July 2017 - Page 2 of 2 - FREE CONSULTATION

Bankruptcy Law, Credit, Student Loans, Timothy Kingcade Posts

Education Secretary Sued for Delaying Rules Protecting Student Loan Borrowers

Posted on July 17, 2017by Admin

Education Secretary Betsy DeVos is being sued by eighteen states for allegedly delaying new federal regulations designed to protect student loan borrowers from being scammed by for-profit colleges and other schools. The rules, known as borrower defense to repayment, were developed after a series of high-profile collapses of for-profit chains such as Corinthian Colleges and ITT Technical Institute left thousands of students with worthless degrees and mountains of student loan debt. The regulations were developed by the Obama administration and scheduled to take effect on June 30.

Last month DeVos delayed the implementation and launched an effort to rewrite the rules, arguing they were putting taxpayers at risk for “significant costs.” The lawsuit, filed by attorneys general from 18 states plus the District of Columbia, said DeVos’ violated the Administrative Procedures Act because she did not satisfy the standards for a delay, and failed to give the proper notice or offer the public time to comment.

“These rules served as critical protections against predatory for-profit schools that exploit hard-working students–students who are simply trying to invest in their own education and future,” said New York Attorney General Eric Schneiderman, who also was among those filing the suit.

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

Bankruptcy & Divorce: Which comes first?

Posted on July 14, 2017by Admin

Going through a divorce can be stressful enough, but when you pile on financial issues the effects can be overwhelming. Your financial situation can be greatly affected by a divorce, as divorce is commonly cited as the leading cause of bankruptcy. Here are some important facts you should know when it comes to bankruptcy and divorce.

Do not file for divorce and bankruptcy at the same time. This is for the sake of simplicity. People typically file bankruptcy before divorce for several reasons. Once you file for bankruptcy an “automatic stay” is put in place. This is a court order that prohibits creditors from contacting you and protects your property and assets. This hold is in effect throughout the bankruptcy process.
Chapter 7 bankruptcy is ideal for a quick divorce. One of the benefits of filing for Chapter 7 is the timeline. A Chapter 7 bankruptcy typically eliminates all dischargeable debts within three to six months, allowing you to file for divorce relatively soon after. In comparison, a Chapter 13 bankruptcy establishes a three- to five-year payment plan for you to pay off your debt, which can drag your divorce out longer.
Conditions of Bankruptcy. Abiding by the rules listed in the Bankruptcy Code is critical for having your debts discharged. A Chapter 7 discharge may be denied if the debtor:

Fails to provide requested tax documents;
Hides property for the purpose of defrauding creditors;
Destroys financial books or records;
Commits perjury in connection to the bankruptcy case;
Violates a court order;
Fails to complete the mandatory credit counseling course.

Bankruptcy and divorce are chances for you to make a fresh start for you and your family. However, both of these processes can be extremely complex and detailed in nature. You should consult with an experienced bankruptcy attorney and have a strong divorce attorney on your side who can guide you through the process and obtain the most successful outcome for you.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Higher Vehicle Costs Driving a Rise in Auto Loan Delinquencies

Posted on July 13, 2017by Admin

The price tags on vehicles continues to the increase, which means consumers are borrowing more money to make their purchases. This in turn is having an effect on household budgets, pushing some families to the max. New cars now cost an average $35,000, compared to an average $31,000 in 2013, according to Edmunds.com.

The monthly payment on a new vehicle with a $31,000 outstanding loan is about $516 a month, before insurance, gas and maintenance costs are factored in.

Used vehicles have also become more expensive. The average loan on a used car bought at a dealership costs about $21,000 and carries an average $380-a-month payment.

Credit requirements have been less strict in recent years, as banks and other lending institutions began pushing auto loans, even sub-prime loans to meet the car-buying demand.

Delinquencies in indirect auto loans- those arranged through a third party, such as an auto dealer- increased to 1.83 percent. Delinquencies in direct auto loans- those arranged directly through a bank- increased to 1.03 percent.

Consumers have over-extended themselves in other areas as well, according to the American Bankers Association. Delinquencies in bank credit cards rose to 2.74 percent. Home equity lines of credit delinquencies rose to 1.11 percent.

There certainly seems to be a correlation. Consumers with credit card debt often struggle with auto loans and mortgage loans, too.

Just like with homes, consumers can end up with upside-down car loans, where the value of the car is worth less than what they owe. This is oftentimes due to higher interest and the terms and conditions of the loan itself. Many consumers who end up trapped in these type loans are considered to be a higher credit risk. They oftentimes end up being sold a lower-quality car at a higher cost.

When filing for Chapter 7 bankruptcy, consumers have some leverage because the lender knows that bankruptcy gives them the option of surrendering the vehicle and canceling all liability. Banks lose a lot of money on repossessions, so they have an incentive to offer a better deal, such as reducing the principal of the loan to the vehicle’s current value.

Related Resources:

http://www.post-gazette.com/business/money/2017/07/10/Car-loans-delinquencies/stories/201707090086

http://www.nolo.com/legal-encyclopedia/car-chapter-7-bankruptcy-29608.html

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

How to protect yourself from being the victim of a Student Loan Debt Relief Scam

Posted on July 12, 2017by Admin

Hundreds of companies charge high fees with the promise of helping struggling borrowers reduce or eliminate their student loan debt. These companies have capitalized on a booming market. Not all companies that collect fees in exchange for student loan debt relief are scams, but more than 130 businesses have histories that give consumers a reason to be skeptical. A recent public records investigation revealed penalties, lawsuits from federal and state authorities, private lawsuits and poor ratings from the Better Business Bureau on these “so called” student loan debt relief companies.

Here are some steps you can take if you are dealing with a fraudulent student loan debt relief company.

End your affiliation with the company: Contact the company to request a refund and cancel your contract, if you signed one. Contact your bank immediately to cancel automatic payments. Tell them that you no longer authorize charges from the company.

Contact your lender or servicer: Call and explain the situation and that you have been paying a third-party company for student loan assistance.

Regain control of your student loan account: Contact your lender or servicer in writing and send a copy of the letter to the debt relief company. Once you regain control of your student loan account, resume making loan payments to your federal loan servicer or lender if you have stopped.

Take a look at your “FREE” options: Everything a “so called” student loan debt relief company can offer you, the Department of Education or your federal loan servicer can provide for free. This includes:

Federal student loan consolidation, which will not lower your interest rate, but may qualify you for certain repayment plans and forgiveness programs.
Income-driven repayment plans cap your monthly payment at a percentage of your income and forgive your remaining balance after 20 or 25 years.
Federal loan forgiveness programs can cancel some or all student debt for borrowers who qualify based on their profession, employer or loan type.
Deferment and forbearance provides temporary periods of payment relief but grow your balance as interest continues accruing.

Seek legitimate financial help: If you are looking to discuss your financial situation with a professional, a certified student loan counselor trained by the National Foundation for Credit Counseling is a viable option. These advisors work for nonprofit credit counseling agencies and provide one-on-one services, oftentimes free of charge.

Click here to read more on this story.

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

False Promises of Student Loan Debt Forgiveness Contributing to the Default Crisis

Posted on July 11, 2017by Admin

The rate of borrowers who are in default or more than 90 days past due on their student loan debt is approaching 40%, pushing the total amount of student loan debt in the U.S. to $1.4 trillion.

A number of those who have defaulted have legitimate reason. Some were victims taken in by the over-exaggerated promises of for-profit colleges that really just wanted students for the student loans they were taking out that was a vast majority of their revenue. Others never finished college, due to life circumstances or changing events that interrupted their studies.

But another group, termed “strategic defaulters” is emerging. These borrowers are pulled in by the promises from politicians and the possibility of student loan debt forgiveness. Why should they pay their student loans if there is a slight possibility that all remaining student loan debt will one day be wiped away? With these empty promises and no action being taken, it is expected that student loan defaults will continue to rise.

Most recently, education secretary, Betsy DeVos, scrapped an Obama-era plan to streamline the government’s system for servicing student loans. An education budget obtained by the Washington Post revealed a proposal to end a student loan-forgiveness program for public servants, creating uncertainty for some 400,000 borrowers.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tennis Star Boris Becker Declared Bankrupt

Posted on July 10, 2017by Admin

Boris Becker, the three-time Wimbledon champion has been declared bankrupt over a debt outstanding since October 2015. Becker’s lawyers pleaded with the bankruptcy court in London for “a last chance” to pay the longstanding debt. They argued there was sufficient evidence to show that Becker would be able to pay the debt soon through a refinancing arrangement, involving remortgaging a property in Majorca.

However, the judge in the case denied it, saying:

“He should have thought about that a long time ago. It is not often the case that a professional person has a judgment [debt] outstanding against them since October 2015. This is a historic debt.”

To add to his financial woes, his blue Maserati- on loan from a sponsorship deal- was taken away from him after he failed to pay the fines he received from numerous parking tickets.

Becker, who is currently working as a television commentator during the Wimbledon championships for the BBC and other outlets, has denied the bankruptcy claims, telling the German press he can meet all of his financial obligations.

Last week he presented the state of his finances to a London bankruptcy administrator in a private meeting, where he reportedly was given a living allowance and ordered to register any income.

Becker, who won six grand slams in the 80’s and 90’s, including three Wimbledon, two Australian Open and one US Open titles has been consistently creating headlines off the tennis court. Co-Author of Becker’s 2013 biography Life Is Not a Game, said his excessive lifestyle had been the one thread of continuity in his life.

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

When Filing for Bankruptcy- Timing Matters

Posted on July 7, 2017by Admin

Timing the filing of your bankruptcy is important to obtain the best possible outcome in your case. For example, waiting to file after creditors have already taken action against you can result in unnecessary legal costs and potential loss of property. Filing shortly after transferring money or property to someone else, can run you the risk of being accused of bankruptcy fraud.

Here are a few points to remember when timing the filing of your bankruptcy:

Filing for bankruptcy will stop litigation. It is best to file before a creditor receives a judgment against you. This will save you the cost of legal fees and giving the creditor more rights to your property.

Prevents wage garnishment. A creditor who has obtained a judgment against you can force your employer to deduct money from your check, even require your bank to withdraw the funds directly from your account. You can save this money by discharging the debt before such actions can be taken.

Puts an end to creditor harassment & collection calls. As soon as you file for bankruptcy, creditors must stop contacting you and deal only with your attorney. Creditors who continue to contact you are in violation of the U.S. Bankruptcy Code’s Automatic Stay and face sanctions by the Court.

Allows you to stay in your home. Filing for bankruptcy will stop the foreclosure process and allow you additional time to stay in your home.

Divorce & Bankruptcy: If you are in the middle of a divorce, it is best to file a joint bankruptcy with your spouse to discharge all debt before the marriage ends. However, if your income is too high to qualify as a married couple you will need to decide whether the best option is to file individually while you are still married or wait until after the divorce. When it comes to timing your bankruptcy filing while going through a divorce, you cannot go wrong setting up an appointment with an experienced bankruptcy attorney to discuss the best path for your financial future. Many offer free consultations and Saturday appointments.

Related Resources:

http://bankruptcy.lawyers.com/bankruptcy-basics/time-matters-when-filing-chapter-7-bankruptcy.html

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

SEC Settles Fraud Charges against ITT Technical Institute

Posted on July 6, 2017by Admin

The fraud case has been settled against ITT Technical Institute, but the Securities Exchange Commission continues to pursue top executives from the college for deceiving investors about the high rates of late payments and the number of defaults on student loans backed by the company.

ITT executives assured investors in conference calls that the programs were performing well when in fact the company was making secret payments on the delinquent accounts to delay defaults, according to the complaint.

ITT Technical Institute ended its operations in September, shutting down 137 campuses after the U.S. Department of Education cut off access to federal loans and grants and threatened to pull the school’s accreditation amid mounting lawsuits and investigations. The company filed for bankruptcy protection, leaving 35,000 students with worthless degrees and many with high interest student loan debt.

The student loan programs are what is at the heart of the SEC lawsuit. ITT created two in-house student loan programs. To get investors to finance the programs, the company offered a guarantee to limit the risk of students not repaying the debt. According to the complaint, if a certain percentage of loans defaulted, the company agreed to cover the principal, interest and fees.

The SEC said investors did not have accurate information about the performance of the debt because ITT kept the loan programs off its balance sheets. Regulators said executives failed to tell investors that the company was facing $30 million in guarantee obligation payments at the end of 2012 and used accounting tricks to cover up the numbers.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

OJ Simpson Defense Attorney F. Lee Bailey Files Again for Bankruptcy

Posted on July 5, 2017by Admin

F. Lee Bailey, OJ Simpson’s former defense attorney has filed for bankruptcy once again; this time to create a payment plan to resolve a federal tax debt owed.

Bailey recently filed for Chapter 13 bankruptcy, which allows a person who has a steady income to create a payment plan with creditors. His latest bankruptcy filing will allow Bailey to discharge certain debts he could not eliminate in his Chapter 7 personal bankruptcy filing last year.

Bailey resolved his personal IRS debt through the earlier bankruptcy filing, but the federal government retained liens on some of his property that could not be discharged in the prior case.

His attorney said he estimates the IRS liens on Bailey’s property are worth about $100,000, but the government could dispute that as federal officials previously estimated their secured claims against Bailey at around $600,000.

Bailey owed the IRS approximately $5 million, in total. Bailey’s filing in the Chapter 13 case states that he has assets worth between $100,000 and $500,000 and debts between $1 million and $10 million.

Click here to read more on this story.

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

How Marriage Affects Your Student Loan Debt

Posted on July 3, 2017by Admin

Saying “I do” does not mean you are legally bound to your spouse’s student loans. Each of you remains responsible for your own student loans you took out before the marriage. However, tying the knot can affect your payments, student loan-related tax breaks and your ability to pursue other financial goals. Here are some other ways marriage can have an affect on your student loans.

Your monthly payment could increase. Federal loan borrowers can enroll in one of four income-based repayment plans to lower their monthly payments. However, the Revised Pay As You Earn Plan, determines married borrowers’ payments based on their combined adjusted gross income and student loan debt. This typically means a higher monthly payment.
You risk losing the student loan interest deduction. The student loan interest deduction tax break allows you to deduct up to $2,500. But if you and your spouse earn more than $160,000, you will lose out on that deduction- even if you file separately.
Your spouse’s payments could affect your finances. In the event you co-sign your spouse’s private student loan, you are legally responsible for repaying it if he or she cannot. The loan will also appear on both of your credit reports. And if your spouse takes out a student loan during your marriage, then defaults creditors in some states can go after both of your wages and assets- even your tax refund.
Your spouse may help pay off your student loan. If you and your spouse decide to help each other pay off your student loan debt, consider coming up with a written agreement. This could help avoid future arguments, especially in the case of divorce if one spouse depends on the other financially.

Click here to read more on this story.