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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips to Improve your Credit Score

Posted on February 8, 2017by Admin

Having a low credit score can cost you. If you have a credit score of 620 or below, this is considered to be “bad credit.” Lenders or credit card issuers, if they are willing to extend you credit at all, are likely to charge you a higher interest rate. You may also have to pay a utility deposit when starting or renewing service, something people with good credit do not have to pay. Having a bad credit score can even effect how much you pay for car insurance.

Now onto the good news- there are things you can do to improve your credit score. Following these easy steps will help push your score in the right direction.

Watch your credit card balances. A major factor in your credit score is how much revolving credit you have versus how much you are using. The smaller the percentage, the better your credit rating. The ideal amount is 30 percent or lower.
Eliminate small credit card balances. When you have small balances on credit cards, pay them off. Charging $50 on one card and $100 on another instead of using the same card (preferably one with a good interest rate) can hurt your credit score.
Leave “old debt” on your report. Some people believe that old debt on their credit report is a bad thing. Good debt- such as a home or car you recently paid off – is actually good for your credit. Do not close out old accounts where you have had a solid repayment history.
Use your calendar. If you are shopping for a home, car or student loan, it pays to do your rate shopping within a short period of time. Every time you apply for new credit, it can cause a small dip in your credit score, which can last up to a year.
Pay your bills on time. If you are planning a major purchase (like a home or car), one of the biggest factors in having a good credit score is simply making on-time payments month after month. Saving up money for a major purchase is smart; just don’t neglect your bills. This can even extend to outstanding library books. If the original creditor, such as the library, does not report it to the bureaus, they may eventually call in a collections agency to recoup the unpaid bill.
Avoid risk. One of the best ways to improve your credit score it to avoid purchases that might lower it. This could include taking out cash advances, using cards at businesses that could cause future money stress, etc.
Do not obsess. If you are getting ready to make a big purchase, pull a copy of your credit report. You are entitled to one of each of your three credit bureau reports (Equifax, Experian and TransUnion) for FREE every year through AnnualCreditReport.com. While the score you receive may not be the exact one the lender uses, it will grade you on many of the same criteria. If you are denied credit, the lender has to show you the credit score used in their decision making, thanks to the Dodd-Frank Wall Street Reform and Consumer Protection Act.

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, Timothy Kingcade Posts

IRS Warns Consumers of Tax Refund Phone Scam

Posted on February 7, 2017by Admin

Tax time often brings with it a series of scams, and this year is no different. Thousands of consumers have already received phone calls from scammers trying to take their tax refund money.

“Before there is an arrest warrant issued, I want you or your attorney to give us a call back,” the scam caller says.

Since 2013, scams like this have conned more than 10,000 victims out of $54 million. Know that the IRS will never call and demand immediate payment using a specific payment method such as a prepaid debit card or wire transfer. The IRS will first mail you a bill if you owe any taxes. You will also be given the opportunity to question or appeal the amount they say you owe.

REMEMBER: The IRS does not initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. In addition, the IRS does not threaten taxpayers with lawsuits, imprisonment, calling the police or other enforcement action. Being able to recognize these signs of a phishing or tax scam could save you from becoming a victim.

Here is more information on Scams Targeting Taxpayers directly from the IRS website.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Bankruptcy Provision for Big Banks Could be Trump’s Next Target

Posted on February 6, 2017by Admin

The special bankruptcy procedure for large financial institutions may be a Trump target, according to a recent article in the New York Times. The Dodd-Frank’s bankruptcy provision, originally enacted in 2010 as a response to the financial crisis, allowed the banks who were essentially “too big to fail,” do just that.

Many of the proposals to create a new part of the bankruptcy code for banks have not offered any real solutions. The proposals provide no real way to deal with anything beyond a very specific form of bank failure.

If the bank fails in any way other than as predicted, the proposed legislation would be useless. This will in turn lead to a plea from Wall Street for bailouts. If that happens during a Trump administration, it will be interesting to see what happens next.

Who could have predicted the failure of Lehman Brothers or the near collapse of insurance giant, AIG? The financial panics caused by these collapses result in mass financial destruction- even when some degree of bailout is extended.

There is no doubt that without government assistance to both the banks and the automakers, the effects of 2008-09 would have been far worse.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

New Survey Finds Medical Debt is the No. 1 Reason Collection Agencies Contact Consumers

Posted on February 3, 2017by Admin

Medical debt is the most common reason consumers receive calls from debt collectors, according to a first of its kind nationwide survey.

“The study by the federal Consumer Financial Protection Bureau found that 59 percent of people who reported they had been contacted by a debt collector said it was for medical services,” NPR reported. “Telecommunications bills were the second most common type of overdue bill for which debt collectors pursued payment, at 37 percent, and utilities were third, reported by 28 percent.”

The study, which examined consumer experiences with debt collectors, included more than 2,000 people and was performed between December 2014 and March 2015. The survey also found that more than one in four consumers felt threatened when a debt collector contacted them.

The study’s authors said medical debt is unique compared to other types of debt collection examined in the survey, as it was widespread across various demographic and credit-score groups.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney 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://lancasteronline.com/news/local/medical-bills-are-the-most-common-reason-for-debt-collector/article_384da034-e33e-11e6-a5e0-17c0fcdce41b.html

http://www.beckershospitalreview.com/finance/medical-debt-is-no-1-reason-collection-agencies-contact-consumers.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How to Tackle Long Term Credit Card Debt

Posted on February 2, 2017by Admin

It takes 13 years to pay off a $5,000 credit card bill, if you only pay the minimum each month. Florida is in the top 5 states with the highest credit card burden, according to a recent study from CreditCards.com. The study also sheds light on the effects high credit card debt has on U.S. household finances.

By allocating at least 15% of gross monthly income toward credit card debt, the typical Florida consumer’s payoff time drops to just 18 months and costs $678 in interest, in the above scenario.

Here are some other proven ways to help tackle long-term credit card debt.

Be careful how you spend that bonus check. Seasonal commissions and bonus checks can provide an added sense of confidence when it comes to spending. Not a good thing, if you are struggling to pay down credit card debt. Break this extra income up into three parts: debt reduction, major purchase and savings. Remember: paying off a large portion of credit card debt can save you thousands in interest.

Consolidate. If you have multiple unsecured loans that you would like to have lumped into one payment, debt consolidation may benefit you. This option gives you the opportunity to save hundreds of dollars with a lower interest rate and you can combine all of your payments into a single monthly payment.

Cut your budget. One of the best ways to pay down your debt is to find savings elsewhere. Cut down on your grocery bill, cancel monthly membership fees you may not be using as much as you thought you would, etc.

Define your goals. Do you want to reduce your debt or be completely debt-free? Set timelines for yourself and how much you need to pay to meet those goals each month.

Prioritize. Focus on paying off the highest-interest debt, first. This is your biggest financial drain. Another idea is the “snowball method,” which essentially means paying off the debt with the smallest balance first, continuing to the debt with the next lowest balance, etc. This strategy allows you to see immediate results in paying down debt, and builds confidence and momentum to keep you on track to pay down the rest of the debt.

Click here to read more on this story.

Related Resources:

https://www.thestreet.com/story/13937063/1/how-to-tackle-the-high-costs-of-long-term-credit-card-debt.html

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Foreclosure Prevention Unknown After HAMP Expires

Posted on February 1, 2017by Admin

At the end of last month HAMP (The Home Affordable Modification Program) expired and Republican-led Washington has no intention of replacing it. So now it will be up to the private sector to address the lingering issues brought on by the financial crisis.

Banks and mortgage lenders say they are ready to step in with their own foreclosure-prevention programs, modeled on what they learned from the Obama administration’s effort. However, housing advocates are skeptical, as HAMP had its shortcomings. The program fell far short of the administration’s goals.

Specifically, banks and servicers routinely ignored the rules, consistently rejected eligible homeowners, processed applications at a snail’s pace and foreclosed on homeowners even when they made their modified payments on time, according to a series of audit reports for the Troubled Asset Relief Program.

Approximately 70 percent of those who applied for the loan modifications were turned down. Nearly 14 million homes went into foreclosure, according to ATTOM Data Solutions, which tracks foreclosure filings.

Even though the housing market has stabilized, the rate of delinquencies is at its lowest point since 2007, and home prices have risen in many places, there will always be homeowners and families in trouble because of job loss, illness and other unforeseen setbacks.

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, Timothy Kingcade Posts

Important Tax Deductions You Probably Don’t Know About

Posted on January 31, 2017by Admin

It’s that time of year, again. With tax season officially upon us, do not miss out on some of these money-saving deductions. The most recent numbers show that more than 45 million of us itemized deductions on our 1040s—claiming $1.2 trillion dollars’ worth of tax deductions.

Most taxpayers know about mortgage expense, student loans, medical expenses, and investment expense deductions, but itemized deductions do not stop there.

Here are some of the most overlooked tax deductions:

Subscriptions. You can deduct the cost of subscriptions when it comes to professional (as long as it is related to your job in some way) or investment-type publications. This covers newspapers, magazines, newsletters, journals and do not forget your online subscriptions. Keep in mind, this deduction is subject to the 2% floor, which means that you subtract 2% of your adjusted gross income (AGI) for the year from your deduction (and all other itemized deductions with the same floor). The remainder is the amount you can claim for those deductions.
IRA Custodial Fees. You can deduct the administrative fees you pay for your IRA if these fees are billed as a separate transaction. This deduction applies to traditional and Roth IRA’s and is subject to the 2% AGI floor.
Job Search Expenses. If you looked for a new job last year, you can deduct your expenses related to job hunting (whether or not you actually got the job). This can include things like employment agency fees, preparing and sending out resumes, transportation expenses, even long-distance travel if your primary purpose in traveling was to look for a job.
Tax Expenses. You can deduct certain taxes you have paid from your taxable income. First, you can deduct any state and local taxes you pay, including real estate taxes and other property taxes, on your federal tax return. **Note that you can deduct state income taxes or state sales taxes, but not both.** You are allowed to deduct the full amount here, this is not subject to the 2% AGI floor limitation. Foreign income taxes and real estate taxes are also fully deductible. You can deduct any fees you pay to have your tax return professionally prepared. If you prepare your own taxes, you can deduct the cost of the software you use and any tax publications you purchased to help determine your return. These deductions are subject to the 2% AGI floor, and you can only deduct the expenses related to the return’s tax year. For example, in 2017 you would deduct tax preparation fees related to your 2016 tax return.

Related Resources:

http://www.foxbusiness.com/markets/2017/01/30/4-types-tax-deductions-probably-dont-know-about.html

https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Deductions-and-Credits/The-10-Most-Overlooked-Tax-Deductions/INF12062.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

FTC Cracks Down on Dishonest Payday Lenders

Posted on January 30, 2017by Admin

The FTC has been targeting fraudulent payday lending companies, headquartered in Missouri and Kansas, with consumer settlements reaching as high as $1.266 billion. The FTC recently announced charges against Joel Jerome Tucker, and his companies, SQ Capital LLC, JT Holding Inc., and HPD LLC, for selling portfolios made up of phony payday loans.

The loans listed in the portfolios named fake lenders and debtors, including their social security and bank account numbers, and led to collection activities against consumers who had not taken out loans, according to the FTC.

In another case, a settlement was reached between the FTC and payday lenders, Tim Coppinger and Ted Rowland, and their companies.

Under the terms of the agreement, the lenders paid nearly $1 million with the threat of substantially greater judgments (up to $32 million) should they fail to abide by the terms of the settlement agreement. The fraudulent activity included debiting money from the accounts of people who never requested loans, but for whom the payday lender had obtained personal information. They would then charge interest and fees on the unauthorized loans.

Click here to read more on this story.

Foreclosures, Timothy Kingcade Posts

Trump’s Treasury Pick Accused of Foreclosure Heartbreak Stories

Posted on January 27, 2017by Admin

After President Trump announced his Treasury Secretary nominee, Steven Mnuchin, a wave of California homeowners came forward with allegations that OneWest Bank actively steered them away from making timely mortgage payments to qualify for federal loan assistance that never came. Borrowers claim the fraudulent activity occurred under the leadership of Mnuchin.

The accusations center around the government program called the Home Affordable Modification Program (HAMP), which was launched at during the 2009 financial crisis. Under the program, eligible borrowers could receive new, lower payments and the banks that took part would also receive government incentive payments.

“They (OneWest) hired people who didn’t know what they were doing and some bad information was being given out,” a source who was familiar with OneWest’s foreclosure procedures at the time told CNN.

CNN spoke to seven OneWest borrowers who all had similar stories about being advised to purposely miss payments in order to qualify for the HAMP program.

Mnuchin testified at his confirmation hearing where he defended his time as a bank executive and his work in the private sector. However, the Democrats were not buying it, dubbing him the “Foreclosure King.”

Related Resources:

http://thehill.com/policy/finance/315143-mnuchin-emerges-from-confirmation-hearing-intact

http://money.cnn.com/2017/01/19/news/mnuchin-onewest-foreclosure/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What Happens to Tax Debt in Bankruptcy?

Posted on January 26, 2017by Admin

If you are considering filing for bankruptcy, you may be wondering if your tax debts can be discharged in bankruptcy court. Although the automatic stay will delay the IRS from contacting you about your debts, there are some taxes that cannot be eliminated in bankruptcy court. Here are three basic rules that will tell you if your tax debts are eligible for discharge.

The Three Year Rule. Your tax debts must be three years old from the date they were due, not from the date that you filed. Tax returns are due on April 15^th each year. This means that your 2010 taxes are not eligible for discharge until April 15^th of 2014. This is because your 2010 taxes were technically due in April 2011. Calculate three years from the time the taxes were due.
Your Tax Returns Must Have Been Filed for Two Years Before Bankruptcy. Taxes must be filed for two years prior to the bankruptcy filing to prevent delinquent taxpayers from filing late returns one day and bankruptcy the next.
The Taxes Must Have Been Assessed More Than 240 Days Ago. The IRS must formally determine that you owe the taxes you are trying to eliminate in bankruptcy more than 240 days before you file the paperwork with the court. Note that an offer in compromise will delay the 240-day rule while it is pending plus an additional 30 days.

Related Resources:

http://www.natlbankruptcy.com/bankruptcy-and-tax-debt-what-happens-to-tax-debt-in-bankruptcy/

http://www.thebankruptcysite.org/resources/bankruptcy/stop-irs-collecting-tax-debts.htm#