Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

U.S. Federal Courts Remain Open Amid Government Shut Down

Federal courts will continue to hear and decide cases amid the U.S. government shutdown. Federal courthouses will remain open under the terms of the Anti-Deficiency Act, the federal law that calls for “essential” work to continue in the event that federal funding is frozen. Most judicial services are considered essential- so judges will keep working, legal filings will continue to be processed and federal defenders will continue to be assigned indigent defendants.

However, courts have been encouraged to conserve as much as possible by deferring non-crucial expenses. The first two weeks following the shutdown, the courts will use revenue from filing fees and long-term appropriations that are not part of the annual budget to pay its staffers as normal.

Once those funds are exhausted, employees deemed non-essential would be furloughed without pay. Those considered essential would continue to work without pay, though they would be entitled to retroactive money after the government resumes business. Jurors will also be forced to wait until after the shutdown ends to receive payment for their service.

A memo from the courts’ central administrative office said judges should not prioritize between criminal and civil cases. During a shutdown, courts will eschew non-essential expenses, such as training, purchasing equipment and supplies and paying for travel.

While judges will continue to hear cases, the Justice Department said it will ask to postpone appearances in civil and bankruptcy cases as long as it did not compromise the safety of human life or the protection of property under the terms of the Anti-Deficiency Act. The Justice Department has said that criminal cases would continue to be heard without delay or interruption.

Click here to read more on the effects the government shutdown has on U.S. Federal Courts.

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

Protecting your Credit Score when Canceling a Credit Card

Your credit score can vary from day to day and it is not an exact science. There are dozens of different models out there, the most popular being the FICO score- ranging from 300 to 850. When you need a good credit score, for example, when purchasing your dream home, your credit score becomes very important. If you have a credit score of 730, many mortgage brokers will give you their best rates. If you have a credit score over 740, it’s not going to make much difference- you are already getting the best rates available.

If you are applying for a mortgage, hold off on closing the credit card, until after your loan closes. Closing an account does not only affects your debt-to-credit-limit ratio; it can also adversely affect your credit score if the card you close is your oldest card, because length of credit history is seen as a good thing. The best way to permanently improve both your finances and your credit score is to get the debt-to-credit ratio to zero.

Click here to read more on protecting your credit score when canceling a credit card.

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

Creditor Harassment- Know your Legal Rights

The following tips can help you maintain your sanity when it comes to dealing with debt collectors. The first step is to try and address the issue before it becomes a problem. While paying bills on time is ideal, it is not always possible. Sometimes the unforeseen can occur- the loss of a job or an unexpected health problem can cause you to fall behind on bills and accumulate a great deal of debt. It is important that you do not ignore the issue. First, contact your creditors and explain the situation, attempt to work out a payment plan before the bill is turned over to collections.

If this is not possible and the debt gets turned over to a harassing debt collection agency, you have options. Write a letter requesting that the collector stop contacting you. Under the Fair Debt Collection Practices Act (FDCPA), debt collection agencies and attorneys must stop contacting you after receiving a letter requesting that they stop calling. You should also indicate any illegal actions committed by the collector in this letter. Keep a copy of this letter for your records.

After you send this letter, collectors may only contact you to acknowledge receipt of the request, to tell you their efforts have ended or to tell you that they are suing you. However, you should note that the FDCPA only applies to collection agencies and attorneys – it does not apply to in-house collection departments, although many creditors will honor the request. If your letter fails to end the harassment, a letter from a lawyer usually will. Additionally, once you have hired a lawyer, the collection agency or creditor’s attorney must only communicate to you through your lawyer. The other benefit of retaining an attorney is that they can help you raise legal claims under the FDCPA.

Under the Fair Debt Collections Practices Act, it is illegal for debt collectors to do the following:

• Contact your employer or neighbors about your debt
• Call you late at night or at unreasonable hours
• Call you at work
• Call you repeatedly
• Engage in deceptive conduct
• Calling you without disclosing the collector’s identity
• Use obscene, derogatory, or insulting remarks
• Threaten arrest or loss of child custody or welfare benefits
• Publish your name
• Use any communication, language or symbols on envelopes or postcards that indicate that the sender is in the debt collection business
• Threaten self-help repossession without legal right or present intent to do so

If the collection agency is in violation of any of these laws, you may be able to sue them for damages, your attorney fees, plus an additional $1,000.00.

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.

Related Resources: http://www.legalzoom.com/money-matters/personal-finance/got-debt-stop-creditors

Bankruptcy Law, Credit, Timothy Kingcade Posts

Parents on the Hook for Child’s Student Loans

American student loan debt tops $1 trillion, according to the Consumer Financial Protection Bureau. But with many recent graduates facing a tough job market and limited employment opportunities, what happens when they cannot afford their monthly student loan payments? If a parent co-signed the loan, the burden shifts to them.

Bankruptcy attorneys are seeing an increasing trend with parents struggling to pay off their child’s student loans. Unfortunately, even bankruptcy cannot wipe the slate clean- unless of course undue hardship can be proven. Al Franken, on the Senate Education Committee, said that he has backed several pieces of legislation he thinks could help. One example is the Fairness for Struggling Students Act, which, if passed, would make it possible to eliminate private student loan debt in bankruptcy. Franken has also backed legislation that aims to help students receive better counseling when taking out a loan.

Experts say parents can and should co-sign their child’s student loans, but must be “informed borrowers,” meaning they need to closely scrutinize the terms of the loan. Many banks are getting out of the student loan business, largely because of the increased scrutiny from lawmakers. JPMorgan Chase announced its departure just a couple of weeks ago. Bank of America, Citigroup, and U.S. Bank have already done the same. So for future borrowers, it means more student loans will come from the federal government.

Click here to read more on the 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

8 Bankruptcy Myths Disproved!

Filing for personal bankruptcy still carries a powerful stigma in this country. However, a divorce, death of a spouse, or severe medical illness can place a well-meaning consumer into an endless cycle of debt. There is a sense of shame and failure that allows certain misunderstandings about the bankruptcy process to linger. With that being said, below are the top eight bankruptcy myths- DISPROVED!

1.) I will lose everything if I file for bankruptcy. Not true. Creditors do have the right to get some of their money back, but you will not “lose everything.” Some assets are protected from liquidation. For example, creditors usually cannot touch locked-in pensions, RRSPs or RRIFs. People are also generally allowed to keep modest amounts of furniture, clothing, tools of the trade, and even their car- if there is not too much equity in it.

2.) My friends will all find out that I have filed for bankruptcy. If assets are minimal, creditors are notified by mail and generally there is no notice in the paper. Bankruptcy filings are a matter of public record, but most people are not going to bother, not to mention pay the monetary search fee required. So unless you tell people, there is a pretty good chance that your friends, neighbors and co-workers will never know.

3.) My credit rating will be ruined if I file for bankruptcy. Even though a bankruptcy filing is not desirable on a credit report, if you are months behind on paying your bills and creditors are calling you, your credit score is likely already damaged. Filing for bankruptcy can provide you with a fresh financial start and put you back on track to rebuilding your credit score.

4.) Bankruptcy erases all your debts. Not true. Some debts cannot be discharged in bankruptcy. These include secured debts like mortgages or car loans, alimony, spousal and child support obligations, court fines, claims arising from an assault and student loan debt- unless you can prove undue hardship.

5.) It does not cost anything to file bankruptcy. You may think that you should not have to pay to file bankruptcy, but bankruptcy trustees do not work for free. Their fees amount to around $1,500 and they typically get paid from the money that is freed up from the liquidation of the bankrupt’s assets.

6.) I will never be able to get credit again if I file for bankruptcy. A bankruptcy notation will remain on your credit report for six years following the discharge. But there’s no need to fear, many individuals that have filed are able to get a secured credit and even a car loan shortly after their bankruptcy is discharged. Many lenders specialize in working with clients who have a less-than-stellar credit history.

7.) Filing for bankruptcy will destroy my spouse’s credit rating. A consumer bankruptcy filing is personal to the individual filing it. As long as your spouse did not co-sign or guarantee your credit cards or loans, his or her credit rating will not be affected by your filing.

8.) Filing for bankruptcy is not a big deal. Bankruptcy is a big deal. During the nine- to 21-month-period it takes to complete a bankruptcy and have your debts discharged, you will have to hand over total control of your finances to the bankruptcy trustee. It is important to meet with an experienced bankruptcy attorney who can assess your financial situation and advice you if bankruptcy is your best option. At Kingcade & Garcia, we offer free initial consultations for this. Bankruptcy laws were designed to give people a fresh financial start and wipe their slate clean.

Click here to read more on eight popular bankruptcy myths disproved.

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

TREND ALERT: Middle Class Debt Falling Nationwide

As the economy is steadily improving, middle class families are feeling the effects. According to Manilla.com, a financial organization website, total household debt- which includes outstanding mortgage, auto and college loan balances-fell 1.1% in the first quarter of this year among middle-class families. Overall, consumers are being more cautious before taking on new debts for major investments like homes, automobiles and education. Americans average mortgage debt was $150,200.21 as of July 1, down 4% since the end of 2012. Below are the top 10 cities with the highest mortgage balances:
• San Francisco: $312,301.64
• Los Angeles: $262,792.56
• San Diego: $258,548.22
• New York: $250,078.12
• Washington, D.C.: $226,444.31
• Seattle-Tacoma: $199,205.30
• Sacramento: $194,796.46
• Portland, Ore.: $176,452.78
• Boston: $176,350.70
• Miami-Ft. Lauderdale: $176,057.60

Auto loan balances have increased by 7.9% since the end of 2012, Manilla.com reports, because Americans are now willing to spend more on cars, which signals a stronger economy. Eight of the 10 markets with the highest auto loan balances remained consistent in the first half of 2013. The worst debt offenders for auto loans as of July 1 are:

• Little Rock-Pine Bluff: $17,797.82
• Houston: $17,078.08
• Miami-Ft. Lauderdale: $16,997.15
• New Orleans: $16,968.24
• New York: $16,672.47
• Memphis.: $16,538.02
• Birmingham.: $16,436.04
• Las Vegas: $16,294.38
• Waco-Temple-Bryan: $16,263.03
• San Antonio: $16,164.34

Click here to read more on the recent trend of middle class debts falling nationwide and the cities with the highest amount of debt.

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

Bankruptcy Blunders: Top Reasons Your Bankruptcy Filing May Get Rejected

A recent FindLaw.com survey revealed that one in eight Americans have considered filing for bankruptcy. Whether because of a job loss, carrying an excessive amount of credit card debt or medical debt, a large number of Americans have considered the option of bankruptcy to gain a fresh financial start. But not everyone’s case is accepted by bankruptcy courts. Your bankruptcy filing can be rejected for a number of reasons- often due to mistakes or omissions of proper paperwork. That is why it is crucial you hire an experienced bankruptcy attorney to assist you in the process.

Below are a few reasons why your bankruptcy filing could be rejected:

1.) You do not pass the “means test” in court. In order to qualify for Chapter 7 bankruptcy, where most of your unsecured debts are wiped out, you must pass a “means test” imposed by the court. The means test is a way for the court to determine how much disposable income you have. If you have too much money, a court may reject your Chapter 7 bankruptcy request. It is important to meet with an experienced bankruptcy attorney who will advise you of all your options and let you know if you qualify for Chapter 7. At Kingcade & Garcia, P.A. we offer free consultations where we sit down with our clients, assess their financial situation and determine if bankruptcy is the right option for them.

2.) You fail to provide requested tax documents or fail to appear at the creditor meeting. The court may reject or dismiss your bankruptcy case if you misrepresent your tax information or fail to provide tax documents altogether. In past years, you were not required to file tax returns to pursue bankruptcy. But since bankruptcy reform passed in 2005, this has become a requirement.

3.) You submit a proposed repayment plan that is not feasible. With a Chapter 13 bankruptcy filing, you repay some of your debts over a period of three to five years. If you file for Chapter 13 bankruptcy and set up a repayment plan, your proposed plan must be feasible in order to be accepted by the courts. The courts will review your current income, debts and assets to determine whether you can realistically pay back your creditors under the Chapter 13 plan. If you cannot, they can reject your case.

4.) Someone challenges your bankruptcy request. Once you have filed for Chapter 7, the goal is to get a “discharge” of your debts. A discharge is a permanent court order that relieves you of any legal liability to pay unsecured debts like medical bills or credit card debts. However, for those filing a Chapter 7, a creditor or the bankruptcy trustee has the right to challenge your discharge. This can occur if the trustee or debtor believes you have been dishonest or committed fraud in some way. These can include: hiding assets, making false statements or even failing to appear at mandatory credit counseling- any and all of these can result in a challenge.

Click here to read more on the top reasons your bankruptcy filing could get rejected.

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

TREND ALERT: More Americans Paying Credit Card Bills on Time

The popular credit monitoring site, TransUnion reports the rate of credit card payments that are at least 90 days overdue fell in the second quarter to 0.57%, the second-lowest recorded by the agency in nearly 20 years, when the rate was 0.56%. More Americans are working to bring down their credit card balances as the U.S. credit card delinquency rate fell close to the lowest levels since 1994. The trend is positive, and according to experts may be a sign that the worst is behind for cardholders post-recession.

If this trend does not apply to you and you are still struggling with credit card debt, below are some helpful tips for getting out from under credit card debt.

1.) Negotiate interest rates. If you are in good standing with your card issuer, try to negotiate your current interest rates. Today, issuers are more willing to negotiate with consumers to keep them as card holders.

2.) Prioritize your debt. Review and evaluate all of your outstanding debts and work to pay off those balances, beginning with those cards that carry the highest interest rates.

3.) Consider consolidation. Consider consolidating your debts into one personal loan for a fixed rate. You will want to make sure and put your cards away, so you are not tempted to use them.

4.) Reach out for help. Do not be afraid to ask for help. If you are more than $10,000 in debt, seek advice from a credit counselor who can help come up with a repayment plan. If your debt becomes unmanageable, consult an experienced bankruptcy attorney who can advise you of all your options.

Click here to read more on the recent trend of more Americans paying their credit card bills on time and for tips on getting out of credit card debt.

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

New Date Set for Detroit Bankruptcy Filing Forum

The Detroit Democrat has reported that the forum planned by U.S. Representative John Conyers on the legal implications of Detroit’s bankruptcy filing will be re-scheduled to 3 p.m. on Saturday at Fellowship Chapel in Detroit. Conyers has said the forum will examine the filing’s impact on pensions and possible conflicts of interest involving state-appointed emergency manager, Kevyn Orr.

Another issue being discussed is whether Orr’s July 18 bankruptcy petition was made in good faith. Conyers says a bankruptcy’s ramifications on taxpayers, city workers and retirees will be discussed at the forum. Orr says Detroit has at least $18 billion in debt, much of it being tied to pension and retiree health care obligations.

Click here to read more on the latest drama surrounding Detroit’s bankruptcy filing.

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.

Credit, Foreclosures, Timothy Kingcade Posts

FHA Gives Foreclosed Borrowers a Second Chance at Homeownership

The Federal Housing Administration (FHA) is offering a homeownership program that will put previously troubled borrowers on the fast track to owning a home, again. This new program, called “Back to Work-Extenuating Circumstance,” shortens the standard three-year waiting period to 12 months. As part of the FHA’s ongoing mission, the new program aims to make sure that qualified borrowers are not being unnecessarily shut out of the housing market.

This is good news for borrowers who lost their home because of specific financial hardships, but can now demonstrate that they have regained their financial footing.

Individuals that have been through any of the below financial hardships are eligible for the program:

• Chapter 7 or Chapter 13 bankruptcy
• Deed-in-lieu
• Forbearance
• Foreclosure
• Loan modification
• Loss of income, employment or both that totaled at least 20 percent of previous earnings for at least six months, including copies of applicable termination notices or changes in employment status.
• Pre-foreclosure sales
• Short sales

Borrowers must also meet other verifiable requirements to participate in the program. These include:
• Proof of borrower’s current income. This can be verified with W-2 forms or federal tax returns that show the desired mortgage would be affordable and sustainable.
• Credit history, both before and after the financial hardship event. This information must be free from late payments or other major credit issues, including rental / housing payments and accounts delinquent by 30 days or more.
• A credit score of at least 500.
• Housing counseling by a HUD-approved counselor at least 30 days but no more than six months before
submitting an FHA application.

For consumers meeting all of these criteria as well as other FHA mortgage guidelines, the “Back to Work program” is now available nationwide through FHA-approved lenders. Once participating lenders determine that mortgage applicants meet all eligibility and policy criteria, the same 3.5 percent minimum FHA down payment requirement will apply. Mortgage insurance and closing costs will also apply. The only FHA program that is ineligible for the “Back to Work program” are reverse mortgages.

Click here to read more on the new FHA program that gives foreclosed borrowers a second chance at homeownership.

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.