March 2016 - FREE CONSULTATION

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

Parents the New Target of Student Loans

Posted on March 31, 2016by Admin

Private student lenders and banks are beginning to target their student loan offerings at one demographic who might be able to afford the rising tuition rates: parents. Lenders like Sallie Mae are coming up with “parent loans” that give borrowers funds to pay for their college-bound children’s education.

These parent loans are becoming available at a time when student loan debt is rising at a steady rate. Total student loan debt is estimated to be around $1.3 trillion- and grows by about $2,726 every second! Increasingly, that debt is being passed on to students’ dads and moms. Parents cosign approximately 90% of private undergraduate student loan debt, according to data from MeasureOne.

With these new loans, creditworthy parents will get lower interest rates. In addition, they will not have to pay origination fees, which is an additional cost attached to the processing of a loan. However, these new financing options may still not be enough to combat the rising cost of college tuition.

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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, Debt Relief, Timothy Kingcade Posts

Puerto Rico Rescue Bill Guided by U.S. Bankruptcy Rules

Posted on March 30, 2016by Admin

A U.S. congressional draft bill to help rescue Puerto Rico from its economic crisis was released this week and contained elements of U.S. bankruptcy law. The draft includes sections of the U.S. Bankruptcy Code that allow bankrupt entities under certain circumstances to force creditors to take reduced payouts.

Puerto Rico has $70 billion in debt and has an unfunded state pension liability of nearly $44 billion. The new bill will provide Puerto Rico the tools to impose discipline over its finances, meet its obligations and restore confidence in its institutions.

The bill would also create a federal board to oversee the island’s finances, monitor its accounting and help curb spending. It would also require Puerto Rico to make efforts to restructure debt consensually with its creditors.

If the talks failed, the island or its public entities could file for a court-supervised debt restructuring process based on key statues within U.S. bankruptcy law. That would allow Puerto Rico to force such deals on holdout creditors.

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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Debt Relief, Foreclosures, Timothy Kingcade Posts

Widows, divorcees struggle with foreclosure rules

Posted on March 29, 2016by Admin

According to a recent report from the National Consumer Law Center, widows as well as surviving family members and the recently divorced continue to struggle to stay in their homes. It is estimated that thousands of homeowners, usually women who did not sign the original loan documents, are having trouble getting access to relief that the new federal guidelines have provided other homeowners since the foreclosure crisis.

The Federal Consumer Financial Protection Bureau is being urged to adopt rules that would expand protections to others who may have homeownership interest in a property, aside from just the borrower. Every month of delay increases the interest that the homeowner owes, increasing the fees on the loan amount and decreasing the changes of a loan modification.

Federal regulators need to do more to educate borrowers. Borrowers can fill out paperwork allowing lenders and mortgage companies to disclose financial and loan information to family members or spouses. Many borrowers are unaware that they can agree to disclosures so family members and spouses communicate with lenders to avoid undue hardships after death.

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

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

Bankruptcy Judge Rules that Law School Grads can Cancel Bar Exam Loan Debt

Posted on March 28, 2016by Admin

Judge Carla Craig of the U.S. Bankruptcy Court in Brooklyn, N.Y. ruled that bar-exam loan debt is a “product of an arm’s length agreement on commercial terms” and does not fall into the category of a student loan that stays with a borrower who files for bankruptcy.

This means law school graduates who file for bankruptcy protection can cancel debt they have accrued preparing for the bar exam. This decision is the most recent ruling on the matter, which strongly contradicts the widely accepted notion that student loan-related debt can only be canceled in bankruptcy under rare cases of undue hardship.

The case involves a 36-year-old Pace University School of Law graduate, who sought to cancel the unpaid portion of a $15,000 loan she took out from Citibank to study for the bar exam. She graduated in 2009, failed the bar exam after graduating and took a secretarial job at a hotel-management company with a $49,000 annual salary, she said. She filed for bankruptcy in 2014.

The loan was only a small portion of the nearly $300,000 in student loan debt. But the ruling comes as consumer advocacy groups and some federal lawmakers are pushing for student loan debt relief through bankruptcy.

Recently, the U.S. Supreme Court declined to hear a case that would have made it easier to discharge student loan debt in bankruptcy, but the White House has said it would examine whether it should be easier for student loans to be wiped out in bankruptcy. This ruling is just one step closer to student loan debt being discharged in bankruptcy.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Judge Cancels Loan Debt for Man Who Upgraded Car for Uber

Posted on March 25, 2016by Admin

An Illinois insurance salesman who became an Uber driver to improve his financial situation will be able to eliminate a nearly $10,000 auto loan debt. Federal Judge Jacqueline Cox agreed to discharge $9,786.61 of debt that Oswaldo Rodriguez owes to auto lender GM Financial for the new Chevrolet SUV he bought in October 2014.

“He genuinely thought that he could earn enough money through Uber to finance the debt,” Judge Cox said in a six-page opinion filed earlier this month in U.S. Bankruptcy Court in Chicago.

The ruling comes after Uber has become one of the most visible companies behind an emerging “gig economy,” where a number of Americans are making money through platforms like Uber, Etsy and Airbnb. But while almost 1% of U.S. adults earned income that way during September 2015, a recent study of bank transactions found that the work only supplemented, not replaced a full-time job.

The average monthly income for someone who provided labor via one of these platforms was $533, representing a third of that person’s total income, the study found. People often think they can take on side jobs to avoid bankruptcy.

U.S. bankruptcy law allows borrowers to cancel some of their debts, but lawyers for GM Financial argued that the fine print does not allow a borrower to cancel a debt of more than $650 that came from buying a luxury item or service less than 90 days before the filing.

The Judge ultimately ruled against the lender, pointing out that in her opinion the term “luxury goods” does not include items that a bankrupt person needs for their “support or maintenance.”

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Miami Bankruptcy Attorney Timothy S. Kingcade Receives the Prestigious AVVO Clients’ Choice Award 2016

Posted on March 24, 2016by Admin

Lawyer Timothy Kingcade | Lawyer Bankruptcy

Managing Shareholder, Timothy S. Kingcade of the Miami-based law firm of Kingcade & Garcia, P.A. was recently honored with the 2016 AVVO Clients’ Choice Award. In order to achieve this honor, an attorney must have received five or more exceptional client reviews within the last year.

One of attorney Kingcade’s recent client reviews on AVVO had this to say, “Making the decision to file for bankruptcy was difficult and scary. 17 years of marriage ended in a bad divorce and my entire world collapsed. At 60 years of age my future looked pathetic and hopeless. The phone rang constantly, I was not able to sleep and all I did was cry. I was lost and didn’t know what to do. During my first meeting with Mr. Kingcade his words were, “I want you to take a deep breath, and stop crying, everything is going to be OK. I have your back and I will take care of everything.” Timothy eliminated the stress and treated me with respect, compassion and understanding. He explained everything, answered all my questions and I felt (and still feel) protected. When I call or send emails, he replies the same day. Throughout the entire process and today I can say, “everything is going to be OK.” If you are in need of legal assistance in bankruptcy, I would highly recommend Mr. Kingcade. I know you will not regret it. He will explain all your options and guide you all the way. Selecting Mr. Kingcade as my attorney was the best decision! I am forever thankful for his assistance and the advice he gave me. “

Attorney Timothy S. Kingcade founded the law firm Kingcade & Garcia, P.A. in 1996. He has been dedicated to helping thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. Timothy is also a certified public accountant (CPA), which allows him to better understand tax-motivated bankruptcy cases against the IRS. Timothy’s vast experience and expertise in the area of bankruptcy law allow him to know what bankruptcy trustees in the Southern District of Florida are looking for, preventing his clients from some of the pitfalls that can lead to the dismissal of a bankruptcy claim.

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Miami-based Kingcade & Garcia, P.A. was established by managing partner and attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense. The firm is committed to providing personalized service to each and every client. The office environment and the service provided are centered on a culture of superior client care. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

Debt Relief, Foreclosures, Timothy Kingcade Posts

House Passes Foreclosure Extension Protection for Military Homeowners

Posted on March 23, 2016by Admin

The Foreclosure Relief and Extension for Servicemembers Act of 2015, which extends foreclosure protection for military homeowners, has been extended from the current 90-day period to a one-year period beginning in January 2018.

The foreclosure protection element of the Servicemembers Civil Relief Act (SCRA) expired at the end of last year, but the extended protection will be retroactive when the bill is signed by President Obama. The legislation was backed by a coalition of veterans’ organizations and housing and financial services trade associations.

The SCRA’s extension provides important foreclosure protections to the brave men and women of our military who are transitioning back into civilian life. This is a vital homeownership tool that helps members of the military stay in their homes.

The Consumer Financial Protection Bureau announced that it received approximately 2,800 complaints from military personnel related to mortgages during 2015. The majority of these complaints were related to servicing issues, including loan modifications, collections and foreclosures.

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Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Miami Bankruptcy Judge Sides with Homeowner Facing Foreclosure

Posted on March 22, 2016by Admin

U.S. Bankruptcy Judge Laurel Isicoff recently ruled in favor of a Miami homeowner facing foreclosure, an important decision linking bankruptcy and foreclosure cases. The 14-page ruling challenged other decisions forcing homeowners to stop fighting foreclosure on property they surrender in bankruptcy. The judge ruled that surrendered property not administered by a trustee is abandoned to the debtor, not the creditor.

“Compulsory surrender of real property collateral by a debtor to a lienholder in Chapter 7 is not supported by and indeed ignores the express provisions of the Bankruptcy Code,” Isicoff wrote. “And consequently I must disagree with my colleagues who have held otherwise.”

The case involved mortgage holder AS Theia LLC, a Miami homeowner and his Sunny Isles Beach condo. It was the latest in an ongoing debate about the meaning and consequences of house surrenders in bankruptcy court. The central question is whether homeowners who surrender their property to get bankruptcy protection must stop fighting in state court to save the same homes from foreclosure.

In a similar 2011 case, In re Failla, the judge ordered the borrowers to stop defending a pending foreclosure action. The judge acknowledged the bankruptcy law did not specify whether a surrender was to the trustee or lienholder, but found the borrowers committed fraud by agreeing to surrender in one court but fighting to keep the property in another.

The district court upheld the decision, ruling the critical question was the “legal effect of the debtor’s decision to surrender,” not whether the property went to the trustee or lienholder.

Isicoff suggested the ruling ignores a key factor: whether or not the debtors complied with the surrender by not interfering with the trustee’s administration of the property.

This is an important decision because it gives homeowners the opportunity to have their day in court and require the lenders prove their case.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

WARNING: Personal Loans with No Credit Check a Bad Idea

Posted on March 21, 2016by Admin

Lenders who do not require credit checks seem too good to be true. That’s because they are. These offers are as predatory as payday loans. “Installment loans,” are also something consumers need to beware of. These loans come with extremely high interest rates, often more than 200%, and lenders do not consider a borrower’s ability to repay the loan. A paycheck and a bank account are usually all you need to qualify, because lenders withdraw payments electronically, often relentlessly.

It’s no wonder borrowers frequently default or get trapped in new loans. Consider this: One lender advertises a $2,600, 18-month loan at 187% interest. That would mean a borrower would repay almost $8,000!

Borrowers usually have low incomes and limited access to traditional forms of credit, according to studies by the Center for Responsible Lending. Installment loans may seem like a good alternative compared with payday loans, but the exorbitant interest rates make them more harmful in the long run. Some lenders tack on additional fees, like credit insurance, that drive up the cost of these loans even more.

The increase of these predatory loans have gotten the attention of the U.S. Defense Department that recently expanded regulations to cap the interest rate on all loans at 36% for military members and their families.

There are safer alternatives to no-credit-check loans and installment loans. If you are in need of cash and have poor credit, your local credit union is a good option. Most credit unions offer small-dollar loans of $500 and above, and they are often willing to work with you to make the payments affordable, even if you do not have the best credit. Many also have starter credit cards or loans to help you build a credit history. The interest rate charged by a federal credit union is capped at 18%.

Timothy Kingcade Posts

Multiple South Florida Condos under Investigation for Election Fraud

Posted on March 18, 2016by Admin

There have been numerous reports of “electoral irregularities” at The Beach Club at Fountainebleau Park, Los Sueños and the Hialeah complex, Bella Venezia. These are just a portion of the hundreds of complaints submitted in 2015 by condo owners in Miami-Dade and Broward to the Florida Dept. of Business and Professional Regulation (DBPR), the state agency that supervises condo operations.

Florida has nearly 1.6 million condos, 38% of them in Miami-Dade and Broward. The state has long faced difficulties combating fraud and bribes to members of the board of directors and the administrative companies that they hire. Some condo associations are not even holding elections anymore.

The reason, “Sometimes, in an effort to save money we commit violations,” the administrator wrote to an owner who had complained about the lack of an election. Since the Great Recession, the budgets for the state and local regulatory agencies and state prosecutors have faced cutbacks and the challenges continue.

There have been efforts to strengthen the state laws, but the application of those laws has been inconsistent. Frustrated condo residents say they have limited options, as most of the complaints do not involve criminal activities and are handled in civil courts. After receiving several complaints in recent months from residents alleging financial mismanagement, lack of transparency and electoral fraud in condominiums, el Nuevo Herald and Univisión 23 launched their own investigation.

Their findings included at least 84 fraudulent signatures on ballots for the board of directors at The Beach Club at Fountainebleau Park. From the more than 500 complaints filed with the DBPR by condo owners in Miami-Dade in 2015, the investigation focused on the 81 cases still pending.

Of those, 27 involved alleged irregularities in elections to boards of directors — people who approve lucrative contracts for the condos and 31 involved a lack of access to information that owners have a right to obtain under state laws. Another nine cases involved allegations of financial mismanagement. The rest involved the unauthorized use of reserve funds, disputes over fines and other issues.

Miami-Dade recorded the highest number of complaints of irregularities and fraud in the administration of condos of any county in 2015, according to the DBPR. Out of 1,908 complaints received in the State of Florida, 566 were filed in Miami-Dade.

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