Debt Relief Archives - Page 66 of 86 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Debt Relief, Florida Bar, Timothy Kingcade Posts

5 New Rules Can Protect You From Extreme Debt Collection Practices

Posted on August 4, 2016by Admin

The Consumer Financial Protection Bureau (CFPB) has taken many steps to protect borrowers from illegal debt collection practices. However, debt collectors continue to use extreme measures to try to collect on debt. The Director of the CFPB, Richard Cordray said, “We continue to hear about serious problems with debt collection – debiting accounts without authorization, calling at all hours of the day or night, threats of arrest or criminal prosecution or threats of physical harm to consumers and even their pets.”

As a result, the CFPB has proposed a new set of rules that will further monitor debt collectors’ practices and prohibit them from harassing and tricking consumers. Below are five of the new rules that will protect consumers from abusive debt collection practices.

According to the CFPB, approximately one-third of all consumers who are contacted by debt collectors said the attempt to collect was for the wrong amount. This occurs because debts are often sold to debt collectors with limited and inaccurate or incomplete information about the consumers and their debts. However, new proposed rules would force debt collectors to “scrub” their files and make sure they have the correct consumer and debt information before contacting the borrower.
The CFPB’s new proposal would also prohibit debt collectors from contacting consumers more than six times per week. Some debt collectors contact consumers multiple times per day, causing a major disruption to their daily lives. The new limits would also give consumers the right to tell collectors not to call on a particular phone line or at a particular time of the day, such as during work hours.
Another new rule would force debt collectors to disclose more information to consumers regarding their debt. This rule gives consumers the opportunity to defend themselves against illegal practices and enable them to spot a debt collection scam. The same rule would also force collectors to tell consumers if their debt is too old to initiate legal action.
Debt collectors would also be forced to provide consumers with a debt report if they disputed a debt via written notice. Until the debt report is provided to the consumer the collectors would not be permitted to actively pursue debt collection.
Finally, the new rules would also prevent debt collectors from transferring debt without responding to debt disputes. If the debt is transferred before the dispute, the next collector would not be able to pursue the debt until a response is submitted.

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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.

Debt Relief, Foreclosures, Timothy Kingcade Posts

Condo Associations Scam South Florida Consumers

Posted on August 3, 2016by Admin

According to the Miami Herald, condo associations are scamming South Florida consumers and residents with exorbitantly high application fees. The Florida state laws permit condo association to charge people a maximum of $100 per person who are applying to rent or buy a unit. The law also states that married couples should be treated as one person and prohibits charges for dependent children or consumers who are renewing their leases. The fee is nonrefundable and covers costs such as background checks and credit checks. However, recent reports have revealed that associations are charging anywhere from $125 to $625 per person.

Further investigation by the Miami Herald also proved that some associations are tacking on additional charges, sometimes several hundred dollars or more, for “move-in fees” or “pet fees.” In fact, the Herald reported that nearly half of all listings in Miami-Dade County charged application fees that exceeded $100.

In addition to the cap on application fees, the Florida Condominium Act also prohibits associations from charging fees that exceed $100 for transfers such as sales, mortgages, leases, sublets or any other unit transfers.

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

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

New Jersey Student Loan Agency Instructs Staff Not to Tell Borrowers About Help Unless They Ask

Posted on August 2, 2016by Admin

New Jersey has the largest state-based student loan program in the country. However, the terms of the loans offered through the program are particularly harsh and can lead to financial hardship.

Recently, internal emails from the staff at Higher Education Student Assistance Authority were released where employees were instructed not to tell families that they may qualify for loan forgiveness unless they ask.

The email sent to staff members in May 2016 from a supervisor said, “Families of deceased borrowers (or surviving cosigners) must inquire if HESAA has a policy on loan forgiveness. We should not be volunteering this information.”

The agency’s chief of staff, Marcia Karrow, released a statement that said the emails “do not accurately reflect the Authority’s policy or practice on loan forgiveness.” However, Karrow did not provide any proof that management had corrected the instructions that were sent out by email.

According to HESAA, they have helped 35 out of 50 cosigners or co-borrowers who have requested assistance after a borrower died or became disabled over the past four years.

The same company released a statement directly following Superstorm Sandy in 2012 stating that borrowers’ credit ratings would not be affected if they made a late payment. Instead, the agency only erased late payment reports if a borrower requested it.

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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all 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.

Debt Relief, Foreclosures, Timothy Kingcade Posts

New York Attorney General Fights Against Zombie Foreclosure Crisis

Posted on August 1, 2016by Admin

New York Attorney General Eric Schneiderman recently announced a grant initiative to fight against the zombie foreclosure crisis. The growing problem has affected hundreds of neighborhoods and towns across the state of New York since the housing bubble burst. The initiative known as, the Zombie Remediation and Prevention Initiative, will give $13 million in grants to local governments across the state through a competitive application process.

The 100 communities dealing with the greatest problems of zombie foreclosures and vacant homes have been invited to apply for the funds. The money will address housing vacancy and the damage to property value in neighborhoods by supporting municipalities’ capacity for housing code enforcement, tracking and monitoring vacant properties and providing legal enforcement to ensure banks and mortgage companies comply with local and state law.

The initiative will also have preventative benefits due to the requirement of communities to develop innovative programs and policies and connect at-risk homeowners to services so they can avoid foreclosure. It also coincides with the recent enactment of the Abandoned Property Neighborhood Relief Act.

The initiative will be funded by the $3.2 billion settlement agreement with Morgan Stanley that was settled in February. The settlement resulted in $550 million in cash and consumer relief for New York residents.

“Too many communities across this state have been hit hard by the proliferation of zombie properties. This new grant initiative puts tools directly in the hands of towns and cities across the state to reverse course, rebuild from the foreclosure crisis and put zombie homes in the rear-view mirror,” Attorney General Schneiderman said.

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Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Florida Foreclosure Improvement Still Lagging Behind the National Average

Posted on July 29, 2016by Admin

The nationwide foreclosure filings rate has shown signs of improvement in the first half of 2016. However, the improvement rate in Florida, New Jersey, Illinois, New York and Indiana is still significantly lower than the pre-recession rates and seem to be lagging behind the rest of the country. RealtyTrac released the data from the first two quarters of 2016 that reveal that foreclosure filings are were down 20 percent compared to the previous two quarters in 2015.

Although the foreclosure filings rate is still 21 percent higher than the normal rates, there were 15 states in the first half of 2016 with foreclosure rates that were significantly lower than “pre-housing bust” levels including: Arizona, California, Colorado, Nevada and Michigan.

According to RealtyTrac Vice President Daren Blomquist, the obvious divide between states is largely due to the fact that some states require foreclosures to take place in court, such as Florida. He went on to say, “the root issue that created the dysfunctional foreclosures processes was sloppy and improper documentation on the part of the banks.” Blomquist said that in non-judicial states, “it wasn’t an issue because there wasn’t oversight.”

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Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

6 Things College Grads Should Be Doing About Their Student Loans

Posted on July 27, 2016by Admin

On average, college graduates have approximately $37,000 in student loan debt, according to Cappex.com. Most student loan companies allow students a grace period after graduation of six months to one year before they start requiring payments. However, it is important to get your student loans in order immediately after graduation so that you know what to expect down the road.

Below are six things recent grads should be doing to prepare for their student loan repayment.

Get organized. Most students graduate with anywhere between eight and ten separate student loans. As a result, many tend to lose track of their total loan amount by the time they graduate. If you have only taken out loans through the federal government, you can find everything you need to know on the National Student Loan Database System website. This site will simplify your loans in terms of breaking down exactly how much you owe and when you took out each loan. However, if you have also taken out private student loans, it is best to check your credit report. This will show you the status of each loan, the date you opened it and your remaining balances. Also, make sure you note the interest rates for each individual loan.
Determine the Best Monthly Payment for You. Now that you know how much you owe, it is time to determine how much you can afford to pay each month. If you do not select a repayment option, your lender will put you on a standard 10-year repayment plan. When deciding how much you can afford to pay each month, it is best to select highest payment you can afford. This will potentially save you thousands in interest. However, if it means you cannot afford to put money into a retirement fund or a savings account, opt for a lower payment.
Stay on Top of Your Payments. Although student loans take longer to default than other debts, it will negatively impact your credit store if you miss a few payments.
Be Strategic in Paying Off Your Loans. If you have extra money to put toward your student loans, put it toward the loan with the highest interest rate. Also, if you pay extra one month, contact the company to be sure they put the additional amount toward the principal balance. Otherwise, they may treat it as the next month’s payment.
Consider Consolidation. Before you consolidate your loans, make sure you take your interest rates into account. If you have some loans with higher interest rates than others, it might not be the best move to consolidate. If you combine your loans and pay extra some months, you can no longer put the additional amount toward the loan with the higher interest rate.
Educate Yourself on Deferment and Forbearance. Deferment refers to the period when your payments are placed on temporary hold. Sometimes interest does not accrue during the deferment period. Deferment is typically available to students who have enrolled in grad school, are unemployed or experiencing economic hardship. On the other hand, forbearance is what you apply for if you are ineligible for a deferment. This is a time period, typically 12 months, when interest is accrued and added to the principal balance.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips to Quickly Pay Off Credit Card Debt

Posted on July 26, 2016by Admin

In 2015, the average American had approximately $15,762 in consumer credit card debt and the United States as a whole had more than $733 billion. Credit card debt was the fourth largest type of debt in the country, following student loans, auto loans and mortgages. However, most consumers retain this debt for many years and end up racking up thousands of dollars in interest. This typically occurs because consumers prioritize other payments such as mortgage payments, student loan payments, hospital bills and car payments, and therefore only make the minimum credit card payments each month.

Below are some tips to help you quickly pay off $10,000 in credit card debt.

• Find out your total balance. The first thing you need to do is find out your total amount of debt, totaling all of your consumer credit cards.

• Stop the interest. The next thing you need to do is look for a card that is offering a long lasting “0% intro APR balance transfer” promotion. Next, transfer your balance to this card. If you have more than one card with a balance, try to consolidate all of your credit card balances to the same card offering 0% interest. In many cases, interest accounts for as much as 75% of your monthly payment! According to NerdWallet, the average household pays $6,658 in interest per year in various debts.

• Power through the balance. After you have transferred your balance, it is important to take advantage of the interest-free period of your new card. Continue to make the same payments you made before and your balance will start shrinking much faster.

Related Resources:

https://www.lendingtree.com/info/powerful-2-step-method-pay-off-credit-cards?esourceid=6164156&cchannel=bd&csource=cnn-money&siteid=CC-pay-off-10k-hp

https://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Why Chapter 7 Bankruptcy should be Your First Option and Not Your Last Resort

Posted on July 25, 2016by Admin

Many Americans turn to debt relief assistance options when they are struggling with medical, credit card or other types of unsecured debt. However, according to the Huffington Post, nearly half of all programs aimed at helping you with your debt problems, fail to achieve the results they promise. These programs include credit counseling services, debt settlement programs, etc. Even those who have success with such programs usually end up with extremely high, consolidated payments for many years and accrue thousands of dollars in interest.

Filing for bankruptcy can you save time and money when you are in financial distress. Here is an example that shows the money and time debtors can save if they choose to file for bankruptcy, rather than seek debt relief assistance. Imagine that you currently have $22,000 in unsecured debts, such as credit cards. You have recently lost your job and can no longer afford each of the individual payments; therefore you choose to consolidate your credit cards into one monthly payment with the help of a credit-counseling agency. Your monthly payment is now $418 per month for the next five years. Once you pay off your debt at the end of the five years, you have paid roughly $25,000 including interest. However, if you put the same payment of $418 per month into an IRA for five years with an average return of 9.74%, you would not only have saved yourself $3,000 in interest but you would also have approximately $32,000 saved for retirement.

Filling for Chapter 7 bankruptcy can eliminate years of extremely high monthly payments and ongoing stress. The process of filing bankruptcy can take as little as 90 days and the total cost is typically between $1,500 and $1,800.

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

Government Program Set to Forgive up to $131,000 in Student Loan Debt for Thousands of Doctors

Posted on July 22, 2016by Admin

A program called Public Service Loan Forgiveness was initiated to help teachers, public defenders and other modestly paid public service workers alleviate their financial stresses by forgiving a large portion of their student loans. However, the Journal of General Internal Medicine released an article stating that physicians who work for non-profit hospitals or hospitals owned by the government have been enrolling in the program and meet the qualifications to have their loans forgiven. On average, medical school students accrue up to $162,000 in student loans, according to the New America Foundation.

Congress enacted the program in 2007 to boost the economy and to entice college graduates to accept low-paid government and non-profit jobs. The Loan Forgiveness program technically applies to anyone who works for a nonprofit organization, regardless of his or her income. The way it works is that college graduates must make 120 monthly payments toward their student loans and their payments are capped at 10% of the discretionary income of the borrower. Once the payments are made, the remaining student loan debt is forgiven.

Physicians typically earn between $50,000 and $60,000 in the first few years after school. Once they complete anywhere from three to eight years of training, or “residency,” their annual income skyrockets to an average of $180,000. The government and non-profit organizations own three quarters of the hospitals in America, which means the vast majority of the high paid physicians are eligible for student loan forgiveness. Research shows that on average, each physician who applies for forgiveness will be relieved of approximately $131,000 of student loan debt.

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Bankruptcy Law, Debt Relief, Florida Bar, Timothy Kingcade Posts

The Bankruptcy Means Test: What is it? Why is it Important?

Posted on July 20, 2016by Admin

The bankruptcy means test determines whether or not you are eligible to file for debt forgiveness through Chapter 7 bankruptcy. The test uses factors such as: income, expenses and family size to determine who can afford to repay their debts through reorganization and who cannot. Most who take the means test, pass it and are considered clear to file Chapter 7 bankruptcy. However, those who are ineligible for Chapter 7 have the option to file Chapter 13, which will restructure and reorganize debts.

How the Test Works

There are two steps involved in determining whether or not you have enough disposable income to pay off your debts. An experienced bankruptcy attorney will assist you in filling out and filing your paperwork with the bankruptcy court. Most debtors who file for Chapter 7 bankruptcy are struggling with consumer debt such as credit card or medical debt.

Step One

The first step in the bankruptcy means test will compare your household income with the average income in your state. In Florida, the median income for a household with one earner is $43,136. The median income for a household with two earners is $53,654. The means test is based on your financial situation over the past six months; therefore you will need to gather all of your documentation about your income during this time period. Keep in mind the court will consider any recent changes in your income such as: losing your job or starting a new job. If your median income over the past six months falls below your state’s average, you automatically qualify to file for Chapter 7 bankruptcy.

Step Two

If you are not automatically qualified to file for Chapter 7 bankruptcy based on your household income, you will need to move on to step two in the bankruptcy means test. As a part of this step, you must gather all of your documentation that lists your “allowable expenses” over the past six months. These expenses can include any of the following: rent, groceries, clothing and medical costs. What is left over is considered disposable income. In this portion of the means test, it is important to be thorough and not leave out any “allowable expenses.” It is also crucial to know your local “allowable expense” standards in addition to national standards. Make sure you consult with your attorney to fully understand what are considered allowable expenses in Florida.

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