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

More than 1.1 Million Borrowers Defaulted on Their Federal Student Loans Last Year

Posted on March 22, 2017by Admin

An average of 3,000 borrowers default on their federal student loans every day. The number increased 17 percent from 2015 to 2016, according to a consumer Federation of America analysis of U.S. Department of Education data.

Despite a growing economy, 42.4 million Americans owed $1.3 trillion in federal student loans last year. By the end of the year more than 4.2 million borrowers were in default. This is up from 3.6 million the previous year, meaning that 1.1 million borrowers went into or re-entered default last year.

How to Avoid Defaulting on Student Loans

If your debt is unmanageable, you have options:

If you have federal student loans, you can qualify for income-based repayment plans. The percentage of federal student loan borrowers enrolled in repayment plans has quadrupled over the past four years. Keep in mind you must re-apply every year for income-based repayment.
If you have private loans you have limited options. Some lenders offer forbearance if borrowers can’t make their payments. The benefits are not as vigorous as they are with federal loans and typically last no more than 12 months.

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

Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Trump Administration Erases Restriction on Big Student Loan Fees

Posted on March 21, 2017by Admin

The Trump administration recently repealed the Obama guidelines and instructed guarantee agencies to once again go after defaulters with big fees. Agencies had previously been charging fees of up to 18.5 percent when people defaulted on their student loans. However, in July 2015 the Obama administration issued a memo forbidding such practices as long as the borrower entered into the government’s loan rehabilitation program within 60 days of defaulting and started paying again.

The announcement came after a report was released that found a double-digit increase in defaults. It also came after Sen. Elizabeth Warren asked Education Secretary Betsy DeVos to keep the guidelines in place.

The loans that are affected by the changes are loans through the Federal Family Education Loan Program (FFEL) that were taken out before 2010. There are approximately seven million borrowers with $162 billion of outstanding debt in the FFEL program.

Related Resources:

https://consumerist.com/2017/03/17/trump-administration-eases-restriction-on-student-loan-debt-collectors/

http://www.newser.com/story/239949/trump-change-means-student-loan-defaulters-face-big-fees.html

Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Foreclosure Activity Hits 11-Year Low

Posted on March 20, 2017by Admin

During the month of February, foreclosure activity dropped to an 11-year low, according to new data from ATTOM Data Solutions. This was the lowest point since November 2005 and the 17^th consecutive month of annual decreases.

Although the nationwide average significantly dropped, there were 10 states that experienced an increase in foreclosure activity in February. States that saw the largest increase include: New Jersey with an increase of 16 percent, Delaware with 14 percent, Louisiana with 12 percent, Alabama with 10 percent and Hawaii with eight percent.

Foreclosure starts were also down 13 percent from February of last year, however some states experienced an annual increase including: Alabama with an increase of 40 percent in foreclosure starts, Texas with an increase of 26 percent, New Jersey with an increase of 24 percent, Florida with an increase of 12 percent, Illinois with an increase of 11 percent and Arizona with an increase of nine percent.

ATTOM Senior Vice President Daren Blomquist said there are two major reasons why some states are still seeing an increase in foreclosure starts. The first reason is due to the backlog stemming from the housing crisis. States such as Florida and New Jersey are still experiencing distress from the bubble-era. The second reason is due to the newly relaxed lending standards in some areas.

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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.

Credit, Debt Relief, Timothy Kingcade Posts

Consumer Credit Scores to Exclude Some Debt and Liens Starting July 1st

Posted on March 17, 2017by Admin

The nation’s three largest credit-reporting agencies will soon exclude tax liens and some civil debts from their reports. The change by Equifax, Experian and TransUnion will take effect July 1^st. According to the Consumer Data Industry Association, it is part of a plan to ensure that consumer identifications in the data are accurate and current.

The provision is likely to improve millions of American’s credit scores. If reports on those tax liens and civil debts do not include the consumers’ names, addresses and Social Security number, they will not be reported. Additionally, the records will not be included without courthouse visits to obtain newly filed and updated public records at least every 90 days.

However, there are some controversies surrounding the changes. Although they are likely to help consumers appear more credit-worthy, the updated policies could potentially make loan-screening more difficult for lenders.

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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

Bipartisan Bill Could Help You Pay Off Your Student Loans

Posted on March 16, 2017by Admin

A new bill in Congress aims to encourage companies to offer help to their workers in paying off their student loan debt. Earlier this month, a bipartisan group of 31 lawmakers sponsored legislation that would make employer contributions to their staff’s student loan payments tax deductible. It would be similar to contributions companies make to their workers’ 401(k)s.

“Some companies are already offering this benefit because they see the advantage it gives them when recruiting and retaining younger employees, but we want to encourage more to participate so we can help both struggling graduates and our economy,” said Representative Rodney Davis, a Republican from Illinois who introduced the bill along with Representative Scott Peters, a Democrat from California.

Consulting firm PwC was one of the first companies to initiate a student loan benefit program last year. The company offers new employees $1,200 a year toward their loans for up to six years. Since then, several other companies have launched similar plans.

“Adding tax relief to the equation could elevate student loan assistance alongside 401(k) contribution as one of the most valuable financial benefits a company can offer its workers that directly impact their quality of life today,” said Scott Thompson, the CEO of Tuition IO, a company that helps employers put student loan benefit plans in place.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Beware of a New Scam Involving Cash Advances

Posted on March 15, 2017by Admin

The Better Business Bureau (BBB) recently warned consumers to beware of a new debt collection con where scammers pose as debt collectors who claim to be collecting on cash advances.

Here is how the scam works:

You receive an automated call from a company claiming to be collecting a payment for a cash advance. Next, the recording will prompt you to stay on the line and speak with an agent.

If you stay on the line, the agent will request that you pay your debt immediately using a wire transfer or a prepaid debt card. If you refuse, the agent will use threats of arrest, lawsuits or garnished wages to intimidate you.

Keep in mind that the use of threats in debt collection is in violation of your rights as a consumer under the Fair Debt Collection Practices Act.

If you receive one of these calls, the BBB suggests you do the following:

Just hang up. If you don’t have any outstanding loans, hang up.
Get an official notice. Ask the debt collector to provide an official “validation notice” of the debt. In the US and most of Canada, debt collectors are required by law to provide the information in writing. The notice must include the amount of the debt, the name of the creditor and a statement of your rights.
Confirm the agency is real. Ask the caller for his/her name, company, street address and telephone number.
Do not provide any information they do not have. Until you have verified the call, do not provide or confirm a bank account, credit card number or any other personal information.
Check your credit report. If you are unsure if you have outstanding debt, check your credit report with one of the three national credit reporting companies: Equifax, TransUnion or Experian.
Place a fraud alert on your credit report. If the scammer has personal information, alert the three credit reporting companies that you have been contacted.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

5 Last Minute Tax Tips You Need Before Tax Day

Posted on March 14, 2017by Admin

Tax filing day is rapidly approaching us on April 18^th as countless Americans are scrambling to gather up their paperwork and get their returns in on time. Here are five last minute tips that can reduce what you owe or increase your refund.

Report all of your income. If you try to hide some of your income that you have received throughout the year, you may end up on the IRS audit list. Any time you receive income, whether it’s payment for a freelance job, a dividend check or interest from your bank, you’re required to report that income and pay taxes on it. In fact, you should receive a 1099 form from each issuer that pays you.
Know your tax credits. Tax credits work by reducing your tax liability dollar-for-dollar. For example, a $1,000 tax credit means you get to automatically deduct $1,000 from your tax bill in full. As you prepare to file your return, take some time to read up on the various tax credits out there. For example, there are tax credits geared toward parents, students and low earners that can add up to huge savings.
Don’t estimate your deductions. On the other hand, tax deductions can save you money by excluding a portion of your income from taxes. Some of the deductions that are available to tax filers include: mortgage interest deductions, medical expense deductions and deductions for charitable contributions. However, you need to check your records and make sure your numbers are 100% accurate.
Contribute to last year’s IRA. If you failed to put money into an IRA last year, here’s some good news: it’s not too late! You can make a contribution that counts for the 2016 tax year. In fact, you have until Tax Day, April 18^th, to make a contribution to the previous year’s account.
File Electronically. Filing electronically can help to eliminate math errors. If your return contains a major mistake, you could get audited or cause your refund to be delayed. In 2014, the IRS identified almost 2.3 million math errors from the previous year’s returns.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Woman Alleges SunTrust Bank Invaded Privacy with Collection Calls

Posted on March 13, 2017by Admin

Patricia Fonnegra, a Florida resident, filed a complaint on March 7^th in the U.S. District Court for the Southern District of Florida against SunTrust Bank. Fonnegra stated in the complaint that the debt collector was in violation of the Telephone Consumer Protection Act with frequent calls. The TCPA was enacted to protect consumers from “robocalling” and regulate telephone practices.

Fonnegra claimed that she suffered damages in 2016 after receiving multiple collection calls from the defendant. In the complaint, the plaintiff holds SunTrust Bank responsible because the defendant allegedly invaded her privacy and harassed her with frequent calls.

Fonnegra requested a trial by jury and seeks statutory damages of $1,500, enjoin the defendant, all legal fees and any other relief as the court deems just.

Related Resources:

http://flarecord.com/stories/511088056-woman-alleges-suntrust-bank-invaded-privacy-with-collection-calls

http://www.natlawreview.com/article/fcc-approves-new-tcpa-rules-telephone-consumer-protection-act

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

Delinquencies on Timeshare Rentals Reveal Another Sign of Consumer Debt Weakness

Posted on March 10, 2017by Admin

Americans are getting more behind on their timeshare rental payments, according to Fitch Ratings. Approximately 3.75 percent of timeshare borrowers were behind on their bills in the fourth quarter, up from 3.37 percent in the same period a year earlier, and the highest level since the end of 2011, according to the report.

According to Fitch, the defaults are evidence that loan companies are becoming less strict when financing to customers. These companies are also writing off more loans. The default rate rose to 0.70 percent in the fourth quarter from 0.61 percent in the same period a year earlier.

Other pockets of weakness include online consumer loans and subprime auto loans, which we have touched on in previous blogs. These rising delinquencies come as Americans have increased their debt at the fastest pace in three years.

U.S. household debt increased by $226 billion in the last three months of 2016, bringing total consumer debt to $12.58 trillion. The numbers, which include mortgages, student loans, auto loans and credit card debt, are dangerously close to the $12.68 trillion high-water mark in 2008.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Lawmakers Fight to Close Robocall Debt Collection Loophole

Posted on March 9, 2017by Admin

Federal lawmakers are attempting to close a recently opened loophole that allows the federal government to automate unwanted, even incorrect debt collection calls to consumers. This all started in late 2015, when an addition to a budget bill amended the existing telecommunications law allowing robocalls “made solely to collect a debt owed to or guaranteed by the United States.”

Sen. Ed Markey (MA) is attempting to put an end to this with the HANGUP Act of 2017, which would close the debt-collection loophole opened by the 2015 budget bill.

The proposed legislation goes a step further,“walking back” the FCC’s July 2016 “Broadnet” decision, in which the Commission ruled that anyone in the federal government, including contractors, could send out robocalls, so long as the automated calls explicitly involve government business.

Senator Markey argues that the intention of the Telephone Consumer Protection Act, which limits the use of robocalls, is clear: “consumers should not be subject to unwanted robocalls and robotexts on their phones. But recent carveouts by Congress and the FCC allow government contractors to robocall and robotext consumers without their affirmative express consent…No one wants to be interrupted during family mealtime or when helping children with homework.”

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