Bankruptcy Law

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief

Residents in Southern States Struggle the Most with Credit Card Debt

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Credit card debt is a problem for many Americans, but it seems it is a bigger problem for those living in southern states. According to research produced by creditcards.com, the large majority of credit card debt is carried by individuals living below the Mason-Dixon line.

According to the creditcards.com study, approximately 40 percent of Americans earn enough money to pay their balances off in full every month. However, for the remaining 60 percent, those balances grow more each month, and the cardholder only ends up paying interest on the card through monthly payments, never quite making progress in paying it down.

The study ranked the states not necessarily based on the total debt held by individuals in those states. They were also ranked by the number of months it would take to pay down the average total credit card debt by making payments on the balances equal to 15 percent of that state’s monthly income.

While New Mexico tops the list of states when it comes to credit card debt, with the average balance is $8,323, southern states including Louisiana, West Virginia, Alabama, Arkansas, Mississippi, and Georgia follow New Mexico in terms of high balances being carried from month-to-month. The researchers that conducted the study correlate the high credit card balances with lower income in these states.

In the states with higher income levels, these cardholders are more likely to be able to pay off their balances in full every month. The lower the income and higher the balance, the less likely the cardholder will be able to ever conquer his or her debt. Further, the study showed that in the wealthier states, a credit card payment that was equal to 15 percent of that state’s median monthly income will be much more manageable than it would be in states with lower income. It just so happens that the states with the lower income were also southern states.

People living in the Miami metro area, which includes both Fort Lauderdale and West Palm Beach, carry the second-highest credit card debt balances in the country, second to San Antonio, Texas. Texas was reported as being a state with three of the five cities that reportedly had the highest credit card debt.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.  It is not surprising with the high 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. We offer additional tips for eliminating credit card debt on our blog.

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.

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

South Florida Bankruptcy Court Surviving Government Shutdown

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The partial government shutdown has had some far-reaching effects, but many of the offices that were affected are still operating despite Congress’s failure to pass a spending bill. South Florida’s Bankruptcy Court is one of those entities that is continuing to operate.

The bankruptcy court has three different locations in Miami, Broward and West Palm Beach, all three of which are still open as usual and will continue to operate.

The court has the ability to remain open due to non-appropriated funding that it receives from sources outside of congressional funding. Because of this funding, business can keep running, and these three offices have remained open with regular business hours.

Here is how the government shutdown has affected the United States Bankruptcy Court for the Southern District of Florida Operations.

The trustee’s office has been able to offer limited staff for tasks, including scheduling Section 341 creditor meetings, making sure that trustees are appointed to cases, handling means testing for bankruptcy cases, and handling emergencies as they have come up.

Section 341 meetings are continuing as scheduled. These meetings are important for ensuring that bankruptcy cases move smoothly and do not get backlogged during the shutdown.  In the event the judiciary does shut down, the court will maintain its online electronic filing system, PACER, for all bankruptcy filings.

Government Shutdown Update: After submitting to mounting pressure amid growing disruption, President Trump signed a bill to reopen the government for three weeks, backing down from his demand that Congress give him money for his border wall before federal agencies get back to work.  Trump said he would sign legislation funding shuttered agencies until February 15 and try again to persuade lawmakers to finance his long-sought wall. The deal he reached with congressional leaders contains no new money for the wall but ends the longest shutdown in U.S. history.

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.

 

 

Bankruptcy Law, Debt Relief, Student Loans

Homeownership Out of Reach for 400,000 Young Families Burdened with Student Loan Debt

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Student loan debt presents a major problem for many different reasons, but for 400,000 Americans in their 20s and 30s, student loan debt is now preventing them from purchasing a home. These numbers come from a new report released from the Federal Reserve, which has shown an 8.8 percentage decrease in homeownership for individuals in their 20s and 30s between the years 2005 and 2014.

Between the years 1989 and 2016, the amount of American families that carried student loan balances went from 8.9 percent to 22.4 percent according to information produced by the Fed’s Survey of Consumer Finances. For Floridians, the amount of student loan debt incurred every year has consistently been going up, as well. According to this research, the average family has a student loan debt balance of up to $19,000. The problem is what is going to happen to these young borrowers after they enter the workforce and wish to make a big purchase, such as buying a home? Will these individuals also be able to save up for retirement? According to the research from the Federal Reserve, approximately 3.6 percent of Americans between the ages of 65 and 74 are still paying on their student loan obligations.

While going to college and securing a college degree can benefit the borrower in many ways, such as securing a job in that person’s chosen career field with a better chance of earning a good income, this education almost always comes at a high cost. Students are graduating with loan balances well into five figures with no end in sight. If the student goes on to earn a graduate or professional degree after receiving his or her undergraduate degree, that balance can even reach six figures. Many researchers argue that tuition costs need to be decreased significantly to make college a less costly choice for students graduating high school. However, tuition costs only seem to be rising every year.

The study showed that the borrowers who have higher student loan debt early in life tended to have a lower credit score later. A lower credit score can hurt that person’s chances of getting a home, but also accessing other types of credit for a car purchase or acquiring a personal loan.

Please click here to read more.

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, Credit Card Debt, Debt Relief

Credit Card Debt Repayment Tips

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If you are facing credit card debt, you are not alone.  Given the 126.2 million American households, the average household has around $8,161 in revolving debt, approximately $6,577 of which is credit card debt. With nearly 248 million Americans over the age of 18, that comes out to a total of $3,353 in credit card balances per US adult, according to cardrates.com. There are ways to get out of credit card debt.  Here are some quick tips and repayment methods.

Repayment Methods

Several different repayment methods are commonly used and are successful in paying down credit card debt quickly. The first of these is the debt avalanche method, whereby the cardholder focuses on paying off the credit card with the highest interest rate first, then focusing on the card with the next highest rate after that one is paid and so on. The next method is the debt snowball method where the cardholder pays off the smallest debt first. It is hoped that this first debt paid off will motivate the person to continue making payments as he or she continues to pay off debt. If it is at all possible to adjust your budget so that you can focus your efforts on paying down debt through one of these methods, this situation is ideal.

Balance Transfers, Personal Loans or Consolidation

However, sometimes the finances are simply not there to attack credit card debt in one of these repayment manners. Sometimes you need that extra assistance to help pay off these debts. If that is the case, a couple other options exist for the American consumer. The first of these is use of a balance transfer to a zero rate or low interest rate credit card. This option can be helpful if the individual is able to pay off the card during the introductory rate period. These cards and balance transfers often do have a rate increase after a period of time has passed. Therefore, it is important that you keep up with payments after the balance is transferred and make the effort needed to pay off the card during the zero-interest rate period before the interest rates go up.

Another method is use of a personal loan. Banks offer these unsecured loans to consumers who have decent credit scores and can qualify for a lump sum loan to pay off their credit cards after receiving the loan funds. However, one thing to keep in mind is that these loans do need to be paid back, and many of them come with higher interest rates since they are unsecured obligations. While the credit card bills will stop after the balances are paid, the consumer will still need to pay the monthly payments on the loan. Despite this fact, a personal loan can be a quick way to pay off major credit card debt into one monthly loan payment. Consolidating the payments alone can be one major benefit for using this method in attacking your credit card debt.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.  It is not surprising with the high 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. We offer additional tips for eliminating credit card debt on our blog.

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, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Can you spot a debt relief scam?

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When it comes to getting out of debt, if something sounds too good to be true, it likely is. When someone is facing a difficult financial situation and are unable to make ends meet, they may feel like there is nowhere else to turn. It is for this reason that it is important to be cautious when approached regarding debt relief.

The Federal Trade Commission (FTC) and Florida Attorney General are actively monitoring these types of scams in hopes of stopping them before more people become victims. Countless debt relief scams exist out, with individuals behind them looking for a way to make money with no intention of helping the person paying them. In fact, one of the strongest determinations of whether you are being targeted by a scam is when the company demands payment upfront. Odds are, once they take your money, they have no intention of doing anything at all.

The FTC and Florida Attorney general recently stopped this exact type of debt relief scam where the company told potential clients that they would pay, settle and completely get rid of their debt. However, once they took the person’s money to engage their services, they did absolutely nothing. In the meantime, the individuals who paid the company to settle their debts took the advice of the company’s representatives and stopped payment on their overdue accounts. Soon, these accounts fell into default, damaging the credit scores of the affected individuals.  Many of these victims were also faced with lawsuits from creditors.

This situation is unfortunately all-too-common. If someone offers to resolve your debt situation but insists that you pay them a large sum upfront, it is likely that this person is offering you a scam. A legitimate company will not force you to make a payment up front.

Another sign of a debt relief scam is the company will guarantee that all debts will be forgiven by creditors. No one can guarantee this fact, and if someone is making the effort to tell you that they can, odds are, they are part of a scam. Creditors are under no obligation to forgive debts.  Some will reduce the payment in a settlement amount, because they would rather at least receive some form of payment in lieu of having to pursue a collection action, but they are not obligated to do so.

When in doubt, do your research when choosing the right debt relief option. You may be able to find information about the scam before you become their victim, and if you do find yourself contacted by a debt relief scam, it is always recommended that the scam be reported to the Florida Attorney General’s Office and FTC.

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.

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

When to File for Bankruptcy

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Coming to the decision to file for bankruptcy is not an easy choice to make. Many individuals consider bankruptcy to be an admission of failure, but it can oftentimes be the only way for them to truly obtain a fresh financial start. Certain decisions and factors must be considered when coming to the decision to file for bankruptcy.

One consideration that often holds people back from making the decision to file is the effect the filing will have on their credit. 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.

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.

Traditionally, two of the biggest reasons people file for bankruptcy are the result of a serious medical crisis or a divorce. Both can cause a person’s financial situation to change overnight. Even if someone has medical insurance, a major medical crisis can still put them in a tough financial spot, especially if that person must pay a high deductible for his or her medical costs. The same goes for a divorce and losing the financial support of another person in a relationship.

Several factors need to be considered when deciding which form of bankruptcy to choose. Chapter 7 bankruptcy takes approximately three to six months to have the debt discharged, which includes most of the filer’s unsecured debt, including medical bills, credit card debt and personal loans. Other types of debt are excluded for the most part, including student loan debt, child support, spousal support and tax obligations. The bankruptcy trustee may choose to sell of non-exempt property to pay off the debt, although most property falls under an exemption- which means you can keep it. Property that is secured and is associated with a piece of property, like a home, can be kept so long as the debtor is able to keep up on payments and maintain the property. Therefore, if most of your debt involves credit card debt or medical debt, Chapter 7 may be the best option for you to eliminate this burden.

If you are behind on your mortgage payments but want to keep your home, many times, the Chapter 13 filing is a more logical choice. In a Chapter 13 case, you can lump past due mortgage payments into the repayment plan and pay them over time while keeping current on payments.

The bankruptcy means test determines whether or not you are eligible to file for debt forgiveness through Chapter 7 bankruptcy. The test uses factors such as: income, expenses and family size to determine who can afford to repay their debts through reorganization and who cannot.

It is always recommended that you speak with an experienced bankruptcy attorney before making any decision to file or not file. If you are expecting a large lump sum payment, such as an inheritance or tax refund, the attorney may advise you to wait on filing and utilize that money on needed expenses first before filing to avoid losing it in a bankruptcy. Be honest with your attorney during this meeting and fully disclose all your financial circumstances so that the best decision can be made.

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.magnifymoney.com/blog/pay-down-my-debt/debt-guide-file-bankruptcy/

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

Florida Healthcare Workers Lose License to Practice Medicine Due to Unpaid Student Loans

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Student loan debt has become a crisis in America, but for many Florida borrowers, this crisis has hit close to home. Over 100 Florida healthcare workers have now lost their license to practice medicine due to their inability to repay their student loans. A recent crackdown by the state board of health was initiated in an effort to get student loan borrowers to pay back their loans.

For years, federal student loan companies have pushed states to enact laws that were tougher on borrowers who defaulted on their student loan obligations. One of the suggested penalties has been taking away professional licenses from defaulting borrowers. Florida is the only state that has begun enforcing these types of laws.

The Florida State Board of Health reported that approximately 900 healthcare workers were at risk of losing their license over the past two years. The board worked out repayment plans with the great majority of those workers, leaving 90 to 120 license suspensions since November 2016. These licenses include professional certifications for registered nurses, Certified Nursing Assistants, opticians and pharmacists.

However, now that these workers have lost their ability to earn an income, the question remains: how will they be able to pay their loan obligations? That argument is being made by area student loan attorneys. The decision to take away professional licenses for nonpayment of students is being questioned as putting a strain on employers and patients in an already short-staffed industry. Healthcare workers are already in short supply but taking away additional workers who have struggled paying their loan obligations will make the field even scarcer. Additionally, now that these workers have lost their ability to earn an income, it is more likely than not that they will end up depending on welfare benefits to survive.

Under the Florida law, the state has the power to garnish up to 100 percent of the healthcare worker’s wages before his or her license can be reinstated. Also, once the worker’s license is suspended, the only way he or she can get back the license is to pay a fine that is equal to 10 percent of the balanced owed. Critics of this law argue that it is entirely too unreasonable and makes it essentially impossible for the worker to get back on his or her feet.

It is estimated that over 10 percent of all student loan borrowers are now in default on their loan obligations. Approximately $1.2 trillion is owed nationally in student debt. Tuition costs seem to be rising every year, and the average student graduates with a large amount of debt, well up to $30,000 or higher. If the student continues on to graduate school, law school or medical school, the loan obligation can get as high as six figures. It comes as no surprise that these students, after graduation, struggle with meeting their monthly debt obligations, especially if they struggle finding employment after graduation.

The Florida law does require a 45-day written notice be issued to the borrower before his or her license is suspended. If you receive one of these notices, it is recommended you not ignore the notification but immediately contact your lender to discuss a possible repayment plan.

Click here to read more.

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.

Related Resources:

https://marketsanity.com/florida-board-of-health-has-suspended-thousands-of-healthcare-licenses-over-defaults-on-student-loans/

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Generation X Carries Most Debt Out of All Generations

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Debt presents a problem for many Americans today, but one generation clearly stands out among the rest in terms of holding the most consumer debt. In fact, according to a recent study published by LightStream Survey conducted by the Harris Poll, nearly 80 percent of all members in the Generation X, ranging from ages 36 to 51, have some level of debt. The report showed that eight in ten members in this age category carry debt.

Coming in just below this were members of the Millennial generation, consumers between the ages of 20 and 35. Approximately 75 percent of all members in this age group carried debt. The next group was the Baby Boomer generation, which includes individuals between the ages of 52 and 70, with 69 percent of them carrying some type of debt.

While all three of these generations carry debt, it is the mindset of those in the Gen X category that presents the most cause for concern. Those surveyed in Gen X reported that they felt it was impossible to pay off a significant debt once it was incurred. Additionally, 25 percent of those in this demographic reported that they were not confident in how they were handling their finances. However, in the survey data, these individuals did state that they would be willing to give up hobbies or extracurricular activities to get rid of their debt payments, which does show some promise.

On average, individuals in Generation X carry $30,334 in “non-mortgage debt.” In comparison, Baby Boomers hold $27,513 and Millennials hold $22,784 in non-mortgage debt.

Getting out of debt can also be problematic for individuals in this generation, as well. Those who are younger may be able to use their savings or cash in their investments to reduce their debt, but it may be too difficult for Gen X members to dip into their retirement savings to pay off debt.

If you are struggling with insurmountable debt, dipping into retirement savings is never advisable.  These are protected in bankruptcy along with the following bankruptcy exemptions in Florida. Many individuals are already struggling to pay for obligations, including helping aging parents as well as adult children. While they are not quite at the age of retirement, they are approaching that point, making it too close for comfort to use retirement savings.

Continuing to struggle with debt is a slower, less effective way to pay it off.  Many different debt relief options exist, including debt consolidation, debt settlement or negotiation and bankruptcy – but it is important that as a consumer you research your options carefully.

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.

 

Bankruptcy Law, Student Loans, Timothy Kingcade Posts

Arrest Made in the Latest Student Loan Debt Relief Scam

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The head of a well-known alleged student loan debt relief scam is now being forced to account for his actions. Brandon Frere, the CEO of Ameritech and two other companies is accused of engaging in scams in the student debt relief business. He was arrested last week at the San Francisco International Airport.

When he was arrested, he was on his way to Cancun, Mexico, and had $3,900 cash on him, as well as five blank checks from his business, two blank checks from his personal bank account, 10 credit cards, gift cards and his Social Security card.

The claims against Frere are numerous. He is accused of withdrawing money that the company was holding in escrow for its customers, meaning the money belonged to the customers and not to the company. He is also accused of transferring millions of dollars from the company into his personal account and spending this money on cars, travel and other luxury items.

Days before Frere tried to leave the country, a judge granted a motion for preliminary injunction filed by the Federal Trade Commission (FTC). The same day that Frere booked his Cancun ticket, he withdrew $400,000 from accounts that were associated with his companies. Of that amount, $179,000 was transferred to his personal account. The remainder was transferred to family members and lawyers. Prosecutors estimate that Frere’s companies collected somewhere up to $28 million from student loan borrowers over four years.

It is estimated that student loan debt is a staggering $1.5 trillion, held by 44 million borrowers. It is also estimated that somewhere around 40 percent of all student loan borrowers will default on their obligations at some point in time.

These types of scams are not unique. In fact, many of these companies exist, taking advantage of student loan borrowers who are in an extremely difficult situation and are desperate for relief. It is extremely important that a student loan borrower does his or her research before choosing a repayment plan or relief option. Many times, borrowers make simple mistakes, like trusting a company they should not otherwise trust, that only hurts them in the end.

Once they had the borrower’s money, the company would continue to charge the borrowers monthly fees, ranging from $49 to $99. The borrowers were under the impression that the company was making their payments to their loans, but these payments were not being made, leaving these accounts unpaid and in default.

Another illegal practice that Frere and others were accused of was encouraging their company representatives to push customers to exaggerate the size of their families to receive more favorable student loan terms.

The FTC and various state attorneys general have been hard at work on cracking down on these types of scams and illegal collection practices. The FTC claimed that Ameritech would lure student loan borrowers with mailings promising the borrowers that they were prequalified for debt-relief. The company collected fees ranging between $600 to $800 to prepare and submit documents on behalf of the borrowers who were interested in government repayment and forgiveness programs. The problem with this is that there are free services provided by the U.S. Dept. of Education that offer the same.

Click here to read more.

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

IRS Will Pay Tax Refunds During Government Shutdown

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The government shutdown has taxpayers nervous about what it will mean for their tax refund.  However, a statement made today by the acting director of the White House Office of Management and Budget, Russel Vought, said the Internal Revenue Service (IRS) will issue refunds even during the government shutdown.

It had been speculated that the IRS would accept tax returns, but refunds would be delayed until the government was fully functioning again. This situation is exactly what happened during previous shutdown contingency plans. However, the administration assured taxpayers that would not be the case this time around.  It is a decision that may reduce political pressure on Congress and President Trump to reach a deal to reopen the federal government.

Last tax season, the average tax refund was estimated at $2,899.  If you are struggling with debt, a tax refund can be your ticket to a fresh financial start and pay for the costs of bankruptcy.

Data from the Administrative Office of the U.S. Courts shows that Chapter 7 bankruptcy filings in March were 26 to 34 percent higher during March, and 15 to 25 percent higher during April from 2013 through 2016.

How do you know if bankruptcy is right for you? Consumers should strongly consider Chapter 7 if any of the following are true:

  • Problem debts, such as credit cards, medical bills or other high-interest loans, account for more than 50 percent of your annual income;
  • You are using credit to pay for everyday expenses;
  • Your credit cards are maxed out with no end in sight;
  • Your wages are being garnished;
  • You are being sued by debt collectors;
  • You are in danger of losing your home.

In the 2018 tax filing season, 18.3 million people claimed $12.6 billion in tax refunds within the first week of filing season alone. This “season,” normally begins at the end of January or early February, considering employers are required to mail W-2s by the end of January.

During shutdowns in years past, the IRS had stated that refunds could not be issued during a shutdown due to the agency’s interpretation of the Antideficiency Act. This act governed what type of work was allowable during a shutdown, which normally only included government work that was necessary to protect life and property. Previously, IRS work was not considered one of those categories.

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.