Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Can I include my payday loans in bankruptcy?

Many individuals on the verge of bankruptcy are also trapped in an endless cycle of payday loans.  This popular source of short-term financing is easy to get, but comes with a high price tag.   Finance charges on these type loans can range from 15 to 30 percent.   That is comparable to getting a loan with an annual percentage rate of nearly 800 percent!  It’s easy to see how these loans can quickly spiral out of control.  But there’s good news- payday loans can be included in a bankruptcy filing.  These type loans are considered an unsecured debt and are dischargeable in bankruptcy.

Because of the predatory nature of many payday loans, bankruptcy courts oftentimes have little patience for the demands of these payday lenders.   However, it is important to avoid taking these loans out immediately before filing for bankruptcy.

After filing for bankruptcy, you should avoid taking out payday loans in the future.  Instead, you should consider the following alternative loan sources:

  • Local credit unions
  • Cash advance on a credit card
  • Small loans from family or friends
  • A small loan company
  • A payroll advance from your employer

If you have any questions on this topic or 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://www.totalbankruptcy.com/rules/can-you-include-payday-loans-bankruptcy.aspx

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The most important price factor for insurance companies REVEALED!

A two-year investigation of more than two billion insurance quotes from companies across the country has revealed that credit history has the biggest impact on the cost of your insurance premium. According to the study by Consumer Reports, the score can take into account what kind of credit card consumers have along with whether they have recently applied for credit.

The car insurance credit score is different from your FICO score and how it figures into your premium varies depending on the insurer and your state, according to Consumer Reports.   The insurance companies are using this score not to predict whether you are a good driver, but whether you will file a claim.

A poor credit score has caused rates to more than double in some states.  For example, in Florida, someone with an excellent credit score had a premium of $1,409.  An individual with a poor credit score had a premium of $3,826.  To put this in perspective, the premium amount for someone with a DWI who had an excellent credit score was $2,274.

Consumer Reports’ research reveals that some insurers are penalizing drivers more for having a poor credit score. If you feel your car insurance company has given you a low score, clearing up inconsistencies on your credit report can help.  You can download a copy of your free credit report at www.annualcreditreport.com.

If you have any questions on this topic or 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://www.wral.com/credit-history-revealed-as-most-important-factor-for-insurance-companies-/14887484/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

NEW Rules will Boost Credit Scores for Millions

If unresolved medical bills are keeping your credit score low, there’s good news.  Changes are coming this fall to Fair Isaac’s FICO Score, which will take a closer look at unpaid medical bills and accounts sent to collections.  Consumers whose only negative mark is from medical debt can expect their credit score to increase by 25 points.

These new rules are far reaching, as more than half of all debt on credit reports is from medical bills, according to the Consumer Financial Protection Bureau (CFPB).  The changes also expand banks’ abilities to offer loans to borrowers who may not have otherwise qualified.

In July, approximately 64.3 million U.S. consumers had medical debt on their credit reports, according to the credit bureau Experian. Of 106.5 million total consumers with agency collections on their reports, 9.4 million had a zero balance. Under the new credit score system (FICO Score 9), those consumers will not be penalized.

The changes come as a result of an agreement between the three major credit bureaus using FICO scores- Experian, Equifax and TransUnion.  In addition, delinquent medical bills will not be reported to credit bureaus for six months.  This is another win for consumers, allowing them time to pay claims and resolve disputes with their insurance company.

While these changes make it easier to qualify for a loan, it is important consumers keep their debt-to-income ratio under 43 percent.   This is the highest ratio a borrower can have and still qualify for a mortgage in today’s market.

The CFPB gives the following debt-to-income ratio example:

If you pay $1,500 a month for your mortgage and another $100 a month for your car loan and $400 for your remaining debts, your monthly debt payments total $2,000.   If your gross monthly income is $6,000, then your debt-to-income ratio is 33 percent.

If you have any questions on this topic or 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://www.moneytalksnews.com/new-rules-may-boost-your-ailing-credit-score/

Debt Relief, Student Loans, Timothy Kingcade Posts

Dept. of Education Takes Action Against Student Debt Relief Scams

Debt relief scams are nothing new, but now borrowers struggling to pay back their student loans are being targeted. Those with student loan debt should be especially wary of offers that sound too good to be true.

A recent video published on YouTube by the Department of Education, discusses the risks associated with these scams and warns borrowers about these so-called debt-relief companies.

These student loan debt relief scams target borrowers with mailings, search engine ads- even social media ads that appear to be affiliated with the Department of Education. Through deceptive marketing practices, these companies claim to offer borrowers the opportunity to get them out of default, consolidate their loans and lower their monthly payments for a fee.  It is important that borrowers know, these same services are offered by the Department of Education — for free.

In the video, Secretary of Education, Arne Duncan explains, “Many of these debt relief companies are charging exorbitant fees for these services. Please remember if they’re saying they can cancel your loans or reduce your loans but only for a cost, that is never the case. You can always work directly with us and that should always be free.”

Millions of student loan borrowers are in default and struggling to stay current on their payments. These individuals are especially vulnerable. Members of the Financial Protection Bureau have argued that servicers who manage repayment for federal student loans, have allowed these debt relief scam companies leverage because borrowers are uninformed about the free government programs that make payments more manageable.

According to a report earlier this year by MarketWatch, desperate borrowers are lured into signing up for these debt-relief scams despite the exorbitant fees. In an effort to prevent borrowers from signing up with these companies, Department officials are publicizing Duncan’s video on Twitter, Facebook and YouTube. The Department is also working with servicers to ensure that they are providing borrowers with enough information to make informed decisions about their loans.

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.

Source:

http://www.marketwatch.com/story/dept-of-education-takes-aim-at-student-debt-relief-scams-with-new-video-2015-08-27

 

Debt Relief, Student Loans, Timothy Kingcade Posts

How Student Loans Impact your Credit Score

Certain factors on a consumer’s credit report are used to calculate their credit score.  These factors include payment history, debt levels, age of credit and debt diversity. If student loans are properly maintained, they can actually have a positive impact on your credit score. For those who have yet to establish a credit history or build revolving credit, managing your student loan debt properly can assist with this.

The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, requires young consumers to prove their financial ability to repay debts, in order to obtain a credit card. Timely payments made on your student loans can also improve the diversity of your credit profile.

As with many other forms of credit, applying for private and certain federal student loans will result in a “hard inquiry” on your credit report. A hard inquiry and a new account may cause your credit score to drop by a few points, but only for a short amount of time.  Fortunately, student loan inquiries will be “de-duplicated” on credit reports, allowing multiple inquiries within a small period of time.

Student loans can be an excellent opportunity to strengthen payment history. Making on-time monthly payments during the student loan repayment process can vastly improve your credit score. Alternately, making any late payments or defaulting on the loan will hurt your credit score.

The principle amount owed on student loans has little impact on your credit score. The payment history is where the greatest impact is made. Make sure to take on a manageable debt load and also utilize loan repayment assistance when available. You can also keep track of how your student loans impact your credit by monitoring your credit report. Each year, you are entitled to a free credit report from each of the three major credit bureaus.

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.

Source:

http://www.credit.com/credit-scores/how-student-loans-can-impact-your-credit-score/

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Questions You Should Ask Your Bankruptcy Attorney

If you are considering filing for bankruptcy, you will likely have a lot of questions for your attorney. Factors such as fees, the type of bankruptcy to file, the time frame, etc. should all be explained to you. It is important that you understand the bankruptcy process and that you ask the right questions before selecting your bankruptcy attorney.

Below is a list of important questions you should ask your bankruptcy attorney at your initial consultation:

Should I file for bankruptcy?

Bankruptcy is not for everyone.   The first question you should ask your attorney is whether bankruptcy is the best option for you.  Your attorney should thoroughly explain to you how filing will affect your current situation, as well as steps to take moving forward.

Which type of bankruptcy should I file?

If bankruptcy is indeed the best option for you, your attorney will need to determine which type of bankruptcy to file. The two most common types are Chapter 7 bankruptcy and Chapter 13 bankruptcy.  One of the biggest differences between the two is that Chapter 7 works toward discharging all or most of your debt, while Chapter 13 works toward a manageable re-payment plan. Discussing your options with your attorney will help you better understand which option is right for you.

What will it cost to file for bankruptcy?

It is important to get an estimate as to how much it will cost you to file for bankruptcy. Ask your bankruptcy attorney to provide the cost for your case as a total, including all attorney fees, court fees and additional costs which may be incurred. Many bankruptcy attorneys offer manageable repayment plans for their clients.

How long will the bankruptcy process take?

Ask your attorney what the expected time frame will be for your bankruptcy case. You should find out important information such as when your case will be filed, details of the bankruptcy process, and when you can expect to receive a complete discharge of your debts.

Are there concerns that will affect my bankruptcy case?

Full disclosure with your bankruptcy attorney is crucial to making sure your case is handled properly. If you had instances in the past that may later come up as a “red flag” during your bankruptcy case, ask your attorney about them. These instances can include the possible “gifting” of an asset to a family member, making a large purchase far beyond your means or receiving an inheritance. These can all affect your bankruptcy eligibility and should be discussed with your attorney at your initial consultation.

For more information on how to best prepare for your initial consultation with a bankruptcy attorney, please visit: http://timothykingcade.com/?p=4234.

At Kingcade & Garcia the consultation is FREE and the relief is REAL!  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.

Source:

http://blogs.findlaw.com/law_and_life/2014/01/5-questions-to-ask-a-bankruptcy-lawyer.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Building Credit after Bankruptcy: A Step-by-Step Guide

Rebuilding your credit score after bankruptcy can be a challenge, but it’s not impossible.   In fact, many of our clients have a credit score between 680-700, just one year after filing for bankruptcy. The key to understanding how to rebuild your credit score is understanding the process.

Below are some helpful tips that have worked for our clients.

  • Get Your Credit Report. You can and should check your credit report regularly. Credit.com offers two free credit scores, which are updated monthly. You are also entitled to a free annual credit report from each of the three major credit bureaus.
  • Start Small. Begin with a secured credit card and pay it on-time every month. Eventually, you can get approved for an unsecured credit card with a small credit limit. Continued on-time payments will help improve your credit history and in turn improve your credit score.
  • Use Lines of Credit Responsibly. Do not obtain a new line of credit and then max out the balance. Experts recommend keeping your credit card utilization below 30%.  For example, if you have a credit card with a $1,000 credit limit, you do not want to charge more than $300 each month.
  • Pay on Time.  With continued on-time payments and proper management of your finances, your credit score will begin to improve following a bankruptcy.
  • Monitor Your Credit. Certain negative reporting may be removed if a creditor cannot validate the debt. By keeping a close eye on your credit report, you can dispute certain negative marks. Equifax offers a user-friendly online dispute tool for this purpose.
  • Understand Student Loans. If you have student loan debt, it is important to understand that these loans cannot be discharged through bankruptcy. Non-payment on student loans can prevent you from getting a mortgage or future lines of credit. Payment deferments, forbearance and missed payments can cause balances to increase significantly. The best way to tackle student loan debt is to set up a realistic repayment plan with your lender and stick to it.

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.

Source:

http://www.cbsnews.com/news/how-i-am-rebuilding-my-credit-after-bankruptcy/

 

 

Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Policy Changes Help Surviving Spouses Handle Reverse Mortgages

Numerous horror stories regarding reverse mortgages have forced the Department of Housing and Urban Development (HUD) to take another look at its current policy. Changes have been made, allowing reverse mortgage lenders to transfer certain loans to HUD when a borrower dies and is survived by a non-borrowing spouse.

Prior to this change, the surviving spouse who was not listed as a borrower had to leave the home. Now, loan servicers have a new option. For many couples, it is risky to own a residence where only one spouse in on the mortgage. If that spouse dies and they have taken out a reverse mortgage, strict guidelines come into play.

A recent widow faced loosing her home after her husband took out a reverse mortgage and then passed away shortly thereafter. The reverse mortgage was only in the deceased spouse’s name, despite the couple jointly owning the property. Reverse mortgages are only available to those 62 years of age and older. At the time of the reverse mortgage, only the woman’s husband met the age requirement.

Such dealings can become complex but with the policy change, the government hopes to alleviate this. Under the revised policy, lenders will be allowed to proceed with reverse mortgage claims, known as home equity conversion mortgages (HECM). This can only be done with eligible surviving non-borrowing spouses and case numbers assigned before August 4, 2014.  It is recommended that a reverse mortgage not be taken out unless both spouses can be on the loan agreement.

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.

Source:

http://www.miamiherald.com/living/home-garden/article25519939.html
http://www.consumeraffairs.com/news/feds-ease-reverse-mortgage-policy-for-non-borrowing-spouse-again-061515.html

 

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Banks to Blame for Failed Loan Modifications

In 2009, the Obama administration launched the Home Affordable Modification Program (HAMP), as a proposed “lifeline” for nearly 4 million struggling homeowners. Borrowers were promised much needed loan modifications to help with their financial situation. Unfortunately, a recent report has revealed some disturbing details about the program.

Over the past six years, Special Inspector General Christy L. Romero of the Troubled Asset Relief Program has been closely monitoring HAMP. According to her report, only 887,001 borrowers received loan modifications, which reduced their mortgages. Romero’s report showed that approximately 4 million borrowers’ requests for help were denied, accounting for about 72% of applications submitted since the program began. It appeared that the big banks repeatedly avoided helping borrowers, without regard for their situation.

Unable to work because of her disability, a Vermont woman applied for a mortgage loan modification through Bank of America. The process began in 2012 but dragged on for more than two years as the bank repeatedly requested copies of documents she had already provided. Several errors were made on her file, including the bank’s request for proof that she was no longer married to a man she did not even know, and incorrect information about whether she wanted to keep her property.

Cases like this are all too common, and many believe it is because of the way HAMP was designed. Since the program is voluntary for the banks, it appears the banks have chosen to not help the borrowers who need it the most. The numbers of rejected applicants is a testament to the flaws within the program.

Romero’s report detailed how CitiMortgage, a unit of Citibank, rejected 87% of borrowers who applied for a loan modification. JPMorgan Chase also had a similar denial rate of 84%. Bank of America rejected 80%, while Wells Fargo turned away 60% of applicants. It seems that delaying a borrower’s loan modification request is profitable for the banks, leading to more interest and fees being charged to the borrower.

According to Ms. Romero, the Treasury was supposed to ensure that the banks involved in the program were not wrongfully rejecting homeowners for a modification. Unfortunately, this appears to be exactly what has been happening. Fortunately, in the Vermont woman’s case, she was able to finally receive her loan modification after seeking help from a qualified and experienced attorney. Still, many homeowners see the government program as false hope since millions of borrowers did not get the help they needed.

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.

Source:

http://www.nytimes.com/2015/08/02/business/pulling-down-underwater-borrowers.html?_r=0

Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Homeowners in Foreclosure Receive Firm Ruling from Judges

Florida homeowners have been served a clear message from both West Palm Beach and Tampa Bankruptcy Judges. Chief Judge Paul Hyman, Jr. in the Southern District of Florida and Judge Michael Williamson in the Middle District of Florida have ruled that struggling homeowners should not be allowed to fight a foreclosure on their home after surrendering it in bankruptcy. This means that homeowners must decide whether they will surrender their property in bankruptcy or save it from foreclosure.

In the judge’s eyes, a bankruptcy allows debtors a clean slate and a chance to start over, not the opportunity for a leg up on creditors in other courts. For these judges, they will not tolerate such “inconsistent positions in federal and state courts.” If homeowners who have surrendered their property to bankruptcy continue to fight state courts to save their homes from foreclosure, they will face harsh penalties.  This puts struggling homeowners at a considerable disadvantage.

Many disagree with the judges’ views, stating that debtors who surrender their property to the bankruptcy courts should not have to surrender their home to creditors. The basis for this argument is that there is a strong distinction between the two. However, for Hyman and Williamson, surrender means relinquishing property to “make it available to the secured creditor by refraining from taking any overt act that impedes” foreclosure.

Oftentimes, a bankruptcy will allow a debtor to liquidate their property and use the funds to repay creditors. Underwater mortgages or homes facing foreclosure are often deemed abandoned and it reverts back to the homeowner. Now, with the new case law, lenders receive control of the surrendered property instead of the trustees. This gives lenders the ability to enter bankruptcy court and benefit from homeowner foreclosures.

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.

Source:

http://www.dailybusinessreview.com/home/id=1202733488406/Bankruptcy-Judges-Clamp-Down-on-Homeowners-in-Foreclosure?mcode=1202617073880&curindex=0&slreturn=20150703180236