July 2016 - FREE CONSULTATION

Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Florida Foreclosure Improvement Still Lagging Behind the National Average

Posted on July 29, 2016by Admin

The nationwide foreclosure filings rate has shown signs of improvement in the first half of 2016. However, the improvement rate in Florida, New Jersey, Illinois, New York and Indiana is still significantly lower than the pre-recession rates and seem to be lagging behind the rest of the country. RealtyTrac released the data from the first two quarters of 2016 that reveal that foreclosure filings are were down 20 percent compared to the previous two quarters in 2015.

Although the foreclosure filings rate is still 21 percent higher than the normal rates, there were 15 states in the first half of 2016 with foreclosure rates that were significantly lower than “pre-housing bust” levels including: Arizona, California, Colorado, Nevada and Michigan.

According to RealtyTrac Vice President Daren Blomquist, the obvious divide between states is largely due to the fact that some states require foreclosures to take place in court, such as Florida. He went on to say, “the root issue that created the dysfunctional foreclosures processes was sloppy and improper documentation on the part of the banks.” Blomquist said that in non-judicial states, “it wasn’t an issue because there wasn’t oversight.”

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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, Credit, Timothy Kingcade Posts

Miami Ranked As One of the Worst Major U.S. Cities for Managing Money

Posted on July 28, 2016by Admin

CreditCards.com recently ranked the nation’s cities in terms of money management by comparing credit scores and an index of U.S. Census Bureau data including: average income, education level, unemployment rate and the population ages of the 25 largest cities. According to the report, Miami ranked as one of the worst major cities in the country for managing their money. In fact, Miami came in 22^nd. Tampa ranked 23^rd on the list with Washington, D.C. at 24^th and Baltimore at 25^th. Los Angeles was ranked as the best city in the nation at money management, followed by Minneapolis as second and New York as third.

In order to rank the cities, the report focused on which city residents were paying their bills on time, keeping low credit card balances and not “over-applying” for credit, according to CreditCards.com senior industry analyst Matt Schulz. The original theory was that the older, richer and more educated residents would have higher credit scores, however, the data proved that factors such as cost of living, divorce rate and mobility level greatly impacted scores.

For example, although the Washington D.C. residents brought home a larger annual income than most cities, they also carried significantly higher credit card balances than other cities.

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

Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

6 Things College Grads Should Be Doing About Their Student Loans

Posted on July 27, 2016by Admin

On average, college graduates have approximately $37,000 in student loan debt, according to Cappex.com. Most student loan companies allow students a grace period after graduation of six months to one year before they start requiring payments. However, it is important to get your student loans in order immediately after graduation so that you know what to expect down the road.

Below are six things recent grads should be doing to prepare for their student loan repayment.

Get organized. Most students graduate with anywhere between eight and ten separate student loans. As a result, many tend to lose track of their total loan amount by the time they graduate. If you have only taken out loans through the federal government, you can find everything you need to know on the National Student Loan Database System website. This site will simplify your loans in terms of breaking down exactly how much you owe and when you took out each loan. However, if you have also taken out private student loans, it is best to check your credit report. This will show you the status of each loan, the date you opened it and your remaining balances. Also, make sure you note the interest rates for each individual loan.
Determine the Best Monthly Payment for You. Now that you know how much you owe, it is time to determine how much you can afford to pay each month. If you do not select a repayment option, your lender will put you on a standard 10-year repayment plan. When deciding how much you can afford to pay each month, it is best to select highest payment you can afford. This will potentially save you thousands in interest. However, if it means you cannot afford to put money into a retirement fund or a savings account, opt for a lower payment.
Stay on Top of Your Payments. Although student loans take longer to default than other debts, it will negatively impact your credit store if you miss a few payments.
Be Strategic in Paying Off Your Loans. If you have extra money to put toward your student loans, put it toward the loan with the highest interest rate. Also, if you pay extra one month, contact the company to be sure they put the additional amount toward the principal balance. Otherwise, they may treat it as the next month’s payment.
Consider Consolidation. Before you consolidate your loans, make sure you take your interest rates into account. If you have some loans with higher interest rates than others, it might not be the best move to consolidate. If you combine your loans and pay extra some months, you can no longer put the additional amount toward the loan with the higher interest rate.
Educate Yourself on Deferment and Forbearance. Deferment refers to the period when your payments are placed on temporary hold. Sometimes interest does not accrue during the deferment period. Deferment is typically available to students who have enrolled in grad school, are unemployed or experiencing economic hardship. On the other hand, forbearance is what you apply for if you are ineligible for a deferment. This is a time period, typically 12 months, when interest is accrued and added to the principal balance.

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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, Credit, Debt Relief, Timothy Kingcade Posts

Tips to Quickly Pay Off Credit Card Debt

Posted on July 26, 2016by Admin

In 2015, the average American had approximately $15,762 in consumer credit card debt and the United States as a whole had more than $733 billion. Credit card debt was the fourth largest type of debt in the country, following student loans, auto loans and mortgages. However, most consumers retain this debt for many years and end up racking up thousands of dollars in interest. This typically occurs because consumers prioritize other payments such as mortgage payments, student loan payments, hospital bills and car payments, and therefore only make the minimum credit card payments each month.

Below are some tips to help you quickly pay off $10,000 in credit card debt.

• Find out your total balance. The first thing you need to do is find out your total amount of debt, totaling all of your consumer credit cards.

• Stop the interest. The next thing you need to do is look for a card that is offering a long lasting “0% intro APR balance transfer” promotion. Next, transfer your balance to this card. If you have more than one card with a balance, try to consolidate all of your credit card balances to the same card offering 0% interest. In many cases, interest accounts for as much as 75% of your monthly payment! According to NerdWallet, the average household pays $6,658 in interest per year in various debts.

• Power through the balance. After you have transferred your balance, it is important to take advantage of the interest-free period of your new card. Continue to make the same payments you made before and your balance will start shrinking much faster.

Related Resources:

https://www.lendingtree.com/info/powerful-2-step-method-pay-off-credit-cards?esourceid=6164156&cchannel=bd&csource=cnn-money&siteid=CC-pay-off-10k-hp

https://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Why Chapter 7 Bankruptcy should be Your First Option and Not Your Last Resort

Posted on July 25, 2016by Admin

Many Americans turn to debt relief assistance options when they are struggling with medical, credit card or other types of unsecured debt. However, according to the Huffington Post, nearly half of all programs aimed at helping you with your debt problems, fail to achieve the results they promise. These programs include credit counseling services, debt settlement programs, etc. Even those who have success with such programs usually end up with extremely high, consolidated payments for many years and accrue thousands of dollars in interest.

Filing for bankruptcy can you save time and money when you are in financial distress. Here is an example that shows the money and time debtors can save if they choose to file for bankruptcy, rather than seek debt relief assistance. Imagine that you currently have $22,000 in unsecured debts, such as credit cards. You have recently lost your job and can no longer afford each of the individual payments; therefore you choose to consolidate your credit cards into one monthly payment with the help of a credit-counseling agency. Your monthly payment is now $418 per month for the next five years. Once you pay off your debt at the end of the five years, you have paid roughly $25,000 including interest. However, if you put the same payment of $418 per month into an IRA for five years with an average return of 9.74%, you would not only have saved yourself $3,000 in interest but you would also have approximately $32,000 saved for retirement.

Filling for Chapter 7 bankruptcy can eliminate years of extremely high monthly payments and ongoing stress. The process of filing bankruptcy can take as little as 90 days and the total cost is typically between $1,500 and $1,800.

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

Government Program Set to Forgive up to $131,000 in Student Loan Debt for Thousands of Doctors

Posted on July 22, 2016by Admin

A program called Public Service Loan Forgiveness was initiated to help teachers, public defenders and other modestly paid public service workers alleviate their financial stresses by forgiving a large portion of their student loans. However, the Journal of General Internal Medicine released an article stating that physicians who work for non-profit hospitals or hospitals owned by the government have been enrolling in the program and meet the qualifications to have their loans forgiven. On average, medical school students accrue up to $162,000 in student loans, according to the New America Foundation.

Congress enacted the program in 2007 to boost the economy and to entice college graduates to accept low-paid government and non-profit jobs. The Loan Forgiveness program technically applies to anyone who works for a nonprofit organization, regardless of his or her income. The way it works is that college graduates must make 120 monthly payments toward their student loans and their payments are capped at 10% of the discretionary income of the borrower. Once the payments are made, the remaining student loan debt is forgiven.

Physicians typically earn between $50,000 and $60,000 in the first few years after school. Once they complete anywhere from three to eight years of training, or “residency,” their annual income skyrockets to an average of $180,000. The government and non-profit organizations own three quarters of the hospitals in America, which means the vast majority of the high paid physicians are eligible for student loan forgiveness. Research shows that on average, each physician who applies for forgiveness will be relieved of approximately $131,000 of student loan debt.

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Foreclosures, Timothy Kingcade Posts

New Jersey Senator Introduces New Bill to Address Zombie Foreclosure “Crisis”

Posted on July 21, 2016by Admin

Sen. Bob Menendez, D-NJ, recently introduced a bill to the Senate that addresses the nationwide crisis – zombie foreclosures. The bill is called “Preventing Abandoned Foreclosures and Preserving Communities Act of 2016.” This crisis refers to homes that sit vacant, sometimes for years, while in “legal limbo” throughout the process of foreclosure. The zombie foreclosure crisis has negatively impacted economies across the country by lowering property values in neighborhoods. According to Menendez, the vacant homes “scare away new homebuyers and investors,” which eventually impacts surrounding neighborhoods, and so on.

While introducing the new bill, Sen. Menendez stated that New Jersey had the highest foreclosure rate in the country in 2015, with 35,000 foreclosure filings. He went on to say that it also has the highest rate of vacant “zombie foreclosures,” with 4,003, according to RealtyTrac. However, his new bill would address the zombie foreclosure crisis across the country.

According to Menendez, his new bill would:

Require mortgage servicers to tell borrowers at the beginning of the foreclosure process they can remain in the home until state law requires them to leave
Require the servicer to make clear to the borrower that he or she remains responsible for the payment of any taxes, assessments, and other fees during the foreclosure process
Require the mortgage servicer to make prompt notifications to both the borrower and the municipality where the property is located when it walks away from the foreclosure
Prohibit mortgage servicers on loans backed by Fannie Mae and Freddie Mac and insured by the Federal Housing Administration from walking away from an initiated foreclosure unless the servicer releases the lien on the property and provides proper notice to the borrower and municipality
Require the Government Accountability Office and the CFPB to study and report on the prevalence and impact of abandoned foreclosures

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Bankruptcy Law, Debt Relief, Florida Bar, Timothy Kingcade Posts

The Bankruptcy Means Test: What is it? Why is it Important?

Posted on July 20, 2016by Admin

The bankruptcy means test determines whether or not you are eligible to file for debt forgiveness through Chapter 7 bankruptcy. The test uses factors such as: income, expenses and family size to determine who can afford to repay their debts through reorganization and who cannot. Most who take the means test, pass it and are considered clear to file Chapter 7 bankruptcy. However, those who are ineligible for Chapter 7 have the option to file Chapter 13, which will restructure and reorganize debts.

How the Test Works

There are two steps involved in determining whether or not you have enough disposable income to pay off your debts. An experienced bankruptcy attorney will assist you in filling out and filing your paperwork with the bankruptcy court. Most debtors who file for Chapter 7 bankruptcy are struggling with consumer debt such as credit card or medical debt.

Step One

The first step in the bankruptcy means test will compare your household income with the average income in your state. In Florida, the median income for a household with one earner is $43,136. The median income for a household with two earners is $53,654. The means test is based on your financial situation over the past six months; therefore you will need to gather all of your documentation about your income during this time period. Keep in mind the court will consider any recent changes in your income such as: losing your job or starting a new job. If your median income over the past six months falls below your state’s average, you automatically qualify to file for Chapter 7 bankruptcy.

Step Two

If you are not automatically qualified to file for Chapter 7 bankruptcy based on your household income, you will need to move on to step two in the bankruptcy means test. As a part of this step, you must gather all of your documentation that lists your “allowable expenses” over the past six months. These expenses can include any of the following: rent, groceries, clothing and medical costs. What is left over is considered disposable income. In this portion of the means test, it is important to be thorough and not leave out any “allowable expenses.” It is also crucial to know your local “allowable expense” standards in addition to national standards. Make sure you consult with your attorney to fully understand what are considered allowable expenses in Florida.

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

Class Action Lawsuit Filed Against Student Loan Debt Collector

Posted on July 19, 2016by Admin

A class action lawsuit has been filed against Balboa Student Loan Trust for harassing former Everest College students for repayment of their student loans. The harassment came as a shock to former students whose debt had been previously forgiven by the U.S. Department of Education after it was determined that the institution was misleading students. Balboa Student Loan Trust, the company that purchased a portion of Everest College debts, has ignored the findings and has reportedly called students up to five times per day to collect on the student loan debts.

Everest College is owned and operated by Corinthian Colleges. The U.S. Department of Education fined Corinthian Colleges $30 million in April of last year for misrepresenting their job replacement rates. Later that month, Corinthian Colleges filed for bankruptcy and has since lost its accreditation. The colleges were also offering loans through a student loan program called Genesis, which was later found to be a scam by the Consumer Financial Protection Bureau when nearly 60 percent of the students defaulted on their loans due to outrageous repayment rates. Balboa Student Loan Trust later purchased these loans and promised to forgive 40 percent of the debt and stop harassing students to repay their loans. However, the consumer class action suit claims the debt collector has violated the terms that were agreed upon with the federal government.

“These private lenders are victimizing these students a second time by continuing to try and collect on debt that was incurred through fraud and deceit,” Anne Richardson said. Richardson is an attorney with Public Counsel, one of the law firms that filed the class action suit.

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Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

FTC Shuts Down Multi-Million Dollar Mortgage Relief Scam

Posted on July 18, 2016by Admin

The Federal Trade Commission (FTC) shut down multiple mortgage relief schemes conducted by a string of California-based law firms that ultimately scammed struggling homeowners out of millions of dollars. The law firms were charging homeowners thousands of dollars and falsely promising that their services would allow them to stay in their homes.

Homeowners were told they could join a “mass joinder” lawsuit against their mortgage lenders, claiming mortgage fraud and void consumer’s mortgage notes. The attorneys, operating as Brookstone Law Group, Brookstone Law, Advantis Law and Advantis Law Group, promised homeowners they would discharge their mortgage entirely, provide monetary relief or both. However, the firms never followed through on their promises.

According to the FTC, the promise of a “mass joinder” lawsuit is a common mortgage relief scam. Mass joinder lawsuits are different from class action lawsuits because each individual defendant is required to prove his or her case in court. The FTC stated that although the attorneys did file lawsuits in this case, most were never pursued and ultimately dismissed.

The FTC’s report stated the attorneys mailed out materials including the homeowner’s name, loan amount and property identification number with statements such as, “Your home will be sold at Auction unless you take immediate action.”

Homeowners who proceeded with the case were initially charged $895 to join the lawsuit and receive a “legal analysis.” Those whose legal analysis showed they had a good case were told they were “likely or certain” to win a lawsuit against their mortgage lenders and would recover at least $75,000. The firms would then charge homeowners thousands of dollars and monthly fees and failed to deposit the fees in client trust funds as required by law.

Most of the homeowners were never added as plaintiffs in a case and some were added months later. Their questions went unanswered and their requests for refunds were allegedly refused. According to the FTC’s report, the mortgage relief scheme netted at least $15 million.

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