Month: March 2016

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Feds Shut Down Illegal Student Loan Debt Relief Company

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The Consumer Financial Protection Bureau (CFPB) filed a lawsuit last December against Student Loan Processing.US, a debt relief operation that allegedly stole millions of dollars from consumers promising to provide repayment benefits.  Today, the CFPB has taken some drastic measures to put an end to this organization once and for all. It requested that a federal district court enter a final judgment and order it to shut down Student Loan Processing.US and refund customers millions of dollars.

According to the CFPB’s lawsuit, since 2011, Student Loan Processing.US (a fictitious business name of Irving Web Works, Inc.) along with its owner, allegedly marketed and advertised services to advise and assist borrowers applying for Dept. of Education federal student loan repayment programs.

The CFPB alleges that College Education Services and Student Loan Processing.US illegally tricked borrowers into paying upfront fees for these benefits. Many times the company told consumers that it was a “consultation service” for the Dept. of Education. The company even went so far as to use a logo that resembles a government seal, stamps “official business” on its mail to consumers and cites federal law prohibiting mail tampering to create the impression that its marketing material are sent or endorsed by the federal government.

The company would then charge consumers upfront enrollment fees of either 1% of their federal student loan balance or $250, whichever amount was higher. The CFPB reports that the company required borrowers to pay the entire fee before it would even mail an application to consumers.

The ruling also found in favor of the CFPB on its claims that College Education Services and Student Loan Processing.US violated the Telemarketing Sales Rule and the Dodd Frank Act’s prohibition against deceptive acts or practices by collecting payment information from customers before disclosing the total cost of the company’s services.

According to the final judgment, Student Loan Processing.US will be ordered to pay more than $8.2 million in relief and damages to customers.

For individuals struggling with student loan debt, it’s important to remember that the Department of Education provides numerous plans to borrowers with federal student loans to make payments more affordable FREE of charge.

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.

Foreclosures, Timothy Kingcade Posts

Former NFL Player, Chad “Ochocinco” Johnson, Losing Home to Foreclosure

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Chad Johnson, six-time Pro Bowl NFL receiver turned reality TV star is faced with losing his 6,000-square-foot mansion in Davie, FL to foreclosure.  The residence at 2899 Juniper Lane was foreclosed on earlier this month and will be put up for public auction in April.

“Chad Ochocinco,” as he is commonly referred to grew up in Miami and spent the prime of his career with the Cincinnati Bengals, where he caught more than 1,000 receiving yards in seven of his first nine seasons.  He legally changed his name to Chad Javon Ochocinco, in honor of his jersey number, 85 in 2008.  He later changed his name back to “Johnson” in an effort to “find himself.”  He also starred in a reality-TV dating series called Ochocinco: The Ultimate Catch , which ran for a single season on VH1 in 2010.

After playing for the New England Patriots in 2011 he signed with the Miami Dolphins, but before the season began, he was arrested for domestic battery and was cut from the team.  In February 2015, the Long Lake Ranches West Homeowners Association placed a lien on Johnson’s home, claiming he owed more than $3,500.  After not paying, the association sued and on March 1, a Broward County judge officially granted a final motion of foreclosure on Johnson’s home.  The home is currently worth approximately $1.1 million, according to property records. The home will be posted for sale at broward.realforeclose.com on April 15.

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.

Foreclosures, Timothy Kingcade Posts

Florida Ranks #1 in Completed Foreclosures for January

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Foreclosure inventory decreased nationwide by 21.7 percent and completed foreclosures dropped 16.2 percent in January compared to the previous year, according to CoreLogic.  The number of U.S. homes in some stage of foreclosure totals approximately 456,000, compared with 583,000 in January 2015.

The five states with the highest number of completed foreclosures in January were Florida (74,000), Michigan (49,000), Texas (29,000), California (25,000) and Ohio (24,000). These five states accounted for almost half of all completed foreclosures nationally. Miami-Miami Beach-Kendall topped all other U.S. metro areas for completed foreclosures in January, with 6,919.

Foreclosure inventory represents the number of homes in some stage of foreclosure, and completed foreclosures represent the total number of homes lost to foreclosure. There have been 6.1 million completed foreclosures across the country since the financial crisis began in September 2008. Since that time there have been 8.2 million homes lost to foreclosure.

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.

Related Resources:

http://www.bizjournals.com/orlando/blog/2016/03/florida-tops-innation-for-completed-foreclosures.html

http://247wallst.com/housing/2016/03/08/january-foreclosures-highest-in-florida-michigan/

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

Federal agency warns student loan companies about automatic defaults

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The Consumer Financial Protection Bureau (CFPB) is giving student loan companies a strict warning when it comes to collecting from borrowers in default when the co-signer of their loan dies or files for bankruptcy.  These “auto defaults” leave borrowers with no choice but to repay the loan in full or ruin their credit, making it difficult to purchase a home or car.

This practice often occurs in the private student loan market, where banks and other lenders provide educational financing with loan contracts that give them the right to trigger a default even if the loan is being paid on time.  Now the student loan companies are at risk of breaking the law, if they continue with this practice.

When parents or grandparents take on the legal responsibility of a loan, students can get lower interest rates because the co-signers are obligated to repay the debt if the borrower does not.

Lenders often require a co-signer to make the debt more attractive to investors. They will typically release a co-signer from the loan agreement if the borrower has made consistent on-time payments.  However, some lenders and loan servicers make this process difficult by having the borrower jump through hoops to get such a release, according the CFPB. They often request proof of graduation, transcripts, employment or salary, and even conduct credit checks.

The bureau first brought attention to auto defaults two years ago after receiving complaints from consumers whose loans were placed in default because of the death or bankruptcy of a co-signer.

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, Timothy Kingcade Posts

Tips for Filing Taxes after Bankruptcy

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Filing taxes after bankruptcy doesn’t have to be complicated, as long as you know what to look for, including when and how to file.  The confusion for taxpayers in bankruptcy stems from the requirement for the filing of two types of tax forms.  One is for the individual, the other is for the bankruptcy estate.

When filing for Chapter 7 bankruptcy, you would file your usual 1040 the same way you normally would.  The trustee would then file a Form 1041 for the bankruptcy estate.  One of the provisions of a bankruptcy is that the debtor may not acquire any other delinquent balances while under the court’s supervision.

Here are some tips for individuals filing bankruptcy and a tax return this year:

  • Consult with an experienced bankruptcy attorney. Many offer free consultations. Let the attorney know whether you have filed a return for each of the past three years.
  • If you have not filed your taxes for the year, consider doing so before filing for bankruptcy, unless you know you are going to receive a substantial refund.
  • If you have already filed , make sure your attorney has all of the tax records- and make sure you have a general answer of how you used the refund money. The trustee will ask.
  • If you do get a refund, and you are considering filing for bankruptcy, do not pay bills with the refund money. This will delay the processing of your bankruptcy case.
  • File your taxes on time each year. The IRS assesses separate penalties for failure to file and failure to pay, and they will find out if you owe money even if you do not file. Save yourself the trouble and adhere to the April 15th filing deadline.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

IRS Imposter Scams on the Rise in the Midst of Tax Season

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According to the Better Business Bureau (BBB), the ‘IRS Imposter Scam’ was the number one scam reported in 2015. In the midst of tax season, the phone scam is continuing at a rapid rate and is being called one of the largest phone scams the IRS has ever seen.

Shanna Liedel spoke to Fox 6 Now regarding a call she received from someone claiming he was with the IRS. “He just said there was some fraudulent activity regarding my taxes between 2009 and 2013. I filed my own taxes for one of those years so I was like OK, did I make a mistake?” Liedel said.

“They knew my address and they said they would come and arrest me. I guess if they knew my address and that I owned my home, I assumed they knew where I worked. I could just imagine being handcuffed at my job and forced to leave,” Liedel said.

Liedel said a friend at work saved her from the scam. Her friend told her to look up the number because she thought it was fake. When the numbers didn’t match the IRS number on their website, she hung up.

The Better Business Bureau reveals these type of scams escalate during tax season. Here are a few tips if you receive a call from someone claiming to be with the IRS:

  • The IRS will not ask for financial information over the phone or via email. Any contact will be through direct mail.
  • If you are asked for personal or financial information by someone claiming to be an IRS employee, hang up.
  • Report the incident immediately.

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 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.

Foreclosures, Timothy Kingcade Posts

America’s Foreclosure Crisis Isn’t Over Yet

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Goldman Sachs is the latest big bank to settle claims related to its role in the 2008 housing crisis. The global investment bank reached a deal with the U.S. government, agreeing to pay $5.1 billion as part of the settlement. Nearly $2 billion of which will be set aside for programs to help struggling homeowners avoid foreclosure.

During the height of the financial crisis, the government’s top priority was backstopping the nation’s banking system. Congress authorized $475 billion for the Troubled Asset Relief Program (TARP). Approximately $46 billion of that was allocated to programs to help struggling homeowners avoid foreclosure.

Tens of billions of dollars were also set aside following a string of settlements between the government and a number of Wall Street banks, including Bank of America. These funds were put into programs such as the Home Affordable Modification Program (HAMP) to provide relief to homeowners.

Eight years after the housing bubble burst, foreclosures and underwater mortgages are down nationally. However, there are several areas and states that are still struggling. In 2013, Christy Goldsmith Romero, special inspector general for TARP, warned that homeowners were defaulting on their modified loans at an “alarming rate.” Data released in September of 2015 revealed the rate of defaults on the reset mortgages increased greatly over time. Romero’s office released a statement that said, “The longer a homeowner remains in HAMP, the more likely he or she is to re-default out of the program.”

Between 2009 and 2015 nearly 2.2 million homeowners applied for a trial modification but nearly 786,000 canceled. Out of the remaining 1.4 million granted HAMP modifications through the Treasury Department, approximately 467,000 re-defaulted.

According to thousands of calls and complaints received on the Special Inspector General TARP hotline (SIGTARP), banks and mortgage servicers are to blame for the high default rate. Homeowners claim that the banks lost paperwork and made clerical errors resulting in defaulted mortgages. According to SIGTARP, “dual-tracking” is also an issue. This is a practice where the servicer of the HAMP mortgage continues to pursue foreclosure while the homeowner is in the HAMP program.

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, Debt Relief, Timothy Kingcade Posts

Rapper 50 Cent Posts Another Photo of Himself Surrounded by Mountains of Cash Amid Bankruptcy Filing

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‘Bankrupt’ rapper-entrepreneur, 50 Cent posted another controversial photo of himself posing in front of a mountain of cash just days after he was ordered back to court by a bankruptcy judge.

U.S. Bankruptcy Court Judge Ann Nevins ordered 50 Cent, whose real name is Curtis Jackson, back to court to explain whether or not he is being truthful with creditors about his financial situation after filing for bankruptcy. Nevins said she was “concerned about allegations of nondisclosure and a lack of transparency.” Jackson was ordered to court on March 9th to discuss those concerns.

Financial expert Ira Spiegel said that people who file for bankruptcy should keep money in a special bank account that is created once the case is filed in order to ensure full disclosure, “not in your house, not laying around on your floor.”

A mortgage lender and a partner in a failed headphones business deal recently expressed concern to Bankruptcy Judge Nevins regarding the rapper’s multiple Instagram posts where he is surrounded by thousands of dollars in cash.

Jackson filed for Chapter 11 protection shortly before jurors were scheduled to determine whether he should pay additional damages in a lawsuit filed by Lastonia Leviston in 2010.

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.

 

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

10 things you should NEVER do before Filing for Bankruptcy

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  1. Run up credit card debt. Credit card charges that exceed a certain amount are considered abuse under bankruptcy law if they are made within 70 to 90 days of the bankruptcy filing. A bankruptcy trustee can exclude that debt from your bankruptcy case.
  2. Purchase a luxury item. If you purchase a luxury item within 90 days of filing for bankruptcy for at least $500, it is considered abuse under bankruptcy law. This means, the bankruptcy trustee has the authority to exclude that purchase as well.
  3. Take out a large cash advance. Cash advances that exceed $750 and are made within 70 days of a bankruptcy filing are presumed to be an abuse and will most likely be thrown out by the bankruptcy trustee.
  4. Sell valuable property. Bankruptcy trustees have the authority to revoke any fraudulent sales or transfers made before a bankruptcy filing. Transferring property raises a red flag because the trustee will assume the transfer was made to avoid losing the property.
  5. Pay off a debt to a relative. In bankruptcy cases, relatives are considered “insiders.” Bankruptcy trustees can force “insiders” to return payments or rescind property sales that were made just before a bankruptcy filing.
  6. Access funds from your retirement. Federal bankruptcy law protects retirement accounts. Florida is one of seven states where all IRA’s are considered a bankruptcy exemption. Under Florida Statute 222.21, IRAs and Roth IRAs are completely protected by debtors in bankruptcy court.  Another exception in most states is if a living spouse is the beneficiary of the IRA, they are allowed to treat it as their own in bankruptcy court and it is therefore, exempt. If you try to use money from your retirement account, you may still end up filing for bankruptcy and drain your retirement savings.
  7. Foreclosure, garnishment or repossession. Bankruptcy can protect you from collection actions, but only if you file before a collection action has begun in court. If you wait too long, you risk losing your home or car.
  8. Utilize a secured loan. Secured loans are considered non-dischargeable debts in bankruptcy. If you are searching for alternative solutions before filing for bankruptcy and take out a secured loan against your vehicle or home, you may ultimately lose them if you cannot make the payments.
  9. Take out loans or make credit purchases you don’t intend to repay. Bankruptcy trustees have the authority to look back a year or more to decide if a purchase on credit was an abuse because the filer never intended to repay the cost of the item.
  10. Not consulting with a bankruptcy attorney. You should talk to an experienced bankruptcy attorney who can look at your financial situation and provide advice on whether or not bankruptcy is the right step to take.  These consultations are oftentimes free of charge. Do not rely on friends, family or your own judgment.  Seek expert advice.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Legislation for Medical Debt Relief Introduced in Senate and House

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Five Democratic Senators recently introduced the Medical Debt Relief Act that would remove medical debts from consumer credit reports that have been paid in full. The purpose of the bill is to prevent medical debt from damaging consumers’ credit scores after the debt has been settled.

The bill would require that medical debts allow for a 180-day waiting period before they are reported on consumers’ credit reports. This would allow time for insurance payments to be applied to outstanding medical bills. It would also require that credit reporting agencies remove previously reported medical collections that have been or are being paid by insurance companies from consumers’ credit reports.

If passed, the bill would ensure consumers are able to find affordable credit after paying off their medical debts. It would also permanently establish the new National Consumer Assistance Plan created in 2015 after a settlement agreement was reached between credit reporting agencies and state attorneys general.

The goal of the agreement is for credit reporting agencies to be able to collect complete and accurate consumer information and provide consumers more transparency and a better experience when interacting with credit bureaus regarding their credit reports.

Click here to read more on this story.

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.