Credit Archives - Page 55 of 82

Bankruptcy Law, Credit, Timothy Kingcade Posts

Personal Bankruptcy Filings Down

Posted on June 25, 2014by Admin

Bankruptcy filings are down 11 percent compared to the 12-month period ending March 31, 2014, according to statistics released by the Administrative Office of the U.S. Courts. March 2013 bankruptcy filings totaled 1,170,324 compared to 1,038,280 bankruptcy filings in the 12-month period ending March 31, 2014.

However, filings in April and May of this year have been most similar to the number of filings in April and May of 2013. The May 2014 daily bankruptcy filing rate was 4,079, which was a 7.0% decline on a year-over-year basis. There have been just over 405,500 bankruptcy filings in the first five months of 2014. With these latest numbers, the year-over-year bankruptcy filing rate has declined for forty-three straight months.

Some financial experts attribute the decline in consumer filings to “a low-interest rate environment” and consumers utilizing more government assistance programs, such as the Home Affordable Refinance Program (HARP), which has helped many underwater homeowners.

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

Related Resources:

http://news.uscourts.gov/bankruptcy-filings-down-11-percent-march-2014

http://www.creditslips.org/creditslips/2014/06/900000-bankruptcy-filings-this-year-maybe.html

Credit, Foreclosures, Timothy Kingcade Posts

Florida Borrowers entitled to $40 Million from SunTrust Mortgage Abuse Settlement

Posted on June 19, 2014by Admin

Florida Attorney General Pam Bondi joined 48 other state attorneys general, the District of Columbia and other federal agencies in reaching a $550 million nationwide settlement with SunTrust over mortgage and foreclosure abuses.

The civil charges accuse SunTrust of improper documentation of loans, lost paperwork and robo-signing. Approximately 8,421 Florida borrowers who had SunTrust loans or lost their homes from 2008-2013 to foreclosure, can apply for a portion of the $40 million designated to the state. This money could take the form of a cash payout, principal reductions or refinancing of underwater mortgages.

SunTrust has the responsibility to contact borrowers and has agreed to the following terms:

• Making foreclosure a last resort and evaluating homeowners for other loss mitigation options, first.
• Restricting foreclosure while the homeowner is being considered for a loan modification.
• New procedures and timelines for reviewing loan modification applications.
• Providing homeowners with the right to appeal denials.
• Requiring a single point of contact for borrowers seeking information about their loans.
• Maintaining adequate staff to handle calls.

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

President Obama Extends Student Loan Debt Relief

Posted on June 11, 2014by Admin

On Monday, President Obama signed an executive order allowing millions of student loan borrowers to cap their monthly payments at 10 percent of their monthly income. “The cost of college and burden of student loan debt are suffocating middle-class families and putting students at an economic disadvantage before they enter the workforce,” Obama said.

Many borrowers already have the option to limit payments to 10% of their income. Obama’s order on Monday extended that option to about 5 million others who were not covered by the previous changes, including those who took out loans before October 2007.These new regulations are expected to be implemented in December 2015 at the earliest.

Student loan debt has reached $1.2 trillion. The average debt per borrower from the class of 2012 ranged from $17,994 in New Mexico to $33,649 in Delaware. President Obama has also endorsed legislation sponsored by Senator Elizabeth Warren (D-Mass.) that would allow students to refinance both public and private loans. This would be paid for by closing a tax loophole currently available to the wealthy. In another effort to help ease the burden for struggling borrowers, Obama ordered the Education Department to renegotiate its contract with student loan providers and give financial incentives to borrowers who make their payments on time.

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, Credit, Timothy Kingcade Posts

Dept. of Education Urged to Clarify Policy on Student Loan Bankruptcies

Posted on June 3, 2014by Admin

Democratic members of Congress are urging for clarity and leniency when it comes to how the Department of Education forgives student loan borrowers who are bankrupt and unable to pay back their student loan debt. Federal law treats student loan debt as being non-dischargeable in bankruptcy unless “undue hardship” can be proven.

Oftentimes, attempts to prove undue hardship are “aggressively challenged” by the loan service provider and the Department of Education. According to the letter, the department needs to create clear standards for borrowers to qualify for discharging their student loan debt.

“While we recognize the department’s prerogative to fairly collect on student-loan debts owed to it, we do not find it sensible or cost-effective for the department or its contractors to engage in lengthy legal challenges and appeals against bankrupt student-loan borrowers who have demonstrated a clear and legitimate inability to repay their loans,” the letter says.

Other recommendations in the letter include:

• Clarifying the criteria for “undue hardship” to include borrowers who receive disability benefits under the Social Securtity Act;

• If the secretary of veterans affairs has determined the borrower is unable to work because of disability connected with military service;

• If the borrower’s household income has been less than 175 percent of the official poverty guidelines during the five-year period before filing a bankruptcy petition.

The letter states the urgency for action when it comes to the student loan debt crisis. This new guidance would bring consistency to the application of the undue-hardship standard.

Bankruptcy Law, Credit, Timothy Kingcade Posts

The WRONG ways to eliminate Student Loan Debt

Posted on May 22, 2014by Admin

This month thousands of graduates will be tossing their caps in the air with the excitement and hope of a prosperous future. But upon entering the “real world,” many of these graduates will soon be faced with a monthly burden: student loan debt. For many graduates, the first dose of reality begins with the first job; a job they estimated would pay more when they were taking out their student loans.

Do not make these mistakes when it comes to paying off your student loan debt.

1. Not paying. Many borrowers have tried this tactic, which seems simple enough. The student loan lenders are hoping you will make this mistake. With penalties and interest accruing, this is simply making a bad situation worse. In addition, this approach will hurt you when you try to get a mortgage or even lease an apartment, as these student loan payments tend to be some of the first credit accounts new graduates have in their name.

2. Making payments with credit cards and then declaring bankruptcy. This approach will end up costing you big time. The rates on credit cards are much higher than those on student loans. Not to mention, the bankruptcy court will see right through this scheme and it is unlikely the debt will be discharged.

3. Using home equity to pay off student loans. For borrowers who have returned to school later in life and are homeowners, they may think that using the equity in their home will help them consolidate their student loans and lower their monthly payments. The drawback here is that most student loans have comparable interest rates to what banks are charging homeowners right now. You are not paying off debt, just trading it in for some new debt, which is tied to your home. You can also be putting your house on the line. Missing a student loan payment can result in a late fee, but missing several mortgage payments can put you at risk of foreclosure.

If you’re having trouble meeting your obligations on federal student loan debt there are options out there ranging from Income-Based Repayment and Pay as You Earn plans to Income-Contingent Repayment. There are ways to legitimately satisfy student loan debt.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Sallie Mae Faces Nearly $200 Million in Penalties for Cheating Active Duty Troops

Posted on May 14, 2014by Admin

Sallie Mae and its former loan unit, Navient have struck a deal with federal authorities to resolve allegations that it cheated active duty troops and other borrowers who were being charged late fees.

According to the Consumer Financial Protection Bureau (CFPB), service members have complained that companies such as Sallie Mae and Navient have told them they could not receive protections under the law unless their loans were in forbearance or deferment.

Sallie Mae and Navient more than doubled to $173 million- the amount they have set aside to cover settlements resolving these allegations brought by the Federal Deposit Insurance Corp. (FDIC) and the Dept. of Justice. Navient has acknowledged the federal government’s investigation into allegations the company cheated active-duty troops in violation of the Service Members Civil Relief Act from November 28, 2005 to present day.

Under the Service Members Civil Relief Act, loan companies must reduce the interest rate on student loans to no more than 6 percent upon request by active duty troops. As of 2008, the law extended beyond private student loans to include federal student loans.

In addition, troops have told the CFPB that their servicers wrongly told them the 6 percent interest-rate cap expired annually, and they were required to submit additional paperwork to retain it. Others were discouraged from applying for the protections contained in the service members’ law, while some were mistakenly told that the benefits are only available to those in combat zones.

Furthermore, some service members told the CFPB that they were told to provide end dates for their tours on active duty, a requirement that is virtually impossible to meet, since officers in the armed forces are usually not told when their tours will end.

Rohit Chopra, the consumer bureau’s top student loan expert, told the Senate “that companies that fail to comply with the service members’ law may be cheating borrowers in other ways.”

A settlement resolving the service members’ allegations would need to be approved by the Education Department and require the companies to establish a $60 million fund to compensate troops for violating the service members’ law when it comes to student loans.

Click here to read more on this story.

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.”

Click here to read more on this story.

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.

Click here to read more on this story.

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.

Click here to read more on this story.

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.

Click here to read more on this story.