Bankruptcy Law Archives - Page 99 of 128 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Timothy Kingcade Posts

Think Cash is King? Not according to a recent study

Posted on May 13, 2014by Admin

A new report from Bankrate shows credit card debt is on the rise. Nearly 8 out of 10 Americans carry less than $50 in cash on a daily basis and nearly 1 in 10 customers do not carry cash at all. This study comes at the same time the New York Federal Reserve is saying U.S. household debt rose by $129 billion in the first quarter, totaling $11.65 trillion.

Many agree that paying with cash makes consumers more conscious of their spending. We are quickly moving to an all-digital age, subject to hackers. But not everyone is seeing the death of paper money as a bad thing. A Chief Risk Strategist for Chapwood Funds says, “Carrying cash guarantees that you are losing money over time with interest and inflation.”

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If you are in a financial crisis and are considering filing 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, Timothy Kingcade Posts

Seven Mistakes your Credit Card Company WANTS you to Make

Posted on May 9, 2014by Admin

1.) Letting your rewards or miles expire. Letting your credit card rewards points or miles expire is a common mistake. Make sure you read the fine print and know the rules of redemption or you could lose out big time.

2.) Paying only the minimum each month. You know you should pay more than the minimum and cut down on the interest you are paying for “borrowing” the balance. Thanks to the Credit CARD Act of 2009, your bill tells you how much it is going to cost you to pay off the balance over time.

3.) Paying late now and then. The credit card company wants you to pay, but doesn’t mind if you pay late. The credit card company can raise the interest rate on your new purchases as long as they give you 45 days’ notice. Not to mention the late fees of $29 to $39 you can incur.

4.) Ignore the mail. Not paying attention to your statement is a mistake the credit card companies hope you will make. These statements can contain valuable information such as fraudulent charges, which you will not have to pay- as long as you inform the credit card company right away- or notifications that your interest rate has increased.

5.) Using a balance transfer to rack up more debt. You transfer your outstanding balance to a card with a low or zero percent interest rate thinking you will save money. Shifting your debt around does not mean you are debt free. If you decide on a balance transfer, make sure you pay off your balance before the end of the promotional period and avoid adding additional charges to the card. Also be aware of balance transfer fees associated with these cards.

6.) Opting to go over your credit limit. Under the new law, if you do not opt in and you attempt to buy something that will put your balance over your credit limit, the transaction could be declined at checkout. If you opt in to this trap, it can cost you. You can face over-limit fees and higher interest rates on your credit card balances.

7.) Paying more fees than you earn in rewards. The goal is to maximize the rewards offered by your credit card company. If you do not travel, why sign up for an airline credit card? It is best to choose a card with no annual fee even if it has no rewards points program. Keep in mind, if you carry a balance even for one month beyond any promotional interest period, the interest you will pay can quickly diminish any rewards points you may have earned.

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Bankruptcy Law, Credit, Timothy Kingcade Posts

Actor Mekhi Phifer Files for Bankruptcy

Posted on May 7, 2014by Admin

Actor Mekhi Phifer has filed for bankruptcy, TMZ reports. The 39-year-old actor, best known for his role as Dr. Greg Pratt on NBC’s “ER” has racked up approximately $1.2 million in back taxes, $50,000 in lawyer fees and $4,500 in back child support, according to legal documents obtained by TMZ.

Legal documents reveal he spends around $11,600 in monthly expenses, but only brings in $7,500. In addition to his role on “ER,” from 2002-2008 he is also well known for his role opposite Eminem in the movie “8 Mile.”

According to TMZ, Mekhi’s list of assets include: a leather bed, a 12-year-old Segway (valued at $1,500) and a large collection of firearms.

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Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Top Five Home-Rescue Scams Revealed

Posted on May 5, 2014by Admin

A recent report, called “Foreclosure Rescue, Inc.” has documented the ongoing problems of fraudulent foreclosure rescue businesses and how these companies have plagued unsuspecting consumers following the housing crisis. The report by the Lawyers’ Committee for Civil Rights Under Law and the Loan Modification Scam Prevention Network says a database maintained by the committee has compiled more than 40,000 homeowner complaints since March 2010 from borrowers who say they have lost $90 million.

BEWARE of the following foreclosure-rescue scams:

1. Your modification is APPROVED! Send your payments to the following address… The homeowner is tricked into believing their lender has agreed to terms of a loan modification and is instructed to pay the “new” modified payment to the bogus company.

2. We volunteer all our hours with no payments. A purported non-profit agency contacts a homeowner, but after reviewing his or her mortgage sends the person to a law firm that the non-profit works with, which then begins collecting a fee.

3. You are eligible to join our lawsuit. Homeowners are told that they are eligible to join a lawsuit against their bank, but they have to pay an upfront fee and make monthly payments after that. The lawsuit is then never filed and the case goes nowhere.

4. Discount for military members and their families. Homeowners hesitant to pay for loan modification of foreclosure-rescue help are told they can use military discounts to get lower prices.

5. Pay us instead of your mortgage lender and we will protect you. Homeowners are told by the “foreclosure-rescue company” to make their mortgage payments to them and not their lender. Months later, they are blindsided by a foreclosure notice and out thousands of dollars.

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

New Rules Bring Fairness to Debt Cases

Posted on May 2, 2014by Admin

A New York judge has proposed new filing requirements for debt collectors that will bring fairness to state consumer cases and put them in line with due process. Judge Jonathan Lippman says many debtors discover they have been sued only after their bank accounts are frozen or their wages are garnished. Others are never served a notice of a lawsuit and lose the case simply by default.

More than 100,000 consumer credit card lawsuits are filed in state courts annually, most from third party buyers of delinquent credit card debt. Some of this debt, which is referred to as “zombie” debt, is several years old. The new rules would be implemented by June 15th and are intended to stop default judgments based on what the judge refers to as “robosigned” affidavits, “containing few if any facts relating to the history of the debt at issue.”

Instead, plaintiff creditors would have to file detailed court affidavits identifying the specific content at issue, the credit agreement, the complete chain of debt ownership, an itemized list of the principle interest and other charges. Default judgments would be prohibited where notices are returned because of an unknown or wrong address.

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If you have any questions on this topic or are in a financial crisis and are considering filing 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, Timothy Kingcade Posts

Five Ways to Handle an Unexpected Medical Bill

Posted on May 1, 2014by Admin

If you are involved in an accident or suffer an unexpected illness, getting well and your recovery can be just part of the battle. According to a recent study done by Clear Point Credit Counseling Solutions and the Kaiser Foundation, 1 in 3 Americans report having difficulty paying their medical bills.

Medical debt can often lead to other financial problems. Some consumers are on the verge of foreclosure because they have opted to pay their medical bills instead of their mortgage, others are pulling from retirement accounts and facing tax consequences in order to cover medical debt.

Below are 5 tips to help you handle an unexpected medical bill.

1.) Negotiate. If you can afford to pay a portion of the bill, you may be able to negotiate with your medical provider to settle the debt for less than the amount owed. Make sure and get the terms of the settlement in writing and keep a copy for your records.

2.) Request a payment plan. Ask to be put on a payment plan. This is one of the cheapest ways to pay off the debt over time, without accruing any interest.

3.) Use credit with caution. If you have a low-interest or 0% interest credit card, you may want to charge your procedure and pay it off completely before the interest accrues. Beware of “medical credit cards.” Most of these cards carry very high interest rates and if you happen to miss a payment or do not pay off the balance in full by the time the no-interest promotional period ends, you could wind of paying interest on the entire balance, not just the amount you have remaining.

4.) Use a personal loan. This is often a more attractive option than a credit card and is better for your credit score than maxing out a credit card. Come up with a budget and know exactly how much you need to pay until the debt is paid off.

5.) Ask for help. If you are dealing with insurmountable medical debt, request a copy of the hospital’s financial assistance policy. If you are eligible, programs like this may be able to significantly reduce your bill. If your medical bills are so large that you cannot possibly pay them off and you have exhausted all other options, you may want to speak with 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, Timothy Kingcade Posts

Student loans come with Unexpected Hardship for some Borrowers

Posted on April 29, 2014by Admin

For borrowers who take out private student loans, the death of a parent can come with an unexpected hardship. Even borrowers who have a perfect payment history can face sudden demand for payment in full or be forced into default if the co-signer of their student loan passes away. Many students who take out loans for college have minimal income or have yet to build up enough credit, so borrowing from banks and other private lenders often require a co-signer, usually a parent or other relative.

The problem arises from a little known provision in private loan contracts, which states: “If the co-signer dies or files for bankruptcy, the loan holder can demand complete repayment, even if the borrower’s payment record is spotless.” If the loan is not repaid, it is declared to be in default and can do damage to a borrower’s credit record that can take years to repair.

The Consumer Financial Protection Bureau said that after a co-signers death or bankruptcy, some borrowers are placed in default without ever receiving a demand of repayment. An increase in consumer complaints indicate this is becoming a common practice among certain banks and private lenders; some are even doing this automatically- combining public records of deaths and bankruptcies, comparing them to loan records and generating repayment demands and default notices.

A little known fact: Borrowers can have their loans released from the co-signer requirement if they have a few years of earnings and credit history, or have the loans transferred to a new co-signer. However, many borrowers are unaware of this because the loan companies make it difficult to exercise these options.

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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 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, Timothy Kingcade Posts

An Increasing Number of Borrowers Seek Student Loan Debt Forgiveness

Posted on April 23, 2014by Admin

As education costs continue to increase, so do the number of borrowers enrolling in federal student loan debt forgiveness programs. The U.S. Education Department reports a 40% increase in the just the last six months. The cost of education has increased in recent years- up 6% in 2014 alone. The Obama administration recently proposed capping debt forgiveness at $57,500 per student.

The programs—especially the one revamped by President Barack Obama in 2011, Pay As You Go—forgives federal student loans after borrowers have paid a certain percentage of their income for a certain number of years. These programs aim to make sure borrowers are not prohibited from working in public sector jobs as a result of having to make astronomical student loan debt payments or pay their loans into retirement. These programs could reportedly cost the federal government as much as $14 billion a year.

Students have argued that these programs are necessary- particularly for those who want to take lower-paying jobs in the public sector. These programs are notably one of very few ways to get out of student loan debt. Unlike consumer debt, not even declaring bankruptcy or death can remove these debts. Private student debt is even harder to eliminate; A New York Times report on Tuesday found that when a cosigner dies, many private student lenders are now demanding early repayment for their student loans.

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Bankruptcy Law, Credit, Timothy Kingcade Posts

Tips for Dealing with Debt Collectors

Posted on April 17, 2014by Admin

It’s one of the things consumers dread the most- a debt collector calling to collect a payment on an unpaid credit card, medical bill or past due student loan. Experts agree that ignoring debt collectors’ letters and phone calls is a bad idea. It can only make matters worse. The best advice is to avoid debt collectors altogether and attempt to negotiate a payment plan with the original creditor before it is sold to a third-party debt collector.

The following tips will help you deal with debt collectors:

1.) Educate yourself. Become familiar with the Fair Debt Collection Practices Act (FDCPA). The FDCPA protects consumers from harassing phone calls, threats and abusive language debt collectors often use to obtain payment. These tactics are illegal and should be reported to the U.S. Consumer Financial Protection Bureau (CFPB). To learn more about the FDCPA and the protections it offers, watch this short video: https://www.youtube.com/watch?v=5o-ci9nVEgA.

2.) Do not ignore. The law allows consumers to send written requests for verification of the debt within 30 days of being contacted by a debt collector. Do not ignore letters, phone calls or court notices about debt lawsuits.

3.) Keep copies and records. Experts say keep these as long as you keep your tax documents. Others believe these should be kept for as long as the statute of limitations. Documents detailing proof of settlement or resolution of debts should be kept forever.

4.) Safeguard your bank account. Debt collectors can file a lawsuit against consumers for nonpayment of debts. Freezing savings or checking accounts is one of the court-ordered options for collecting debts. Do not make payments using your bank account and routing numbers. Make payments with money orders or a third party payment service so you have proof of payment but avoid paying with a personal check. Let collectors know if your bank account contains only exempt funds. You should also tell them if you have filed for bankruptcy. This will cease all collection attempts.

5.) Record conversations. If a debt collector uses abusive language or threatens you, record the conversation. Using these type tactics to collect on a debt is illegal. Another option is to tell the debt collector the conversation is being recorded, as many collectors will be less likely to overstep their bounds if they know they are being recorded.

6.) Get it in writing. Any agreements for making debt collection payments should be confirmed in writing and signed by a debt collector before you make your first payment. This can avoid any misunderstandings about the amount to be paid and time period to pay off the debt.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Men vs. Women: Does Gender Matter when it comes to Debt?

Posted on April 15, 2014by Admin

While no person falls neatly into statistical averages, understanding the differences between men and women when it comes to debt management can help couples understand each other’s “money personalities.” According to credit counselors interviewed in a recent study, women more often handle the household budget, paying bills and spending money on necessary and discretionary items.

Because of this day-to-day spending responsibility, women carry more guilt for debt woes, which can be compounded if their spouses blame them. Women appear to shy away from debt compared with men, according to an Experian analysis released last year. On average, men carried 4.3% more debt than women. Their mortgages were also 4.9% higher than home loans taken out by women. The study also found that women used less available credit on their credit cards than men- 30% versus 31%.

While men may appear to be more comfortable taking on more debt, they also get into financial trouble more often. Experian found that men were more likely to fall 60 days or more behind on their mortgage payments than women – 5.7% versus 5.3%. Despite having more problems handling a larger debt load, men seek help later than women, according to credit counselors.

Several of the counselors interviewed said women respond to financial crisis by eliminating items on the household budget, where men work more to increase the income to get out of debt. The best solution is a combination of both along with an understanding between the two spouses.