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

Why are mortgages getting cheaper?

Posted on April 19, 2017by Admin

The average rate of a 30-year fixed mortgage fell to 4.08% this week, the fourth consecutive week of declines and the lowest level this year, according to Freddie Mac.

A higher Federal Funds rate makes it more expensive for banks to borrow money, which can translate into higher borrowing rates for consumers. But recent global uncertainty and signs that the White House might not be as productive with its agenda as many thought has caused yields to recently fall. The 10-year Treasury yield is around 2.23%, down from around 2.62% nearly a month ago. Mortgage rates have moved lower as well.

Freddie Mac predicts that we will see rates increase to around 4.5% by the end of the year. Potential home buyers should welcome the drop in rates with open arms as the busy buying season heats up.

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

Debt Relief, Timothy Kingcade Posts

How to Spot a Real IRS Debt Collection Call from a Scam

Posted on April 18, 2017by Admin

The IRS recently announced that it will be making collection calls to collect on delinquent taxes, something they maintained for years would never happen. Not surprisingly, scammers are making the most of the opportunity. According to the IRS, losses have mounted to more than $20,000,000, as a result of the IRS Imposter Scam.

If you receive a call from someone claiming to be from the IRS, consider these important tips to determine if the call is real or a scam.

There are only four authorized firms nationwide, which include:

CBE Group of Cedar Falls, Iowa;
Conserve of Fairport, N.Y.;
Performant of Livermore, Calif.; and
Pioneer of Horseheads, N.Y.

If you owe taxes, only one of these firms will contact you.
You likely know who you are. You will not receive a call if you pay your taxes on-time and regularly. If you are delinquent in tax payments, you will receive multiple written notifications from the IRS, before your case is turned over to one of the listed debt collection firms.
The IRS will send a letter to notify you that your case has been turned over to one of these companies. The collection company will also send you a letter regarding their authorization to call on behalf of the IRS.
The company will not ask for payment to be made to them, nor will they ask for payment on a Money Card.
These companies will not threaten you.

If you are still unsure if you have unpaid tax debts from previous years, you can go to IRS.gov and check your account balance. If the account balance says zero that means nothing is due, and you should not be receiving calls from the IRS or one of these collection companies.

Click here to learn more on the IRS Imposter Scam.

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

400 Percent Increase in Scams this Tax Season

Posted on April 17, 2017by Admin

According to the IRS, there has been a 400 percent increase in tax scams during this year’s filing season, compared to last year. The IRS has issued warnings about the growing threat of scams as the end of tax season nears. Scammers use tax season to trick taxpayers into disclosing confidential information so they can access bank accounts, make fraudulent purchases, apply for loans and steal tax refunds.

The most common way scammers steal W-2s is through phishing emails. Hackers create a fake email address, posing as a CEO or CFO of a company and send a request to an employee in payroll asking for a PDF of all employees’ W-2s.

According to the Department of Justice, stolen identity tax refund fraud has affected hundreds of thousands of taxpayers and has cost the United States Treasury billions of dollars.

Other common scams claim there is an urgent situation requiring taxpayers’ immediate attention, such as an issue with processing refunds, additional forms or an audit warning.

The best way to protect yourself from tax scams is to know the signs:

Emails that appear to be from the IRS with suspicious links and attachments
Text messages that instruct you to call a toll-free number
Phone calls with pre-recorded messages that ask for confidential information

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

The New Shape of U.S. Household Debt

Posted on April 14, 2017by Admin

Household debt in America has been reshaped in ways that could potentially affect how financial experts are able to help manage a consumer’s liabilities. The overall debt of U.S. households is $100 billion smaller than it was in 2008. According to the Federal Reserve Bank of New York, it also looks a lot different now than it did then.

Mortgage debt remains the largest debt burden. However, its share of household debt has declined along with that of credit card debt, while the share of student loan debt and auto loan debt has grown.

By the end of 2016, mortgage debt accounted for 71 percent of household debt, down from almost 79 percent in 2008. Student debt had more than doubled since 2008 and more than tripled since 2003 to 10.4 percent.

Auto loan debt had a 9.2 percent share at the end of 2016, which is approximately one-third larger than it was in 2008. All three types of debt had larger shares of households’ income than credit card debt.

All of this means that housing debt fell $1 billion from its peak in 2008 of $9 trillion, while student loan debt rose $700 billion and auto debt rose $350 billion.

Financial experts attribute the change in household debt to a change in the demographics of U.S. debt. Households that are headed by those 60 years old and older now account for just over 22 percent of outstanding U.S. debt, which is up from 16 percent in 2008.

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

U.S. Bankruptcy Judge Fines Bank of America $45 Million

Posted on April 13, 2017by Admin

Judge Christopher Klein of the U.S. Bankruptcy Court in Sacramento issued a $45 million fine against Bank of America Corp., calling the treatment of a California couple who fought to save their home “brazen” and “heartless.” According to Judge Klein, the bank’s mortgage modification process and mistaken foreclosure on Erik and Renee Sundquist’s home left them in a “state of battle-fatigued demoralization.”

“It is apparent that the engine of Bank of America’s problem in this case is one of corporate culture… not rogue employees betraying an upstanding employer,” Judge Klein said. He added that he hopes the fine is large enough that it will not be “laughed off in the boardroom as petty cash or ‘chump change’.” Most of the money from the fine will go to law schools and consumer advocacy organizations.

The Sundquists’ financial troubles started in 2008 after their construction business closed down due to the economic downturn. The couple later bought a cheaper home outside of Sacramento and borrowed approximately $590,000 from a lender that was later taken over by Bank of America. After which, the bank promised them that they could request lower monthly payments. However, in 2009 when the couple stopped making payments, Bank of America officials said they would not consider a loan modification. Over the next few years, the couple requested loan modifications approximately 20 times. Each time their requests were “routinely either lost or declared insufficient, or incomplete or stale or in need of resubmission or denied without comprehensible explanation,” the ruling said.

In 2010 the couple filed for bankruptcy which halts foreclosure sales. However, the bank still improperly took over the home and gave them a three-day eviction notice. A few weeks after the couple moved out, Ms. Sundquist was hospitalized with stress-related heart attack symptoms.

Bank of America later reversed the sale but never formally notified the couple of the change. According to the ruling, they moved back in several months later.

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

Student Loans ‘Designed to Fail’: States Say Navient Preyed on Students

Posted on April 12, 2017by Admin

Navient, a student loan lender that split off from Sallie Mae in 2014, retained nearly all of the company’s loan portfolio. In recent months, Navient has come under fire for aggressive and sloppy loan collection practices, leading the government to file multiple lawsuits against the student loan giant in January.

However, those accusations have overshadowed broader claims made against the lender. Two separate states, Illinois and Washington, have filed lawsuits against Sallie Mae claiming that it engaged in predatory lending, extending billions of dollars in private loans to students.

“These loans were designed to fail,” said Shannon Smith, chief of the consumer protection division at the Washington State attorney general’s office.

New details emerged last month in the lawsuits against Navient that shed light on how Sallie Mae used private subprime loans, some of which it expected to default at rates as high as 92 percent, as a tool to build its business relationships with colleges and universities across the company.

The risky loans were detrimental for students, however; they were beneficial for Sallie Mae. The private loans were a “baited hook” as Sallie Mae described it. The lender used the private loans to reel in more federally guaranteed loans, according to the lawsuit.

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

Miami Bankruptcy Attorney Timothy S. Kingcade Receives Prestigious AVVO Clients’ Choice Award 2017

Posted on April 11, 2017by Admin

Managing Shareholder, Timothy S. Kingcade of the Miami-based law firm of Kingcade & Garcia, P.A. (www.miamibankruptcy.com) was recently honored with the 2017 AVVO Clients’ Choice Award. In order to achieve this honor, an attorney must have received five or more exceptional client reviews for the same year.

One of attorney Kingcade’s recent clients had this to say on AVVO: “I went to Kingcade & Garcia for information about a pending home foreclosure. After assessing my finances, Mr. Kingcade suggested bankruptcy options to protect my home. I appreciate the fact that he has a background in accounting and law. This allows him and his team to see the big “picture” in what is best regarding the order in which divorce, bankruptcy, and foreclosure options should be filed. Kingcade is very knowledgeable regarding taxes and other financial issues. He was able to help me with restoring my credit, advising with my divorce to protect my assets, and directed me in the right direction to save my house. I have already recommended his office to 2 other friends going through similar experiences.”

Attorney Timothy S. Kingcade founded the law firm Kingcade & Garcia, P.A. in 1996. He has been dedicated to helping thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. Timothy is also a certified public accountant (CPA), which allows him to better understand tax-motivated bankruptcy cases against the IRS. Timothy’s vast experience and expertise in the area of bankruptcy law allow him to know what bankruptcy trustees in the Southern District of Florida are looking for, preventing his clients from some of the pitfalls that can lead to the dismissal of a bankruptcy claim.

Miami-based Kingcade & Garcia, P.A. was established by managing partner and attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense. The firm is committed to providing personalized service to each and every client. The office environment and the service provided are centered on a culture of superior client care. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Man Used 31 Credit Cards in Poorly Planned Financial Scheme

Posted on April 10, 2017by Admin

Federal officials say 28-year-old Janzaybe Khan, was living the good life in an illegal $165,000 spending spree until his luck ran out. He used 31 credit cards and spent more than $59,000 on gift cards, precious metals and cash advances.

Some of the proceeds were transferred into Khan’s bank account, while others were transferred to various individuals, according to the U.S. District Attorney’s Connecticut office. Court documents reveal Khan was able to qualify for and utilize 31 credit cards by falsely stating his income, assets, address and employment history.

After maxing out his credit cards, Khan filed for Chapter 7 bankruptcy and attempted to discharge all of his credit card debt.

In his bankruptcy filing with the court, Khan falsely stated that the majority of his debt was the result of gambling losses. Khan also made a number of false statements under oath during an examination by the U.S. Trustee in his bankruptcy case. The U.S. Bankruptcy Court refused to discharge Khan’s debts.

Instead, Khan was arrested on a criminal complaint charging him with bank fraud, conspiracy to commit bank fraud, and making a false oath and false statement under penalty of perjury in a bankruptcy case. The complaint alleges that the financial institutions that issued Khan’s credit cards incurred losses of more than $165,000 as a result of the scheme.

Bank fraud and conspiracy to commit bank fraud each carry a maximum sentence of 30 years imprisonment.

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

The IRS Has Hired a Debt Collector That is Being Sued by The Government

Posted on April 7, 2017by Admin

The IRS has hired for-profit debt collectors to collect on long-overdue taxes that the government lacks the resources to work on. Four debt collectors were selected for the new contracts, including one whose parent company is currently being sued by the U.S. government over its student loan debt collection practices.

Pioneer Credit Recovery is a subsidiary of Navient, a student loan debt collector. The Consumer Financial Protection Bureau filed a lawsuit against both companies in January claiming that the companies “systematically misled consumers.” A few months prior, Pioneer was selected as one of the IRS debt collection contacts in September, alongside ConServe, Performant and CBE Group.

Pioneer’s parent company Navient, formerly known as Sallie Mae, holds a federal government contract to service approximately $300 billion in student loans owed by 12 million borrowers.

The IRS was mandated by Congress to hire debt collectors, in language that was inserted into a $205 billion highway funding bill in late 2015. Experts on consumer protection say the new contracts create more potential for bad behavior in debt collection.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

An Increasing Number of Americans Have Stopped Paying Their Car Loans

Posted on April 6, 2017by Admin

Wall Street is starting to worry about the auto loan market as millions of Americans are falling behind on their car loans. The increased interest in the auto loan market seems to be based on commentary from Ally Financial, weak guidance from Ford and what Evercore ISI called “a splurge in incentive spending.” Here’s what you need to know:

The delinquency rate for subprime auto loans is at the highest level in at least seven years.
Banks are pulling back and newer players with loose lending standards are stepping in.
Used vehicle prices are dropping sharply, as the market is flooded with off-lease vehicles.
The percentage of trade-ins with negative equity is at an all-time high.
Asset-backed securities based on auto loans are showing signs of stress.
A growing proportion of the auto loan ABS market is now made up of “deep subprime” deals.

The 60+ day delinquency rate for subprime is the highest it has been in seven years. A key driver of the increasing delinquency rate is a spike in the proportion of “deep subprime” deals, or those with an average FICO score of less than 500. In other words, the subprime delinquency rate is creeping up while the subprime market is ballooning in size.

The Liberty Street Economics post, written by Andrew Haughwout, Donghoon Lee, Joelle Scally and Wilbert Van Der Klauuw said, “The data suggest some notable deterioration in the performance of subprime auto loans. This translates into a large number of households with roughly six million individuals at least ninety days late on their auto loan payments.”

Related Resources:

http://www.businessinsider.com/wall-street-is-worried-about-car-loans-2017-3/#fitch-deteriorating-credit-performance-will-be-more-acute-in-the-subprime-segment-1

https://www.aol.com/article/finance/2016/11/30/6-million-americans-have-stopped-paying-their-car-loans-and-it/21617633/