Bankruptcy Law

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

Credit Card Debt a Growing Concern for College Students

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A recent study conducted by Nellie Mae, the nation’s leading student finance firm, revealed that the average undergraduate carries a credit card balance of $2,169.  According to the study, many students use their credit cards without knowing how the bills will even be paid off.  It also showed that many students used credit cards to pay for tuition and books, instead of federal student loans that offer lower interest rates.

Four out of five college students amass nearly $1,000 a year in credit card debt.  One cause of credit card debt is college students’ difficulty in adjusting to their newfound financial freedom.  Parents and students need to come up with a budget for credit card spending before their child leaves for college.  Make sure your college student knows not to use money they do not have, even for a one-time purchase.

Use resources available to keep them on the right path.  You and your college student should sign-up for overdraft alerts on all accounts. Online alerts and apps on your Smartphone can help with this.

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

Related Resources:

https://www.fastweb.com/personal-finance/articles/dealing-with-credit-card-debt

http://www.nbcdfw.com/news/local/Credit-card-debt-a-mounting-concern-for-college-students-441338263.html

Bankruptcy Law, Credit, Student Loans, Timothy Kingcade Posts

Student Loan Servicer Accused of Mismanaging Debt Forgiveness Program

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According to a lawsuit filed by the attorney general of Massachusetts, one of the country’s biggest servicers of federal student loans has mismanaged its debt forgiveness program, raising repayment costs for hundreds of thousands of borrowers who work in public service jobs.

The loan servicer, FedLoan, has made numerous errors, potentially keeping many students in debt far longer than they expected, according to Maura Healey, the Massachusetts attorney general.

The company’s actions have jeopardized the financial futures of teachers and public servants nationwide. Consumer watchdogs and government officials have raised concern with the government’s public service loan forgiveness program, which promises qualifying workers — including teachers, librarians, police officers and doctors and nurses — forgiveness of their remaining federal student loans in return for a decade of full-time service.

Approximately 612,000 borrowers have signed up for the loan forgiveness program and submitted at least one approved certification, according to data from the Education Department.  However, many of the borrowers are concerned about how many of their monthly payments will be counted — or even if the certification itself will be revoked.

The Education Department said that the approval notices the company sends to borrowers seeking certification are not binding and can be rescinded by the department at any time. Four of those borrowers whose approvals were withdrawn are in continuing litigation with the department.  The Education Department says their student loan debt forgiveness was in error.

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

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

6 Things Debt Collectors May Not Want You To Know

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If you have been contacted by a debt collector in the last year, you are not alone. Nearly a third of all U.S. consumers have reported being contacted by a creditor or debt collector about a debt. As a consumer, your rights are protected by the Fair Debt Collection Practices Act (FDCPA). Here are some key facts to know if a debt collector contacts you.

  1. You do not have to reveal personal information. Debt collectors might ask you for your Social Security number, date of birth or other information. However, you are not legally required to provide this information. Collectors should use the information they already have available to them.
  2. You have a right to ask for details – and you can ask a debt collector not to contact you. You should always ask that they verify the accuracy of the debt. This means the collector must provide details of the debt when they speak to you, or in writing, within five days of the call. This allows you to confirm that you actually owe the amount. If the information is inaccurate, you have 30 days to dispute the debt.
  3. You can ask to have a settled debt removed from your credit reports. If you pay off an account in collections in full, it will not erase it from your credit reports right away. In fact, it will remain on your reports for seven years. However, if you negotiate with the debt collector to settle the debt, you can ask to have that debt removed from your credit reports.
  4. Debts have a statute of limitations. State laws determine how long a creditor has to collect an amount owed to them. The time period ranges from two to six years. After this time, you still owe the debt, however; creditors can no longer come after you to collect it. This type of debt is sometimes called zombie debt or time-barred debt.
  5. You can file a complaint. If you believe a debt collector is acting unethically or has violated your rights as a consumer, contact authorities. Some states have debt collection laws that differ from the FDCPA.

Click here to read more on this story.

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

Bankruptcy Law, Credit, Debt Relief, Student Loans

Over 44 Million People Affected by Student Loan Debt

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According to a survey by LendEDU, a private firm that connects students and their families with student loans and loan refinancing, student loan debt affects more than 44 million borrowers, who owe about $1.3 trillion.

Student loan debt surpassed auto loan and credit card debt. However, mortgage debt remains higher than education debt.

The survey used data from 1,161 four-year colleges throughout the country and found that college students at in-state public schools paid an average of $20,090 in annual tuition for the 2016-2017 school year. This is up 2.6 percent from 2015-2016.

Despite these trends, the average amount of debt incurred by graduating students in the U.S. fell 1.5 percent to $27,975 last year.

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

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Top Debt Mistakes to Avoid

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From credit cards to car loans, there are many ways to get in over your head with debt.  Here are some common debt mistakes to avoid.

  1. Credit card debt. Avoid this at all costs- if you can.  Most of these cards come with high interest rates, so any remaining debt at the end of the month increases daily.  Make sure you are only using credit cards on items you can (and will) pay off each month.
  2. Amassing bad debt. Borrowing money should be something you do as an investment in your future.  Student loan debt and a mortgage loan are examples.  In contrast, “bad debt” is money you borrow for purchases that decrease in value.
  3. Paying late. Constant late payments or missing payments can cost you penalties and lower your credit score. If you struggle to remember your payments, take advantage of automatic payments.
  4. Paying only the minimum. Making minimum payments on your credit card is tempting, but it will ultimately cost you more money due to the loan debt interest rate.
  5. Not budgeting. The only way to get out of debt is to stop living beyond your means, and the only way to stop living beyond your means is to stick to a strict budget.
  6. Ignoring your lender.  Lenders want their money, and they want you to be able to pay it- even if that means settling for less. Do not ignore their calls.  If you cannot afford to pay, tell them.  Never promise to pay or give your bank account information if you cannot afford to pay.  Chances are, a simple conversation will lead to a solution, whether that is a lower interest rate or a simple payment plan.

Click here to read more on this story.

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

 

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

The Costs of Deferring Your Student Loans

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Many Americans are struggling to pay back their student loans.  According to a recent study, 30 percent of direct loans are in deferment.  When a borrower defers a student loan, temporarily suspending repayment due to unemployment or other financial hardship- the interest on the loan continues to accrue.  If no payments are made during the deferment period, the interest will capitalize and be added to the total amount of the loan.

Interest rates are expected to rise in 2018.  Undergrads will pay 4.45 percent on loans distributed from July 1, 2017 to June 30, 2018, which is up from 3.76 last year. There are limited time frames for how long a loan can be in deferment.  Deferring your student loans can also eliminate your eligibility for certain public forgiveness programs.

Deferring your student loans can be costly.  Here are some alternatives:

  • Utilize income-driven repayment plans offered by your lender;
  • Refinance your student loans;
  • See if your employer offers loan assistance to employees;
  • Forbearance, which suspends student loan payments is typically at the loan holder’s discretion. These specific qualifications are detailed on the government’s Federal Student Aid

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

Bankruptcy Law, Credit, Debt Relief

Record High Credit Card Debt Exceeds Previous Numbers Set Prior to the 2008 Recession

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U.S. credit card debt is just over $1 trillion, exceeding the previous high set in April 2008 right before the Great Recession. The average amount of credit card debt per household is $9,600. That equals about 17% of the average U.S. household income. Since the average interest rate on a credit card is 16%, and about 24% for those with “less than perfect” credit, that debt grows between $1,600 and $2,300 each year.

A recent survey found millennials’ knowledge on credit card use troubling. A few millennials (6%) actually believe that missing a credit card payment would “improve” their credit rating. 17% said missing a card payment would have no effect on their score. Some 36% have maxed out credit cards and 48% carry card balances over to the next month, paying high interest rates and other monthly fees.

Click here to read more on this story.

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

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How do you know if it’s the IRS Contacting You?

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When the IRS contacts you, their first form of communication is through the U.S. Postal Service.  The IRS will NEVER initiate contact though email, social media or text messages.

Here are some additional ways the IRS will contact tax payers. It is important to be aware of these so you do not fall victim to an IRS-related scam.

  • An IRS agent or tax compliance officer may call you after mailing a notice to confirm an appointment or discuss an item for a scheduled audit;
  • Private debt collectors can call taxpayers for the collection of certain outstanding inactive tax liabilities- but only after the taxpayer and their representative has received written notice;
  • Private debt collectors for the IRS must respect taxpayers’ rights and abide by the consumer protection provisions of the Fair Debt Collection Practices Act (FDCPA).

All payments should be made to the U.S. Treasury.  Taxpayers should never use a prepaid debit card or wire transfer to make a payment.  Specific guidelines to make tax payments can be found at irs.gov/payments.

IRS employees will NEVER:

  • Be hostile or insulting;
  • Demand payment without giving taxpayers the opportunity to question or appeal the amount;
  • Require a specific payment method (i.e. – a prepaid debit card);
  • Threaten lawsuits, arrest or deportation for not paying;
  • Request credit or debit card numbers over the phone.

A special page on IRS.gov, “How to know it’s really the IRS calling or knocking on your door,” helps taxpayers determine if a person claiming to be from the IRS is legitimate or a scammer.

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

Related Resources:

http://www.examiner-enterprise.com/business/20170806/how-do-you-know-when-irs-is-contacting-you

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Senate Approves Legislation to Fight Scammers who Target the Elderly

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A new law protecting seniors, The Seniors Fraud Prevention Act, passed unanimously and strengthens the federal reporting system for fraud complaints and requires the FTC to monitor fraud schemes targeting seniors.

This story and thousands more like it prompted the new law:

A Duluth elderly mother had picked up the phone to happy news. She had won the lottery- $2.5 million and a new Mercedes!  But before she could claim her prize, the contest organizers needed something from her.  You can probably guess what it was.  In a matter of days, the phone scammers had defrauded the 82-year-old woman out of $47,000, forcing her into bankruptcy.

Seniors are extremely vulnerable and face a constant influx of lies and scams to their mail boxes, inboxes even their phones. These phony contests, fraudulent charities, fake investment opportunities, even scams involving their supposed “grandchildren” who got in trouble overseas and need money wired to them, immediately- all attempt to drain seniors’ of their hard-earned life savings.   A new fraud scheme targeting seniors appears almost daily, according to a fraud investigator for the AARP.

The Seniors Fraud Prevention Act of 2017 strengthens the federal reporting system for fraud complaints and requires the Federal Trade Commission to monitor the market for fraud schemes targeting seniors.

This bill directs the Federal Trade Commission (FTC) to establish an office within the Bureau of Consumer Protection to advise the FTC on the prevention of fraud targeting seniors and to assist the FTC in monitoring the market for mail, television, Internet, telemarketing, and recorded message telephone call (robocall) fraud targeting seniors.

The office must: (1) disseminate to seniors and their families and caregivers information on the most common fraud schemes, including methods of reporting complaints either to the FTC’s national toll-free telephone number or to the FTC’s Consumer Sentinel Network, where complaints become immediately available to the Federal Bureau of Investigation, state attorneys general, and other appropriate law enforcement agencies; (2) provide, in response to a specific request about a particular entity or individual, publicly available information regarding the FTC’s enforcement action; and (3) maintain a website as a resource for information on fraud targeting seniors.

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

Related Resources:

http://www.startribune.com/senate-signs-off-on-legislation-to-fight-scammers-who-target-the-elderly/438744333/

https://www.congress.gov/bill/115th-congress/senate-bill/81

 

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

Student Loan Mistakes to Avoid in your 20’s

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Student loan debt can feel like a dark cloud hanging over your future- particularly if you just graduated college and may not have landed your “dream job,” yet.  Here are some mistakes to avoid early on when paying back your student loan debt.

  1. You wait until the end of the grace period to begin making payments. Upon graduation, your lender will likely give you a grace period of six months to start paying back your debt. Nice of them, right? Wrong.  On the contrary this is a trap.  Most student loan debt begins accruing interest immediately upon graduation.
  2. You ignore the auto pay option. Automatic payments will deduct the amount directly from your checking account, ensuring you do not incur late fees or penalties.  Most loan providers will also give you a 0.25 percentage discount if you do this.
  3. You fail to plan. It is important to strategize- particularly if you have multiple student loans with different lenders and different interest rates. The way you pay these off can make a big difference in how much interest you will pay in the long run.
  4. You do not consolidate your federal loans and refinance private loans.  If monthly payments are too much for you, look into whether you qualify for an income-based repayment plan.  Consider consolidating federal loans into a federal direct consolidation loan and refinancing your private loans.
  5. You do not make your student loan debt a priority. Financial experts advise to first prioritize your company’s 401(k) match program. Second, work to establish an emergency fund that will cover your living expenses for at least three months.  Repaying your student loan debt should be at the top of this list.

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