Month: December 2018

Credit Card Debt, Debt Relief, Timothy Kingcade Posts

How to Free Yourself from Holiday Debt

Posted on by Admin

On average shoppers spent approximately $1,007 this holiday season.  The retail trade association expected shoppers to spend between $717.5 billion and $720.9 in November and December, which is up over 4 percent from 2017’s total of $687.87 billion.  While shopping for the holidays can be exciting, the post-holiday period can be stressful. If you ended up overspending this holiday, we have some tips to help you get out of debt – FAST.

Review your financial situation.

You cannot eliminate debt without having a clear picture of where you stand financially.  Make sure you compile all receipts and documents related to your holiday expenditures.  Aside from the gifts, do not forget to include food and costs related to holiday entertaining. Many people who end up with high credit card bills at the end of the holiday season say they never planned on spending as much as they did. If you do not plan your expenses ahead of time, it can be easy to end up purchasing way more than you originally intended. Planning can go a long way in lowering your holiday spending costs.

Come up with a plan.

Write down all your debt amounts along with the interest rates.  Focus on the higher-interest rate debts first and consider paying more than the minimum to eliminate the debt faster. We offer some important tips for eliminating credit card debt. Some utilize the snowball method whereby they focus all their efforts in paying a higher interest card down, focusing on one card at a time. Another method is through the “island” approach where the consumer has two credit cards: one which is paid in full every month and the other card, which is a promotional no-interest or low-interest rate for big purchases, allowing the person to finance those large purchases over time.

Sell what you do not need.

With all the sales going on over the holidays, it can be easy to over buy. Most of these items either end up in the garage or saved for next year. Check through your closets and look for those unnecessary gifts and items you bought during the holiday that you can sell.  Also, consignment is a great way to get some extra cash post-holiday.  Everything from clothes you no longer wear, to baby toys, baby clothes and accessories- many of these stores are eager to give you cash for the same.

Pay More than the Minimum.

Consumers traditionally take approximately four months or more to pay off debt incurred during the holiday season. Many times, they are only able to make minimum monthly payments, which can prolong their ability to pay off the debt in full. Minimum payments often result in the person only paying the interest incurred that month, and if the cardholder is spending on top of the balance already owed, the debt can balloon quickly.

Get help.

Credit card debt is a major problem for many Americans. The ability to conveniently shop and pay the balance later has led to many people living in a cycle of debt, especially after spending over the holidays. The credit card system is designed for consumers to lose.

Credit card debt is one of the most common problems facing those with serious financial issues. With skyrocketing interest rates, unreasonable fees, harassing debt collection calls, penalties and never-ending minimum payments that do not even make a dent in your actual debt, the people we work with frequently point to credit card debt as among their most troubling financial issues.

At Kingcade Garcia McMaken, the number one piece of advice we give to our clients, family members and friends when dealing with creditors is to be honest.  If you are unable to afford payment- tell them that, never make a promise to pay and never give a creditor your bank account number or credit card information.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Mistakes to Avoid Before Filing for Bankruptcy

Posted on by Admin

Making the decision to file for bankruptcy is never an easy one. Once you decide to file for bankruptcy, it is important that you avoid making mistakes that could impact your case or jeopardize your debts from being discharged.  Here are the top bankruptcy mistakes you should avoid before filing.

Filing too quickly

Bankruptcy is an excellent way to wipe out burdensome debt. However, you are limited to how often you can do so. The law places a limit on how often a person can file for bankruptcy. An attorney can advise you if the timing is right for bankruptcy and make sure your assets and income allow you to qualify for Chapter 7 bankruptcy,

Waiting too long to file

It can also be a mistake when someone waits too long to file for bankruptcy. In fact, a recent study revealed some of the downsides of waiting to file for bankruptcy. Many times, it is best to file for bankruptcy quickly in the event the filer wishes to avoid wage garnishment or has a lawsuit pending against them due to outstanding debt. Initiating a bankruptcy proceeding will allow an automatic stay to be issued, which puts an immediate halt to any collections actions that are ongoing at the time of filing. However, if the filer waits too long, once a wage garnishment is issued, he or she will not be able to eliminate that debt, which would not have been the case if he or she had filed before the final judgment was issued.

Incorrect or Inaccurate Information

When filing for bankruptcy, you are swearing under penalties of perjury that all information regarding your assets, income, debt, expenses and financial history is complete and accurate. If you make a mistake, fail to disclose an asset or file incomplete information, the bankruptcy court may dismiss the petition. If the court believes that you knowingly misrepresented anything at all, you could also be subject to criminal penalties, which includes fines even jail time.

Incurring more debt

Some people when they know they are going to be filing bankruptcy, run up additional debt on credit cards or take out loans. If you run up too much debt 70 to 90 days before filing on purchases that are not otherwise considered daily necessities, the creditor for this debt will likely object to a discharge by stating that you incurred this debt without any intention of paying it back in full. This practice is known as “presumptive fraud” and can result in the debt not being discharge.

Hiding assets

Another mistake some filers make before officially starting the bankruptcy process is hiding or moving assets to a friend or family member to keep them from being subject to liquidation. It can be tempting to want to hide an asset that would be subject to liquidation in hopes of keeping it safe, but this is considered bankruptcy fraud and can result in your case being dismissed and even criminal penalties, including fines and jail time.

Incoming assets

If you anticipate receiving a large amount of money or substantial assets in the near future, such as a sizeable inheritance or tax refund, it may be best to hold off on filing for bankruptcy. Once these funds are received, they may not be exempt from liquidation in a bankruptcy case. This money could alternatively be used to pay off creditors or attempt to get out of debt outside of bankruptcy. However, it is best to first consult with an experienced bankruptcy attorney if you believe you will be coming into money and are considering bankruptcy.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

NOLO.com

Debt Relief, Student Loans, Timothy Kingcade Posts

Student Loan Debt Doubles Since the Great Recession

Posted on by Admin

Student loan debt is at a record high, according to a recent Bloomberg study. It is reported that U.S. student loan debt is at a total $1.465 trillion, and financial analysts believe that this debt figure is so high that it is now raising significant fiscal risks.  

Student loan debt was at $675 billion in June 2009 at the end of the recession, which means the total has doubled since that time. One problem that economists are pointing to involves the fact that more than 90 percent of all student loans are guaranteed by the U.S. Department of Education. In the event another recession hits, resulting in mass unemployment as well as defaults on student loans, the government budget could face a major loss.

Interestingly enough, Bloomberg’s study reported that student loans that were issued to students embarking on college in 2012 have defaulted on their student loans at a faster rate than any other group since the last recession. According to Bloomberg’s analysis, these loans have the highest cumulative loss percentage when compared to other loans, which means that these particular students have had a harder time keeping up with their monthly payments with their current incomes. This group of students could arguably be hit harder than others in the event another financial crisis occurs.

The individuals in this group are between the ages of 24 and 33 and are at a point in their lives when they are just starting out and beginning to establish their careers. They may have struggled with finding a job since unemployment was twice as high when they graduated as it is today. According to Bureau of Labor numbers, graduates in this group took three times longer than graduates today in finding a job following graduation.

Another cause for concern is the rising student loan interest rates. Currently, the interest rate for a direct student loan that was issued on or about July 1, 2018 and before July 1, 2019, has a basis point that is higher than those that were issued before 2012. Average federal student loan interest rates were: 4.81% for undergraduates. 6.38% for graduate students. 7.44% for parents and graduate students taking out PLUS loans.

Student loan debt is a widespread problem in the U.S. More than 2.7 million student loan borrowers have debt amounts in the six figures. Approximately 700,000 borrowers owe more than $200,000. Within this group, borrowers who were between the ages of 25 and 34 owed $489 billion as of the third quarter reported, while those who were between the ages of 35 and 49 years old owed $530 billion total.

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. There are ways to file for bankruptcy with student loan 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law

Bankruptcy Judge Grants $600 Million Settlement to Former ITT Tech Students

Posted on by Admin

A major victory was won against for-profit educational institutions that have been accused of predatory lending practices. A federal bankruptcy judge in Indianapolis gave final approval to a $600 million settlement that will affect about 750,000 former students of ITT Technical Institute.

The now-defunct institution was once based in a suburb of Indianapolis, Carmel, Indiana. The school had over 136 campuses in 38 states when it shut down in September 2016. This $600 million settlement cancels all the student loan debt owed to the school.

The agreement specifically deals with student borrowers who attended ITT Tech between the years 2006 and 2016. The settlement also returns $3 million to students who paid payments on their loan to the school after the school’s parent company, ITT Educational declared bankruptcy in 2016.

After the school closed in 2016, students filed claims against ITT Educational and ITT Tech, alleging that they were subject to “systemic unfair and deceptive practices” by the school. The class of students argued that ITT violated consumer protection laws and also were in violation of breach of contract.

This settlement agreement may wipe out the debt that was owed directly to ITT, the issue of federal and private student loans that ITT students took out to pay tuition still exists. Only 33 of the former ITT students have been granted federal student loan cancellation. This number pales in comparison to the 13,000 borrowers who are unable to pay their student loan debt and have applied for cancellation.

However, despite this fact, proponents of student loan reform practices praise the settlement and believe that it has done more for students who fell prey to the predatory tactics of for-profit schools like ITT Tech.

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. There are ways to file for bankruptcy with student loan 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

IRS Found to Have Willfully Violated Bankruptcy Discharge, Ordered to Pay $175,000 in Damages

Posted on by Admin

The Internal Revenue Service (IRS) has been found to have violated a bankruptcy discharge according to a recent decision by the First Circuit Court of Appeals. Despite the IRS’s argument that it acted under a good faith belief that it had the right to continue to collect debts that were otherwise discharged in a bankruptcy.

The matter was decided in the case of Internal Revenue Service v. Murphy, 65 Bankr.Ct.Dec. 195 (2018). In this case, Murphy had received a bankruptcy discharge in 2006. However, despite this discharge, the IRS still attempted to collect on the debt on the belief that his tax obligations were not discharged under 11 U.S.C. § 523(a)(1)(C). This code section allows an exception to discharge for any tax if the “debtor made a fraudulent return or willfully attempted to in any manner to evade or defeat such tax.”

Murphy fought back under Section 7433(e) of the Internal Revenue Code, which allows the individual filing bankruptcy to petition the bankruptcy court to recover damages against the U.S. when the IRS has willfully violated the automatic stay or the final bankruptcy discharge.

In its defense, the IRS argued that that Murphy filed a fraudulent tax return to evade or defeat a tax, they had a right to try to collect on the debt from that debtor.

The lower court found that the IRS failed to file an objection prior to the bankruptcy discharge, both before or appropriately after the order was entered. The IRS continued trying to collect on the debt. It got so severe as the IRS levying insurance companies that did prior business with Murphy. In response, Murphy pursued a proceeding in bankruptcy court to get an official declaration from the court that the taxes were discharged in the original order.

Even though the IRS insisted that they were pursuing the debt in good faith because of tax evasion by Murphy, they never actually submitted evidence of evasion. The bankruptcy court granted a judgment for Murphy in 2010, declaring that his debts were, in fact, discharged. Even after this order, the IRS did not appeal this ruling. Instead, they continued to try to collect on the debt.

Murphy later filed another complaint against the IRS in 2011stating that by the levies the IRS issued in 2009, they were violating the discharge under Section 7433(e). The IRS fought back by saying they were not willfully violating the discharge, insisting that they were acting under the good faith exception. The bankruptcy court found in favor of Murphy, ruling that a willful violation includes the person acting “with knowledge of the discharge,” intending to take an action to collect on a debt the entity or person knows was discharged. The IRS did appeal this decision to Federal district court, who vacated the bankruptcy court decision but agreed with the definition of willful violation.

Eventually, after the case was remanded, the IRS settled the matter out of court in 2017. In the settlement, the IRS agreed to pay Murphy $175,000 in damages, only if it lost an appeal on the question of whether Section 523(a)(1)(C) provides a good faith exception to willful violation under Section 7433(e).

The IRS lost on its bet that the appeal would go in its favor. Instead, the First Circuit ruled that a creditor has willfully violated an automatic stay if it knew of the automatic stay or discharge and took an intentional action that violated the stay or discharge. The court ruled that a good faith belief in a right to property did not matter when determining whether the creditor’s action was willful. The court considered bankruptcy discharge to be equivalent to a violation of the automatic stay.

Looking back at the procedural history, the appeals court did note that the IRS could have but did not file an objection to discharge during the original bankruptcy proceedings. Further, they could have filed an adversary proceeding prior to collection to get an official statement from the court that the debts were not discharged. None of this was done in this case. This is not to say the IRS must appear in every bankruptcy case to have the taxpayer’s debts excepted from discharge. It may wait until the discharge is issued as a defense to collection efforts, but the IRS must prove some evidence and factual basis for their objection.

Click here to read more.

If you or a loved one 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

How Filing for Bankruptcy Can Reinstate Your Driver’s License

Posted on by Admin

Filing for bankruptcy can provide different forms of relief for individuals facing financial crisis. Bankruptcy can help lift the burden that comes with facing collection calls, wage garnishment and related lawsuits, and provide you with a fresh financial start. However, many people are surprised to learn that you have options to have your driver’s license reinstated through bankruptcy.

The Florida Department of Motor Vehicles (DMV) can suspend your driver’s license for a number of different reasons, and one of those reasons for suspension can include debt, although many individuals are not aware of this as a possible consequence.  If your license was suspended due to outstanding debt, it is possible that bankruptcy can help eliminate this debt, allowing your license to be reinstated.

The most common reason for why an individual’s license would be suspended due to debt is if the person was involved in a car accident and either did not have insurance or was under-insured. If he or she was found to be at-fault for the accident and did not have the money to pay for the other person’s injuries or property damages, the at-fault driver could end up losing his or her license, especially if a judgement is entered against them.

The consequences of losing your license can be far reaching. Not having the ability to drive can put you in an even more difficult financial situation, especially if you depend on driving to get to and from work or take your children to school or daycare. If you do not have adequate public transportation available to get you to your job and are not able to rely on the assistance of others, not having a license can result in you losing your job, thus making your financial situation even worse. It can be nearly impossible to make the money to repay the debt, digging that person further into a debt hole.

If your driver’s license has been revoked due to your debt, you can either pay the debt in full, or, if you do not have the funds available, consider filing for bankruptcy. Debts that are associated with car accidents are often considered dischargeable debts and are thus discharged when the bankruptcy case is successfully closed.

As long as you include the car accident and insurance company in your list of debts, you can have your driver’s license reinstated through bankruptcy. However, it is required that your license be eligible for reinstatement. For example, if you were not carrying auto insurance before the accident you will have to show proof of insurance before your license is reinstated.

See what one of our clients has to say about having their license reinstated through bankruptcy and their debt burden lifted…

Posted by Daniel on AVVO.com on December‎ ‎11‎, ‎2018
‎

Driver License Back – Thanks to the professional work from Timothy Kingcade I enjoy the pleasure to have My Driver’s License back. Now to make money selling cars… Thanks…

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

 

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief

Average U.S. Household Carries more than $8,000 in Credit Card Debt

Posted on by Admin

Americans are borrowing more this year, as the average household carries $8,284 in credit card debt, according to the personal finance site WalletHub.  This total surpasses the previous year, where the amount of debt was $8,107 per household.

The total amount of credit card debt held by Americans is now at a staggering $974.2 billion, which is three percent more than the $949.9 billion reported last year.  Miami is reported as the second highest metropolitan area with the most credit card debt in the U.S.

One major problem with these figures is how close the debt is to being at the point where it is considered “unsustainable” when comparing the debt held to the average income being brought in by the average American.

The current debt load is said to be $177 from this point of “unsustainability.” What is even more worrisome is the Federal Reserve is expected to increase interest rates on December 19.

The study reports that American credit card debt is nearing the highest point it has been since the Great Recession. Financial experts are concerned that it could go past that point in 2019 if things do not change.

Not all the figures from this study were so dismal. Many Americans have worked diligently to pay off their debt, and WalletHub’s data showed that Americans paid off $40.8 billion in credit card debt in the first quarter of 2018. This figure represents the second-largest quarterly payoff of debt ever reported, which is promising. However, the study did also report that since that time, Americans have added $38 billion back to their credit card debt balances.

Many consumers have looked for resources to find debt relief. For some, credit counseling is a valid option, although it is important you know what to look for when choosing the right credit counseling agency. Our attorneys are here to help you if you are struggling to deal with credit card debt and wish to know your options.

Click here to read more on this story.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Lawyer Fined and Sentenced for Bankruptcy Fraud

Posted on by Admin

A Scottsdale lawyer was fined nearly $1.4 million dollars and sentenced to 18 months in prison after pleading guilty to bankruptcy fraud. Scott Allan Maasen pleaded guilty to one count of concealment of assets in bankruptcy, a Class D felony.

His sentence includes three years of supervised release after the prison term. Maasen was also ordered to forfeit a residence in the exclusive Silverleaf neighborhood in north Scottsdale, according to court documents. The house near Thompson Peak Parkway and Horseshoe Canyon Drive is on the market for $1,595,000.

Maasen filed for bankruptcy in 2009 after he stopped making payments on a $1.5 million loan guaranteed by the Small Business Administration. He admitted to purchasing a $90,000 engagement ring for his fiancée during the bankruptcy proceedings and did not disclose it, according to court documents.  He concealed the purchase by using a credit card and bank account in his father’s name.

Although, most people who file for bankruptcy are honest hardworking people, some individuals can be tempted to hide property and assets.  Here are some examples that if caught, could be considered criminal:

  • Failing to list all assets on the appropriate bankruptcy schedule;
  • Concealing a property transfer prior to the bankruptcy filing (i.e. – giving a boat or car to a friend or family member);
  • Creating a false document;
  • Destroying or withholding documents, and
  • Paying someone to help hide property from the court.

The consequences of engaging in such activities are harsh. Anyone who makes a knowingly false statement in association with a bankruptcy filing can be assessed fines up to $250,000 and receive up to 5 years in prison. Regardless of your occupation or status in life, if you are found guilty of bankruptcy fraud- you face real consequences, criminal prosecution and even jail time.

Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to hide assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing.

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 McMaken 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 McMaken website at www.miamibankruptcy.com

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What Bankruptcy Does to Your Credit Score

Posted on by Admin

A common concern people have when filing for bankruptcy is the effect it will leave on their credit score and their ability to access credit, again. While bankruptcy does affect your credit score, it is sometimes the last resort to rebuild your credit and your financial future. In fact, it is oftentimes easier to reestablish your credit after filing for bankruptcy, because you are essentially given a “clean slate.”

It helps to sort through the myths and facts before making that final decision, and if you do choose to file for bankruptcy, this does not mean all hope is loss. There are proven ways to rebuild your credit score after bankruptcy, and our clients are proof!

My credit score said on all three reports 775, I couldn’t believe that I had such a great score before 10 years. Tim for me was the best move I have made for my situation. I have no regrets, I am glad the past is the past. – Bill T.

Hi Tim- I just wanted to send a quick note and thank you and your team for handling my bankruptcy case.  It is only a month or two after discharge, and my credit scores are already in the upper 600’s. – C.S.

The effects of bankruptcy on a person’s credit score depends on the score the filer had before filing for bankruptcy. If you have a higher credit score, the effect the bankruptcy will have will be more noticeable. However, if you have a lower credit score to begin with, the change may not be as much after filing for bankruptcy.

According to data from FICO, for individuals who had credit scores of 780 or more, the average amount of decrease is around 240, with a resulting credit score of 540. If the filer had a fair credit score of around 680, the decrease is on average 150 points, resulting in a score of 530. Both scores end up at roughly the same point, but the drop that the filer sees in getting to that score is noticeably different.

The good news is the American credit scoring system allows consumers to rebuild their credit score quite quickly after filing for bankruptcy. Even with a credit score at 550, you can still get back to a respectable score within one to two years through demonstrating good financial habits.

These habits include monitoring your credit report on a regular basis, ensuring that any accounts that are at a zero balance. Many financial experts recommend using a secured credit card to use for purchases to rebuild credit. After some time has passed and you have successfully used the secured card for a period, you may be able to slowly take on new credit, although it is never recommended that you have more than one account opened within a six-month period.

Rebuilding your credit is important for many reasons, the main one being it will allow you to be able to borrow in the future. Many filers worry that they will never be in the financial situation to purchase a home or qualify for another loan- these are all bankruptcy myths. Stick to a budget and a sound financial plan following bankruptcy, and you will be back on your feet before you know it.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Foreclosures

Foreclosure Rescue Scam Targets Hispanic Homeowners in Florida

Posted on by Admin

A Florida law firm has been accused of running a predatory loan scheme, specifically targeting Hispanic homeowners struggling to pay their mortgage.

A lawsuit was filed last week by the Department of Justice, naming the Advocate Law Groups of Florida, Jon Lindeman and Ephigenia Lindeman as parties accused of violating the Fair Housing Act (FHA). The lawsuit states that the Lindemans violated the FHA by intentionally discriminating against Hispanic homeowners through a predatory mortgage loan modification and foreclosure rescue services scheme, which the lawsuit states ran between 2009 and 2015.

Over the course of these six years, the firm and the Lindemans are accused of using Spanish-language advertisements to target Hispanic homeowners, claiming that the firm could cut their mortgage payments in half. If a Hispanic individual followed up on these advertisements and came in for a consultation, the firm is accused of then promising to lower their mortgage payments in exchange for payment of upfront fees, which could be in the thousands of dollars, in addition to monthly fees.

Once the Hispanic clients made these payments, the firm told them to stop making their monthly mortgage payments and to cease communications with their mortgage lenders. The firm would also follow-up with a packet of documents the borrowers needed to read to understand the process, but these documents were written in English only, with no translation. The borrowers were told that these documents were sent to their bank on their behalf, and they contained statements that included an offer to the bank to return the homeowner’s residence in exchange for a rescission or cancellation of the mortgage without the borrower’s consent.  This resulted in many of their clients losing their homes to foreclosure.

These clients who paid high retainers and fees to the firm, in exchange the law firm did very little on their behalf to get loan modifications or reduce their monthly mortgage payments.

It was not until three former clients of the firm filed complaints with the Department of Housing and Urban Development (HUD). HUD investigated the matter and then referred the issue to the DOJ.

The clients allege that they were targeted specifically because of their ethnic backgrounds then taken advantage of because of their lack of understanding of the English language. Had they understood the documents, they claim they would not have lost their homes and gone through the immense stress that followed with this scheme.

Click here to read more on this story.

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