funds against their home’s equity. The debt is not paid back until the borrower dies, moves, or sells the property. Many senior citizens have obtained a reverse mortgage only to discover that they could possibly lose their home upon the passing of their spouse.

This is exactly what happened to a Louisiana woman, when her husband passed away in January.  The 65-year-old widow was told by her mortgage company that she owed $107,000 for the principal, accrued interest and fees from the couple’s reverse mortgage on their home of 16 years. The woman was a “surviving spouse,” whose name did not appear on the reverse-mortgage note. Loan officers and representatives had assured the couple that she could remain in the home, if her husband passed away. Unfortunately, she was not protected as she had been led to believe. Instead, she was told to pay the money or her home would be foreclosed.

An estimated 12,000 other widows and widowers face similar circumstances because their name does not appear on the reverse mortgage note. Research has shown that in some cases, the loan broker offered a higher maximum mortgage to those who only had the older spouse on the note. In other cases, one spouse might not have reached the required borrower threshold age, therefore only one of the spouse’s names was placed on the note.

Fortunately, a recent federal policy shift may help surviving spouses in this situation. Up until last month, all non-borrower surviving spouses whose loans were issued before Aug. 4, 2014, were subject to payment demands, similar to the Louisiana woman’s case. On June 12, HUD changed its policy and advised loan servicers of an updated option. Instead of foreclosing on non-borrower surviving spouses, the loan would be assigned back to HUD, which would make a claim for monies owed against the agency’s FHA insurance fund.

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.

Source: Kenneth Harney – The Washington Post

Bankruptcy Law, Timothy Kingcade Posts

Bankruptcy Checklist: What to Bring when Meeting with your Lawyer

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Are you considering filing for bankruptcy? Before you sit down with an experienced and qualified bankruptcy attorney, there are several important documents you need to bring with you. If you decide bankruptcy is the best option for you, your attorney will thoroughly review your financial background. Additional documentation will be required by your attorney to determine the type of bankruptcy you should file.

The following documents are needed when you first meet with your bankruptcy attorney:

• Financial Documentation. Wage statements, tax returns, bank account statements and large purchase receipts.

• Creditor Information. A list of credit accounts, account numbers, the amounts you owe and their contact information.

• Loan documentation. Any mortgages and outstanding loans you may have, such as: car loans, business loans, etc.

• Real Estate documentation. Forms and information pertaining to any property you may own or rent.

• Personal Property Documentation. Any major personal property items like vehicles, boats, valuable jewelry, electronic items, appliances or other items that could be repossessed.

• A list of any personal questions you may have for your attorney.

If you are a business filing for bankruptcy, additional documentation will be required such as company reports, financial statements, budget reports, and company property information.

While it is best to be as prepared as possible, if you are unable to obtain all of these documents, do not worry. You will be provided with adequate time to contact your banks, lenders and creditors to obtain the necessary documentation for your bankruptcy proceeding.  It is important to be open and honest with your bankruptcy attorney to prevent possible fraud or being accused of “hiding” assets.  By providing all necessary documentation and working closely with your attorney, you will help ensure that the bankruptcy process runs as smoothly as possible.

If you are in a financial crisis and are considering filing 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.

Source:
http://www.legalmatch.com/law-library/article/bankruptcy-checklist-what-to-bring-when-meeting-your-lawyer.html

Foreclosures, Timothy Kingcade Posts

More than Half of Underwater Homeowners Still Struggling

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Home values in the U.S. are growing at such a slow rate, many struggling homeowners may be stuck with their mortgages for years to come. Zillow’s Negative Equity Report sheds some light on the situation. When a homeowner’s mortgage balance is higher than the fair market value of their property, it is called an “underwater” mortgage. Of those homeowners who were underwater, nearly half—about 4 million—owed 20% or more of their home’s actual value. In 2015’s first quarter, 15.4% of homeowners had negative equity in their home. While this is a decrease from 16.9% in 2014’s last quarter, the outlook is grim for homeowners who want to sell. Also, the report showed that lower-end homes were more than three times as likely to have negative equity as higher valued homes.

With spring and summer marking the busiest time of year for buying and selling homes, there has been a spike in demand. Unfortunately, many homeowners remain stuck because they cannot afford to sell at the buyers desired price. While it is great news to see the amount of negative equity decreasing across the nation, the extent of negative equity is a concern for many. Millions of Americans’ homes are so far underwater, they may not be able to regain equity for a decade or longer, according to Zillow’s Chief Economist, Dr. Stan Humphries.

The fact that the highest amount of negative equity is found in lower-valued homes means that this imbalance will directly affect future affordable home sales. With so many homeowners stuck underwater, the housing economy will face inflated home prices, limited inventory and a strained growth on home values. Among the 35 largest housing markets, Miami and Detroit were shown to have the greatest amounts of homeowners underwater. Both Miami and Detroit showed more than 60% of homeowners with negative equity and more than 20% percent of those homeowners were underwater.

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.

Source:

http://www.nhbr.com/June-26-2015/4-million-US-homeowners-still-underwater/

http://www.prnewswire.com/news-releases/more-than-half-of-underwater-homeowners-are-nowhere-near-re-surfacing-300098266.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How Puerto Rico’s Bankruptcy Crisis Could Affect Florida

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Puerto Rico’s recent financial crisis has sparked a heated debate among Congress. More than $72 billion in debt, the island territory is ready to declare bankruptcy. However, our nation’s bankruptcy code currently does not allow Puerto Rico access to do so. In a recent statement, Puerto Rico’s governor Garcia Padilla stated that the commonwealth’s debt is far too much for them to handle and now Congress is under pressure to make a decision.

Lawmakers have been considering whether they should implement a legislative solution to allow Puerto Rico to declare bankruptcy. If Congress passes a new law to remedy this, advocates believe it will finally resolve a technical oversight from a 1984 update to the nation’s bankruptcy law. Apparently the update inadvertently excluded Puerto Rico. Since the law says nothing about Puerto Rico, it is currently unable to receive aid. Even though Puerto Rico is supposed to have the same ability as the states, lawmakers called it an “error.”

Puerto Rico’s Resident Commissioner Pedro Pierluisi (D), is working to build support for legislation, as well as Senators Chuck Schumer (D-N.Y.) and Richard Blumenthal (D-Conn.), who are also working to build support for similar legislation in the Senate. Former Florida Governor Jeb Bush (R) expressed support for the bankruptcy proposal when he visited Puerto Rico in April. Hillary Clinton also expressed her support for allowing Puerto Rico to declare bankruptcy. At this time, the path ahead is unclear but Pierluisi states that he hopes to see the bill move before Sept. 1, 2015.

Meanwhile, many investors oppose the possible change, fearing that they too might go bankrupt if the law does pass. Skeptics say that the law would put billions of investors’ dollars at risk across the country. Even with a granted bankruptcy, many feel this will not solve all of Puerto Rico’s financial problems. Puerto Rico’s financial troubles have been long standing, since the territory was hit hard by the global financial collapse of 2007. Since then, many Puerto Ricans have moved to the U.S. mainland, namely Florida, to seek better opportunities.

More than 2 million Puerto Ricans reside in Florida. These numbers continue to grow as Puerto Rico looses approximately 1% of its population every year as thousands migrate to Florida’s more robust economy. South Florida is one of Puerto Rico’s largest trade partners. As a result, millions of Puerto Ricans living and working in Florida are an important part of the economy on the island. Unfortunately, if Puerto Rico defaults, Florida’s economy will certainly be affected.

If you are in a financial crisis and are considering filing 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.

Sources:

http://thehill.com/policy/finance/246820-puerto-rican-debt-crisis-hits-congress

http://www.miaminewtimes.com/news/puerto-rico-is-broke-what-you-need-to-know-about-looming-bankruptcy-7718094

Bankruptcy Law, Timothy Kingcade Posts

Bankruptcy is an Option to Consider for Some Retirees

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Many retirees might not consider bankruptcy as a viable option to help their financial situation. However, if you are struggling financially, bankruptcy may be the best way to protect your retirement assets from creditors. Today, more seniors are considering bankruptcy as an option in retirement.

A Chapter 7 bankruptcy requires at least $10,000 of outstanding unsecured debt (such as credit cards, taxes, medical bills, and court ordered money judgments) in order to file.  Filing for bankruptcy can significantly help you get rid of unwanted debt in your golden years. For retirees with a second mortgage, they may want to consider a Chapter 13 bankruptcy. In a recent U.S. Supreme court ruling, it was decided that filing for a Chapter 7 bankruptcy will not allow homeowners to cancel a second mortgage if their homes are not worth the value of their first mortgage.

Retirees would likely be able to qualify for bankruptcy, regardless of their retirement savings, because filings are based on a six-month average of income. Even if you receive more income from Social Security, a Chapter 7 bankruptcy would consider it protected. Other protected assets include 401(k) plans, IRAs, and public retirement pensions. While a bankruptcy filing will remain on your credit report for 10 years, the benefits of filing for bankruptcy often outweigh the cost.

If you are in a financial crisis and are considering filing 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.

Source:
http://www.thestreet.com/story/13177003/1/why-some-retired-people-might-consider-filing-for-bankruptcy.html
http://www.wsj.com/article_email/supreme-court-underwater-homeowners-cant-void-second-mortgages-in-bankruptcy-1433173699-lMyQjAxMTA1MDA0MTIwMjEyWj

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

Bankruptcy’s “Undue Hardship” Requirement Increasingly Difficult for Students to Meet

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For many consumers, student loan debt has become a major financial burden. When it becomes too difficult to afford basic living expenses, some turn to bankruptcy as an option. However, if you do not meet the undue hardship requirements, your student loan debt cannot be discharged.

This is exactly what happened to a 45-year-old Maryland woman who was struggling with growing student loan debt. Despite being unemployed, disabled and living far below the poverty line, the court did not allow her to discharge over $37,000 in student loan debt. The reason behind why the judge declined the request was because she had not made any good-faith attempts to repay her loans.

If you have student loan debt that you would like discharged in bankruptcy, an “undue hardship” test is required by the bankruptcy code. This is where you must be able to prove that repaying your student loans would cause “undue hardship” on your life. Unlike credit card debt, the only way to remove student loan debt when filing for bankruptcy is through the undue hardship test. Since the test is not regulated by any law, the courts must determine the severity of the debtor’s circumstances to qualify them for relief.

A three-pronged test can be used to decide whether paying back a student loan would be too difficult for you. The following three items must be proven in order to qualify:

• You must prove that you are unable to maintain a minimal standard of living, while repaying the debt;
• You must prove that your current destitute circumstances will last for a long time;
• You must show that you have made “good-faith efforts” to repay your loan in the past.

Should you fail to adequately prove these three items, you could be denied the option of discharging your student loan debt in bankruptcy. If this occurs, you may also seek help from a federal loan-consolidation program. While a consolidation program would not completely discharge your student loan debt, it could offer a repayment plan that might be more manageable for you.

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 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.

Source:
http://www.bloomberg.com/news/articles/2015-06-22/courts-rule-that-disabled-woman-living-below-the-poverty-line-must-repay-student-loans

Bankruptcy Law, Timothy Kingcade Posts

Is Bankruptcy An Option for Those With Good Credit but Mounting Hospital Bills?

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Several factors come into play when deciding whether or not you should file for bankruptcy because of looming medical bills. If you have good credit, you may want to handle the issue outside of bankruptcy. It is true that filing for bankruptcy will affect your credit, but making late payments or missing them altogether would be more harmful to your credit. Also, there is the possibility of your medical provider suing you, followed by wage garnishment. If you are unsure of how to handle medical bills with good credit, now is the time to review all of your options before it is too late.

Bankruptcy Options

If your medical provider is unable to work with you regarding your medical bills, creditors will likely pursue you for payment, and their collection actions will begin to appear on your credit. If the provider sues you and receives a judgment, they could garnish your wages, which can put even more financial stress on you. By filing for bankruptcy, you can stop further collection attempts and prevent wage garnishment from happening.

For those who do not earn a lot of money and have assets with little or no equity, filing for Chapter 7 bankruptcy may be the best option. Not only will this cease collection attempts, it can result in your medical debt being wiped away completely.  Many consumers believe that they should only file for bankruptcy if they have bad credit. This is not true. Many debtors file Chapter 7 on a single, but substantial debt. Medical debt is an unsecured debt and can be easily discharged in a Chapter 7 bankruptcy.

Non-bankruptcy Options

You may try to negotiate a settlement with your medical provider directly. If all insurance payments have been made, and your bill was for uninsured medical costs, the medical provider may waive a part of your bill. If you qualify for the Hospital Care Assurance Program (HCAP), you may be able to receive free or reduced hospital care, based on your income. Your hospital’s financial aid counselor can help you with this option. Under the Affordable Care Act (ACA), non-profit hospitals must provide free or low-cost coverage for low-income individuals.

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.

Source:
http://www.nolo.com/legal-encyclopedia/i-great-credit-huge-medical-bill-should-i-file-bankruptcy.html