Month: December 2016

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How to Keep Debt Collectors from Ruining Your Holiday

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It is important for consumers to know that if you do not want to deal with a delinquent account over the holidays, you don’t have to. You can request the collection agency stop calling you.  Under The Fair Debt Collections Practices Act (FDCPA) a debt collector must cease contact with you if you send a written request to do so.

However, it is important to note that this request does not eliminate your debt.  The outstanding bill can still end up on your credit report and the collector can elect to seek a judgment against you to recoup the debt, which could result in wage garnishment and further damage to your credit report.

That is why it is important to try and negotiate a payment plan with the debt collector. Doing so can prevent them from taking further action against you.  Make sure and have the collector put your agreement in writing and mail it to you.  Another tip: if you have an unpaid bill that has not yet gone to collections, you may want to reach out personally to the creditor.  They may be willing to waive fees, lower the interest rate or settle the debt for less than you owe.  Many creditors wait up to 90 days before turning a debt over to collections.

Finally, if you truly do not owe the debt or you think a debt collector has crossed the line, you can consult a consumer attorney about whether you have a FDCPA claim and what your next steps should be. Remember, when it comes to debt collectors, it helps to know your rights. If you believe a debt collector is violating the law by calling you outside the allowed times or by calling more frequently than they should, after you have asked them to stop calling or have sent a cease and desist letter, you can report them to the Consumer Financial Protection Bureau and your state Attorney General.

At the law firm of Kingcade & Garcia we want you to have a safe and Happy Holiday this year!   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://blog.credit.com/2016/12/can-a-debt-collector-call-me-during-the-holidays-163536/

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Broward County Man Sues Debt Collector for Unauthorized Contact with Third Party

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A Broward County resident is suing NPAS Solutions, LLC for unauthorized contact with a third party regarding his debt.  The complaint was filed last month in the U.S. District Court for the Southern District of Florida against NPAS Solutions, LLC alleging that the debt collector contacted a third party regarding the plaintiff’s debt, which is a violation of the Fair Debt Collection Practices Act (FDCPA).

According to the complaint, the plaintiff alleges that he suffered damages. The plaintiff holds NPAS Solutions, LLC responsible because the defendant allegedly contacted and left several voice mail messages regarding plaintiff’s debt at the residence of his mother.

He seeks a trial by jury, payment of all legal fees and any other relief the court determines to be fair.

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

Can a Debt Collector Contact You During the Holidays?

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Getting a call from a debt collector can be a frustrating and stressful experience, and the last thing you want to deal with during what is supposed to be the “Most Wonderful Time of the Year.”  Even though it is legal for debt collectors to try and recoup a debt you owe, there are restrictions.

For example, debt collectors cannot contact you at times they know are inconvenient (i.e. – before 8 a.m. or after 9 p.m.)  They cannot contact you at your job if you ask them to stop, they cannot repeatedly contact you throughout the day, they cannot threaten you or lie to you about the debt, and they cannot discuss your debt with any third party.

All of these are in violation of The Fair Debt Collections Practices Act (FDCPA).

But what about during holidays?  Although the FDCPA does not specifically state which days of the week debt collectors can and cannot call you and does not designate a holiday exemption, it does state that collectors cannot communicate with you during times which are known to be inconvenient.

So you could essentially argue that a call on Christmas Eve is, in fact, a violation of the FDCPA.  This would likely fall under, “calling at times known to be inconvenient.”

If you believe a debt collector is violating the law by calling you outside the allowed times or by calling more frequently than they should, after you have asked them to stop calling or have sent a cease and desist letter, you can report them to the Consumer Financial Protection Bureau and your state Attorney General.

At the law firm of Kingcade & Garcia we want you to have a safe and Happy Holiday this year!   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://blog.credit.com/2016/12/can-a-debt-collector-call-me-during-the-holidays-163536/

https://www.thebalance.com/when-can-debt-collectors-call-960573

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Creditor Protections for IRA’s & Beneficiaries

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Whether you have a Traditional or Roth Individual Retirement Account (IRA), the tax benefits allow your savings to grow and compound more quickly than in a taxable account.  Another benefit is creditor protection in the event of a bankruptcy.  But what about when you pass away, are your beneficiaries protected?

The Supreme Court has helped clear up this issue in recent years. Just like protection offered to pensions, 401(k)s and Social Security, IRAs are protected from creditors in bankruptcy proceedings. This means that if you declare bankruptcy, your IRA assets are usually safeguarded and cannot be seized.

Another benefit to IRAs is the simplicity in selecting a beneficiary (or beneficiaries) who will receive the money once you pass.  However, beneficiaries are not always afforded the same creditor protection as the original account owner, and this is something to consider when determining who your IRA beneficiary should be.

The U.S. Supreme Court has ruled that an inherited IRA for a non-spouse beneficiary no longer is protected from creditor’s claims when the beneficiary files for bankruptcy. The rationale is that once the owner dies and the non-spouse beneficiary takes ownership of the account, the assets are no longer considered retirement funds, and can thus be seized in bankruptcy.

The reason this only applies to non-spouse beneficiaries is because a spouse is able to roll over inherited IRA assets into their own account.  When this type of transfer occurs, the assets are once again protected.  However, a non-spouse cannot combine inherited IRA assets with their own retirement assets.

Many parents list their children as beneficiaries of their IRA accounts, but this can present a problem if the children have financial issues or file for bankruptcy.  One of the best ways to get around this is to establish a trust, such as a conduit trust, and list the trust as beneficiary of the IRA instead of the child.  As the assets are not legally owned by the beneficiary, but instead owned by the trust, the assets are protected from creditors in many cases. However, keep in mind once the income is paid out to the beneficiary (i.e. – leaves the trust), that income is no longer protected.

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://www.forbes.com/sites/advisor/2016/12/09/estate-planning-tip-creditor-protection-for-iras-beneficiaries/#3e1252736635

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Wells Fargo, Ocwen and other Creditors Sued for Violating Chapter 7 Discharge

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Secured creditors Wells Fargo, Ocwen, RAS Boriskin and Duane Morris must pay a debtor who filed Chapter 7 bankruptcy $7,000 in emotional distress damages and $39,142 in punitive damages for willfully violating the discharge order.

Judge Cecelia G. Morris of the U.S. Bankruptcy Court for the Southern District of New York concluded that the creditors harassed the debtors for years by filing an illegal foreclosure action against the debtors’ property and sending numerous collection letters after their debt had been discharged in bankruptcy.

The debtors received more than 100 calls and notices for collection of the discharged debt in the past five years. This case is particularly noteworthy for the large amount of punitive damages and the emotional distress damages the debtors received, who represented themselves pro se.

The debtors in the case filed for Chapter 7 bankruptcy and their nonexempt assets were liquidated by a trustee and the proceeds were distributed to their creditors. They received a discharge of all of their debts in 2009.

The debtors alerted the secured creditors to their violations by contacting them after the discharge, but the creditors insisted they were doing nothing wrong. Instead of taking steps to correct the problems, the creditors and their attorneys wrote threatening letters to the debtors. The court found evidence that the creditors and their attorneys received notice of the debtors’ bankruptcy and discharge on at least 15 different occasions, but failed to stop contacting them.

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.

 

Foreclosures, Timothy Kingcade Posts

Supreme Court Examines Whether Miami Can Sue Banks over the Foreclosure Crisis

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Should Bank of America and Wells Fargo be held responsible for potentially billions of dollars in tax revenue Miami and other cities lost after property values plunged in minority neighborhoods due to questionable lending practices and foreclosures?

That’s just one of the tough questions U.S. Supreme Court justices asked in oral arguments over Bank of America v. Miami, which tests the limits of who can sue under the expansive Fair Housing Act.

A series of probing questions from Justice Elena Kagan, the daughter of a housing attorney who served as Solicitor General in the Obama administration said the FHA is “a very peculiar and distinctive kind of anti-discrimination statute that focuses on community harms, not individual injuries,” she said.

The banks had it tough. A pair of Supreme Court precedents established that the FHA extends standing, or the right to sue, “to the full limits of Article III” of the Constitution, including cities and even non-profit organizations dedicated to fighting housing discrimination.

Last year in Texas Dept. of Housing v. Inclusive Communities, Justice Anthony Kennedy upheld the disparate-impact theory in FHA suits, allowing plaintiffs to prove discrimination with statistics instead of direct evidence of discriminatory intent.

Given these precedents, attorney Neal Katyal, arguing for the banks, conceded from the outset that cities can sue under the FHA.  He argued Miami was pushing its theory too far, appropriating the injuries allegedly suffered by minority borrowers as its own.  That violated the idea of proximate cause as well as the requirement that the lending discrimination falls within the “zone of interest” the city can enforce.

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

NY Unveils Bill of Rights for Borrowers Facing Foreclosure

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The State of New York is taking the next step in its fight against abandoned foreclosures by introducing a consumer bill of rights for borrowers facing foreclosure. The state announced new laws earlier this year designed to reform the foreclosure process and address its issues with abandoned foreclosures, also referred to as zombie homes.

These new laws will help expedite rehabilitation, repair and improvement of these abandoned properties and further assists homeowners facing foreclosure.  Currently, New York has one of the longest foreclosure timelines in the nation, averaging 1,070 days to foreclose.

In addition, the new laws impose a pre-foreclosure duty on banks and servicers to maintain zombie homes, create an electronic registry of abandoned properties, and expedite foreclosure for vacant and abandoned properties to get those houses back on the market.

The consumer bill of rights, reminds consumers of the various rights they have before, during, and after the foreclosure process.

  • The bill of rights tells consumers that they can and should seek the assistance of a lawyer or a housing counselor if they are facing foreclosure.
  • The bill of rights tells borrowers that they have the right to stay in their home during the foreclosure process, unless or until a court orders them to vacate.
  • “If you abandon your home, the plaintiff (bank or mortgage servicer) may be able to foreclose on your property through an expedited process in court,” the bill of rights continues.
  • To prevent this outcome, stay in your home and carefully review and respond to documents you receive from the plaintiff or the court in your foreclosure case.
  • A failure to respond or appear in court when required to do so could make it easier for the servicer to show that your property is vacant and abandoned, which could put you at risk of an expedited foreclosure.

The bill of rights also walks borrowers through the various steps of the foreclosure process and their rights throughout, including their legal options and their right to seek “loss mitigation” options.

These new reforms help ensure borrowers facing foreclosure know their rights, that banks and service providers are held to their obligations and that neighborhoods are protected from zombie foreclosures as these are known to threaten property values and neighborhood safety.

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

Student Loan Debt Forgiveness Signed into Law in New Jersey

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Governor Chris Christie signed a bill into law this week that will eliminate student loan debt in the event of death and total disability, and allow for deferment of payments and interest accumulation for those who are temporarily disabled.

The change comes after an investigation into the case of a mother who was forced to continue paying her son’s student loans after his senseless murder.  It brought to light New Jersey’s punitive lending practices.  The bill’s sponsors in the lower house called its success a victory for students and parental co-signers who could have been left with insurmountable debt after a tragedy.

The primary sponsor of the bill, State Assemblyman Vince Mazzeo, made the following statement:

“Imagine you’re a family who always pays their bills, has good credit and then you lose a child and in the midst of your grief, you’re saddled with tens, if not hundreds, of thousands of dollars in their remaining student loan debt,” Mazzeo wrote.  “That’s just something we can’t allow to happen on our watch.”

Fellow sponsor Andrew Zwicker also praised the change.

“To expect a student’s family or other survivors to pay their college loan debt in the event of their death is cruel and unacceptable.  We can do better than that,” Zwicker wrote.

New Jersey’s Higher Education Student Assistance Authority (HESAA) will now be obligated to forgive those debts.  In cases of permanent or temporary disability, borrowers will have to provide a written statement from their physician attesting to their condition.

Unlike other states, New Jersey does not allow for payments to be adjusted by income and charges higher interest rates than similar federal programs. The state can also garnish a borrower’s wages for non-payment and revoke professional licenses without court approval.

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, Credit, Debt Relief, Timothy Kingcade Posts

Delinquencies on the Rise for Subprime Auto Loans

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Subprime auto loans are back in a big way, and according to recent data have climbed to the highest level in a decade, with large increases in loans to borrowers with credit scores below 660.  The number of subprime auto loans becoming delinquent has climbed to the highest level since 2010 in the third quarter and is following a pattern similar to the months leading up to the 2007-2009 recession, according to data from the Federal Reserve Bank of New York.

New auto loans to borrowers with credit scores below 660 have nearly tripled since the end of 2009.  In 2016, approximately $50 billion of new auto loans per quarter have gone to those borrowers thus far.  About $30 billion each quarter has gone to borrowers with credit scores below 620.

The increasing delinquency of subprime auto loans is concerning because it comes as the overall economy is on the mend and the employment rate is improving.  The credit quality of other types of loans has improved.

Delinquency rates declined in the quarter for mortgages, student loans and credit cards.  The number of individuals with a new foreclosure notation on their credit reports hit the lowest level in 18 years of data.

The increase in auto loans, particularly the subprime sector, has raised alarms among some regulators in Washington. The rate at which auto loans for borrowers with credit scores below 620 has climbed for 10 consecutive quarters, especially on loans made to those with the lowest or subprime credit scores.

Lenders know that subprime borrowers are more likely to default and become delinquent on their loans and charge them higher interest rates.  The mistake during the financial crisis was that while the lenders expected higher defaults among subprime loans, they failed to anticipate just how high it would rise.

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, Student Loans, Timothy Kingcade Posts

For-Profit College Debt Strikers Plead with Obama to Discharge their Loans before Trump’s Inauguration

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More than 1,000 students (calling themselves the Debt Collective) from for-profit schools are protesting, claiming their colleges used manipulative financial tactics while providing them with a subpar education.

They released a statement and video on Monday, pleading with President Obama to discharge their student loans before President-elect Trump’s inauguration.  The Debt Collective claims that the Obama Administration has yet to provide the relief it promised.  One former Corinthian student said she had $32,000 of student loan debt and was unemployed, despite having applied to about 300 jobs in the criminal justice field.  She said she had either received no response or had been told she did not qualify.

The Department of Education refunds federal loans to students enrolled in the last 120 days before a college closes in what is called a closed school discharge.  ITT Tech closed its doors in September.  But students who left the school before that 120-day time frame or who graduated but still feel they were defrauded by their college must instead file a “borrower’s defense to repayment” claim.

The Obama Administration had planned to resolve back-logged relief claims from Corinthian and ITT Tech students by the spring of 2017, but will likely now be under additional pressure to speed resolution of the claims.

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.