Bankruptcy Law Archives - Page 48 of 128 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The Surprising Debts Holding Many Americans Back

Posted on June 15, 2017by Admin

According to a recent survey, student loans and credit card bills are not the only debt holding many Americans back. Credit Sesame, a site consumers can use to check their credit score, analyzed more than 5,000 user accounts and found they had significant amounts of debt from medical expenses, utility bills and cell phone charges.

Consumers whose medical debt had gone into collections had an average of three accounts, with a combined total of $3,670 in collections. The average balance for customers who had cell phone bills in collections totaled $887 per account. Customers whose utility bills were in collections owe $368 on average per account, the study concluded.

Not surprisingly, having those bills in collections hurt consumers’ credit scores. The average credit score for someone whose medical debt is in collections is 552. Those who have delinquent cell phone accounts have average scores of 550. And those who have outstanding utility bills have a score of 542.

Lenders see applicants with lower credit scores as riskier than applicants with higher credit scores. They oftentimes make you pay for this risk by charging a higher interest rate. A poor credit score can affect your ability to rent an apartment, as landlords often check an applicant’s credit score before allowing you to sign a lease.

Utility companies may require you pay a deposit before setting up your service. Even certain jobs and employers can discriminate against applicants who have a less than perfect credit report. Certain jobs, particularly those in upper management or the finance industry, require a good credit history. Note: employers check your credit report and not your credit score. They are not necessarily checking for bad credit, but for items that could affect your job performance.

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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, 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

U.S. Credit Card Debt Expected to Surpass $1 Trillion this Year

Posted on June 13, 2017by Admin

According to a recent report from the Federal Reserve, credit card debt in the United States is $8,038 per household. That is $940.2 billion total- up from $885.4 billion at the same time last year.

This comes after a first-quarter debt reduction when people oftentimes use their end of year bonus to pay down credit card debt in the New Year. While this year’s Q1 payment was 14% higher than the previous year, it is still almost 9% behind the effort in 2015.

WalletHub is predicting an additional $60 billion in new credit card debt in 2017, which would easily push the United States over the $1 trillion mark.

Here are some tips to quickly pay off credit card debt.

2017 Credit Card Debt Study: Trends & Insights

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

Former ITT Tech Students Promised Help, then Silence

Posted on June 12, 2017by Admin

It’s been nearly five months since former ITT Technical Institute students received a glimmer of hope that their student loan debt would be forgiven. Today they are still waiting.

The U.S. Department of Education announced on Jan. 13 that former ITT students — people who graduated or dropped out of the for-profit now defunct college chain long before the Obama administration forced it into bankruptcy — had a chance to get their federal student loans forgiven through a process called borrower defense to repayment.

In a statement, the Education Department said “approvals are beginning” for those students who claimed ITT defrauded them.

That work appears to have stopped altogether. Although the government issued letters to some students promising loan forgiveness within the 120 days, there is no evidence that the Education Department has forgiven loans for any former ITT students since President Trump’s Jan. 20 inauguration.

This is just the latest setback for former ITT Tech students who say they were lured in with false promises and left with a mountain of debt (five- and six-figure student loan debt), few marketable skills and limited job prospects.

Several Democratic senators are seeking answers. U.S. Sens. Dick Durbin of Illinois, Chuck Schumer of New York, Patty Murray of Washington, Sherrod Brown of Ohio and Elizabeth Warren of Massachusetts last week sent a letter to DeVos requesting information on borrower defense claims.

The senators are asking the Dept. of Education to provide detailed information regarding loan forgiveness applications and approvals for past students of ITT, along with two other failed for-profit college chains: Corinthian Colleges and American Career Institute.

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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, Debt Relief, Timothy Kingcade Posts

Miami Bankruptcy Attorney Timothy S. Kingcade Selected for Inclusion in Florida Super Lawyers 2017

Posted on June 8, 2017by Admin

Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade & Garcia, P.A. has been selected to the 2017 Florida Super Lawyer list, in the practice area of consumer bankruptcy. This is the fourth consecutive year Mr. Kingcade has been selected to the Florida Super Lawyers list (2014-2017). The prestigious honor is awarded to only five percent of lawyers in the state.

Attorney Kingcade practices exclusively in the field of bankruptcy law, handling Chapter 7 and 13 filings and foreclosure defense cases for the Southern District of Florida. As an experienced CPA and proven bankruptcy attorney, Timothy Kingcade knows how to help clients take full advantage of their rights under the bankruptcy laws to restart, rebuild and recover.

Super Lawyers is a listing of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement, representing the top 5% of Florida lawyers. The annual selections are made using a patented multiphase process that includes a statewide survey of lawyers, an independent research evaluation of candidates and peer reviews by practice area. The result is a credible, comprehensive and diverse listing of exceptional attorneys.

Miami-based Kingcade & Garcia, P.A. was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade & Garcia, P.A. specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

“Disappearing” Bankruptcies Could Prompt new wave of Home Buying

Posted on June 6, 2017by Admin

Approximately 6 million Americans will have their bankruptcies disappear from their credit reports over the next five years. Chapter 7 personal bankruptcies peaked in 2010 during the housing market crash then decreased over the next few years before leveling off in late 2015 – 2016.

The number of Chapter 7 bankruptcies, the most common type of bankruptcy, which involves no repayment plan and in most cases is a complete discharge of debt, increased to nearly 1.14 million, in 2010.

Now seven years later, millions of Americans are seeing these bankruptcies fall off their credit reports, improving their credit scores and allowing them to re-enter the housing market and purchase a home.

Credit scores reached a record high this spring, which we discussed in a recent blog. This will create even more buyers in an already competitive market. With home prices continuing to increase as inventory levels drop, experts do not expect it to let up anytime soon.

Hispanic homeownership could also see an increase in the next few years as the President and his administration seek to “dismantle” the Dodd-Frank Wall Street Reform Act, which could give lenders more freedom to originate loans outside traditional qualified mortgages.

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, Debt Relief, Student Loans, Timothy Kingcade Posts

Women Hold Nearly 65% of America’s Student Loan Debt

Posted on June 5, 2017by Admin

Women are now the majority on U.S. college campuses- representing 56% of all students enrolled, and according to a recent report they are also shouldering much of the nation’s student loan debt.

The American Association of University Women (AAUW) found that on average, women hold $833 billion of the country’s $1.3 trillion student loan debt, compared to men who hold $477 billion.

African American women take on more student loan debt than any other group of women, with an average of $30,000, according to the study. In addition, women take two years longer to pay off that debt, partly because of the gender wage gap.

It is estimated that women make 20% less than men four years after graduating with a bachelor’s degree. That pay discrepancy leaves women at a particular disadvantage with less disposable income to use to pay back their loans. In the time period between one and four years after graduation, men paid off an average of 38% of their outstanding debt, while women paid off 31%, according to the study. Meanwhile, approximately one-third of women experienced financial difficulties, while paying off their loans, compared to just one-fourth of men.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Credit Scores Hit Record High as Economy Continues to Improve

Posted on June 2, 2017by Admin

U.S. consumers’ credit scores reached a record high this spring thanks to falling unemployment and continued economic growth. An added bonus: The passage of time since the recession and housing market crash has helped many household balance sheets. Bankruptcies and foreclosures are now falling off Americans’ credit reports.

More than six million U.S. adults will have personal bankruptcies disappear over the next five years, according to a recent Barclays PLC report. Wiping away these events helps boost consumers’ credit scores. Lenders rely on both credit reports and scores when qualifying consumers for loans and determining interest rates.

The higher scores lead to more available credit and more activity in terms of loan approvals and credit card approvals. The average credit score nationwide was 700 in April, according to data from Fair Isaac Corp. Average credit scores have not been that high since 2005.

The share of consumers deemed to be the most risky, with credit scores below 600, hit a new low of roughly 40 million, or 20% of U.S. adults who have FICO scores. That is a decline from 20.5% in October and a peak of 25.5% in 2010.

Consumers who filed in 2007 for Chapter 7 bankruptcy protection, the most common type of bankruptcy, in which certain debts are discharged and creditors can get paid back from sales of consumers’ assets are starting to see those events fall off their credit reports. Some 500,000 Chapter 7 bankruptcy cases were filed in 2007, a figure that ballooned to nearly 1.1 million in 2010, according to the Administrative Office of the U.S. Courts.

As credit scores rise, banks and other lenders are likely to make credit more widely available to consumers, and at a lower cost. Consumers who have a bankruptcy filing removed from their credit report experience a near $1,500 increase in spending limits and $800 more in credit-card debt within three years, according to the Federal Reserve Bank of New York.

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

Single Mom Is Able to Discharge her Student Loan Debt in Bankruptcy

Posted on June 1, 2017by Admin

The U.S. Bankruptcy Appellate Panel for the Eighth Circuit (Fern v. FedLoan Servicing (In re Fern) held that a single mom of three can discharge her student loan debt in bankruptcy because it would impose an undue hardship on her family.

Typically, student loan debt cannot be discharged in bankruptcy unless the debtor can prove “undue hardship,” which is not defined in the Bankruptcy Code.

A majority of circuits follow the test adopted by the Second Circuit in Brunner v. New York State Higher Education Servs. Corp, 831 F.2d 395 (2d Cir. 1987), where the debtor must establish:

(1) That he or she cannot maintain, based on current income and expenses, a “minimal standard of living for herself and her dependents if forced to repay the loans;

(2) that additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and

(3) that the debtor has made good faith efforts to repay the loans.”

However, the Eighth Circuit follows a more “flexible approach” under a “totality of the circumstances test,” Judge Anita Louise Shodeen wrote.

The court looked at past, present, and reasonably reliable future financial resources, a calculation of reasonable living expenses, and other “relevant facts and circumstances.”

The single mom in this case had $27,000 in student loan debt and had never made a payment. She initially took classes to become an accounting clerk, but did not finish the program and switched careers, training to be an esthetician.

She received minimal or no child support from the fathers of her three children. Her monthly take-home pay from her current job was $1,506, and she received food stamps and rental assistance. Her income had been consistent and was unlikely to improve in the future, the court said.

Her monthly living expenses are reasonable, necessary and modest, the court said. Her family monthly expenses are $2,475, and her monthly income from all sources is $2,413, resulting in a $62 per month deficit.

The Department of Education argued that she qualified for a repayment program where her payment would be nothing, which would not affect her current standard of living, but the court rejected it.

A zero monthly payment obligation does not automatically mean there is an ability to pay, the court said.

Judge Robert J. Kressel and Chief Judge Arthur B. Federman joined the opinion.

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

South Florida Student Loan Scam Shut Down by FTC

Posted on May 30, 2017by Admin

A federal court has shut down a phony student loan debt relief and credit repair company that was operating in Lake Worth, Delray Beach, Boca Raton and Las Vegas. The FTC charged its operators with scamming millions of dollars from consumers by falsely promising to reduce- even eliminate their student loan debt.

The owner of Strategic Student Solutions and related entities used corporate funds to pay for personal expenses, including: jewelry, casino tabs, mortgage payments, luxury vehicles, clothing and the construction of a pool, according to the FTC.

The U.S. District Court for the Southern District of Florida has halted the company’s operations and seeks to permanently stop the alleged illegal practices and refund consumers. Borrowers, who trusted Strategic Student Solutions, watched their student loan debt go from bad to worse.

The operators of Strategic Student Solutions lured student loan borrowers with promises such as, “Payments as low as $0 monthly” and “Save 60 percent or more on your monthly payments.”

However, consumers discovered the defendants failed to enroll them in any loan forgiveness or payment reduction plans, and found out none of their monthly payments were applied to their student loan debt.

The company falsely represented that they would provide credit repair services and improve consumers’ credit scores. Instead, they charged consumers illegal fees of up to $1,200 and monthly payments of $49.99.

The bottom line: Never pay an up-front fee to a company promising to deliver debt relief. Through deceptive marketing practices, this company and others like them, claim to offer borrowers the opportunity to get them out of debt, consolidate their loans and lower their monthly payments for a fee. It is important that borrowers know, these same services are offered by the Department of Education — for free. Borrowers looking to reduce their monthly student loan payments should contact the Department of Education for official guidance.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Auto Loans & Default Rates on the Rise

Posted on May 26, 2017by Admin

According to data released this week by the Federal Reserve Bank of New York a record 107 million Americans have auto loan debt. That accounts for approximately 43% of the adult population in the U.S.

Auto loans have been increasing rapidly. In early 2012, only 80 million Americans had car loans. But now more Americans have auto loans than home loans- and according to recent numbers, many are having trouble affording their monthly payments. There are currently 6 million people who are 90 days or more behind on their car payments.

After the financial crisis, so-called “sub-prime” auto loans were routinely given to borrowers with less than perfect credit. Low quality loans spiked to pre-crisis levels in 2015 and 2016, according to federal data.

Many of the consumers qualifying for these loans do not understand the terms and conditions. The interest rates can be astronomical- sometimes as high as 20% and penalties for default can be severe.

Santander Consumer USA Holdings Inc., which is counted among the biggest subprime auto-loan firms, verified income on just 8% of borrowers. Limited verification of loan applicants’ stated incomes and employment “creates more uncertainty around whether borrowers will be able to afford their monthly payments, which becomes particularly important if they have poor credit records and risky loan terms,” the analysts wrote.

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