On March 20, 2012 the U.S. Senate Committee on the Judiciary Subcommittee on Administrative Oversight and the Court held a hearing to discuss the student loan debt crisis. The hearing was entitled, ‘The Looming Student Debt Crisis: Providing Fairness for Struggling Students.’ Since the recession, college graduates have struggled to find not only well paying jobs, but jobs in general. In 2005, a provision was made to the bankruptcy code that prevents borrowers from discharging their student loan debt in bankruptcy court. Financial analysts predict that a crisis with effects similar to the crash of the real estate market could happen if things to do not change.
A variety of professionals who are familiar with the current affects of student loan debt on the economy gave testimonies to remove this provision. In attendance, were Attorney’s Generals from Kentucky and Illinois, borrowers who are struggling to pay their student loan debt and representatives from organizations such as the Student Loan Borrower Assistance Organization. Most of the testimonies were in agreement that student loans should be treated in bankruptcy court just as any other consumer debt. There was also talk about loan modifications being available to borrowers who cannot afford to pay back their student loans, due to economic circumstances.
To read more on this story visit:
http://www.judiciary.senate.gov/hearings/hearing.cfm?id=eb997a7c3376c76b36a041cf2a10ca10
http://www.studentloanborrowerassistance.org/2012/03/24/bankruptcy-and-fairness-for-struggling-students/
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
Bankruptcy Law
Stockton, CA. could become the Nation’s Largest City to File Bankruptcy
Within the next three months, Stockton could become the nation’s largest city to file for protection from creditors under U.S. bankruptcy code. Using a new California law, the City Council is attempting to stall the process by entering mediation with creditors, including public employee unions. The Central Valley port city of 300,000 has suspended several bond payments and will not cash out vacation or sick time for employees who leave.
Before the recession, the city’s officials were spending large amounts of money on a new sports arena, a theatre complex, a marina and much more with the intention of creating a more cultured city. There is speculation that this could be one of the many reasons the city has been hit so hard by the recession. Residents believe the problem is the inflated salaries of city officials and their generous retirement packages. Others speculate that it is a result of the city’s dedication to employee unions. No matter the reason, Stockton’s economy has taken a severe hit. Crime has also increased in the area due to lack of funds for public employees such as police and firefighters.
To read more on this story visit: http://www.standard.net/stories/2012/03/14/stockton-calif-could-become-largest-city-file-bankruptcy
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
TaxMasters Inc. is the Latest Tax Representation Firm to File for Bankruptcy
It was announced recently that another tax representation firm, Houston-based TaxMasters Inc., will file for bankruptcy. The company spent millions of dollars in TV advertising promising taxpayers’ resolution from their IRS debt, but was rarely able to deliver on its promise. Texas and Minnesota have both accused TaxMasters Inc. of “deceptive tax practices.”
TaxMasters Inc. is just the latest tax representation firm to file for bankruptcy. Months earlier, J.K. Harris filed for bankruptcy after a number of lawsuits were filed against it by multiple states’ attorneys general and taxpayers. Like TaxMasters, J.K. Harris also advertised the ability to relieve consumers of their tax debts to the IRS.
Another similar case was the one involving Roni Deutch, also known as the “Tax Lady,” based out of California. After a California attorney general filed a lawsuit against Deutch in 2010 citing similar allegations, Deutch eventually surrendered her license to practice law and filed for bankruptcy.
Americans struggling with debt owed to the IRS are not encouraged to utilize tax representation firms due to their history of charging outrageous fees and their lack of success. Instead, consumers and businesses with outstanding tax debt are encouraged to contact the Taxpayer Advocate Service sector of the IRS, or a certified lawyer or CPA. There are affordable payment plans available to those who owe $50,000 or more to the IRS and in some extreme cases; it is possible to receive an “offer in compromise,” due to extenuating circumstances.
To read more on this story visit: http://www.forbes.com/sites/janetnovack/2012/03/18/owe-the-irs-taxmasters-bankruptcy-shows-why-not-to-get-help-from-tv-pitchmen/.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
Reports Show an Increase in Credit Card Debt for Americans in the Month of February
CreditKarma.com released data from the consumer credit climate report compiled of more than 442,102 consumers in February 2012. The results showed a slight increase in consumer credit spending since January 2012. CreditKarma.com reported that the average American consumer held more than $170,000 in debt, which was attributed to home mortgages and more than $46,000 in home equity loan debt. Another debt that Americans are struggling to reduce is their student loan debt, which averages around $28,000 per person.
Not only has credit card debt increased, consumer credit scores have decreased two points since January 2012. The average American consumer credit score is 659. Credit score averages tend to be higher in states like New Jersey and Massachusetts. Credit scores in states like Mississippi and Louisiana tend to be lower, and are attributed to the lower cost of living.
To read more on this story visit: http://www.marketwatch.com/story/credit-card-debt-remains-stable-according-to-creditkarmacom-2012-03-14.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
State of Oklahoma takes steps to Prevent the Collection of “Zombie Debt”
Senator Gary Stanislawski introduced a bill to the Oklahoma state legislature, which would make it illegal for debt collection companies to try and collect on debt that has exceeded its statute of limitations, otherwise known as, “zombie debt.” The purpose of the bill is to make it illegal for collection companies to collect this type of debt. The bill would also require collection companies to present proof that they own the debt and can legally collect on it. Another term of the bill would create a requirement that debtor’s information be passed to the entity that purchased it.
The debt collection companies who purchase “zombie debt” from credit companies tend to pay very little for this type of debt. For this reason, even if the collection companies are only able to receive a small payment amount from the debtor, they are still making a substantial profit from this practice. If passed, the bill will help those individuals being harassed for debt that they legally no longer owe.
To read more on this story visit: http://www.chapter7.com/ok-bill-would-ban-collection-of-zombie-credit-debt/
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
Congress not likely to Renew Mortgage Forgiveness Debt Relief Act- Underwater Homeowners need to Act Fast
In October of 2007, Congress passed the Mortgage Forgiveness Debt Relief Act to help underwater homeowners who were struggling to pay their mortgages. In most cases, any debt you have been relieved of by your creditors should be listed on your taxes as income, which means the taxpayer would owe on this amount. Due to the housing bubble burst and the resulting real estate crisis, this Act was passed to allow taxpayers to be forgiven of this amount.
This tax relief applies to debt forgiven in calendar years 2007 through 2012. The debt must have been used to buy, build or substantially improve the homeowner’s principal residence and must have been secured by that residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, may also qualify for the relief.
It is important that underwater homeowners act fast to take advantage of this important tax break, as foreclosure and short sale proceedings can take up to a year to process.
Due to the $2.7 billion this has cost the government in only two years, many believe it is unlikely that this Act will be renewed at the end of its term in December of 2012.
To read more on this story visit: http://www.allgov.com/Top_Stories/ViewNews/Congress_May_End_Program_Allowing_Tax_Relief_for_Mortgage_Modifiers_120225
Choosing the right attorney can make the difference between whether or not you can keep your home. A well qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
Californians Fear Medical Debt Resulting in the Hesitation to Seek Proper Health Care
A study recently conducted by researchers at UCLA showed that California residents are not seeking medical care due to a lack of health insurance. A shocking 50 percent of adults who are uninsured claimed they did not see a doctor one time last year. On the contrary, 92 percent of insured adults did visit a doctor’s office last year. Children with parents who are uninsured are also lacking proper medical care because an even lower 40 percent visited a doctor last year, while 87 percent who were covered under their parent’s medical insurance did seek medical care during the last year.
Medical debt throughout the nation is at an all-time high. Therefore, it is suggested to be the reason the uninsured population is hesitating to seek medical care. Even those in California who have medical insurance, but limited coverage show high rates of medical debt. The study showed that of the non-elderly population in California, 2.6 million uninsured are struggling with medical debt. The rate of unemployment in California is at an extremely high level and is not expected to lower any time soon. Those individuals struggling with extreme debt as a result of their medical bills have been forced to consider filing Chapter 7 bankruptcy as a solution.
To read more on this story visit: http://www.chapter7.com/job-cuts-leave-californians-facing-record-levels-of-medical-debt/
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
Charges filed Against ‘American Credit Crunchers,’ a Fraudulent Debt Collection Company that Scammed Millions from Consumers
The Federal Trade Commission recently filed a lawsuit against American Credit Crunchers, a fraudulent debt collection company that reportedly collected more than $5 million in debt that was never owed by consumers. The company used a call center in India, where callers threatened legal action and utilized other intimidation methods to scam people into paying debt they did not actually owe. The company collected personal information from each individual they contacted to make the scheme appear more legitimate. It was reported that during the course of the scam, the company contacted more than 8 million people during an 8-month period of time.
The company zeroed in on those who were struggling financially, and would be more likely to fall for the scam. In many cases, the collectors posed as federal officers from the “Federal Department of Crime and Prevention,” which does not actually exist. Like many cases, JanLaree DeJulius, was conned into believing she was in debt due to a loan her ex-husband had taken out, but already paid off. DeJulius was told federal officers would arrest her at her place of work if she did not pay the amount immediately. The fictitious company has since shut down its operations and taken down their website. Charges have also been filed against a company affiliated with American Credit Crunchers called Ebeeze and the owner of both companies, Varang K. Thaker.
To read more on this story visit: http://www.sun-sentinel.com/business/careers/la-fi-phantom-debt-collection-20120222,0,3451588.story
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
Equifax Reports Good News for 2011
In 2011, Equifax reported that of the 585 million consumers and 81 million businesses, Americans’ delinquency debt rates were significantly declining in all areas but one- student loan repayments, which were at an increase of 1%. This is good news for the US economy, meaning that there is a decline in the amount of past due credit payments. Not only that, but there is also an increase in the number of credit cards issued by lenders to subprime borrowers (borrowers with credit scores below 660). In October of 2008, overall consumer debt was at its peak of $12.4 trillion. In October 2011, there was an 11% decline.
During 2011:
• Bank Credit Card payments 60+ days past due declined by 29%
• Auto Finance payments 60+ days past due declined by 19%
• Auto Bank payments 60+ days past due declined by 23%
• Consumer finance 60+ days past due declined by 23%
• First Mortgage payments 30+ days past due declined by 13%
• Home Equity payments 30+ days past due declined by 10%
• Retail Credit Card payments 60+ days past due declined by 15%
To read more on this story visit: http://www.marketwatch.com/story/us-consumers-paid-down-debt-on-time-in-2011-equifax-reports-2012-01-30?reflink=MW_news_stmp
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
Americans Preference to Borrow Rather than Save has Triggered Extreme Debt
Before consumer and housing credit became so readily available in the 1980’s and 1990’s, Americans savings percentages were at economically healthy levels, averaging between 7 and 11 percent. But after the 1986 tax reform, home equity loans became tax deductible, which provided a greater incentive for Americans to borrow. From 1990-2005, housing prices were at extremely high rates, causing more Americans to borrow than ever before, and savings percentages dropped.
After the Housing Market Crash of 2008, Americans found themselves with extremely high mortgage payments, little to no value on their homes, and next to nothing in savings. A couple of years after the Housing Market Crash, Americans slowly began to save more for fear of ending up in extreme debt or possibly losing their homes to foreclosure.
America has the lowest rate of savings of any of the first world countries. Some experts believe this is due to the America’s middle class extreme expenditures on healthcare and education, and a lack of policies insisting on financial education. Many European countries have state institutions that advise people who are borrowing money, before they get into trouble with debt. Another policy America has yet to establish is a policy that would intervene before people become “over-indebted.”
Some experts believe that in order to create a “cultural shift” and create a more financially stable economy, America must pass a federal law that would bring financial education into every education system in the country. The idea is to help young Americans understand the financial risks of borrowing and the different types of credit available to them.
To read more on this story visit: http://globalpublicsquare.blogs.cnn.com/2012/02/16/why-america-spends-while-the-world-saves/
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.