Timothy Kingcade Posts

Foreclosures, Timothy Kingcade Posts

National Mortgage Delinquencies on the Decline While Foreclosure Rates Spike

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Mortgage delinquencies are on the decline nationwide, according to the most recent Black Knight First Look report. The mortgage delinquency rate fell 3.75 percent for all loans in the month of January, which is down 3.45 percent from December 2018. While that decrease may not seem significant, it is when compared to one year ago. In fact, mortgage delinquencies are down nearly 13 percent from January 2018.

Black Knight, Inc., provides integrated technology services in addition to data and analytics to mortgage and real estate industries. They provide this First Look report annually to review where statistics are nationally and from state-to-state when it comes to foreclosures and mortgage delinquencies.

According to the report, approximately 1.945 million properties were 30 days or more past due in January 2019. This figure is down 68,000 from December 2018. When compared to January 2018, the numbers are down by approximately 257,000.

Additionally, Black Knight reported that 504,000 homes were at the point where they were considered “seriously delinquent,” which means the mortgages were more than 90 days past due but were not yet in foreclosure. This figure is down 7,000 when compared to December 2018 but 203,000 from January 2018.

Homes that were reported in the pre-sale inventory category, meaning homes that were in some stage of the foreclosure process, were down approximately 60,000 from December 2018 and down 72,000 from January 2018, which is in line with the rest of the trends reported. The foreclosure inventory rate was 0.51 percent of all homes still holding a mortgage. This figure shows a 2.20 percent decrease from the prior month and a 22.43 percent decrease from January 2018.

Interestingly enough, Black Knight did report that approximately 50,200 foreclosures were started in January 2019 nationwide. This figure is actually an 8.42 percent increase, as compared with December 2018. It is still down 19.42 percent, however, when compared with the previous year.

The rate for monthly prepayment was at a 10.15 percent decrease in January, as compared to December 2018. It also showed a decrease of about 25 percent from January 2018, which was also the lowest level reported since before the end of 2000.

Why is the decrease in the monthly prepayment rate significant? A prepayment is a settlement of a debt or installment payment made before the payment’s due date. It can be made for either the entire balance owed or for an upcoming payment that is paid in advance of the due date. The fact that these prepayments have gone down is unusual since prepayments are typically more common when delinquency rates decrease. It would go along with the trend for the prepayment rates to go up rather than the other way around.

Black Knight does not believe this is cause for concern since housing turnover tends to go down in January and February traditionally. Prepayments could pick up again throughout the spring so long as delinquency rates remain low or where they are.

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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 McMaken website at www.miamibankruptcy.com.

Related Resources:

https://www.blackknightinc.com/black-knights-first-look-at-january-2019-mortgage-data/

 

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

Millennials Hold Over $1 Trillion in Debt

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With the increase in student loan debt, it is hard to ignore the effects it is having on a particular generation.  The most recent statistics reveal that “Millennials,” individuals who were born after 1982, hold more than $1 Trillion in debt – much of that being student loan debt.  In fact, the amount has risen 130 percent since 2008. These figures come from the New York Federal Reserve Consumer Credit Panel and are the highest debt levels reported since before the 2007 recession.

Most students end their undergraduate careers with an average of $37,000 in student loan debt. If they choose to move onto graduate studies, that debt can reach six figures before the student is done. Following graduation, most of these students are struggling to meet basic living expenses on top of meeting their monthly student loan payments.

The student loan debt burden has also impacted millennials’ ability to purchase a home. Consumer debt is reported at a record high of $13.5 trillion. Mortgage debt constitutes most consumer debt nationwide, but that is not the case for the millennial generation. Since 2009, mortgage debt increased by only 3.2 percent while student loan debt jumped 102 percent.

Overall, student loans make up the second largest category of consumer debt. Credit cards and auto loans follow. At the end of 2018, car loans made up the third largest percentage of debt in the U.S., followed by credit card debt.

If a borrower is not able to maintain payments on his or her student loan debt, the damage that results to that person’s credit can be significant, and this hit to a credit score can seriously hurt the person’s chances of obtaining a mortgage down the road. This fact could be another reason why fewer millennials are taking out mortgages.

Student loan debt is different from other types of debt. It is currently estimated that somewhere around 40 percent of all student loan borrowers will default at some point on their student loans. Many different mistakes can be made when it comes to student loan repayment. If you believe you qualify for student loan debt relief, speak with an experienced bankruptcy attorney about your options.

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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. There are ways to file for bankruptcy with student loan 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Related Resources:

https://www.badcredit.org/average-student-loan-debt/

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

The Top Ways To Get Out Of Debt

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Debt is a weight that can drag you down and make you feel like you are drowning without any way out.  Having extreme debt can affect your health, happiness and personal relationships.  Getting out of debt can be an even bigger struggle, if you do not devise a plan that works for your specific situation.

Debt Consolidation

One popular method of paying off debt is through debt consolidation. What consolidation means is the consumer’s debt is combined into one, single debt amount owed. Debt consolidation can be done through many different methods. A consumer can apply for a personal loan or consolidation loan to pay off all of the debts with the monies from the loan. This method allows you to only make one payment to one creditor rather than multiple creditors.  With this method, we strongly advise that you do your research. Not all debt consolidation companies are reputable, and it is important you understand the terms of the loan before signing on the dotted line. For most debt consolidation loans, you need good credit to be approved. If you are already struggling financially, many lenders will see you as a risky bet and will avoid lending to you without a co-signer or at least some collateral to secure the debt.

Credit Counseling

Many different credit counseling resources exist, and they usually involve a professional counselor who will work with the debtor on understanding his or her financial situation and researching possible options to get out of debt. Credit counselors often will work with the individual to organize and manage their debt, and the counselor will also contact the debtor’s creditors on payment arrangements, including creating payment plans or negotiating lower interest rates. Credit counselors can also put together a debt management plan that allows the debtor to make lower monthly payments through the debt counselor who, in turn, pays the individual’s creditors.

Like debt consolidation companies, it is important that you do your due diligence in choosing a credit counselor. Less-than-reputable agencies do exist, so make sure you choose someone who has your best interests in mind. Know that a credit counselor cannot make certain promises, such as guaranteeing that your creditors will work with them or that they will be able to directly reduce your debt. While they can certainly work towards that goal, lenders are not obligated to work with credit counselors. If a ‘credit counselor’ is promising you this or telling you that they can completely eliminate your debt by having you pay a low monthly payment to them, this is a BIG red flag.

Debt Settlement

Another potential option for paying off debt is through debt settlement. This process normally involves a third-party company that works with a debtor’s creditors to allow the debtor to pay a lower amount than what is owed. However, with this option the likelihood of scams is very high. Many of these companies have been reported for taking the debtor’s money and never negotiating on the debt. Additionally, debt settlement can result in a person’s credit taking a rather serious hit due to the fact that the debtor will normally have to stop making payments to the creditor, pushing the accounts into default. Unless the creditor agrees to work with the debt settlement company, a judgment can easily be issued against the debtor, resulting in wage garnishment to satisfy the debt.

Filing for bankruptcy

Debt can be complex and oftentimes frightening to deal with. Many times, people are hesitant or feel ashamed to ask for help. However, not properly dealing with debt can only make problems worse. Rather than run the risk of being sued by a creditor or have your wages garnished, it is best to deal with your debt head on. There are a number of debt relief options available, including filing for bankruptcy, which can completely wipe out unsecured debts like credit cards, medical bills, personal loans and more- and give you a fresh financial start. Exploring these options with the guidance and support of an experienced attorney can help you make the right decision.

Do not let your debt cost you another sleepless night. Here are some of the signs that bankruptcy is right for you. 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 McMaken 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. The consultation is free, the relief is real! You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

What It Means to Commit Bankruptcy Fraud

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When filing for bankruptcy, it is extremely important that you fully disclose all information requested and that all information provided be accurate and true. Although, most people who file for bankruptcy are honest hardworking people, some individuals can be tempted to hide property and assets.  This is called bankruptcy fraud, which is a federal crime that the U.S. Department of Justice takes very seriously.

Bankruptcy fraud occurs when a person knowingly and fraudulently commits certain prohibited acts in their bankruptcy case. It is estimated that somewhere around 10 percent of all U.S. bankruptcy filings include some form of bankruptcy fraud. If this fraud is discovered, the person committing the fraudulent act can face fines up to $250,000 and even imprisonment for up to five years in federal prison.

The four most common types of bankruptcy fraud include: concealment of assets, petition mills, multiple-filing schemes, and bust-out schemes. It must be shown that the person intended to commit the crime of bankruptcy fraud, which means that intent to deceive must be present. The person must have planned to commit the fraudulent act. If, for instance, someone makes a mistake in their forms or accidentally forgets an asset when preparing the documents, fraudulent intent is not necessarily there.

One of the most common types of bankruptcy fraud is concealment of assets. Concealing assets accounts for approximately 70 percent of all bankruptcy fraud cases reported. A person should never assume they can outsmart the bankruptcy court. Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, 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.

Another form of bankruptcy fraud is making false statements either in sworn documents filed with the court or in person to the bankruptcy trustee. Debtors are required to fill out a bankruptcy petition and a number of other supporting documents, which includes a schedule of income and assets as well as a sworn financial declaration. By submitting these documents, you are swearing that all information provided is completely true.

Bankruptcy fraud can also be committed by someone filing too many bankruptcy cases in two or more states. These filings can be made using the same name and information or also false name and information, so long as they were filed by the same person. In these types of cases, the debtor will list the certain assets on some claims while other assets on the others, thus confusing the system. The ultimate goal of these multiple filings is to keep assets from total liquidation, giving the person time to conceal assets he or she wishes to keep.

Another form of bankruptcy fraud that seems to focus heavily on non-English speaking claimants involves bankruptcy petition mills. These “mills” are fraudulent schemes committed by a third-party, where that person claims to be a consultant who can help someone avoid eviction. That person gets all of the tenant’s information and files a bankruptcy petition without the tenant ever knowing. While the bankruptcy case is pending, the perpetrator of the crime will often completely clean out the tenant’s bank accounts and destroy his or her credit.  Sadly, these types of schemes are on the rise, especially in areas where many non-English individuals reside.

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If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

 

 

 

 

 

Credit, Debt Relief, Timothy Kingcade Posts

Errors on Credit Reports Lead to Major Life Disruptions for Thousands

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It is always recommended that you review your credit report periodically to ensure that no errors exist in your credit history. If you do discover a discrepancy or error on your report, it is recommended you contact the credit agency to have the problem fixed. For the most part, after this is done, you expect the error to disappear and not create any problems in the future. What if that does not happen? That scenario was the case for thousands of American consumers who later discovered that what they thought was fixed came to haunt them at a later date.

Thousands of Americans have been fighting legal battles related to errors found in credit reports by all three of the nation’s largest credit reporting agencies, Equifax, Experian and TransUnion. Not only are these individuals fighting legal battles, but they are feeling the effects on their credit scores. Credit errors can also lead to mistaken identity if one person who has excellent credit happens to be mixed up with someone who does not. For some, these errors have caused their credit scores to tank so much that they have lost the ability to be considered to rent an apartment or for a job. By the time the error is fixed, it is often too little too late for that person. The job may already be filled at that point or apartment rented.

It is estimated that in the past three years, more than 4,000 federal lawsuits have been filed against Equifax by litigants who claim that the credit reporting agency failed to follow federal law with respect to fair credit reporting. Other cases were filed locally via state court. According to the Consumer Financial Protection Bureau (CFPB), 175,000 complaints were filed with the CFPB between 2015 and 2017 regarding credit report errors. Of these complaints, 65 percent of those filed in 2017 had to do with information that was incorrect.

Some of these errors can occur when people who have similar names, addresses or even Social Security numbers are mixed up. One way or another, their files cross paths, causing information to be mixed up and incorrect.

However, one major problem has to do with how much credit bureaus can get away with when it comes to accountability. It can be extremely easy for them to avoid a full and comprehensive review.

In response to many of these court filings, Equifax has argued that it has procedures in place to ensure that their reports are accurate. They dispute any responsibility and say that banks and credit card companies that provide this information to Equifax are the entities who should be held responsible. Attorneys representing the consumers involved insist that these errors are mostly the fault of the credit reporting agencies, especially when it comes to consumers being mixed up if their names or information is close or similar.  Many times, these agencies do not require information used to sort consumers to be an exact match which can lead to these problems.

This problem is not a new one by any means. In 1992, Equifax came under fire after attorneys general in 18 states claimed that mixed consumer files caused damages these individuals. At the time, Equifax told regulators that they would put procedures in place to detect these errors when they occur. However, whether these procedures were actually effective is debatable.

The Federal Trade Commission (FTC) claims that one in every five American consumers has an error on their credit reports. Many of these errors go undetected by consumers.

Please click here to read more.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Medical Debt a Factor in Two-Thirds of Bankruptcy Filings

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Coming to the decision to file for bankruptcy is an extremely difficult and personal one to make, but for many Americans, they have no other choice but to file. Why are so many of them at the point where bankruptcy is their only viable option? According to a recent study published in the American Journal of Public Health, medical debt is the leading cause behind many of these bankruptcy filings.

The study was conducted by two medical professionals, two attorneys and a sociologist from the Consumer Bankruptcy Project. The data reported showed that two-thirds of filers cited medical debt as the reason for their filing. They surveyed 910 Americans who filed for bankruptcy between the years 2013 and 2016. Of those surveyed, 58.5 percent reported that medical expenses either “very much” or “somewhat” contributed to their bankruptcy case. Additionally, 44.3 percent of those surveyed cited a serious illness that resulted in work loss as a contributing factor. Two-thirds of those surveyed said that medical reasons were one of the factors that led to them filing for bankruptcy.

It is estimated that approximately 530,000 medical bankruptcies are filed annually. Even after the passage of the Affordable Care Act (ACA), medical bankruptcies are still a common occurrence. High medical costs can lead to the person falling into financial difficulties, but so can losing time at work or even losing a job because of an illness or injury.

The study concluded that, even with the ACA, those who are considered “chronically poor,” tended to be the group that was most affected by the ACA coverage expansion. This group tends to also not have access to credit or assets to utilize to handle unexpected medical expenses. Many of these filers are already strapped financially and unable to make ends meet. Of those surveyed, 45 percent of them said they filed for bankruptcy due to foreclosure or the inability to pay their mortgages; 44.4 percent stated they were living beyond their means; and 24.4 percent of them were struggling after a divorce or separation.

According to Dr. David U. Himmelstein, distinguished professor at Hunter College and the founder of Physicians for a National Health Program, the lack of sufficient healthcare coverage is a leading cause these filings. Lack of savings is also a contributing factor. All it takes is for one major, unexpected medical crisis for a person to fall into a desperate financial situation where he or she cannot pay medical bills, and struggle to afford basic living expenses.

How is Medical Debt Handled in Bankruptcy?

In bankruptcy, medical debt is treated the same as credit card debt. Medical bills are listed as general unsecured debt and can be easily wiped out in a Chapter 7 bankruptcy filing.  Making the decision to file for bankruptcy is never an easy one.  It can be difficult to get past some of the myths associated with filing for bankruptcy.  Sometimes by waiting, an individual facing a lot of debt can find himself or herself in an even worse situation. Filing for bankruptcy can help protect valuable assets, including your home, pension, IRA and social security.  It will put an end to wage garnishment and any lawsuit being filed to collect on the debt, thanks to the protections of the automatic stay.

To read more on this topic, please click here.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Related Resources: https://www.beckershospitalreview.com/finance/medical-debt-a-factor-in-two-thirds-of-bankruptcies-in-survey.html

 

 

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

40 Percent of Palm Beach and Broward County Residents Are Struggling to Meet Basic Needs

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A number of residents in the Palm Beach and Broward counties are struggling to make ends meet, according to a recent report published by The United Way.  It is estimated that around 40 percent of residents living in some of the area’s oldest neighborhoods are barely able to meet their most basic expenses.

This report comes from a study produced by the United Way called the ALICE report. ALICE stands for “Asset Limited, Income Constrained, Employed.” It is a formula that takes federal, state and local income and expenses data and adds the percentage of households that are said to below the federal poverty guidelines. The result of this formula is the ALICE category, which includes households of working families who produce income but still do not have enough money coming in to meet their basic needs or save for the future. The ALICE rate is the number of families who fall into this category.

The ALICE report showed that six states, including Florida, New Jersey, California, Michigan, Connecticut and Indiana, struggle the most. In these states, up to half of the households surveyed are struggling so much that they have to make difficult decisions such as whether they pay their utility bills or buy groceries for the week.

Florida reports an ALICE rate of 45 percent. Specifically, in Palm Beach County, the ALICE rate is 41 percent while it is 47 percent in Broward County. It is reported that of the 64,229 households in Palm Beach county, 12 percent of them are below the poverty guidelines while 29 percent of them are employed but still not able to meet their most basic needs. In Broward county, of the 90,321 households reported, 14 percent of them are in poverty with 33 percent working but struggling to meet daily expenses.

What is considered to be poverty? It depends on the area of the country and the specific living expenses in each area. For example, in Palm Beach, a family of four needs to bring in $52,379 in income annually. In this area, the study reports that an average family of four spends $1,138 on housing costs, $1,146 on child care expenses, $655 in transportation costs, and $531 on food and groceries. These expenses are similar for the same sized family in Broward county, requiring them to earn an annual income of $52,712 to meet their basic daily living expenses.

However, the problem is most families in these areas do not bring in much more than this income. In many communities within both of these counties, households struggle even more. One area includes South Bay, which has an ALICE rate of 70 percent. Belle Glade has an ALICE rate of 68 percent and Rivera Beach comes in with a rate of 55 percent.

Even more concerning were the reports that in half of Broward county’s 32 communities, residents were not able to pay for necessary living expenses. Of all of these communities, the one that struggles the most is the Pembroke Park area, which reported at a 72 percent ALICE rate. Following Pembroke Park were Deerfield Beach, Lauderdale Lakes, Lauderhill, North Lauderdale and Pompano Beach.

The older neighborhoods with smaller homes and older appliances in the homes tend to be the areas that struggle the most. Many of these individuals are just on the edge of what the poverty guidelines dictate, which means they are just above the level of where they would be able to receive government assistance for expenses, which makes their situation that much more difficult.

Please click here to read more.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Two New Ways to Raise Your Credit Score

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Credit scores play a major role in your ability to do many different things in life, ranging from getting a mortgage or car loan to being approved for renting an apartment. A good credit score can also secure a lower interest rate when you do receive financing for a large purchase. It pays to have a good credit score and rebuilding a damaged credit score can take time.

There are two new ways to boost your credit score. These new programs include the UltraFICO from Fair Issac, the creator of the FICO Score, and Experian Boost. These two new programs can potentially help you increase your score, especially if you have a limited credit history or have a lower credit score.

UltraFICO

The first of these scores, the UltraFICO was launched in January 2019 and is planned on being available to most lenders in the U.S. by mid-2019. The program is part of a joint venture with FICO, Experian and Finicity. UltraFICO allows FICO to look at a consumer’s bank and financial accounts to show lenders that you do have savings and the money available to make loan or credit payments if approved for financing.

FICO anticipates that this program will benefit approximately seven out of ten consumers whose financial accounts can show a history of good savings and financial behavior. Even consumers who do not have a FICO score currently could still be eligible to receive an UltraFICO score.

This score could be more beneficial to someone who has a rather large bank balance but a limited credit history. So long as the consumer can show he or she can save money responsibly, the fact that he or she has not applied for credit much in the past will not hurt them with the UltraFICO score.

One point to keep in mind is UltraFICO is only available for loans or credit cards that are applied for with a lender who uses Experian. If the lender uses Equifax or TransUnion, the borrower will not be able to take advantage of this opportunity. Before applying for the loan or credit, as the company which credit bureau they use to review new applicants. If the company says they do not use Experian, it may be advisable to use another institution if you believe the UltraFICO score will help you.

Experian Boost

Another program is set to be released in the early months of 2019, known as Experian Boost. The Experian Boost program is different from UltraFICO in that it allows lenders to review the borrower’s financial history through their bank accounts, specifically related to utility bill payments. The key is not to see that a consumer has a sizeable savings but rather a demonstrated, good history of paying his or her utility payments in a timely manner over a set span of time. Also, unlike the UltraFICO score, the data found through this review is added automatically and directly to your Experian credit report. The borrower must opt in to allow his or her utility information to be visible in the Experian credit report, and if the results are positive, they will be posted immediately to the borrower’s Experian score. Borrowers are allowed to sign up for early access to the program.

Please click here to read more.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Do Not Believe the Lies Debt Collectors Tell You

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Debt collectors will tell you just about anything to get you to pay on a debt. They are persistent, to the point of being rude or even harassing at times. One thing that many debt collectors, especially the less-than-reputable collectors bank on is the fact that you will not know when your rights are being violated or when you are being lied to.

How do you know whether you are being fed a line or whether you are being told the truth by a debt collector?   Here are some of the most common lies debt collectors will tell you.

Threatening to take you to court – even jail.

Under the Fair Debt Collection Practices Act (FDCPA), third-party debt collectors cannot threaten to take you to court on a debt if they have no intention of actually doing this. Many also will threaten to garnish your wages if you do not pay. Wage garnishment does not occur that easily. It only happens after a debt collector files a formal legal claim against you, a hearing is held where you have the right to present your side of the story, and a judgment is issued. Only then can a debt collector file a wage garnishment, which still has to be granted by the judge before your wages can actually be garnished. Many collectors, however, will make these statements in hopes that they will scare you enough into paying them.

The debt collector does not have to prove you owe the debt.

This lie is another one that goes directly against the FDCPA. If you are contacted by a debt collector who claims you owe money on a debt, you have the right to request written proof or validation of the debt. You then have 30 days normally to dispute the debt, if you do not believe you owe it. In fact, under the FDCPA, consumers have the right to send the debt collector a formal letter known as a “debt validation letter,” requesting more information on the debt to see what amount is owed.

This validation includes a complete payment history, a copy of the original loan agreement or credit application and proof that a third-party debt collector has the right to contact you on the debt, if someone other than the original creditor has contacted you. Many collectors will say they do not have to legally provide you this proof, but that statement is completely untrue.

Additionally, according to the Federal Trade Commission (FTC), if a creditor cannot validate a debt, the creditor cannot collect on the debt, is not permitted to contact you on the debt, and is not allowed to report your debt to creditor bureaus. Violating this provision is a violation of the Fair Credit Reporting Act and can result in a $1,000 fine.

Paying off the debt immediately will improve your credit score.

Mentioning your credit score is often a quick way to get you to act, and debt collectors know this fact. Many collectors will claim that you can immediately improve your credit score if you pay them immediately. The problem is, once your debt is in collections or is considered 90 days past due, this blemish will stay on your credit reporting even if you make an immediate payment to the debt collector. They cannot promise that your credit score will improve with that payment because it simply is not possible. It is possible, however, to get a written agreement from the creditor or collector that they will remove all negative information from them on your credit report, but most consumers are not aware of this possibility, so it is rarely utilized.

Threaten to expose your debt to others.

Debt collectors may also threaten to expose you and the fact you owe this debt to others you know, including family members, friends, even your employer. However, under the FDCPA, debt collectors are prohibited from revealing any information about the debt to anyone other than the debtor. This protection is meant to keep the debtor free from intimidation or harassment from debt collectors and to keep this information private, as it is personal information only to the debtor. If the collector makes this threat, report the company immediately to the FTC as they are violating federal law.

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If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The Top Ways to Avoid a Financial Crisis, according to a Bankruptcy Judge

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No one wants to think about what he or she would do if faced with a major financial crisis. However, what if the unthinkable happens, and you find yourself facing a financial situation you never thought you would encounter? Some bankruptcies are precipitated by events that are beyond a person’s control – for example, a major health crisis, a job loss or divorce.  But a number of causes are entirely within a person’s power to stop. After 12 years serving as a bankruptcy judge, the Hon. Margaret Cangilos-Ruiz, the chief judge for New York’s Northern District Bankruptcy Court says she has seen it all.  In a recent interview with MarketWatch, she shared her insight on how people can avoid bankruptcy and setting foot in her courtroom.

Monitor Your Credit Cards

It can be very easy to rely on credit cards to make all of your daily purchases. However, when that bill comes in the mail, and you see just how much these small purchases add up to, the outstanding balance can be more than you predicted. It can also be tempting to only pay the minimum balance listed on the statement, promising yourself that you will be catch up on the payments eventually. A good rule of thumb is to never carry a credit card balance from month to month. If at all possible, it is best to pay the balance in full, but if this cannot happen, put together a plan to pay off the balance completely over time.

Not only should you not carry a large balance for too long on your credit cards, it also helps to pay them on time. As soon as you miss one or two payments, your card’s interest rates will skyrocket, making it even more difficult to pay down the balance. As soon as you receive the bill, make sure you do not put it aside and forget to pay it. You will be saving yourself hundreds of dollars in fees and penalties for the long run.

Monitor Your Credit Score / Report

It also helps to keep an eye on your credit score. A good credit score will make it easier for you to take out a loan in the future for big purchases, such as a home or a car. Also, you never know when you will hit a rough patch down the road and will need to take out a loan to help finance medical bills or pay off an unexpected expense. By periodically checking your credit report, you can keep track of your score and also make sure that no incorrect accounts or mistakes are on your credit report. It is best to discover these issues ahead of time and fix them before they become a bigger problem.

Practice Responsible Spending Habits

Paying off your credit card and creating a budget is one thing, but these cannot be possible without controlling your spending. One of the biggest ways to do this is to limit how much you spend on “non-necessary” items and differentiating between something you want and something you need. If there is a large item that you want, save up for that item and only purchase it when you have enough money to pay for that item. Keep an eye on the small purchases you make on a daily basis, as those do add up. Many consumers find success in allowing themselves to use a certain amount of cash every month on non-necessary expenses. Once the cash is gone, they are not able to purchase anything more of their “wanted” items. Resist the urge to rely on credit cards to pay for a cup of coffee or a new shirt after you go through your cash allowance for the month.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.