Month: November 2016

Debt Relief, Foreclosures, Timothy Kingcade Posts

October Shows Surprising Increase in Foreclosures

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Foreclosure filings increased in October from the previous month in Southwest Florida and the recent Florida Supreme Court ruling could lead to even more foreclosures in the coming months.  Lenders reported 469 foreclosure actions last month in Sarasota, Manatee and Charlotte counties- up 33 percent from September.

According to the October 2016 Foreclosure Market Report from ATTOM Data Solutions, a total of 105,481 foreclosure filings, default notices, scheduled auctions or bank repossessions took place in October. This is up 27% from September’s 129-month low, but it is still down 8% from last year.

The state with the highest foreclosure rate is Delaware, with one in every 355 houses having a foreclosure filing, followed by New Jersey with one in every 564 housing units, Maryland with one in every 679 units, Illinois with one in every 704 units and South Carolina with one in every 801 units.

Florida could soon be joining the states with the highest number of foreclosures, given the October ruling by the state supreme court, which favors lenders and allows them to re-file a foreclosure action against a homeowner in default even if a previous foreclosure case against that homeowner was dismissed and that original foreclosure case was filed more than five years ago, outside the state’s statute of limitations for foreclosure.

The loans used in the housing recovery that are most susceptible to foreclosure are the FHA and VA with low down payments.  Data from ATTOM Data Solutions shows FHA and VA loans combined represent 49% of all active foreclosure inventory for loans originated in the seven years ending in 2015.

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.heraldtribune.com/news/20161110/foreclosure-filings-rise-in-october

http://www.housingwire.com/articles/38512-october-shows-surprising-30-increase-in-foreclosures

Bankruptcy Law, Credit, Debt Relief

How to Avoid the Pitfalls of Personal Bankruptcy

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If you are facing financial trouble, it can feel like the end of the world. People do not realize that filing for bankruptcy is a viable solution to their problems, can alleviate the financial stress, put an end to collection calls and even raise your credit score.

Here are some tips to remember along the way:

Do not be afraid of filing bankruptcy.  Debt can be overwhelming and sometimes instead of facing it head-on, people bury their heads in the sand.  This is the worst thing you can possibly do.  This approach could result in you facing numerous lawsuits, automatic judgments against you even wage garnishment.  By filing for bankruptcy protection you are getting a second chance and taking control over your finances once and for all.

Avoid running up new debt prior to filing. Do not make the mistake of running up a lot of new debt before filing for bankruptcy.  The court will take all of your spending into account, including recent debts incurred, and the judge may not be willing to waive debts if it appears that you are trying to “game the system.” Make sure that your spending habits reflect a true desire to change.

Be aware of ALL of your options. For example, you may want to consider credit counseling. There are some reputable non-profit organizations that can help. With their assistance, you can reduce the payments you have to make and even get some of the interest removed from your debts.

Hire an experienced bankruptcy attorney. The laws surrounding personal bankruptcy are complex. If you feel unsure about the steps to take moving forward, consulting with an attorney may be your best option. Many offer FREE consultations. An attorney can be the guiding hand you need to make the process go as smooth as possible. When meeting with your bankruptcy attorney, make sure you have all of the necessary paperwork with you (i.e. – loan documents, credit card bills and any other relevant financial documents).

Create a post-bankruptcy budget. When you file bankruptcy, you want to avoid finding yourself in the same financial predicament that got you there.  Planning for and making a post-bankruptcy budget is a smart idea. When you can create such a budget and stick to it after bankruptcy, you are far less likely to find yourself in the same position in the future.

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.

Related Resources:

http://techfeatured.com/automotive/1198/how-to-avoid-the-pitfalls-of-personal-bankruptcy

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips to Avoid Credit Card Debt this Holiday

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The holiday season is one of the busiest and most expensive times of the year for consumers.  Sometimes it is easier to just swipe a credit card at the register and deal with the bills after the holidays.  However, this approach can make for an unpleasant start to the New Year.

Here are some important tips to avoid going into credit card debt this holiday season.

  • Plan your holiday shopping list. Plan your gift purchases in advance and limit the cost by only purchasing items from the designated list and not adding extras.
  • Space out your purchases. Space your purchases out over the coming weeks.  You will have more time to find the best deals and not get stuck paying last minute high priced mark-ups.
  • Secret Santa. Gift exchanges are a great way to cut costs on what seems like an endless list of purchases. Have family and friends choose a name out of a hat, and then buy a gift for the person selected.
  • Set a price limit. Gifts, décor and party hosting are all part of the fun of the holiday season! But remember to limit your spending to a specific dollar amount so you do not go overboard.
  • Shop online. If you are planning to make the most of your gift purchases online, wait until Free Shipping Day. This year it falls on Dec. 16, 2016, when all participating online retailers promise to deliver your gifts by Christmas Eve.
  • Never pay full price. Avoid paying full retail price whenever possible. Follow your favorite store on social media, sign up to receive their email blasts as they will often share exclusive discounts and coupons with followers. Sign up for price alerts and use shopping comparison apps to ensure you never overpay for any items.

At Kingcade & Garcia, P.A. we want you to shop smart this holiday season!  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.

Related Resources:

http://www.popsugar.com/career/How-Can-I-Avoid-Credit-Card-Debt-Over-Holidays-42656636

Credit, Debt Relief, Timothy Kingcade Posts

Read THIS before Using a Store Credit Card to Shop this Holiday Season

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If you are planning to finance a portion of your holiday purchases, you may be enticed to open a store credit card.  With the attractive-sounding 0% interest rates, competitive rewards programs, even a discount on your first purchase, the offer sounds too good to be true, right?

That’s because it is.  Here are some important facts consumers need to know about store credit cards.

The Truth about “No Interest” Financing:

There are two kinds of no interest financing. When you sign up for a bank credit card with a 0% introductory APR, you are not charged any interest on your purchases until that time runs out.  However, store credit cards typically use what’s called “deferred interest” financing. This means that during the introductory no-interest period, interest on your purchases is accumulating, but will not be charged as long as you pay the balance in full.

Here’s an example:  Let’s say that you finance a $3,000 jewelry purchase using 24-month deferred interest financing, but the store’s credit card has a 27.99% standard APR. The account has minimum monthly payments of $100, so by only paying the minimum, you would have a remaining balance of $600 once the 24-month interest-free period runs out. However, you would also have approximately $1,000 in deferred interest charges added to your 25th bill because you failed to pay off the entire balance in time. Deferred interest can also be added to your bill if you make a late payment one month.

The Interest will Cost You:

When signing up for a store credit card, make sure and read the cardholder’s agreement, specifically the section that tells you the card’s interest rate. According to a recent report, the average regular APR of a store card is 26.72%, more than 11 percentage points above the overall national credit card average APR of 15.07%.  You can expect store cards to have interest rates that are significantly higher than those of general-use credit cards.

A Hard Credit Inquiry Can Affect your Credit Score:

When you agree to apply at the checkout counter, your credit report will be hit with a credit inquiry. Although one inquiry is usually not a big deal, it is not something you want to do if you are thinking of purchasing a home or new car anytime soon. According to FICO, one credit inquiry can have little to no impact on some consumers’ credit scores.  For others, it can take five points off your score. When applying for a mortgage, five points could put you into the next interest rate range, costing you thousands over the life of your mortgage.

Rewards are Limited:

Store credit cards usually offer excellent rewards on in-store purchases. However, these credit cards usually offer no rewards for spending out of store.

Bottom line: Beware of the higher-than-average interest rates on these store credit cards, and the consequences of carrying a balance past the end of the deferred-interest period.

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.

Related Resources:

https://www.fool.com/credit-cards/2016/11/06/read-this-before-using-a-store-credit-card-for-you.aspx

http://www.forbes.com/sites/nickclements/2015/11/29/store-credit-cards-can-be-dangerous/#6c1763596377

 

Foreclosures, Timothy Kingcade Posts

Florida Supreme Court Decision Could Cause a ‘New Wave’ of Foreclosures

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In a recent decision made by the Florida Supreme Court, servicers may now file new foreclosure actions against borrowers who won foreclosure cases more than five years ago if the borrowers default again within five years of the first case’s dismissal. That means the lender can make another attempt to collect, as long as it is within the next five-year period and the borrower had started paying again and then stopped.

The case, Lewis Brooke Bartram v. U.S Bank National Association was decided in favor of the mortgage servicers as borrowers argued a five-year statute of limitations should apply.

The court’s ruling, authored by Justice Barbra Pariente, determined that when foreclosure actions are dismissed, servicers and borrowers return to their ‘pre-foreclosure’ complaint status. This allows homeowners to continue to pay back their loans in installments, rather than all at once. But it also revives the lender’s right to seek acceleration and foreclosure based on any subsequent defaults, saying:

Accordingly, the statute of limitations does not continue to run on the amount due under the note and mortgage.

This decision is expected to cause a new wave of foreclosure cases within the next year or so, basically giving the banks a ‘do-over.’ The ruling applies to tens of thousands of foreclosures in South Florida alone, those hardest hit by the Great Recession.

Florida was ranked No. 1 in the country for completed foreclosures in 2015-16, with 55,000 actions, according to real estate data tracking firm CoreLogic.

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://floridapolitics.com/archives/226274-supreme-court-new-wave

http://www.dsnews.com/daily-dose/11-06-2016/state-spotlight-floridas-supreme-court-ruling-win-servicers

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Woman Wins $83 Million in Lawsuit Against Debt Collector

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A Kansas City woman won $83 million in a lawsuit she filed against a debt collector for illegal debt collection practices for a $1,000 credit card bill. The Missouri jury found the collection agency, Portfolio Recovery Associates LLC, guilty of “malicious prosecution.”

The agency reportedly violated the Fair Debt Collection Practices Act, for which it will pay $250,000 in damages. Maria Guadalupe Mejia was also awarded $82,990,000 for malicious prosecution over a credit card debt that did not belong to her.

PRA Group Inc., which owns Portfolio Recovery Associates, sent a statement about the verdict to Credit.com. “This outlandish verdict defies all common sense. We hope and expect the judge will set aside this inappropriate award, and we plan to file motions to make that request formally in the near term. Any fair reading of the facts of this case makes plain that a verdict of this size is not justice by any means, and cannot stand,” spokesman Michael McKeon wrote.

In 2013 Portfolio Recovery sued Mejia over credit card debt that belonged to a man in Kansas City, Kansas, with a similar name. The agency, which is one of the nation’s largest debt buyers, attempted to collect on the debt for over a year after Mejia first received notice of the lawsuit.

Click here to read more on the 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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Capital One Faces Lawsuit over Unfair Debt Collection Practices

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A Florida woman is suing Northland Group Inc. and Capital One Bank (USA) NA, creditor, citing violation of the Fair Debt Collection Practices Act (FDCPA).  The complaint was filed in the U.S. District Court for the Middle District of Florida against the defendants alleging that they violated FDCPA through abusive, deceptive and unfair debt collection practices.

According to the complaint, the plaintiff alleged that in 2014 her attorney informed Capital One that she was being represented and to direct all communications regarding the debt to her legal counsel. However, on October 31, 2015, Northland sent the plaintiff an initial communication and did not go through her counsel.

The plaintiff holds Northland Group Inc. and Capital One Bank (USA) NA responsible because the defendants allegedly caused confusion through its written correspondence with her, failed to disclose the identity of the original and current creditor,  and failed to follow demands not to contact the plaintiff.

She is requesting a trial by jury and seeks judgment against the defendants, attorneys’ fees, costs of action, interest and further relief as the court determines.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Borrowing your way out of Debt

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Oftentimes people take out loans to pay off credit cards or other financial obligations and end up deeper in debt. However, there is a way to use debt consolidation loans successfully.

Emilie Burke of Raeford, North Carolina used a $6,000 personal loan from online lender Upstart to pay off some of the $13,600 credit card debt she incurred as a student. Since taking out the loan last November, she has paid down the balance to $4,500 and reduced her remaining credit card debt to $2,500. She also used balance transfer offers with a zero percent annual rate to lower her credit card interest rates and speed up her debt payoff.

Burke sought help from a financial planner at LearnVest, an online advice site. She then dedicated her earnings from a side job to pay down her debts. She also stopped carrying credit cards altogether. “I figured I couldn’t go back into debt if I didn’t have my cards,” Burke posted on her blog about her journey out of debt.

Five Steps to Successful Debt Consolidation

  1. Objectively assess your situation. If your debts equal more than half of your income, consider consulting a bankruptcy attorney. You are unlikely to be able to pay off your debts within five years, which is typically the longest period you would be forced to do so under a Chapter 13 bankruptcy repayment. If your debt is unmanageable, consider filing Chapter 7 bankruptcy, which erases consumer debt within three to four months.
  2. Avoid high-cost loans. Calculate the total cost of the loan. Add up the monthly payments times the number of payments, plus any other fees. Then compare that number with what you are paying now. Avoid lenders who offer low payments but sky-high interest rates and long terms that will keep you in debt longer. Credit unions tend to offer the best rates and terms on personal loans.
  3. Opt for the shortest possible loan. Choosing the shortest loan will minimize the interest that you will pay. Only use a loan with terms up to three years, if possible. Five years is the maximum you should consider.
  4. Look for direct payment of creditors. If possible, use a lender that will pay your credit card company directly. This will remove the temptation to use borrowed funds for another purpose.
  5. Consider closing your cards. Although this can hurt your credit score, going into further debt can impact your score much worse. According to financial experts, people who closed their accounts were more likely to pay off their debts, regardless of the dollar amount, than those who left them open.

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.

Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Law Firm Sues Wells Fargo over Foreclosure Work

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A New Jersey law firm has filed a lawsuit against Wells Fargo, claiming that the bank’s delayed efforts to fix its robo-signing problems led to the law firm’s demise. The law firm, Zucker, Goldberg & Ackerman, claims to have helped the lender foreclose on thousands of homeowners.

The lawsuit alleges that Wells Fargo took several years to comply with a 2010 New Jersey Supreme Court order that called for lenders to show that they were properly submitting mortgage details before foreclosing on a property. The law firm has since laid off most of its 335 employees within the last year.

According to the law firm, Wells Fargo’s delay in responding to the 2010 court order caused significant financial problems for the firm. The lawsuit states that under the bank’s agreement with mortgage lenders, the law firm would advance most of the foreclosure-related expenses and be reimbursed later. The lawsuit also states that the lender has refused to pay more than $2.5 million for work that Zucker, Goldberg & Ackerman did for the bank.

The firm was hired to file court pleadings, ensure compliance with state and federal regulations and research information such as ownership, payment history and title history for each case, according to the lawsuit.

Wells Fargo’s spokesman Tom Goyda released a statement that said the bank disagrees “with the claims regarding fees owed to the firm” and said that the lawsuit’s other allegations “should not be viewed as credible.”

U.S. Bankruptcy Court Judge Christine Gravelle scheduled a hearing on December 21st.

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, Student Loans, Timothy Kingcade Posts

Banks Revise Student Loan Contracts to Help Borrowers Avoid Automatic Default

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Private lenders are revising student loan contracts to ensure borrowers are not placed in default when the co-signer of their loan dies or declares bankruptcy. In a letter obtained by The Washington Post, Consumer Bankers Association President Richard Hunt informed Consumer Financial Protection Bureau (CFPB) director Richard Cordray that the 10 member banks who offer student loans, including Wells Fargo, PNC Bank, Discover and Sallie Mae, have changed their policy on these type auto defaults.

The banks will no longer trigger a default when a co-signer dies, while most will do the same in the event of a bankruptcy. The same policy will apply with existing loans.

Earlier this year, the CFPB warned bankers that they were at risk of breaking the law by automatically placing people who were current on their loans in default. The practice occurs in the private student loan market, where banks and other financial firms provide education financing with loan contracts that give them the right to trigger a default, even if the loan is being paid on time. Auto defaults leave borrowers with no choice but to repay the entire balance of the loan or ruin their credit, making it difficult to purchase a home or car.

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.