Month: March 2013

Bankruptcy Law, Credit, Timothy Kingcade Posts

5 Steps to Rebuilding your Life after Bankruptcy

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It can be overwhelming trying to re-build your credit score, finances and emotional well being after filing for bankruptcy. However, it is important to realize that there is life after bankruptcy. In fact, if you strategize and take the necessary steps, bankruptcy protection can be extremely rewarding. Your life after bankruptcy depends on your recovery process. See below the five steps you can take to recover quickly from bankruptcy.

1. Let go of the guilt and shame. In 2010, there were 1.53 million personal bankruptcy filings; therefore, you must realize that you are not alone. Millions of Americans are battling the after effects of the Great Recession, just as you are. Rather than beating yourself up with shame and guilt, make peace with yourself, knowing that you made the best decision for your family and your finances.

2. Reflect and Regroup. One of the best things you can do to recover from bankruptcy is to reflect on where your financial situation went wrong. Whether it was something you did or something beyond your control, such as losing your job, finding the cause of your bankruptcy can help you move forward and prevent financial problems in the future.

3. Create a Budget and Pay Your Existing Bills on Time. After you have filed for bankruptcy protection, you must create and stick to a budget. Your budget will help you manage your money and help you avoid racking up more debt. Within your budget, you should create an emergency fund. This fund will help you if something comes up in the future. You should also set up automatic payment for your current bills, so that you can build your credit score and avoid delinquent bills.

4. Pick a Credit Card that will help you Rebuild your Credit Score. You may be wary of any kind of debt such as credit card debt; however, applying for a credit card can be the key strategy to rebuilding your credit score after bankruptcy. The best cards for bankruptcy filers to apply for are secured credit cards. These credit cards allow you to deposit money into a bank account, which becomes the amount you can spend on your credit card.
5. Educate Yourself on Bankruptcy. There are many myths and misconceptions about bankruptcy. For example, it is widely believed that bankruptcy will keep you from getting a mortgage for ten years. In reality, many bankruptcy filers are able to get a mortgage just two years after filing for bankruptcy. Myths such as these can deter those who really need it from filing for bankruptcy.

Click here to read more about the steps you can take to rebuild your life after bankruptcy.

If you are in a financial crisis and are considering filing 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, Timothy Kingcade Posts

Bankruptcy Dispute Results in $6 Million Settlement for Florida Businessman

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A jury in the U.S. District Court in Miami recently awarded a Miami businessman $6 million after finding that U.S. Bank acted in bad faith when they forced Maury Rosenberg into involuntary bankruptcy. The settlement included $5 million in punitive damages, which is the largest amount awarded in history for such a case. Rosenberg claimed that U.S. Bank, the no. 5 bank in the country, was using involuntary bankruptcy as a collection tool. Federal law prohibits banks from such actions. U.S. Bank has refused to back down, after losing two appeals and bankruptcy petitions were tossed out. Rosenberg said the process has since ruined his life.

U.S. Bank claims that it has done nothing wrong and that all of its actions were legal while pursuing Rosenberg for his debts. The bank disagrees with the verdict and plans to file post-trial motions and possibly an appeal. The bank is also pursuing Rosenberg for breach of contract in U.S. District Court in Pennsylvania for $4.9 million on a personal guaranty. Rosenberg claimed he approached the bank in 2008 to restructure his debts but was unable to get the bank to talk to him. He said he stopped making payments in order to get the bank to respond. After being forced into bankruptcy, Rosenberg lost everything, including his son’s $50 million trust fund.

Click here to read more about Rosenburg’s $6 million settlement following a bankruptcy dispute.

If you are in a financial crisis and are considering filing 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, Foreclosures, Timothy Kingcade Posts

Now is the Time to Buy – Mortgage Rates Fall to Historic Lows

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Last week, mortgage rates fell to historic lows after a slight uptick the previous week. The average mortgage rate on a 30-year loan fell to 3.54% for the week ending March 21st, after reaching a year-high 3.63% the week before. According to mortgage giant Freddie Mac, 3.63% was the highest rate since August 2012. Rates have also dropped considerably from one year ago, when a 30-year fixed-rate was 4.08%. The average mortgage rate on fifteen-year loans fell to 2.72% last week, after reaching 2.79% the week before.

As a result of these record low mortgage rates, home sales have modestly boosted. The National Association of Realtors reported that in February, existing home sales reached a 3-year high, running at a 4.98 million annual rate. These historic low rates and increasing home sales are good indicators of economic growth. However, a forecast issued last month by mortgage giant Fannie Mae, estimated that 30-year fixed-rates would exceed 4 percent during the fourth quarter of 2013 and would average 4.4% by 2014. If you are planning on purchasing a home, it is better to buy now when you can take full advantage of these historic low interest rates.

Click here to read more about why NOW is the best time to purchase your new home!

Related Resources:
http://www.usatoday.com/story/money/business/2013/03/21/mortgage-rates/2006235/

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 website, Kingcade & Garcia, P.A.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Florida Bankruptcy Court’s Non-Dischargeable Debts

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Millions of Americans have struggled to gain control of their finances following the Great Recession. Many have filed for bankruptcy protection in order to have their debts discharged and gain a fresh start. If you are considering filing for Chapter 7 bankruptcy protection, one important thing to understand is that not all debts are dischargeable in Florida’s bankruptcy court. Non-dischargeable debts are those that you will still be responsible for repaying, even if your other debts are relieved through bankruptcy protection.

The following debts are non-dischargeable in Florida’s bankruptcy court:

1. Back child support, alimony obligations and other debts dedicated to family support.

2. Debts for personal injury or death caused by driving while intoxicated.

3. Student loans, unless undue hardship can be proven.

4. Fines and penalties for violating the law, including traffic tickets and criminal restitution.

5. Recent income tax debts (within 3 years) and all other tax debts.

6. Debts you forget to list in your bankruptcy papers, unless the credit learns of your bankruptcy case.

There are also some debts that may be declared non-dischargeable in a Chapter 7 bankruptcy case if the creditor challenges your request to discharge them.

1. Debts you incurred on the basis of fraud.

2. Credit purchases of $1,150 or more for luxury goods or services made within 60 days of filing.

3. Loans or cash advances of $1,150 or more taken within 60 days of filing.

4. Debts from willful or malicious injury to another person or another person’s property.

5. Debts from embezzlement, larceny or breach of trust.

6. Debts you owe under a divorce decree or settlement unless after bankruptcy you would still not be able to afford to pay them or the benefit you would receive by the discharge outweighs any detriment to your ex-spouse (who would have to pay them if you discharge them in bankruptcy).

Click here to read more on Florida bankruptcy court’s non-dischargeable debts.

If you are in a financial crisis and are considering filing 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, Timothy Kingcade Posts

Mortgage Giant Fails to Settle Homeowner Complaints

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A recent report showed that mortgage giant, Freddie Mac, failed to resolve a large portion of borrower’s complaints between October 2011 and November 2012. The report showed that Freddie Mac’s eight largest mortgage servicers resolved more than 25,500 complaints during that time but failed to handle 21 percent of the complaints filed within the allotted 30-day period. Furthermore, the report found that the majority of the complaints that came in and were considered “escalated complaints” were never reported to Freddie Mac. “Escalated complaints” are those that the field agent manning the phone cannot resolve and must be reported to Freddie Mac. Four out of eight of Freddie Mac’s mortgage servicers did not report a single complaint from October 2011 to November 2012. These four lenders included: Bank of America, CitiMortgage, Wells Fargo and Provident.

In addition to complaints not being passed on to Freddie Mac, the watchdog agency also reported that the Federal Housing Finance Agency (FHFA) did not have a proper plan in place for resolving the complaints from borrowers that were reported. The FHFA is responsible for monitoring Freddie Mac and its servicers. As a result, allegations of servicing fraud and improper foreclosures were inadequately handled. Freddie Mac and its servicers are required to observe strict protocol when a borrower files a complaint, according to 2011 guidelines that were issued to protect borrowers from fraudulent lender practices.

Click here to read more about mortgage giant Freddie Mac failing to resolve borrower complaints.

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 website, Kingcade & Garcia, P.A.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

As the Economy Improves, Many South Floridians are Repairing their Credit Scores

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Florida was one of the hardest hit states when the housing market crashed in 2008. As a result, many residents lost their jobs, lost their homes and were forced to file for bankruptcy protection. However, many South Floridians have made progress in repairing their credit scores since the recession. Approximately 40,000 people in Broward, Palm Beach and Miami-Dade counties raised their credit scores to 620 or above in just one year. A credit score above 620 removes the individual from the Subprime or Risky category, meaning that they are more likely to be approved for credit cards, auto loans, mortgages, etc. Not only is it easier to be approved for a loan once you are out of the Subprime category, but it also enables you to get lower interest rates.

According to Equifax, South Florida is second only to the Los Angeles metro area in the number of people who have improved their once sub-prime credit scores in the year that ended September 30, 2012. In January, the average credit score for the three counties was 645, which is only three points below the national average. Much of South Florida’s successful recovery can be attributed to the large number of mortgage lenders that are trying to help out the community. Companies such as The Mortgage Firm, provide free counseling to help people improve their credit scores. As a result, many South Floridians have been approved for mortgage loans in as little as two years after filing for bankruptcy and as little as three years after a foreclosure.

Click here to read more about how South Floridians have successfully repaired their credit scores after the recession.

If you are in a financial crisis and are considering filing 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, Timothy Kingcade Posts

Top 10 Leading Causes of Bankruptcy

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In the southern district of Florida, 31,989 people filed for personal bankruptcy in 2012 and 36,847 in 2011. However, the factors that cause people to file for bankruptcy can be very different. See below for the top ten leading causes of filing for personal bankruptcy.

1. Medical Bills: Medical debt is the leading cause of bankruptcy in the United States. Studies show that 42% of all personal bankruptcies are the result of medical bills.

2. Job Loss: Approximately 22% of those who file for personal bankruptcy attribute their financial troubles to their unemployment.

3. Uncontrolled Spending: Credit card bills, mortgages and car payments contribute to approximately 15% of bankruptcies in the United States. Many Americans are forced to file for bankruptcy protection every year due to uncontrolled spending habits.

4. Divorce: Divorce can be very expensive when there are legal fees, child support payments, alimony payments and the burden of providing for a household on only one income. Divorce attributes to 8% of bankruptcy filings in the United States.

5. Unexpected Disasters: Around 7% of personal bankruptcies are the result of an unexpected disaster such as an earthquake, flood or hurricane. Many Americans cannot recover from debt surrounding a natural disaster due to a lack of homeowners or renters insurance.

6. Avoiding Foreclosure: Many people have filed for bankruptcy protection in order to avoid their home from being foreclosed on. Approximately 1.5% of Americans reportedly file for bankruptcy to stay in their homes.

7. Poor Financial Planning: Nearly 1.5% of Americans who file for bankruptcy protection are forced to do so because of poor financial planning.

8. Preventing Loss of Utilities: One percent of families file for bankruptcy protection in order to keep their utilities on, such as electricity.

9. Student Loans: Student loans are not typically dischargeable debt when filing for bankruptcy; however, the minimum payments can be so high that the individual is forced to file for bankruptcy to eliminate other debt. One percent of Americans attribute their bankruptcy to student loans.

10. Preventing Repossession: One percent of Americans file for bankruptcy in order to have repossessed items returned to them or to avoid repossession altogether.

Click here to read more about the 10 leading causes of personal bankruptcy.

Click here to find bankruptcy statistics in the United States from 2011 and 2012.

If you are in a financial crisis and are considering filing 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, Foreclosures, Timothy Kingcade Posts

‘Shadow Inventory’ May Ease Shortage of Homes for Sale in Florida

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According to RealtyTrac, there are more than 56,000 homes currently in the process of foreclosure in Palm Beach and Broward counties. That is a 55 percent increase from this time last year. As a result, there has been a shortage of homes for sale, which has been frustrating for prospective buyers. Homes that are lingering in the foreclosure process are also known as ‘shadow inventory.’ There is currently such a great amount of shadow inventory that it suggests that buyers will eventually have a greater supply once the courts begin streamlining the foreclosure process. Another reason there has been a shortage of homes is because lenders have been holding back inventory that is available to sell in order to encourage a recovery and avoid a loss on the property.

Many individual buyers are being outmuscled by large investment firms in South Florida that are buying up millions of dollars of distressed real estate. In many cases, these large firms are buying up properties before they make it to multiple listing services, leaving individual buyers little chance at all. Investment firms bought more than 5,200 properties during 2012 and are reportedly still on the market for good deals. Therefore, when the ‘shadow inventory’ homes do make it to the market, it is not likely they will hurt home prices because there are so many individual buyers and investment firms that are looking to buy right now.

Click here to read more about shadow inventory and how it may ease the shortage of homes for sale in Florida.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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 website, Kingcade & Garcia, P.A.

Bankruptcy Law, Credit, Timothy Kingcade Posts

The Devastating Effect Medical Bills can have on your Credit Score And what you can do about it

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One thing that can be the most devastating to your credit score is an unpaid medical bill. Many Americans find themselves with a low credit score due to unpaid medical debt. Commonwealth fund estimated that nearly 30 million Americans were contacted by collection agencies for unpaid medical bills during 2010. In many cases, they did not know about the debt until it already damaged their credit score. A combination of sky-high bills, insurance processing delays and billing mistakes are often to blame for credit-harming medical bills. Unfortunately, many patients believe that medical bills cannot harm their credit score, when in reality even unpaid $15 co-pays can cause your credit score to plummet.

See below four medical bill myths that can wind up hurting your finances and your credit score:

1. As long as I am making payments on a medical bill, it cannot be sent to collections.

2. I have to be notified before a medical bill is turned over to a collection agency.

3. Medical collection accounts are treated differently than other types of collection accounts when credit scores are calculated.

Another unfortunate fact about medical debt is that most of those who are contacted by collection agencies do not fully understand their rights regarding the debt. If you are contacted by a collection agency you have (1) the right to receive written confirmation of the debt and (2) the right to dispute the debt. Under the Fair Credit Reporting Act, you also have the right to dispute inaccurate information on your credit report. Congress is currently considering the Medical Debt Responsibility Act, which will help out those who are struggling with medical debt. The proposed legislation would require medical bills to be removed from credit reports 45 days after they are paid as long as the original amount does not exceed $2,500.

Click here to read more on the negative effects medical bills can have on your credit score.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced 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, P.A. website.

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Floridians Take Advantage of Low Interest Rates This Year

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Florida has experienced a mortgage boom this year, due to eager home buyers taking advantage of lower interest rates. According to statistics released by JPMorgan Chase last Friday, Floridians have been getting new mortgages nearly double the national average. A Chase spokeswoman said that the mortgage giant has helped more than 56,000 Florida residents get new mortgages in the last year. The numbers of Floridians getting mortgages are up 52 percent this year, compared to last year. This is a 21 percent hike compared to the national average, meaning Florida doubled the national trend in originations. Many Floridians are rushing to apply for a mortgage so they do not miss the record low interest rates. Interest rates on a 30-year home recently jumped to 3.63 due to the strengthening economy. The 30-year fixed interest rate reached an all-time low in November 2012 of 3.31 percent.

Much of the dramatic increase in residents applying for mortgages is coming from South Florida. Analysts believe the hike can be attributed to many who lost their homes to foreclosures during the recession a few years ago. They are getting back on their feet and able to qualify for new mortgages after spending a few years restoring their credit scores. These buyers are known as “boomerang buyers.” In some cases, they may have lost their jobs but now have new ones and are able to buy again. Analysts also believe some of those helping the state’s mortgage market are snowbirds looking to move to South Florida now that the economy is improving.

Click here to read more about Florida’s mortgage boom.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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 website, Kingcade & Garcia, P.A.