Timothy Kingcade Posts

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

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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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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.

Foreclosures, Timothy Kingcade Posts

New Jersey Senator Introduces New Bill to Address Zombie Foreclosure “Crisis”

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Sen. Bob Menendez, D-NJ, recently introduced a bill to the Senate that addresses the nationwide crisis – zombie foreclosures. The bill is called “Preventing Abandoned Foreclosures and Preserving Communities Act of 2016.” This crisis refers to homes that sit vacant, sometimes for years, while in “legal limbo” throughout the process of foreclosure. The zombie foreclosure crisis has negatively impacted economies across the country by lowering property values in neighborhoods. According to Menendez, the vacant homes “scare away new homebuyers and investors,” which eventually impacts surrounding neighborhoods, and so on.

While introducing the new bill, Sen. Menendez stated that New Jersey had the highest foreclosure rate in the country in 2015, with 35,000 foreclosure filings. He went on to say that it also has the highest rate of vacant “zombie foreclosures,” with 4,003, according to RealtyTrac. However, his new bill would address the zombie foreclosure crisis across the country.

According to Menendez, his new bill would:

  • Require mortgage servicers to tell borrowers at the beginning of the foreclosure process they can remain in the home until state law requires them to leave
  • Require the servicer to make clear to the borrower that he or she remains responsible for the payment of any taxes, assessments, and other fees during the foreclosure process
  • Require the mortgage servicer to make prompt notifications to both the borrower and the municipality where the property is located when it walks away from the foreclosure
  • Prohibit mortgage servicers on loans backed by Fannie Mae and Freddie Mac and insured by the Federal Housing Administration from walking away from an initiated foreclosure unless the servicer releases the lien on the property and provides proper notice to the borrower and municipality
  • Require the Government Accountability Office and the CFPB to study and report on the prevalence and impact of abandoned foreclosures

Click here to read more on the story.

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, Debt Relief, Florida Bar, Timothy Kingcade Posts

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

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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.

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, Debt Relief, Student Loans, Timothy Kingcade Posts

Class Action Lawsuit Filed Against Student Loan Debt Collector

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A class action lawsuit has been filed against Balboa Student Loan Trust for harassing former Everest College students for repayment of their student loans. The harassment came as a shock to former students whose debt had been previously forgiven by the U.S. Department of Education after it was determined that the institution was misleading students. Balboa Student Loan Trust, the company that purchased a portion of Everest College debts, has ignored the findings and has reportedly called students up to five times per day to collect on the student loan debts.

Everest College is owned and operated by Corinthian Colleges. The U.S. Department of Education fined Corinthian Colleges $30 million in April of last year for misrepresenting their job replacement rates. Later that month, Corinthian Colleges filed for bankruptcy and has since lost its accreditation. The colleges were also offering loans through a student loan program called Genesis, which was later found to be a scam by the Consumer Financial Protection Bureau when nearly 60 percent of the students defaulted on their loans due to outrageous repayment rates. Balboa Student Loan Trust later purchased these loans and promised to forgive 40 percent of the debt and stop harassing students to repay their loans. However, the consumer class action suit claims the debt collector has violated the terms that were agreed upon with the federal government.

“These private lenders are victimizing these students a second time by continuing to try and collect on debt that was incurred through fraud and deceit,” Anne Richardson said. Richardson is an attorney with Public Counsel, one of the law firms that filed the class action suit.

Click here to read more on the 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.

Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

FTC Shuts Down Multi-Million Dollar Mortgage Relief Scam

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The Federal Trade Commission (FTC) shut down multiple mortgage relief schemes conducted by a string of California-based law firms that ultimately scammed struggling homeowners out of millions of dollars. The law firms were charging homeowners thousands of dollars and falsely promising that their services would allow them to stay in their homes.

Homeowners were told they could join a “mass joinder” lawsuit against their mortgage lenders, claiming mortgage fraud and void consumer’s mortgage notes. The attorneys, operating as Brookstone Law Group, Brookstone Law, Advantis Law and Advantis Law Group, promised homeowners they would discharge their mortgage entirely, provide monetary relief or both. However, the firms never followed through on their promises.

According to the FTC, the promise of a “mass joinder” lawsuit is a common mortgage relief scam. Mass joinder lawsuits are different from class action lawsuits because each individual defendant is required to prove his or her case in court. The FTC stated that although the attorneys did file lawsuits in this case, most were never pursued and ultimately dismissed.

The FTC’s report stated the attorneys mailed out materials including the homeowner’s name, loan amount and property identification number with statements such as, “Your home will be sold at Auction unless you take immediate action.”

Homeowners who proceeded with the case were initially charged $895 to join the lawsuit and receive a “legal analysis.” Those whose legal analysis showed they had a good case were told they were “likely or certain” to win a lawsuit against their mortgage lenders and would recover at least $75,000. The firms would then charge homeowners thousands of dollars and monthly fees and failed to deposit the fees in client trust funds as required by law.

Most of the homeowners were never added as plaintiffs in a case and some were added months later. Their questions went unanswered and their requests for refunds were allegedly refused. According to the FTC’s report, the mortgage relief scheme netted at least $15 million.

Click here to read more on this story.

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, Debt Relief, Student Loans, Timothy Kingcade Posts

Five Tips to Manage Student Loans and Credit Card Debt

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Although student loan debt is a much greater problem in the United States than credit card debt, the two almost always go hand-in-hand. Approximately 76 percent of student loan borrowers also carry credit card debt. Student loan debt has reached an enormous rate, currently at $1.23 trillion, while credit card debt across the country has reached $733 billion. An average American household carries approximately $48,000 in student loan debt and $16,000 in credit card debt, according to NerdWallet. A significant amount of debt is likely to cause financial stress and has been linked to problems in the workplace, in marriages and various health problems.

It can take many years to pay off the balance of both student loan and credit card debt. As a result, it is important to fully understand the financial ramifications of taking on these debts. Below are a few things to keep in mind:

Student Loan Debt:

  • The total amount borrowed is extremely high by the time you graduate.
  • It may be difficult to find a job upon graduation and most starting salaries for college graduates are low.
  • Student loan debts are rarely discharged in bankruptcy.
  • Monthly payments will likely be high due to the significant amount of debt borrowed.
  • Deferments and forbearances are temporary solutions. Most student loan payments begin six months after graduation.

Credit Card Debt:

  • Most credit card companies charge minimal payments, which can drag the debt out for many years.
  • Interest rates and APRs can be exceedingly high.
  • Balance transfers may only ease your debt slightly.

Once you have the debt, the next thing you need to know is how to manage it. Below are five tips to managing student loans and credit card debt.

  1. Figure out how much debt you have. It is more stressful to keep yourself in the dark when it comes to your total amount of debt. Contact your creditors, obtain your credit report and list all of your debts in a spreadsheet. This will give you more perspective and help you gain control over your debt.
  2. Create a plan. The next thing you need to do is create a budget that includes not only your debt, but also your monthly bills. If you are spending more than you are earning, you may need to find ways to make extra money or look for a second job. When creating your budget, it is important to not look too far into the future, this may cause additional stress.
  3. Prioritize one debt over the others. If you are like most Americans and have multiple types of debts, you may want to prioritize one type of debt. If you have credit card and student loan debt, this would likely be the credit card debt because this type of debt typically has a higher interest rate. This will help you save money in the long run. Don’t ignore your student loan payments; just try to devote more of your extra money toward paying off the loan with the higher interest rate.
  4. Explore your options. There might be options for your debt that will alleviate some of your stress such as refinancing your student loans into one consolidated private loan with a lower interest rate. You might also be able to transfer your credit card balances to one single card with the lowest interest rate.
  5. Seek Financial and Personal Help. If your debt is so high that you can’t make ends meat, you may want to seek help from a certified financial planner, legitimate credit counseling agency or an experienced bankruptcy attorney.

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, Credit, Debt Relief, Timothy Kingcade Posts

Bankruptcy Legislation for Big Banks Gains Momentum

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Legislation to make the bankruptcy of a big bank more realistic is gaining momentum in Washington, a development that could help the largest U.S. financial firms counter criticism that they remain “too big to fail,” without a taxpayer bailout.

Changes to the bankruptcy code were included in a financial-services budget bill the House passed last week, along with other regulatory provisions such as congressional oversight of the Consumer Financial Protection Bureau’s budget. The bankruptcy legislation has broad support, giving it a greater chance to become law this year.

The Financial Institutions Bankruptcy Act would establish a section of the bankruptcy code specifically for large financial firms and is designed to prevent a repeat of 2008 Lehman Brothers downfall, when the investment bank’s bankruptcy filing caused widespread financial panic and economic consequences. Under the bill, regulators and bankruptcy judges would have more power and flexibility to sort out the liabilities of a failing firm and to stabilize its continuing operations.

Rep. David Trott (R., Mich.), the bill’s primary sponsor, “believes the inclusion of the language in the appropriations bill further builds momentum for this bipartisan plan to protect taxpayers and he hopes the Senate will take up the legislation soon,” a spokesman said last week.

The bankruptcy provisions are part of a number of changes instituted after 2008 to lessen the chances of a Lehman-like collapse and the bank bailouts that followed. The 2010 Dodd-Frank financial overhaul law required big banks to show they have credible plans for going through bankruptcy, known as “living wills.”

By making the bankruptcy code a more feasible option for large financial firms, the bill would help ease GOP concerns about future bailouts. That is part of the reason big banks have been in favor of it. The bill is also less controversial than some related proposals because it does not seek to repeal regulators’ new powers to “unwind financial firms outside bankruptcy.”

Changes to the bankruptcy code could also have a positive effect on big banks by bolstering their “living will” bankruptcy plans. Regulators told five of the eight U.S. banks considered critical to the global economy their plans to go through the existing bankruptcy code were not credible, and the banks face sanctions if they cannot address regulators’ concerns.

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 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

Consumer Debt Increases in May on Student and Auto Loans

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The Federal Reserve reported that borrowing increased by $18.6 billion in May, an increase from $13.4 billion in April.  Borrowing in the auto and student loan category climbed 16.2 billion. Borrowing in the credit card category increased 2.4 billion.

This gain in May pushed total consumer credit to a record 3.62 trillion. Consumer spending, which accounts for 70 percent of economic activity, is expected to surge, helping boost the overall economy.  Non-revolving debt, a category that includes auto loans, student loans, boats, and vacations accounts for $16.2 billion of the total increase.

Student loans and motor vehicle loans typically represent the bulk of non-revolving credit. Due to easy credit, subprime auto loans likely played a part in this.

Economists are forecasting that second quarter growth will accelerate to a rate of around 2.5 percent.  The increase is due to the expected employment growth, which slowed this spring, but will continue to increase in the coming months. A recent report reveals employers added 287,000 jobs in June, a substantial improvement from the small gain of 11,000 jobs in May.

If you are in financial crisis and considering filing for bankruptcy, 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.

Related Resources:

http://www.newsmax.com/Finance/StreetTalk/consumer-debt-auto-student/2016/07/08/id/737822/

http://www.minyanville.com/business-news/markets/articles/2523economy/7/9/2016/id/57742

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

You can sue over Robocalls- Know your rights when it comes to Collection Calls

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Debt collectors have the right to contact you, but they do not have the right to harass you.  Recently, a woman received robocalls from the same business four or five times a day, all hours of the day and night, even on holidays- including Christmas day! She received a total of 800 robocalls in a year and a half period.  After repeatedly telling the company to stop contacting her, she took legal recourse.  The woman had suffered complications from bypass surgery and had fallen behind on her car payments.

The unwanted calls are in violation of the Telephone Consumer Protection Act, the number one complaint to the FCC.  Consumers have the right to sue and can be awarded up to $1,500 for every call that does not fall within these guidelines.

Here are five illegal tactics that unethical debt collectors use:

  • Harassment. Relentless calling, 4-5 times a day falls into this category.
  • Timing. Debt collectors must limit their calls between 8 a.m. and 9 p.m. on weekends and weekdays.
  • Pretending to be someone else. Debt collectors always have to identify themselves and who they work for.
  • Making threats. It is illegal to make threats to get you to pay. The debt collector cannot threaten physical harm, jail-time or let your neighbors know about an outstanding debt.
  • Contacting third parties. It is illegal for a debt collector to contact employers, neighbors or leave messages with anyone regarding your debt.

Know your rights as a consumer.  The Fair Debt Collection Practices Act (FDCPA) was designed to help prevent creditor abuse and harassment.

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 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, Student Loans, Timothy Kingcade Posts

Parents Responsible for Nearly Every New Private Student Loan

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Student loans are no longer just for students. New private student loans are requiring parents to sign on the dotted line as well. This change comes as lenders continue to strengthen the guidelines on underwriting requirements. Nearly every, or 94%, of private student loans distributed to undergraduates for the 2015-2016 academic year had more than one borrower responsible for the debt–not only the student but a co-signer, according to the report.

Five of the largest private student lenders distributed $6.46 billion in loans between July 2015 and March 2016, up 7% from the same period a year earlier–and the fifth consecutive year of increases, according to recent data from MeasureOne.

Cosigners are becoming more common with graduate school student loans as well. Nearly 61% of student loans dispersed for 2015-2016 had cosigners versus 57% the previous year. For lenders, cosigners increase the chance that the loan will be repaid, avoiding defaults. When the student borrower cannot make the payments, co-signers- usually the parents- have to pay up. Otherwise lenders can report both the student and co-signer of being late to the credit bureaus. That would lead to lower credit scores for both the student borrower and the cosigner, making it harder to obtain other types of financing.

Student loans are considered among the riskiest type of consumer loans, because it is difficult to determine whether borrowers will graduate or end up with a salary that is enough to repay the debt. In case you missed it, read our blog on the dangers of co-signing.

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.