Month: June 2019

student loan debt, Student Loans

Lawsuit Filed Against Betsy DeVos for Failure to Cancel Defrauded Students’ Debt

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More than 150,000 student loan borrowers have filed a lawsuit against the U.S. Dept. of Education and Education Secretary Betsy DeVos alleging they are being deprived of student loan debt forgiveness they are rightfully entitled to. The lawsuit accuses the Department of Education of failing to implement an Obama-era regulation known as “borrower defense, ” which allows students to have their federal student loans cancelled if their school misled them or engaged in other misconduct.

The attorney representing the Plaintiffs in the case say, “The law is clear: Students who experienced fraud should not be required to pay back federal loans that should never have been made by the Department in the first place.”

Borrower Defense Applications continue to pour in, but it has been reported that the Dept. of Education has not approved or denied a claim since June 2018.  The majority of the complaints concern “for-profit” schools, of which there are some 7,000 around the country, which take in around 15% of government financial aid.

Last year, a federal judge ruled that DeVos’ delays of the borrower defense protections were unlawful.  Still, the agency continues to neglect the applications.

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

Chapter 7 vs. Chapter 13 Bankruptcy. Which option is right for you?

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There are two types of bankruptcy available to consumers who are struggling with debt- Chapter 7 and Chapter 13 bankruptcy. Choosing the right one is critical to success in eliminating your debt. Below is a comparison guide to help you best decide which bankruptcy is right for you.

Chapter 7 is a form of liquidation and it is often considered the most straightforward type of bankruptcy. Consumers are essentially given a financial fresh start, oftentimes within three months of filing.

Contrary to the bankruptcy myths surrounding Chapter 7, it does not mean you will lose your home, car or retirement savings. In most Chapter 7 cases, filers do not have assets above the legal threshold, which is set by state law and therefore they do not have to lose anything- only their debt.  If a person is filing for Chapter 7 bankruptcy in Florida, they can use Florida’s bankruptcy exemptions to protect valuable property.

Chapter 13 restructures your debt into an affordable repayment plan. The debtor’s obligations are combined into one monthly payment to the bankruptcy trustee, which is then distributed to the creditors. Chapter 13 takes into account your income and expenses, the amount of your debt, the types of debt, and even your property value when setting the repayment plan. If you are behind on your mortgage payments, Chapter 13 allows you to get caught up on these payments and save your home from foreclosure.

Chapter 13 plans can last anywhere from three to five years, but most are five-year plans.

If you are struggling to keep up with your Chapter 13 payments, or have recently lost your job or become ill, Chapter 13 may no longer be the right option for you. You can convert a Chapter 13 bankruptcy to a Chapter 7 bankruptcy at any time if you become eligible. Many of our clients are surprised to discover they never have to go to court or see a judge in order to convert their Chapter 13 filing to a Chapter 7.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia 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

How to Time Your Bankruptcy Filing

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Deciding when to file for bankruptcy can be a complicated one. Many times, it makes sense to delay filing for bankruptcy, while other times it makes sense to file right away.  In some situations, people are able to work out a plan to pay off their debt without having to file at all. If someone is struggling with making that determination, a bankruptcy attorney can help talk that person through his or her life situation and can help the individual decide when a good time would be for filing for bankruptcy.

Modifying a Mortgage

Bankruptcy is often used as a means of delaying foreclosure. In a Chapter 13 bankruptcy case, a bankruptcy filing will often allow the person to catch up on past-due payments while continuing to make current ones. However, sometimes a mortgage modification may be all the filer needs to hold onto his or her home. If the person files too quickly, he or she may have a harder time obtaining a modification of the mortgage. In fact, once a bankruptcy case has been filed, many lenders will not even talk to the borrower in terms of negotiations over the mortgage. If the borrower is anticipating a mortgage modification, it may be best to wait before filing for bankruptcy.

Income Qualifications

If someone is wanting to pursue a Chapter 7 bankruptcy case, he or she will need to pass the “means test” requirements set by the bankruptcy courts in Florida. If the filer’s income is too high, he or she will be prevented from pursuing a Chapter 7 liquidation bankruptcy case. Not passing the means test does not necessarily mean the person cannot pursue any type of bankruptcy. The filer may still qualify for a Chapter 13 bankruptcy plan, which requires him or her to repay a portion of the qualifying debts over a three to five-year period. The means test calculates the person’s income over a period of several months. Therefore, if the person’s income has dropped recently, he or she may still be able to qualify for Chapter 7 by holding off on filing for a few months.

Keeping Certain Property

Many times, the filer may have certain property that he or she would lose in a Chapter 7 bankruptcy case, such as an incoming tax refund. If the case is filed too soon, that tax refund may be liquidated and used to pay off certain debts. If the potential filer expects a large income tax refund, he or she may wish to hold off on filing for bankruptcy temporarily and use that money to pay for living expenses over the course of a few months before filing. However, make sure that the expenses being paid with this refund are for necessities and not luxury items. Otherwise the bankruptcy trustee may see the filer as trying to conceal or hide this income before filing. Also, this situation only matters for property that does not fall under an exemption, including the personal property exemption for Florida filers.

New Incoming Debts

If the filer anticipates some additional debts coming in the near future, it may also be wise to hold off on filing for bankruptcy. For most cases, a Chapter 7 bankruptcy case will only liquidate debts the filer has as of the date the petition was filed. Any debt that is incurred after the date of filing will stay with the filer after discharge. If the filer anticipates a major medical expense that will result in debt or necessary home improvement expense, it may be best to wait for filing until after that expense has been incurred, making it possible for that debt to be discharged.

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:

https://www.nolo.com/legal-encyclopedia/file-bankruptcy-or-wait-29955.html

 

student loan debt

A Growing Number of Bankruptcy Filings Are Being Driven by Student Loan Debt

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Student loan debt is playing a large part in many recent bankruptcy filings, according to a recent study from LendEDU. According to their data, 32 percent of people filing for Chapter 7 bankruptcy report having some amount of student loan debt, showing that student loan debt is definitely a growing concern when it comes to consumers considering filing for bankruptcy.

LendEDU reported that, of this 32 percent of total consumers, student loan debt made up almost half of their total average debt. The student loan debt crisis is said to be reaching an all-time high with the total national amount exceeding $1.5 trillion.

According to the Student Loan Hero, the average undergraduate student leaves with $29,800 in student loan debt. This figure does not even begin to consider those students who must take out more loans to pay for necessary expenses or other students who continue with graduate studies. Many of these students end up carrying six figures of student loan debt after graduation.

The data reported by LendEDU only covers filers who are pursuing a Chapter 7 bankruptcy and not a Chapter 13 bankruptcy, which is an option that offers a restructuring of debt over the course of three to five years.

This LendEDU study points to an even bigger problem involving the burden student loan debt places on young consumers. Many of them struggle with keeping up with basic living expenses, on top of their student loan obligations, which makes it very easy for them to fall behind in payments. Eventually, many of these borrowers feel they have no other choice but to declare bankruptcy to pay them off. The bankruptcy may not end up discharging their loans, but it will erase other debt that makes it hard for them to continue paying their obligations. Student loans are normally non-dischargeable in bankruptcy cases, which is a large part of the problem.

Taking these facts into consideration, this would mean that if the people surveyed by LendEDU who fall in the 32 percent carrying student loan debt, they will only receive partial relief through the average bankruptcy case. If 49 percent of their debt is still considered non-dischargeable, that is still a large sum to continue paying following a bankruptcy discharge.

Borrowers must prove that paying their loans  would be an undue financial burden, a legal standard which has traditionally been very difficult to meet. Movement is being made towards possibly fixing this issue by allowing student loan debt to be treated just like any other unsecured debt in a bankruptcy case.

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.

Source: https://www.businessinsider.com/people-filing-for-personal-bankruptcy-carry-student-loan-debt-2019-6

 

Foreclosures

Florida Sees a Sharp Increase in Foreclosures

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While the nation is seeing a drop in the number of foreclosures, Florida is seeing the opposite. For the 12th month in a row, Florida has seen a double-digit annual increase in foreclosure filings.

These figures come from a study published by ATTOM Data Solutions, which reviewed foreclosure starts from May 2018, comparing these figures to those reported in May 2019. On a national scale, foreclosure filings were down nine percent when compared to figures from May 2018. Florida, on the other hand, saw an increase in foreclosure starts of 23 percent when compared to the previous year.

As of May 1, 2019, one in every 1,238 homes had a foreclosure filing in Florida. These numbers are the third highest in the country, behind New Jersey and Maryland. Of the metropolitan areas in Florida, Jacksonville reported the second highest foreclosure rate, reporting that one in every 764 homes were involved in some stage of foreclosure proceedings.

Since January 2019, these numbers have been increasing incrementally. One of the contributing factors for these high foreclosure numbers has to do with the fact that while the cost of living in Florida has gone up, wages have stayed stagnant for several years. Not only have the cost of purchasing a home gone up, but so have insurances and taxes that come with owning a home.

Other factors leading to higher foreclosure rates could have to do with natural disasters that hit the sunshine state more than others, namely hurricanes. Depending on the severity of the storm, homeowners could lose their jobs or even their homes after a hurricane. Insurance can also skyrocket following a natural disaster, also making it difficult for the person to maintain payments on the home.

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.

Related Resources:

https://miami.cbslocal.com/2019/06/17/florida-bucks-trend-sees-increases-in-foreclosures/

 

 

Bankruptcy Law, Debt Relief

U.S. Supreme Court Issues Ruling Setting Sanctions for Bankruptcy Debt Collections

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The U.S. Supreme Court issued a ruling this week that would hold creditors in contempt and face serious civil penalties if they attempt to collect on a debt that was canceled in a bankruptcy case. The ruling came out Monday, following an appeal from the U.S. Ninth Circuit Court. The Justices unanimously ruled that a court may hold a creditor in civil contempt if it is found that the creditor’s collection of the old, discharged debt is “objectively unreasonable.”

The fact that this ruling came as a unanimous decision is a win for consumers and provides a set standard for cases in the future. This case was an appeal from a circuit court ruling that found that creditors should be given some amount of leniency, even when it is unreasonable for them to believe that the bankruptcy discharge order is not applicable to the debt they are trying to collect.

The legal standard adopted by the Supreme Court was originally advocated by the U.S. Department of Justice. Justice Stephen Breyer penned the unanimous decision where he wrote that “a court may hold a creditor in civil contempt for violating a discharge order if there is no fair ground of doubt as to whether the order barred the creditor’s conduct.”

Since the Supreme Court sets the standard all lower courts must follow, this rule now provides a test judges can use when facing cases involving debt collectors who are continuing to collect on a debt after it has been discharged in bankruptcy. Therefore, all courts will need to review future claims under the question of whether there exists a “fair ground of doubt’ as to whether the creditor’s conduct might be considered lawful under the bankruptcy discharge order.

Up until this time, courts, including the Ninth Circuit, followed the good-faith standard, which allowed for these types of collections if the creditor was said to be collecting on the debt in “good faith.” The standard was extremely subjective and creditor friendly.

Justice Breyer clearly stated that this standard is meant to be an objective one and not a subjective standard. Courts are to review the facts of the case as to whether the violation was done on an objectively unreasonable understanding of the bankruptcy court’s discharge order.

Please click here to read more.

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:

https://www.courthousenews.com/supremes-set-sanctions-rule-for-bankruptcy-collections/

 

 

Debt Relief, student loan debt, Student Loans, Uncategorized

$5.3 Million in Student Loan Debt Canceled as Part of the ITT Tech National Lawsuit Settlement

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Hundreds of Pennsylvania students who attended the now-bankrupt ITT Technical Institute will receive $5.3 million in student loan debt relief as part of a national settlement. Pennsylvania Attorney General Josh Shaprio said 570 former ITT students will have their student loan debt canceled as part of a multi-state settlement.

“With the private student loan program that ITT and CUSO established, ITT Tech was able to take advantage of thousands of hardworking students who were simply trying to complete their education,” Shapiro said in a statement.

The national settlement provides $168 million for more than 18,000 students harmed by abusive lending practices. ITT Tech targeted “low income” students who could not afford to pay tuition out of pocket and relied on federal loans to pay for school, according the settlement. A coalition of 44 states reached a settlement with Student CU Connect CUSO LLC, which was managing the loans for ITT.

ITT Tech had more than 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 made payments on their loan to the school after the school’s parent company, ITT Educational declared bankruptcy in 2016.

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

What to Do if Your Medical Bill Gets Sent to Collections

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Medical debt is an issue that plagues many Americans. It only takes one major medical crisis to set a person back hundreds, even thousands of dollars. According to the Kaiser Family Foundation, one in every three Americans report having difficulty paying their medical bills. As a result, a number of these individuals end up having their medical bills go into collections.

If you are one of the millions of Americans struggling with medical debt, remember you are not alone, and you do have options.

Negotiating a Settlement with Service Provider or Debt Collector.

If the debt has not been officially sent to a third-party debt collector but is being collected by the original service provider, the consumer can often work directly with that company to negotiate either a payment plan or settlement of the debt owed. The same could be said for if the debt has been sent to a third-party debt collector, although the entity contacted to negotiate on the debt will be different. This settlement can be done through three different possible methods including:

  • Reduced lump sum payment;
  • Percentage of debt payment;
  • Payment plans.

A lump sum payment is a common method used so long as the person has enough money to pay a large amount. The debt collector often would rather have some level of payment rather than nothing at all, so they will often take a lump sum payment to close the account, although the amount owed may be slightly less than what is paid. Many times, this method is preferred because the creditor or debt collector would rather receive a large lump sum of money immediately instead of keeping the negative account on the books or having the consumer file for bankruptcy where the debt would be discharged.

While very similar to a lump sum payment, some creditors will accept a specific percentage to pay off the debt, such as 25 to 30 percent, while forgiving the remainder owed. However, this type of settlement depends heavily on the balance. If someone owes a small balance, the percentage the creditor will accept may be much higher than the percentage of a large balance. Additionally, if the person is suffering from a financial hardship, the creditor may be more willing to work with that person on a percentage payment. Also, if there is a strong threat of bankruptcy, the creditor may accept a lower payment rather than get nothing through a bankruptcy discharge.

Many medical providers will work with the account holder on payment plans if they are not able to pay the bill off in full right away. However, these agreements need to be worked out timely and not after missing several payments, causing the account to go into default. Both parties must agree on an amount and the terms of the payment plan.

Get any Agreement in Writing.

Whatever settlement is worked out between the creditor/collector and consumer, it is important that this agreement be documented in writing. Without a firm commitment on the amount agreed upon, the consumer will have nothing to hold the collector to in the event they dispute the arrangement. It also gives the consumer something legally enforceable in the event the agreement falls through.

Payments Made but Still Sent to Collections.

The unfortunate fact is even if the consumer is making payments on the debt, the unpaid balance can still be sent to collections. Ultimately, it is a business decision that is made by the medical provider (i.e. – doctor’s office, hospital or dentist). How they handle the account depends on many factors, including how large the balance is, how much is being paid monthly, and how long it will take to finally pay off the amount owed. For example, if the individual owes $15,000 and is only making $10 per month payments, the provider may ultimately find that this is not going to work and could send the claim to collections, even though the $10 monthly payments are being made. This action can be much harder to accomplish if the parties have a written payment agreement, which is why it is extremely important that the payment arrangement be in writing.

Refusal of a Payment Plan.

It is always possible that a medical provider will refuse a payment plan. They are not legally obligated to work with the customer on a payment arrangement. For the most part, medical providers will work out payment arrangements out of goodwill, but if the person asking for the payment plan has failed several times before, they are not legally obligated to work out an agreement. The same goes for a collection agency. However, collectors do often work on commission, and because of this, they will often accept a payment plan that will pay off the obligation quickly, closing the account, and getting them paid.

How Medical Debt is Handled in Bankruptcy.

In bankruptcy, medical debt is treated the same as credit card debt. Medical bills are listed as general unsecured debt and can be easily wiped out in a Chapter 7 bankruptcy filing.  Making the decision to file for bankruptcy is never an easy one.  It can be difficult to get past some of the myths associated with filing for bankruptcy. Sometimes by waiting, an individual facing a lot of debt can find himself or herself in an even worse situation. Filing for bankruptcy can help protect valuable assets, including your home, car, IRA and social security.  It will put an end to wage garnishment and any lawsuit being filed to collect on the debt, thanks to the protections of the automatic stay.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney 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, 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

https://www.inquirer.com/health/consumer/challenge-medical-bill-debt-collection-tips-20190610.html

https://www.growingfamilybenefits.com/negotiate-medical-bills-settle/

Foreclosures

How to Purchase a Home After Foreclosure

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One of the biggest fears people have after going through a foreclosure is how it will hurt their chances of purchasing a home again in the future.  While the effects of foreclosure can be far-reaching, it does not mean that all hope is lost for that person ever owning a home, again.

What Are the Consequences of a Foreclosure?

A foreclosure can affect different aspects of a person’s life. It can make finding and purchasing a new home more difficult. Many consumers also suffer from the hit their credit scores take from a foreclosure. Some can be hit with a surprise tax bill following a foreclosure. Even more pervasive are the emotional effects that come with a foreclosure. Our Miami foreclosure defense attorneys fight for homeowner rights, help alleviate these concerns and get you back on track financially.

Rebuilding Credit

Following a foreclosure, a consumer should expect to see his or her credit take a significant hit. If that person wishes to purchase a home or car in the future, it is important that he or she works to rebuild his or her credit so that the consumer can get loans with decent interest rates in the future. Credit can be rebuilt, although it takes time and effort. The first step is to review your credit report. Consumers can get free copies of their credit reports from each of the three major credit bureaus annually. Reviewing your credit report gives you a chance to monitor your progress when it comes to improving your credit score. It can also help with making sure that no mistakes exist on the report that could hurt the consumer later.

It may seem counter intuitive, but credit can be rebuilt through using a credit card. Many consumers find success in using a secured card initially after a bankruptcy or foreclosure, which requires a deposit be paid by the cardholder. Many banks offer secured credit cards for their customers. The deposit for the card usually limits how much the person can charge on the account, but secured cards are not normally meant for the long-term. They can help a person establish a credit base before transferring to a regular credit card with a lower interest rate. If the consumer uses a credit card, it is important to ensure that the balance does not get out of control. Make sure payments are made on time. Many financial experts recommend that consumers pay their balances off in full every month to boost their credit scores.

Financing a Home

Lenders normally require a certain period of time pass after a consumer goes through a foreclosure. A mandatory waiting period for a conventional mortgage is usually seven years. However, a consumer may be able to get a mortgage sooner than seven years, depending on that person’s life circumstances and the type of mortgage he or she wants. Fannie Mae does allow a shortened waiting period of three years if the purchaser can show that the foreclosure was due to circumstances beyond his or her control, such as a sudden job loss, death in the family resulting in loss of income, or major medical crisis. The requirements for obtaining a three-year waiting period are much stricter and do require a larger down payment.

Another option is an FHA loan for consumers wishing to purchase a home after foreclosure or bankruptcy. The minimum time period between foreclosure completion to purchasing a home is three years. If extenuating circumstances exist, it is possible to request an even shorter waiting period, although these situations are rare. FHA borrowers do need to show that they have been exercising good financial habits since foreclosure to qualify for the loan, demonstrating that they are not a financial risk to the lender.

If the borrower had his or her mortgage discharged through bankruptcy instead of foreclosure, the waiting period is shorter. Fannie Mae guidelines allow a lender to approve a new mortgage for someone who had their mortgage discharged in bankruptcy to receive a new loan after four years or two, with extenuating circumstances.

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.

Related Resources:

https://www.bankrate.com/mortgage/life-after-foreclosure/

 

 

Bankruptcy Law, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

What You Can Do if a Creditor Is Harassing You

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The business of debt collection can be intense and stressful for the person on the receiving end of the call. Debt collectors can be relentless and will stop at nothing to reach the person owing the debt. However, consumers do have rights, and it is important that they be aware of what those rights are in the event they are on the receiving end of creditor harassment.

Fair Debt Collection Practices Act

Consumers are protected from abusive and unfair debt collection practices through the Fair Debt Collection Practices Act (FDCPA). The FDCPA provides rules that third-party debt collectors must follow when they contact consumers to collect upon the debt.

The following acts are specifically prohibited under the FDCPA:

  • Repetitive phone calls from the debt collector with the intent to annoy, harass or abuse the person answering the phone;
  • Using profane or obscene language when communicating to collect the debt;
  • Threatening physical violence against the person answering the phone;
  • Using deception or misleading collection practices, including lying about how much is owed and that the person calling is an attorney when he or she is not; and
  • Making any threats to do something that either the debt collector has no intention of doing or does not have the legal right to do.

The consumer has the right to send a letter to the debt collector informing them that they must cease and desist communication with the consumer due to their violations of the FDCPA.

Depending on how extensive the abusive tactics and harassment are, the consumer can sue the debt collector under the FDCPA. This lawsuit can include damages, as well as the consumer’s attorney’s fees for having to file the case. Damages can be even more extensive if the debt collector ignores the consumer’s written cease and desist letter and continues the abusive tactics.

Tactics to Keep in Mind

Keep in mind that these debt collectors are highly skilled at antagonizing the person on the other end of the phone. Do not fall prey to their tactics of intimidation and fear. They usually record these conversations in hopes that they can get the person to say something that will incriminate them or tie them to the debt. Whatever you do, stay calm but firm, and keep the communication brief.

It helps to keep records of these conversations and contacts in the event the consumer does wish to file an FDCPA claim. The more letters, text messages, emails and phone calls that are made and recorded, the stronger the consumer’s case will be. When talking with a collector, be sure to get that person’s name, the name of the company for whom he or she works, and a call back number.

One recommendation that could also help the consumer’s case is to ask for written verification of the debt. Never assume that the collector is providing accurate information. Once this information is requested, the collector has five days from the initial contact to provide this verification including the following information:

  • The amount of the debt;
  • The name of the original creditor;
  • Information showing that the person has 30 days to dispute the validity of the debt.

If any inaccurate information is provided by the debt collector, this could be used as further proof that they are exercising unethical debt collection practices under the FDCPA.

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:

https://www.thebalance.com/how-to-stop-debt-collector-harassment-4107936

https://www.consumerfinance.gov/ask-cfpb/what-is-harassment-by-a-debt-collector-en-336/