April 2016 - Page 2 of 3 - FREE CONSULTATION

Debt Relief, Foreclosures, Timothy Kingcade Posts

U.S. Extends Limited Reduction of Mortgage Principal for Stressed Homeowners

Posted on April 15, 2016by Admin

A federal regulator this week announced an initiative to allow certain homeowners facing foreclosure to reduce the principal on their mortgages. However, the plan is limited and comes years after advocates began pushing for greater relief in the wake of the housing crash.

The Federal Housing Finance Agency will help approximately 33,000 people whose mortgages are backed by Fannie Mae and Freddie Mac, the housing finance companies seized by the government in 2008.

The plan balances the agency’s statutory mandate to “maximize assistance for homeowners,” while not adversely affecting the finances of Fannie Mae and Freddie Mac.

The program is available to homeowners who were at least 90 days delinquent on mortgage payments as of March 1. The outstanding principal on the mortgage must be less than $250,000, and the value of the home must be at least 15% less than what is owed on the loan.

The mortgage principal could be reduced no lower than 15% above market value, meaning the homeowner still would be underwater. No more than 30% of the total principal could be forgiven. Eligible borrowers should expect to hear from their mortgage servicer by Dec. 31.

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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

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

Obama Plans to Forgive $7.7 Billion in Student Loan Debt for the Permanently Disabled

Posted on April 14, 2016by Admin

The Obama administration plans to forgive $7.7 billion in federal student loan debt for nearly 400,000 permanently disabled Americans. The law states that anyone with a severe disability is eligible to have their federal student loan debt discharged.

Four years ago, the administration took steps to make the process easier by allowing people who are totally and permanently disabled use their Social Security designation to apply for a discharge, but few took advantage of the opportunity. The Department of Education is now taking it upon itself to identify eligible borrowers and guide them through the process to discharge their student loan debt.

Working with the Social Security Administration, the department has been able to identify 387,000 matches in its first review. Approximately 179,000 of those people are currently in default on their loans, putting them at risk of losing their tax refunds and having their Social Security benefits garnished.

Those Americans with disabilities have the right to student loan debt relief. This week’s announcement further extends President Obama’s Student Aid Bill of Rights, which directs federal agencies to overhaul the way Americans repay student loan debt.

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

Debt Relief, Foreclosures, Timothy Kingcade Posts

Goldman Sachs Reaches Subprime Mortgage Settlement for $5.1B

Posted on April 13, 2016by Admin

Goldman Sachs is the final U.S. bank to reach a subprime mortgage settlement with a national working group established in 2012 to investigate how Wall Street had inflated the mortgage bubble, which led to the economic crisis. The group included several federal regulators and state attorneys general.

Goldman’s $5.1 billion settlement is less than those of the other mortgage giants. JPMorgan Chase paid $13.3 billion, while Bank of America paid $16.6 billion. Morgan Stanley paid $3.2 billion to the working group, which consists of National Credit Union Administration, the Federal Home Loan Banks, and the states of California, Illinois and New York.

However, there is another side to this story. Concealed in the fine print are provisions that allow Goldman Sachs to pay hundreds of millions of dollars less — perhaps as much as $1 billion less — than the headline figure. And that is before the tax benefits of the deal are included. The bank will be able to reduce its bill substantially through a combination of government incentives and tax credits. For all the banks, the credits suggest that the amounts that the banks will have to actually spend on consumer relief will be much lower than the headline figures.

When asked about these differences, the Justice Department official said that the wrongdoing the banks were accused of was different and, as a result, the negotiations took different courses.

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

April 13, 2016: “Million Student March” for Debt Reduction Rally

Posted on April 12, 2016by Admin

Students are literally “taking it to the streets” this week to further promote a wave of activism against crushing student loan debt. The students represent a massive force promoting the idea that higher education should be an investment we make as a society and warns that the $1.3 trillion in student debt is not only burdening debtors, it’s having a serious effect on the nation’s economy.

Last November, the demonstrations took over 125 campuses, as the “Million Student March” stunned the news media with an impressive, nationwide show of force.

This Wednesday, April 13, the next round of protests will command the attention of Americans engrossed in the 2016 presidential election debate about the future of our country.

The demonstrations will have four demands:

Tuition-free public college education;
Cancellation of all student debt;
$15 minimum wage for all campus workers;
Divestment of university endowments from private prisons corporations.

However, many of the 41 million people struggling to pay their student loans are the not-so-young people-currently in the workforce or looking for work- who had to take out loans to get their education and are now struggling to make their monthly loan payments while supporting their families.

Many are middle-aged parents who are struggling to pay their children’s college loans because they co-signed the loans. There are 706,000 people on Social Security still paying off student loan debt, with 191,000 having their retirement benefits garnished to pay their student loans, according to GAO reports.

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

More than 40% of Student Loan Borrowers Not Making Payments

Posted on April 11, 2016by Admin

This shocking statistic raises concern that the $200 billion owed might never get repaid. The new figures represent the after effects of a borrowing boom that has spanned over a decade, with a record number of students enrolling in trade schools, universities and graduate schools.

While most of these borrowers have now entered the workforce, 43% of the roughly 22 million Americans with federal student loans were not making payments as of January 1, according to the Education Department’s $1.2 trillion student-loan portfolio.

Approximately 1 in 6 borrowers, or 3.6 million, were in default on $56 billion in student debt, meaning they had not made a single payment in more than a year; Three million more were at least a month behind, owing roughly $66 billion. Another three million owing nearly $110 billion were in “forbearance” or “deferment,” meaning they had received permission to temporarily halt payments due to a financial emergency, such as unemployment.

Some borrowers are not even repaying their student loans when they can, according to research from Navient Corp. The study showed that borrowers prioritized other bills—such as car loans, mortgages and heating bills—over student loan debt. A borrower who defaults on an auto loan might have their car repossessed; with student loans, the penalty is not as immediate or severe.

Advocacy groups, some members of Congress and the federal Consumer Financial Protection Bureau blame the loan servicers for not doing enough to reach out to struggling borrowers to offer manageable payment options.

The Obama administration has stepped up efforts to reach borrowers and offer the income-based repayment plans. In certain cases, the government is garnishing wages and tax refunds of borrowers who refuse to pay. Private debt-collection agencies hired by the Dept. of Education garnished $176 million in Americans’ wages in the final three months of last year for student debt, according to federal data.

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

The Truth about Millennials and Student Loan Debt

Posted on April 8, 2016by Admin

According to a survey from Citizens Bank, 47 percent of millennials (those in the 18-35 age group), who are college graduates, would be willing to limit their online food delivery in return for reducing their student loans. Concerts, vacations, sporting events and lattes were also priorities.

Limiting any of these luxuries got a “no thanks” from the majority of millennials who were asked if they would consider cutting back to lower their student loan payments. More than half (57 percent) said they regret taking out as many student loans as they did, and about a third of them said they would not have even gone to college if they knew who much it was going to cost them in the end.

Part of the problem has to deal with numbers and denial. The same survey found that nearly half of millennials (45 percent) with student loans do not even know how much of their annual salary they spend on student loan debt. It is 18 percent on average. On the upside, the vast majority of millennials at least know what they owe- more than $40,000 for most.

Here are some suggestions for getting that number down:

Know what you owe.
Millennials who have graduated and have jobs often qualify for better rates than when they had little to no income at the start of school.
Get help at work. A number of companies, including Fidelity and PwC, are offering employees help with paying down their student loan debt.
Seek forgiveness. Certain professions, such as public service jobs, offer student loan forgiveness. Others include public defenders, law enforcement officers, doctors, nurses and some teachers. For example, teachers who work in low-income school districts and teach certain subjects may qualify for complete cancellation of their student loans.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Military members have twice the amount of debt collector complaints

Posted on April 7, 2016by Admin

According to a recent study by the Consumer Financial Protection Bureau (CFPB), members of the military submit debt collector complaints at twice the rate of civilians. Debt collection, mortgages and credit reporting were the subject of most of the complaints, according to the CFPB’s report.

While the higher rate of complaints could be due to a variety of factors, including time away for deployments and frequent moves from base to base, it is concerning because unpaid debts can threaten a military career.

The complaints concern disputes over money owed, debt collector calls to commanding officers and threats against security clearances held by service members. Veterans also complained of bill collectors trying to collect on medical bills that should have been paid for by the Department of Veterans Affairs.

It is unfortunate that the brave men and women who serve our country are being targeting by these unfair, deceptive and abusive debt collection practices. But it also comes as a warning to members of the military to diligently check their credit reports and proactively protect their credit files while away from home.

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.insidearm.com/daily/debt-collection-news/cfpb-report-highlights-high-rate-of-collection-complaints-from-servicemembers/

https://www.washingtonpost.com/news/powerpost/wp/2016/03/23/military-members-have-twice-the-bill-collector-complaints/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The Biggest Threat to your Credit Score

Posted on April 6, 2016by Admin

A recent study from the Consumer Financial Protection Bureau found that 52 percent of debt on credit reports is from medical expenses, with an average balance of $579. Medical debt impacts 43 million Americans, and 15 million of those only had medical debt in collections.

This is important because it points to a few important threats for consumers.

Health insurance is confusing, doctors’ billing practices can be questionable and collection agencies have been known for putting the debt on your credit report before making any effort to collect from you. This means it’s not uncommon for people to see a medical debt end up in collections without ever being alerted of the debt.

Here are some ways to prevent medical bills from going to collections:

Make sure your doctor has your correct address. Take a moment to confirm the information your doctor’s office has on file is correct (i.e. – mailing address, phone number, email, etc.)
Set reminders to follow-up. Do not trust that the doctor’s billing dept. will do their job or have your best interest at heart. Set up reminders on your phone and in your day planner as to when your bill is due.
Understand your insurance. Know your deductible and how much your co-pays should be, so there are no surprises.
Work out a payment plan. Sometimes medical debt goes to collections because the bill is just too much to pay. Instead of ignoring the debt, try to work out a payment plan with your doctor’s office or the hospital, before it goes to collections. Request an itemized copy of the bill and check for any errors. Find out if you qualify for any charitable assistance. This is oftentimes based on income and circumstance.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

‘Martin’ Actress Files for Chapter 7 Bankruptcy

Posted on April 5, 2016by Admin

Tisha Campbell-Martin, actress on the hit sitcom, ‘Martin’ and her husband/actor, Duane Martin, have filed for Chapter 7 bankruptcy. They owe more than $15 million dollars in debt with only $313,000 in assets between the couple. Their assets include $65,000 in real estate and $248,000 in personal property. They list the value of their two dogs as $2. As of their filing, they had just $200 in cash and $173 in a Credit Union.

The couple’s liabilities include $3 million to Broadway Federal Bank for a personal guaranty for a real estate loan they took out, $9.5 million to the City of Los Angeles for a personal guaranty, $82,000 in back state taxes for 2005 & 2011, $86,000 to New York State Department of Taxation and $30,000 to the State Board of Equalization.

They also owe $43,000 for a 2016 Range Rover, $17,000 on the 2016 Jeep Wrangler, $67,000 on their 2014 Range Rover, 39,000 to American Express, $455,000 to City National Bank, $538,000 to Comerica Bank for a judgment against them and $120,000 to a law firm. Court documents reveal they owe $208,611 in tax debt and $113,000 in student loan debt.

Tisha famously starred as Gina on the hit sitcom, ‘Martin’ from 1992- to 1997. Her other credits include My Wife & Kids, Everybody Hates Chris and Dr. Ken. Her husband has been equally successful with his career starring in the Real Husbands of Hollywood and the hit movie White Men Can’t Jump.

Related Resources:

http://www.eonline.com/news/753834/tisha-campbell-martin-files-for-bankruptcy-here-s-how-she-fell-15-million-in-debt

http://www.dailymail.co.uk/news/article-3522790/Martin-actress-Tisha-Campbell-Martin-husband-Duane-drowning-15-million-dollars-debt-filed-Chapter-7-bankruptcy.html

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Consumer Warning: ‘Phantom Debt Collection’ Schemes- Could you be at risk?

Posted on April 4, 2016by Admin

Federal and state authorities are cracking down on a multi-million dollar debt collection scheme that profited at least $3.8 million from consumers who were tricked into paying off debts they never owed in the first place.

The Federal Trade Commission has taken action, setting up “Operation Collection Protection,” an ongoing effort to combat phony debt collection schemes, which has become the number one consumer complaint at the FTC.

Six companies and three individuals are being sued who used a variety of business names including Stark Law, Stark Recovery and Capital Harris Miller & Associates in what the complaint alleges was actually part of a “telephone boiler room operation” that harassed consumers nationwide for money they did not owe.

Victims had previously entered personal information into online loan websites. Authorities believe many of these sites were fake and designed to gather consumers’ personal information. Callers allegedly told the consumers they had outstanding debts and threatened them with lawsuits or said that debt collectors would contact their employers or relatives.

The debt collectors detailed personal information over the phone, including consumers’ social security numbers, full names, addresses and employment information to convince consumers of their legitimacy.

Phantom debt collection is a growing problem. Last year, the FTC received nearly 900,000 debt collection complaints. Debt collection complaints even surpassed identity theft, which had been the number one issue for consumers for the past 14 years.

You have rights when it comes to debt collection. Remember these tips:

Be wary of anyone who calls out of the blue attempting to collect payment on a debt.
Ask the collector to mail you written details about the debt owed.
Make sure you document the debt collector’s name, address and company name and ask for the original creditor’s name.
Know that you have the right to dispute any debt you feel you do not owe.
“Phantom debts” will not appear on your credit report, so to confirm whether you owe, download your free annual credit report from each of the three credit bureaus at annualcreditreport.com.

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