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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How does debt affect survivors after a loved one’s death?

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It is a common occurrence that creditors start contacting grieving relatives to nudge them into paying their deceased loved one’s lingering debts. If you ever find yourself in this situation, here is what you need to know.

You do not need to worry about inheriting debt. In most situations, debt does not get passed down to heirs. However, creditors typically won’t tell you that. In fact, they are oftentimes depending on your sense of duty to pay off those debts. They may seem kind and sympathetic, but their ultimate goal is to persuade you into paying.

There are exceptions to the rule. Below are four instances in which you might still be on the hook for a debt after your loved one dies:

  • You co-signed on the debt.
  • You live in a community property state.
  • You are the spouse, and state law requires you to pay certain debts such as medical bills.
  • You were responsible for resolving the estate and did not follow state laws.

 

Estates may be liable. Although you are not personally responsible for your loved one’s debts, the estate may be. The estate is made up of your loved one’s remaining assets and may be required to cover the costs of outstanding debts left by your loved one. Creditors may file a claim in probate court. In which case, the money from the estate is used to pay those claims. What is left is what gets distributed to heirs.

If the estate does not have enough money to pay off creditors, it is considered insolvent. In that case, the unpaid debt should disappear. However, that might not stop some companies from calling you for payment.

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

How to Avoid the Pitfalls of Personal Bankruptcy

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If you are facing financial trouble, it can feel like the end of the world. People do not realize that filing for bankruptcy is a viable solution to their problems, can alleviate the financial stress, put an end to collection calls and even raise your credit score.

Here are some tips to remember along the way:

Do not be afraid of filing bankruptcy.  Debt can be overwhelming and sometimes instead of facing it head-on, people bury their heads in the sand.  This is the worst thing you can possibly do.  This approach could result in you facing numerous lawsuits, automatic judgments against you even wage garnishment.  By filing for bankruptcy protection you are getting a second chance and taking control over your finances once and for all.

Avoid running up new debt prior to filing. Do not make the mistake of running up a lot of new debt before filing for bankruptcy.  The court will take all of your spending into account, including recent debts incurred, and the judge may not be willing to waive debts if it appears that you are trying to “game the system.” Make sure that your spending habits reflect a true desire to change.

Be aware of ALL of your options. For example, you may want to consider credit counseling. There are some reputable non-profit organizations that can help. With their assistance, you can reduce the payments you have to make and even get some of the interest removed from your debts.

Hire an experienced bankruptcy attorney. The laws surrounding personal bankruptcy are complex. If you feel unsure about the steps to take moving forward, consulting with an attorney may be your best option. Many offer FREE consultations. An attorney can be the guiding hand you need to make the process go as smooth as possible. When meeting with your bankruptcy attorney, make sure you have all of the necessary paperwork with you (i.e. – loan documents, credit card bills and any other relevant financial documents).

Create a post-bankruptcy budget. When you file bankruptcy, you want to avoid finding yourself in the same financial predicament that got you there.  Planning for and making a post-bankruptcy budget is a smart idea. When you can create such a budget and stick to it after bankruptcy, you are far less likely to find yourself in the same position in the future.

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.

Related Resources:

http://techfeatured.com/automotive/1198/how-to-avoid-the-pitfalls-of-personal-bankruptcy

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips to Avoid Credit Card Debt this Holiday

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The holiday season is one of the busiest and most expensive times of the year for consumers.  Sometimes it is easier to just swipe a credit card at the register and deal with the bills after the holidays.  However, this approach can make for an unpleasant start to the New Year.

Here are some important tips to avoid going into credit card debt this holiday season.

  • Plan your holiday shopping list. Plan your gift purchases in advance and limit the cost by only purchasing items from the designated list and not adding extras.
  • Space out your purchases. Space your purchases out over the coming weeks.  You will have more time to find the best deals and not get stuck paying last minute high priced mark-ups.
  • Secret Santa. Gift exchanges are a great way to cut costs on what seems like an endless list of purchases. Have family and friends choose a name out of a hat, and then buy a gift for the person selected.
  • Set a price limit. Gifts, décor and party hosting are all part of the fun of the holiday season! But remember to limit your spending to a specific dollar amount so you do not go overboard.
  • Shop online. If you are planning to make the most of your gift purchases online, wait until Free Shipping Day. This year it falls on Dec. 16, 2016, when all participating online retailers promise to deliver your gifts by Christmas Eve.
  • Never pay full price. Avoid paying full retail price whenever possible. Follow your favorite store on social media, sign up to receive their email blasts as they will often share exclusive discounts and coupons with followers. Sign up for price alerts and use shopping comparison apps to ensure you never overpay for any items.

At Kingcade & Garcia, P.A. we want you to shop smart this holiday season!  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:

http://www.popsugar.com/career/How-Can-I-Avoid-Credit-Card-Debt-Over-Holidays-42656636

Credit, Debt Relief, Timothy Kingcade Posts

Read THIS before Using a Store Credit Card to Shop this Holiday Season

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If you are planning to finance a portion of your holiday purchases, you may be enticed to open a store credit card.  With the attractive-sounding 0% interest rates, competitive rewards programs, even a discount on your first purchase, the offer sounds too good to be true, right?

That’s because it is.  Here are some important facts consumers need to know about store credit cards.

The Truth about “No Interest” Financing:

There are two kinds of no interest financing. When you sign up for a bank credit card with a 0% introductory APR, you are not charged any interest on your purchases until that time runs out.  However, store credit cards typically use what’s called “deferred interest” financing. This means that during the introductory no-interest period, interest on your purchases is accumulating, but will not be charged as long as you pay the balance in full.

Here’s an example:  Let’s say that you finance a $3,000 jewelry purchase using 24-month deferred interest financing, but the store’s credit card has a 27.99% standard APR. The account has minimum monthly payments of $100, so by only paying the minimum, you would have a remaining balance of $600 once the 24-month interest-free period runs out. However, you would also have approximately $1,000 in deferred interest charges added to your 25th bill because you failed to pay off the entire balance in time. Deferred interest can also be added to your bill if you make a late payment one month.

The Interest will Cost You:

When signing up for a store credit card, make sure and read the cardholder’s agreement, specifically the section that tells you the card’s interest rate. According to a recent report, the average regular APR of a store card is 26.72%, more than 11 percentage points above the overall national credit card average APR of 15.07%.  You can expect store cards to have interest rates that are significantly higher than those of general-use credit cards.

A Hard Credit Inquiry Can Affect your Credit Score:

When you agree to apply at the checkout counter, your credit report will be hit with a credit inquiry. Although one inquiry is usually not a big deal, it is not something you want to do if you are thinking of purchasing a home or new car anytime soon. According to FICO, one credit inquiry can have little to no impact on some consumers’ credit scores.  For others, it can take five points off your score. When applying for a mortgage, five points could put you into the next interest rate range, costing you thousands over the life of your mortgage.

Rewards are Limited:

Store credit cards usually offer excellent rewards on in-store purchases. However, these credit cards usually offer no rewards for spending out of store.

Bottom line: Beware of the higher-than-average interest rates on these store credit cards, and the consequences of carrying a balance past the end of the deferred-interest period.

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.fool.com/credit-cards/2016/11/06/read-this-before-using-a-store-credit-card-for-you.aspx

http://www.forbes.com/sites/nickclements/2015/11/29/store-credit-cards-can-be-dangerous/#6c1763596377

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Woman Wins $83 Million in Lawsuit Against Debt Collector

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A Kansas City woman won $83 million in a lawsuit she filed against a debt collector for illegal debt collection practices for a $1,000 credit card bill. The Missouri jury found the collection agency, Portfolio Recovery Associates LLC, guilty of “malicious prosecution.”

The agency reportedly violated the Fair Debt Collection Practices Act, for which it will pay $250,000 in damages. Maria Guadalupe Mejia was also awarded $82,990,000 for malicious prosecution over a credit card debt that did not belong to her.

PRA Group Inc., which owns Portfolio Recovery Associates, sent a statement about the verdict to Credit.com. “This outlandish verdict defies all common sense. We hope and expect the judge will set aside this inappropriate award, and we plan to file motions to make that request formally in the near term. Any fair reading of the facts of this case makes plain that a verdict of this size is not justice by any means, and cannot stand,” spokesman Michael McKeon wrote.

In 2013 Portfolio Recovery sued Mejia over credit card debt that belonged to a man in Kansas City, Kansas, with a similar name. The agency, which is one of the nation’s largest debt buyers, attempted to collect on the debt for over a year after Mejia first received notice of the lawsuit.

Click here to read more on the 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

Capital One Faces Lawsuit over Unfair Debt Collection Practices

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A Florida woman is suing Northland Group Inc. and Capital One Bank (USA) NA, creditor, citing violation of the Fair Debt Collection Practices Act (FDCPA).  The complaint was filed in the U.S. District Court for the Middle District of Florida against the defendants alleging that they violated FDCPA through abusive, deceptive and unfair debt collection practices.

According to the complaint, the plaintiff alleged that in 2014 her attorney informed Capital One that she was being represented and to direct all communications regarding the debt to her legal counsel. However, on October 31, 2015, Northland sent the plaintiff an initial communication and did not go through her counsel.

The plaintiff holds Northland Group Inc. and Capital One Bank (USA) NA responsible because the defendants allegedly caused confusion through its written correspondence with her, failed to disclose the identity of the original and current creditor,  and failed to follow demands not to contact the plaintiff.

She is requesting a trial by jury and seeks judgment against the defendants, attorneys’ fees, costs of action, interest and further relief as the court determines.

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

Borrowing your way out of Debt

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Oftentimes people take out loans to pay off credit cards or other financial obligations and end up deeper in debt. However, there is a way to use debt consolidation loans successfully.

Emilie Burke of Raeford, North Carolina used a $6,000 personal loan from online lender Upstart to pay off some of the $13,600 credit card debt she incurred as a student. Since taking out the loan last November, she has paid down the balance to $4,500 and reduced her remaining credit card debt to $2,500. She also used balance transfer offers with a zero percent annual rate to lower her credit card interest rates and speed up her debt payoff.

Burke sought help from a financial planner at LearnVest, an online advice site. She then dedicated her earnings from a side job to pay down her debts. She also stopped carrying credit cards altogether. “I figured I couldn’t go back into debt if I didn’t have my cards,” Burke posted on her blog about her journey out of debt.

Five Steps to Successful Debt Consolidation

  1. Objectively assess your situation. If your debts equal more than half of your income, consider consulting a bankruptcy attorney. You are unlikely to be able to pay off your debts within five years, which is typically the longest period you would be forced to do so under a Chapter 13 bankruptcy repayment. If your debt is unmanageable, consider filing Chapter 7 bankruptcy, which erases consumer debt within three to four months.
  2. Avoid high-cost loans. Calculate the total cost of the loan. Add up the monthly payments times the number of payments, plus any other fees. Then compare that number with what you are paying now. Avoid lenders who offer low payments but sky-high interest rates and long terms that will keep you in debt longer. Credit unions tend to offer the best rates and terms on personal loans.
  3. Opt for the shortest possible loan. Choosing the shortest loan will minimize the interest that you will pay. Only use a loan with terms up to three years, if possible. Five years is the maximum you should consider.
  4. Look for direct payment of creditors. If possible, use a lender that will pay your credit card company directly. This will remove the temptation to use borrowed funds for another purpose.
  5. Consider closing your cards. Although this can hurt your credit score, going into further debt can impact your score much worse. According to financial experts, people who closed their accounts were more likely to pay off their debts, regardless of the dollar amount, than those who left them open.

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.

Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Law Firm Sues Wells Fargo over Foreclosure Work

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A New Jersey law firm has filed a lawsuit against Wells Fargo, claiming that the bank’s delayed efforts to fix its robo-signing problems led to the law firm’s demise. The law firm, Zucker, Goldberg & Ackerman, claims to have helped the lender foreclose on thousands of homeowners.

The lawsuit alleges that Wells Fargo took several years to comply with a 2010 New Jersey Supreme Court order that called for lenders to show that they were properly submitting mortgage details before foreclosing on a property. The law firm has since laid off most of its 335 employees within the last year.

According to the law firm, Wells Fargo’s delay in responding to the 2010 court order caused significant financial problems for the firm. The lawsuit states that under the bank’s agreement with mortgage lenders, the law firm would advance most of the foreclosure-related expenses and be reimbursed later. The lawsuit also states that the lender has refused to pay more than $2.5 million for work that Zucker, Goldberg & Ackerman did for the bank.

The firm was hired to file court pleadings, ensure compliance with state and federal regulations and research information such as ownership, payment history and title history for each case, according to the lawsuit.

Wells Fargo’s spokesman Tom Goyda released a statement that said the bank disagrees “with the claims regarding fees owed to the firm” and said that the lawsuit’s other allegations “should not be viewed as credible.”

U.S. Bankruptcy Court Judge Christine Gravelle scheduled a hearing on December 21st.

Click here to read more on this story.

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, Debt Relief, Student Loans, Timothy Kingcade Posts

Student Loan Debt Hits another Record High

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Student loan debt has reached another record high, according to the annual report of The Institute for College Access and Success (TICAS).  In fact, 68% of graduating seniors had student loans, and their average debt increased 4% from the previous year’s record to $30,100.

This means college graduates will face student loan payments exceeding $300 a month over the next 10 years.  What is more disturbing is that 19% of those loans are private student loans, which are loans issued by banks instead of the federal government.

Private student loans tend to come with higher interest rates, non-flexible repayment plans and oftentimes do not offer loan forgiveness.  Compared to federal loans, private student loans can be much harder to repay, especially if the borrower falls on hard times.

The high level of private debt is concerning because much of this debt is avoidable. Nearly half of students who take out private loans have not maximized all of the federal student loans they are eligible for.  The U.S. Department of Education will lend almost any undergraduate anywhere from $5,500 to $12,500 a year, depending on their age and year in school.

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

One Wrong Move Can Bring your ‘Zombie’ Debt Back to Life

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In the spirit of Halloween, we want to warn you about zombie debt.  As the name suggests, zombie debt is a debt that you thought was dead but has come back to life.  This could be a debt you already paid off, a debt you settled with a creditor, a debt where the statute of limitations has expired, a debt that was wiped out in bankruptcy, or a debt that was never yours to begin with.

Zombie debts are old debts.  That in itself is what makes them so dangerous to consumers, especially when debt collectors apply high-pressure tactics to have you pay up.

Another downside, these debts are oftentimes hard to verify. As debts are sold and resold, information can vanish, leading collectors to seek payment on erroneous debt.  Making even a single payment on an old debt can reset the statute of limitations, leaving you vulnerable to a lawsuit.

Debt collection is the largest source of consumer complaints to the Consumer Financial Protection Bureau, with more than 85,000 complaints filed in 2015.  The leading complaint: Consumers being harassed for debts they did not owe.

Here are some steps you can take to avoid becoming a victim and put zombie debt to rest for good:

  • Request a validation letter.  This will outline details, including the original creditor, the amount of the debt and how you can challenge it. This will help you verify that it is your debt and has not already been paid.
  • If you already paid the debt: Write a letter to the collections agency demanding that it cease contact. The Fair Debt Collections Practices Act requires them to do so. Remember: You cannot legally be sued for a debt that is past the statute of limitations, even though collectors may still try.
  • Pull your credit report to determine whether it is being reported to the credit bureau.  You can do so for free at www.annualcreditreport.com.
  • Know your rights. Do not let a debt collector bully you.  The Fair Debt Collection Practices Act protects you against abusive collection tactics.
  • If the debt is not yours, it is otherwise invalid: Write a letter challenging the debt within 30 days of the initial contact.
  • If you do owe the debt and can pay, resolving an unpaid account can end the collection calls and improve your credit score. Get any payment agreement in writing before sending money.
  • If you do owe the debt and cannot pay: Tell the creditor you cannot afford to pay. Never give your credit card information or bank account information to a creditor.  Instead, pursue debt relief through credit counseling or bankruptcy.

No matter what, be proactive. Do not ignore anything you receive in the mail from a debt collector and make sure and keep all of your correspondence in writing.

At the law firm of Kingcade & Garcia we want you to have a safe and Happy Halloween this year!   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.

Related Resources:

http://www.usatoday.com/story/money/personalfinance/2016/10/31/debt-collectors-zombie-debt-payment/92666504/

http://detroit.cbslocal.com/2016/10/31/dont-get-bit-by-zombie-debt-this-halloween/