Credit Archives - Page 18 of 82

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

False Promises of Student Loan Debt Forgiveness Contributing to the Default Crisis

Posted on July 11, 2017by Admin

The rate of borrowers who are in default or more than 90 days past due on their student loan debt is approaching 40%, pushing the total amount of student loan debt in the U.S. to $1.4 trillion.

A number of those who have defaulted have legitimate reason. Some were victims taken in by the over-exaggerated promises of for-profit colleges that really just wanted students for the student loans they were taking out that was a vast majority of their revenue. Others never finished college, due to life circumstances or changing events that interrupted their studies.

But another group, termed “strategic defaulters” is emerging. These borrowers are pulled in by the promises from politicians and the possibility of student loan debt forgiveness. Why should they pay their student loans if there is a slight possibility that all remaining student loan debt will one day be wiped away? With these empty promises and no action being taken, it is expected that student loan defaults will continue to rise.

Most recently, education secretary, Betsy DeVos, scrapped an Obama-era plan to streamline the government’s system for servicing student loans. An education budget obtained by the Washington Post revealed a proposal to end a student loan-forgiveness program for public servants, creating uncertainty for some 400,000 borrowers.

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

Tennis Star Boris Becker Declared Bankrupt

Posted on July 10, 2017by Admin

Boris Becker, the three-time Wimbledon champion has been declared bankrupt over a debt outstanding since October 2015. Becker’s lawyers pleaded with the bankruptcy court in London for “a last chance” to pay the longstanding debt. They argued there was sufficient evidence to show that Becker would be able to pay the debt soon through a refinancing arrangement, involving remortgaging a property in Majorca.

However, the judge in the case denied it, saying:

“He should have thought about that a long time ago. It is not often the case that a professional person has a judgment [debt] outstanding against them since October 2015. This is a historic debt.”

To add to his financial woes, his blue Maserati- on loan from a sponsorship deal- was taken away from him after he failed to pay the fines he received from numerous parking tickets.

Becker, who is currently working as a television commentator during the Wimbledon championships for the BBC and other outlets, has denied the bankruptcy claims, telling the German press he can meet all of his financial obligations.

Last week he presented the state of his finances to a London bankruptcy administrator in a private meeting, where he reportedly was given a living allowance and ordered to register any income.

Becker, who won six grand slams in the 80’s and 90’s, including three Wimbledon, two Australian Open and one US Open titles has been consistently creating headlines off the tennis court. Co-Author of Becker’s 2013 biography Life Is Not a Game, said his excessive lifestyle had been the one thread of continuity in his life.

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 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

When Filing for Bankruptcy- Timing Matters

Posted on July 7, 2017by Admin

Timing the filing of your bankruptcy is important to obtain the best possible outcome in your case. For example, waiting to file after creditors have already taken action against you can result in unnecessary legal costs and potential loss of property. Filing shortly after transferring money or property to someone else, can run you the risk of being accused of bankruptcy fraud.

Here are a few points to remember when timing the filing of your bankruptcy:

Filing for bankruptcy will stop litigation. It is best to file before a creditor receives a judgment against you. This will save you the cost of legal fees and giving the creditor more rights to your property.

Prevents wage garnishment. A creditor who has obtained a judgment against you can force your employer to deduct money from your check, even require your bank to withdraw the funds directly from your account. You can save this money by discharging the debt before such actions can be taken.

Puts an end to creditor harassment & collection calls. As soon as you file for bankruptcy, creditors must stop contacting you and deal only with your attorney. Creditors who continue to contact you are in violation of the U.S. Bankruptcy Code’s Automatic Stay and face sanctions by the Court.

Allows you to stay in your home. Filing for bankruptcy will stop the foreclosure process and allow you additional time to stay in your home.

Divorce & Bankruptcy: If you are in the middle of a divorce, it is best to file a joint bankruptcy with your spouse to discharge all debt before the marriage ends. However, if your income is too high to qualify as a married couple you will need to decide whether the best option is to file individually while you are still married or wait until after the divorce. When it comes to timing your bankruptcy filing while going through a divorce, you cannot go wrong setting up an appointment with an experienced bankruptcy attorney to discuss the best path for your financial future. Many offer free consultations and Saturday appointments.

Related Resources:

http://bankruptcy.lawyers.com/bankruptcy-basics/time-matters-when-filing-chapter-7-bankruptcy.html

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

SEC Settles Fraud Charges against ITT Technical Institute

Posted on July 6, 2017by Admin

The fraud case has been settled against ITT Technical Institute, but the Securities Exchange Commission continues to pursue top executives from the college for deceiving investors about the high rates of late payments and the number of defaults on student loans backed by the company.

ITT executives assured investors in conference calls that the programs were performing well when in fact the company was making secret payments on the delinquent accounts to delay defaults, according to the complaint.

ITT Technical Institute ended its operations in September, shutting down 137 campuses after the U.S. Department of Education cut off access to federal loans and grants and threatened to pull the school’s accreditation amid mounting lawsuits and investigations. The company filed for bankruptcy protection, leaving 35,000 students with worthless degrees and many with high interest student loan debt.

The student loan programs are what is at the heart of the SEC lawsuit. ITT created two in-house student loan programs. To get investors to finance the programs, the company offered a guarantee to limit the risk of students not repaying the debt. According to the complaint, if a certain percentage of loans defaulted, the company agreed to cover the principal, interest and fees.

The SEC said investors did not have accurate information about the performance of the debt because ITT kept the loan programs off its balance sheets. Regulators said executives failed to tell investors that the company was facing $30 million in guarantee obligation payments at the end of 2012 and used accounting tricks to cover up the numbers.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How a debt avalanche strategy can eliminate your debt

Posted on June 28, 2017by Admin

One of the smartest and fastest ways to eliminate your debt is a strategy known as a debt avalanche. To start, you must first take inventory of your debt- meaning you need to write down all outstanding debts- including credit card balances, student loan payments, car payments, etc. and determine the interest rates you are paying on each of the balances.

The debt avalanche strategy begins by ranking each of your debts by interest rate, from highest to lowest. No matter the size of the loan balance, it will always be less expensive (and faster) to pay off your debts in order from highest to lowest interest rates.

For example, your interest rate on a credit card is probably going to run much higher than the interest rate on your vehicle. Tackle those debts with the highest interest rates, first and save as much money on interest payments as possible.

Finally, if the debt inventory process reveals an overwhelming or confusing amount of debt, consider meeting with a financial expert who can discuss your options in greater detail. Sometimes a simple debt consolidation can reduce your payments by thousands, just by reducing the interest amount. If you fear you might be at risk of personal bankruptcy, it is best to meet with a professional as soon as possible to know exactly where you stand. Many bankruptcy attorneys offer free consultations and have appointments available on the weekend.

Click here to read more on this story.

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

Mark Your Calendars: Starting July 1, certain negative marks will vanish from credit reports

Posted on June 21, 2017by Admin

Starting July 1, many people with tax liens, civil judgments and certain medical debts will see a boost to their credit scores. The three largest credit bureaus- Experian, Equifax and TransUnion, will no longer report a tax lien or civil judgment on a consumer’s credit report if it does not include the person’s name, address and either their social security number or date of birth. Existing liens missing this information will also be expunged.

Consumer-friendly changes will also be made to the way medical debts are reported. According to the new rules, bureaus will not display medical collections until at least six months after the account became delinquent. They will also remove any existing medical collections that insurance companies have paid or are paying for. After the liens and judgments are expunged, some consumers can expect to see their credit score increase by as much as 40 points- enough to affect a loan approval or the terms. The leading scoring company, FICO, estimated that out of 200 million “scorable” consumers, roughly 12 million will have a lien or judgment disappear from their report.

Starting July 1, the credit bureaus also will check lien and judgment data every 90 days to make sure the information is still accurate. These changes come as credit bureaus have been put under pressure from regulators and state attorneys general to improve the accuracy of credit reporting. To confirm their data is correct, consumers should get a free copy of their credit report from each of the three bureaus once a year at www.annualcreditreport.com.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips to Remember When Applying for a Balance Transfer Credit Card

Posted on June 19, 2017by Admin

Some debt is unavoidable and not always a bad thing, like taking out a mortgage to purchase your new home. But if you are carrying a lot of high interest credit card debt, you may have trouble reaching certain financial goals. One of the most effective ways to pay off the credit card debt quickly is by transferring the balance over to an interest-free credit card.

Here are three helpful tips for using these cards.

Read the fine print. Do this carefully and find out what your credit limit will be. You will not be able to transfer more than the limit and if you exceed that limit, you will likely face a fee. Find out if there is a penalty, APR. That is when the credit card company increases your interest rate to 25 – sometimes 30% if you pay a single bill late or commit another violation of the terms & conditions (usually listed in the fine print).
Choose your card wisely. Balance transfer credit cards vary and typically offer initial interest rates at 0%, but beyond that there are some big differences. Remember, the 0% interest rate will only last between six and 12 months, after that a more standard interest rate will apply- and typically not a good one. In addition, a lot of balance-transfer cards will charge a balance transfer fee. The fee will typically be between 3% and 5% of the sum of what you are transferring. For example, if you are transferring $20,000 and paying a 4% balance transfer fee, it will cost you $800.
Pay off your debt within the “promotional” period. To make the most of your balance transfer, set a goal of paying off the debt before the 0% rate expires. This will require you curb your spending habits. Canceling your cable package and instead streaming movies and TV shows can save you $1,500 or more a year. Take your lunch to work three days a week, instead of eating out every day. Making small changes like this to your daily routine can really add up.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Supreme Court will not Expand Debt Collection Abuse Law in Santander Case

Posted on June 16, 2017by Admin

The U.S. Supreme Court declined to expand a federal law protecting consumers against harassment and threats in debt collection attempts. The court unanimously upheld a lower court’s dismissal of a proposed consumer class action lawsuit against the auto-lender Santander Consumer USA Holdings Inc. over allegations it violated the Fair Debt Collection Practices Act.

The case came down to the definition of “creditor” and “debt collector” and whether a company that buys debt should be treated as a creditor, not subject to the the collections law. The law applies only to companies that collect debts on behalf of others and does not apply to businesses like Santander who purchases the distressed debt from other companies after it defaults, the Supreme Court ruled.

The ruling was the first written by the court’s newest justice, Donald Trump-appointee Neil Gorsuch, who wrote that any changes to the law should come from the U.S. Congress, not the court. The four Maryland residents who had defaulted on their car loans filed the proposed class action lawsuit in 2012 in federal court, accusing Santander of violations of the debt collection law including misrepresenting debt loads and bypassing the debtors’ lawyers.

Click here to read more on this story.

Related Resources:

http://www.marketwatch.com/story/supreme-court-wont-widen-debt-collection-abuse-law-in-santander-case-2017-06-12

https://www.reuters.com/article/us-usa-court-debt-idUSKBN1931NA

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.

Click here to read more on this story.

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