Debt Relief Archives - Page 75 of 85

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How to Conquer Your Medical Debt

Posted on March 2, 2016by Admin

Millions of Americans struggle with medical debt. In fact, studies show that between 2005 and 2013, medical debts were the single largest contributor to personal bankruptcy filings in the U.S.

The Consumer Financial Protection Bureau (CFPB) said that half of all overdue debt on credit reports is medical debt; one in five credit reports contain overdue medical debt; and 15 million consumers have only medical debt on their credit reports.

Unfortunately, many Americans do not fully understand their rights and protections when it comes to medical debt. Understanding medical debt collection laws can help you better manage your medical debt.

What to do if your bill contains an error.

Medical debt collection laws vary by state, but in most states healthcare providers and debt collection agencies are allowed to contact you regarding a debt that you owe. However, you are allowed to challenge that debt if you believe it is incorrect. You can also tell the debt collector to stop contacting you. According to Exhale Healthcare Advocates, more than 50 percent of all medical bills contain errors, so it is important to contest your medical bills if you believe there is an error.

In order to challenge your medical bill, you must first ask for an itemization of the bill and request an internal audit. There are websites you can visit that will show you what fair prices for medical services should be, based on your location and zip code, such as www.healthcarebluebook.com. If you feel that your bill contains an error or you have been overcharged for a medical service, you should contact an attorney.

What to do if your insurance company denied your claim.

If your health insurance company has denied your medical claim, you can appeal the company’s denial. Before you do so, it is important that you know and understand the guidelines, including all of the fine print within your insurance policy. Most patients can get the claim denial overturned after one appeal; however, this can be a long drawn out process.

What to do if you are being harassed by a debt collection agency.

It is imperative that you understand your rights under the Fair Debt Collection Practices Act (FDCPA), since medical debts are considered consumer debts. This means all protections of the FDCPA apply to third party debt collectors if your debt is in default. If you feel that your rights have been violated under the FDCPA, you should contact the CFPB and file a complaint.

How to pay down legitimate medical debt.

Do not pay your medical bills before you know how much your insurance company is going to cover.

Never pay more than you owe based on your insurance coverage. For example, if your healthcare provider tries to charge your insurance company $300 for a Band-Aid, and your insurance company only pays $5. The hospital can come after you personally for the rest. This practice is called “balance billing” and is on the rise. Many Floridians are at risk for balance billing and are often unaware of the financial consequences. Individuals who run the greatest risk are those who have health policies from a private company that is not an HMO. Most are PPOs, preferred provider organizations. Those in an HMO would see all their bills covered: ambulance, hospital and doctors. But those who have another type of health insurance could be faced with astronomical medical bills after a trip to the ER or hospital.

If you receive medical bills that you legitimately owe, contact your healthcare provider to work out a monthly payment plan that works with your financial situation.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney 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.

http://blog.credit.com/2016/02/help-im-in-serious-debt-with-medical-bills-137177/

Credit, Debt Relief, Timothy Kingcade Posts

Citibank Ordered to Stop Collections on $34 Million in Credit Card Debt, Fined $8 Million

Posted on March 1, 2016by Admin

The Consumer Financial Protection Bureau (CFPB) fined Citibank $8 million last week for allegedly selling credit card debt with inflated interest rates and failing to send consumers’ payments to debt buyers. The credit card giant has also agreed to stop collections on $34 million in credit card debt held by nearly 7,000 consumers.

The CFPB said that Citibank hired two debt collection law firms, Faloni & Associates, LLC, and Solomon & Solomon, P.C., who reportedly altered affidavits filed in New Jersey debt collection lawsuits. Both firms are accused of changing either the dates of the affidavits or the amount owed; in some cases both, after they were executed, which is a violation of the Fair Debt Collection Practices Act. Citibank claims the agency first learned of violations in 2011 and stopped referring new credit card accounts to it.

In a separate action, the CFPB ordered Citibank to refund $11 million to consumers who were affected by the alleged altered affidavits and nearly $5 million to approximately 2,100 consumers who were affected by the inflated APRs. Citibank has complied and has already issued refunds. Citibank did not admit or deny any of the CFPB’s allegations as part of the enforcement actions.

Fair debt collection practices have been a focus for the CFPB in recent years. Both JPMorgan Chase and American Express have been fined millions for illegal debt collection practices involving credit card debt.

CFPB Director Richard Cordray said in a press release, “Citibank sent inaccurate information to buyers when it sold off credit card debt and it also used law firms that altered court documents. Today’s action provides redress to consumers who were victimized by slipshod practices as part of our ongoing work to fight abuses in the debt collection market.”

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.foxbusiness.com/features/2016/02/24/citibank-will-stop-collecting-34-million-in-credit-card-debt.html

http://www.americanbanker.com/news/law-regulation/cfpb-fines-citibank-8m-over-debt-collections-1079533-1.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Americans Underreport Credit Card Debt by $415 Billion

Posted on February 29, 2016by Admin

A recent study conducted by NerdWallet showed that consumers are underreporting their credit card debt. In December 2013, lenders reported approximately $683 billion in outstanding credit card debt, according to the Federal Reserve Bank of New York. However, Americans only reported having $268 billion in credit card debt.

The $415 billion discrepancy in reported credit card debt was far greater than any other type of debt, including student loans and mortgage debt. The reasoning is likely due to the stigma surrounding credit card debt, according to NerdWallet.

According to the study, 70 percent of Americans think credit card debt has a more negative stigma attached to it than any other type of debt. Mortgage and student loan debt is often considered “good” debt and credit card debt is considered “bad” debt. As a result, consumers may be underreporting credit card debt because they are ashamed of the amount of credit card debt they have. The survey also found that 35 percent of Americans would be embarrassed to tell others they have credit card debt, significantly more than any other type of debt.

How to pay off your credit card debt

Credit cards typically have the highest interest rates among other types of debt, therefore it is important to pay them off as quickly as possible. The first thing you need to do is figure out exactly how much you owe. You can do this by logging into your credit card account’s website. While you are logged in, note the balance, interest rate, minimum payment and due date.

Once you have determined how much you owe with each credit card account, make the account with the highest interest rate your top priority. Pay any extra that you can each month on that account. Once it is paid off, move on to the account with the second highest interest rate, and continue paying off each account by the highest interest rates.

Click here to read more on this story.

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

Student Borrowing Affects Retirement and Home Ownership

Posted on February 25, 2016by Admin

New data released from The Center for Retirement Research at Boston College revealed that student loan debt is preventing Americans from saving for retirement. Student loan debt has reached massive levels, with 40 million people stuck with at least one student loan. It accounts for more than 30 percent of non-mortgage related household debt. According to the St. Louis Federal Reserve, more than 27 percent of student loan borrowers in repayment are delinquent on those payments.

The report found that student loan debt has the same impact on retirement savings as unexpected healthcare costs. This means that a greater percentage of households are at risk of not being able to maintain their standard of living in retirement, because they are unable to save while they are in the workforce.

Most college bound students are not thinking about retirement when they take out student loans for expensive degrees. Unfortunately, if students choose a degree that will prepare them for a low-earning career or a career with a deficit in jobs, student loans are going to be harder to pay back.

Student loan debt is not only affecting retirement, it’s also affecting borrowers abilities to purchase homes and buy new cars. Many borrowers are unable to obtain a mortgage because their student loans push their debt-to-income ratio disqualifies them.

The Center for Retirement Research used the National Retirement Risk Index, which measures the percentage of working households age 30 to 60 who are on track to be able to maintain their standard of living in retirement. It looks at what a person’s age 60’s retirement security would be if the person had the same level of student loan debt as today’s average, $31,000.

The Center found that the percentage of people at risk went from 51.6 percent to 56.2 percent, a 4.6 percent increase. Although it doesn’t seem like a great increase, a 19.6 percent across-the-board cut in Social Security benefits would raise the index by 10.7 percentage points. This means that the impact is roughly half of the impact of an unprecedented move such as cutting Social Security benefits.

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, Debt Relief, Student Loans, Timothy Kingcade Posts

Student Loan Relief Tax Bill Introduced in Congress

Posted on February 24, 2016by Admin

Congressman Austin Scott (R-GA) recently introduced the “Student Tax Affordability and Relief Act,” into the House of Representatives. The bill would provide gross income exclusion for amounts that employers pay on employee student loans.

The bill excludes from gross income amounts paid as “qualified student loan payment assistance.” It defines their assistance as “amounts paid or incurred by an employer under a plan for the exclusive benefit of the employees of the employer to provide such employees with student loan payment assistance.” The bill provides a taxable limit of $10,000 per year.

Student loan debt has been an economic concern for some time. The Consumer Financial Protection Bureau reported in 2013 that the amount of outstanding student loan debt exceeded $1 trillion.

Individual states have recognized the economic ramifications of student loan debt and are taking matters into their own hands. States such as New York and Virginia have introduced their bills to assist struggling student loan borrowers. New York’s program will pay up to two years of student loans for eligible residents. While one of Virginia’s pending bills would allow students to refinance their student loans.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How to Get a Loan After Bankruptcy

Posted on February 23, 2016by Admin

Many Americans believe their credit will never be the same after filing for bankruptcy. However, if you take the right steps, it’s possible to build a good credit score while you wait for bankruptcy to fall off your credit report.

If you developed bad financial habits that led to your credit problems, improving your credit score may be difficult. It is important to remember that it is possible to get your credit score to 700 within three years after filing for bankruptcy. If you are able to improve your credit score after bankruptcy, your odds of getting approved for a new loan are much higher.

Below are some tips to help you get a loan after bankruptcy:

Check your Credit Reports.

Although bankruptcy damages your credit score, having debts discharged will likely improve your chances of getting approved for new credit because your credit-to-debt ratio will be lower. However, you still want to check your credit history to make sure your bankruptcy was reported correctly to the three major credit-reporting agencies (Equifax, Experian and TransUnion).

You should also make sure that all of the accounts involved in your bankruptcy have a zero balance and are labeled as discharged. This will tell all of your prospective lenders that your income is now yours to spend.

Build a Positive Payment History.

Make sure to pay all of your bills on time after filing for bankruptcy. You want to prove to lenders that you are moving forward in a positive way. One of the best ways to build a positive payment history is to keep one account open with a zero balance. This does not mean that you should not use the account; it means you should make small purchases and pay the balance in full each month.

Shop for (Re-) Starter Credit.

If you do not have any credit accounts open after filing for bankruptcy, apply for a secured credit card or credit-builder loan at your local bank. These types of credit are designed specifically to help people fix their credit scores.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Rapper 50 Cent Ordered to Appear in Bankruptcy Court after Instagramming Cash

Posted on February 22, 2016by Admin

Curtis J. Jackson III better known as rapper, 50 Cent has been ordered back to bankruptcy court following a string of posts to his Instagram and Twitter accounts flaunting numerous piles of cash.

Jackson first filed for bankruptcy in July of last year. Since October, he has posted several pictures of himself with dozens of stacks of $100 bills on his Instagram account. In one post, he lined the stacks of bills up to spell out the word “broke,” seemingly to mock his bankruptcy filing.

Last Thursday, U.S. Bankruptcy Judge Ann M. Nevins told the rapper’s attorney, “I’m concerned about allegations of nondisclosure or a lack of transparency in the case. There’s a purpose of having a bankruptcy process be transparent, and part of that purpose is to inspire confidence in the process. When that process becomes very public, the need for transparency, I believe, is even higher,” said Nevins.

Jackson’s attorney later issued a statement saying that his client would show up to court and answer all of the court’s questions. The statement also said, “Mr. Jackson has been forthcoming and transparent with all creditors.”

The issue was brought up in court papers filed in January by headphone maker Sleek Audio, SunTrust Bank and 50 Cent’s ex-girlfriend Lastonia Leviston, who claim the rapper owes them a combined $29 million. They also said he has posted videos of performances that he has probably gotten paid for and has not disclosed to the court. They also pointed out that the rapper never admitted he owned property in Africa, contrary to a post on his Twitter account.

This should come as a warning to anyone who plans to hide assets from the bankruptcy court and their attorney. Bankruptcy trustees are experts at finding undisclosed money, property, vehicles, jewelry, antiques, and collectibles. If you are caught trying to hide assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing. In addition, the potential penalty for bankruptcy crimes include fines and imprisonment of up to five years.

Click here to read more on this story.

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

Texas Man Arrested by U.S. Marshals for Unpaid Student Loan

Posted on February 19, 2016by Admin

U.S. Marshals arrested Paul Aker of Texas last week for $1,500 in unpaid federal student loans. Aker borrowed the loan in 1987 and claims that he was unaware he had any outstanding debt.

“I paid two other student loans and thought I had consolidated everything and paid it all off,” Aker said. The U.S. Marshals reportedly made several attempts to serve Aker with a court order requesting that he appear in federal court. The agency said they had searched numerous known addresses before locating Aker. They also said they made contact with Aker by phone in 2012 requesting that he appear in court and he refused.

According to CNNMoney, Aker does not remember having that conversation and said he has not received any notification about the outstanding loan in a long time. A warrant was issued for his arrest soon after he failed to appear in court in 2012.

Two U.S. Marshals went to arrest Aker last Friday at his home. “I went inside to get my gun because I didn’t know who these guys were,” Aker said. The Marshals called for backup after Aker told them he was armed.

After two hours, Aker finally put down the gun and went outside to be arrested without further incident.

Although Aker’s original loan was for $1,500, he now owes approximately $5,700 including interest. He agreed to be placed on a payment plan before a judge last week.

According to CNNMoney, it is common practice for U.S. Marshals to serve summonses to people who fail to appear in court for unpaid federal student loans. However an arrest warrant is only issued after the debtor fails to appear in court.

Arrest warrants were issued for 25 people in the Houston, Texas area for failure to appear in court regarding unpaid student loans.

After 90 days, the loan becomes delinquent and damages the borrower’s credit score. However, student loans are not considered to be in default until nine months of nonpayment.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Courts Help Debt Collectors Prey on America’s Working Poor

Posted on February 18, 2016by Admin

Even though the economy is improving, many of America’s working poor, under-employed and unemployed people continue to struggle financially. In addition to their financial troubles, many households face debt collectors who harass and sue them on incomplete or inaccurate information.

To make matters worse for struggling consumers, court judgments often favor debt collectors without determining the validity of the claims. Due to the growth of this problem, it has been the focus in recent research. Both the Human Rights Watch (HRW) and the Alliance for a Just Society recently released reports documenting this disturbing trend.

The report released by the HRW titled “Rubber Stamp Justice,” revealed that courts routinely award default judgments, without the consumer present, in tens of thousands of cases.

The Encore Capital Group, the largest debt collector in the country, has reportedly filed between 245,000 and 470,000 new lawsuits per year in recent years. The report also showed that in 2014 Encore and its competitor, Portfolio Recovery Associates, collected more than $1 billion through debt collection lawsuits.

The report stated, “Fundamental problems with debt collector lawsuits often come to light only after the companies have already won judgments they were never entitled to, in courts that never asked them to present any meaningful evidence in support of their claims.”

Several states have created “judgeless courtrooms” for such cases where consumers are forced to participate in unsupervised discussions with debt buyers and their attorneys. The intention is to provide open forums for compromise, however consumers often end up forfeiting their rights for a future court hearing.

The top consumer debt collection concerns filed with the Consumer Financial Protection Bureau between November 2013 and August 2015 are below:

Demands to pay a debt that affected consumer(s) believes is not owed;
Frequent or repeated calls about the same alleged debt;
Failure to provide documentation to verify the debt.

The Fair Debt Collections Practices Act (FDCPA) originally enacted in 1978 requires that debt collectors provide consumers with certain basic information such as the amount of debt owed and the name of the creditor to whom the debt is owed. A lesser-known requirement of the FDCPA says debt collectors must give consumers a 30-day notice to dispute the debt before it is assumed as valid.

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

Americans Borrow No Matter the Economy

Posted on February 16, 2016by Admin

The Federal Reserve recently released data that indicated that American’s borrowing habits are excessive whether the economy is booming or hurting. Over the past decade, credit card debt has gone from $1.02 trillion in 2008, down to $835 billion in 2011 and back up to $935.6 billion by the end of last year.

Americans between the ages of 18 and 65 have an average of $4,717 in credit card debt. The average interest rate is 15 percent, according to creditcards.com. Therefore, if a credit card user makes a minimum payment of $189 per month, it will take more than ten years to pay off a debt of $4,717. Ultimately, the debtor would pay a total amount of $22,869, a cost of $18,155 for a very small loan.

A study released by the Boston Fed examined American credit card debt and found that the biggest reason Americans have such high debt is due to the availability of credit.

The study also showed that only 35 percent of credit card users do not carry a balance. This means they pay off their bill every month and only use their cards for convenience. The other 65 percent of credit card users are “revolvers,” meaning they do not pay their balance in full so the debt revolves. Revolvers tend to see credit limit increases as an invitation to spend more.

Many credit card users are reeled in when companies offer free teaser years that come with as much as $600 worth of miles or hundreds of dollars in cash back as incentives to sign-up and spend. Studies show that credit card debt typically starts in a debtor’s 20’s. Often times the debtor is not earning very much at the time and the availability of funds through credit essentially amounts to extra wealth and reduces the need to save. Although the habit typically starts early in adult life, credit card debt follows most Americans into middle, even old age.

Keep in mind; there are incentives to breaking your credit card habits. According to the Federal Reserve, paying off your credit cards comes with a return that averages 14 percent. This means simply paying off your credit card debt is the best investment you can make.

Click here to read more on this story.