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

How Trump Policies Could Affect the Elderly and Disabled

Posted on January 19, 2017by Admin

President-elect Donald Trump is set to take office tomorrow, January 20^th at 12:00 PM. During his presidency, economists anticipate several policy changes that will significantly affect the elderly population, those who are disabled and those with special needs. Here are a few ways those changes might affect you.

Social Security and Medicare

Although President-elect Trump has consistently stated that the Social Security and Medicare programs will remain intact, both face an impending insolvency. As one of their proposals to keep those programs solvent, Trump and Congressman Paul Ryan are promoting an approach that will include some form of Social Security and Medicare privatization.

The Cost of Health Care

There is a mounting fear among Americans about the cost of health care and long-term care. Restrictions on benefits and legislative changes that restrict or limit access to government programs, such as Medicaid, can only heighten such fears.

Block Grant Proposal

Medicaid is currently administered at the federal level by the Center for Medicare and Medicaid Services. Each state has its own state Medicaid Plan, however, there are mandates and constraints. The proposed grants would issue each state a certain number of Medicaid dollars and the state would in turn, decide how to use and spend those dollars. In some states, little would change, however in other states the changes could be profound for those who rely heavily on Medicaid.

Trump has also stated that there are a few policies from Obama’s Affordable Care Act that he intends to keep, including:

Allowing young adults to remain on parental coverage;
Protecting people with pre-existing medical conditions;
Closing the Medicare prescription drug coverage gap.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

http://www.wealthmanagement.com/estate-planning/how-trump-policies-could-affect-elderly-and-those-special-needs

https://www.yahoo.com/news/pointed-questions-await-trumps-pick-health-secretary-085931872–politics.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Debt Collection Dispute Headed to the Supreme Court

Posted on January 18, 2017by Admin

The U.S. Supreme Court will decide whether firms collecting on a debt they bought for pennies on the dollar can be held liable in lawsuits brought by consumers. The justices agreed to review a lower court’s decision to dismiss a consumer class action lawsuit against Santander Consumer USA Holdings Inc. over allegations it violated the Fair Debt Collection Practices Act– a debt collection law enacted in 1977 that prohibits collectors from using abusive, unfair or deceptive practices to collect a debt.

The current case hinges on the definition of “creditor” and “debt collector” and whether a company that purchases debt should be treated as a creditor and therefore not subject to the law.

The case (Ricky Henson et al v. Santander Consumer USA, Inc et al, in the Supreme Court of the United States, No. 16-349) involves four Maryland residents who defaulted on their auto loans, and filed a proposed class action lawsuit against Santander in 2012 in federal court alleging violations of the Fair Debt Collection Practices Act, such as misrepresenting the debt amount and bypassing debtors’ attorneys.

The debts had been sold to Santander, a Dallas-based vehicle-financing and lending company owned in part by a subsidiary of Banco Santander. Santander then tried to collect on the loans.

The 4th U.S. Circuit Court of Appeals in Richmond, Virginia threw out the lawsuit last March, saying the law applied only to debt collectors, and Santander became a creditor when it purchased the loans.

The Maryland residents told the Supreme Court the 4th Circuit’s reasoning would “hamper both government and private efforts to combat abusive debt-collection practices.” The appeal to the Supreme Court comes as the Consumer Financial Protection Bureau is considering proposals to toughen regulation of the industry.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

When Debt Collectors Call Know your Rights

Posted on January 17, 2017by Admin

When a debt collector calls, it’s important to know your rights. In July, the Consumer Financial Protection Bureau required debt collectors to do their “due diligence” to help ensure they are collecting on legitimate debt and put a cap on their weekly attempts to reach a consumer. The bureau also increased enforcement, bringing more than 25 cases on debt-collection tactics that deceive or abuse consumers.

The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers against unfair collection practices, including:

Calling you repeatedly to annoy or harass you;
Trying to collect more than you owe;
Failing to send a written notice of the debt;
Threatening violence, using profanity or offensive language;
Threatening dire consequences (i.e. – lawsuits, criminal prosecution, wage garnishment, jail time, permanently ruining your credit);
Calling you before 8 a.m. or after 9 p.m.;
Revealing debt to third parties (i.e. – family, neighbors, friends, co-workers, etc.);
Contacting you at your work, after you have requested them to stop;
Failing to verify disputed debts;
Ignoring cease communication requests.

It is important that consumers verify everything when it comes to a debt they may (or may not) owe. In a recent CFPB survey, half of Americans contacted about a debt in the past year said they were given inaccurate information about what they owed. Debt collectors are legally required to follow up their phone call with a written notice detailing the debt.

Understand that just because someone is calling to collect a debt, does not mean you should pay it right away. It is always important to verify. The collection attempt could be for a so-called zombie debt that is past the statute of limitation or a debt collection scam.

If you do in fact owe the debt, make sure and take notes. Write down every name and employee number you speak with, including the agency, the number they called, the time of the call, etc. Take notes on what was said. This detailed record keeping can prove helpful if you need to file a complaint about the debt collector’s behavior in the future.

Related Resources:

http://www.cnbc.com/2017/01/12/know-your-rights-when-a-debt-collector-calls.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

More Consumers Report Debt Collectors are Denying Requests for them to STOP Calling

Posted on January 16, 2017by Admin

A shocking three out of four consumers reported that debt collectors ignored their requests to stop calling, according to a recent survey by the Consumer Financial Protection Bureau. The survey also revealed that consumers felt threatened by debt collectors, were contacted late at night and early in the morning and the debt collectors oftentimes used false information- all violations of The Fair Debt Collection Practices Act.

The survey examined a sample of consumers drawn from credit-reporting records about their experiences with debt collectors. More than 1 in 4 consumers contacted by a creditor or debt collector felt threatened, 3 out of 4 consumers who asked collectors to stop contacting them said they refused to do so. More than a third said debt collectors called between 9 p.m. and 8 a.m., according to the survey.

In addition, more than half reported a mistake in the debt, such as an incorrect amount, a debt not owed or a debt owed by a family member. The frequency of calls was also excessive- 17% said they received eight or more calls in a single week.

Consumers are protected from these predatory and unfair practices by The Fair Debt Collection Practices Act– but only if they exercise their rights. The law’s consumer protections include:

Communication: Consumers can tell debt collectors how and when to contact them- including telling them to stop contacting them entirely.

Harassment and abuse: Debt collectors cannot use abusive language, threaten violence or repeatedly call and harass them.

Truthfulness: Debt collectors must be honest about the amount of the debt, whether it is past the statute of limitations for lawsuits and cannot misrepresent themselves.

Debt validation: Consumers must receive a validation letter within five days of the first contact with information about the amount owed, the original creditor seeking payment and their rights on disputing the debt.

Click here to read more on this story.

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

The Student Loan Crisis Facing Older Americans

Posted on January 13, 2017by Admin

When we think of those struggling with student loan debt, we typically think of millenials still living with their parents. However, many boomer parents are struggling, too. According to a report from the federal Consumer Financial Protection Bureau (CFPB), older Americans are carrying an “unprecedented amount of student loan debt into retirement.”

In 2015, older consumers owed an estimated $66.7 billion in student loan debt. Nearly 867,000 borrowers 65 and older owed federal student loans in 2015, now the fastest growing segment of student loan borrowers.

With these new findings, it seems the education debt crisis and retirement are closely tied. A growing number of older borrowers are struggling to make their loan payments, oftentimes due to reduced incomes in retirement.

A growing number of federal student loan borrowers age 65+ had their Social Security benefits reduced or offset because of unpaid student loans – 8,700 in 2005 and 40,000 in 2015. The vast majority of the older borrowers, approximately 73%, took out student loans to finance their children’s or grandchildren’s education. Many of these loans were taken out under the Parent PLUS Loan Program, with a current interest rate of 6.31%, the only federal program that allows parents to borrow for the undergraduate education of their children.

Here are some tips for older borrowers struggling with student loan debt:

If you have co-signed your child or grandchild’s student loan, request the servicer send you an account statement so you can learn the outstanding balance and pay off the loan.

If you are struggling to make federal student loan payments, you may qualify for a payment plan that can substantially cut your costs. For example, if you retire and your income drops substantially, you can apply for an income-based repayment plan. This could reduce your payments and even suspend them.

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

Medical Debt Collection Firms Ordered to Pay $577K for Threatening Consumers

Posted on January 12, 2017by Admin

Two medical debt collection firms must refund hundreds of thousands of dollars after they were caught falsely claiming there were attorneys involved in the collection actions. Two Oklahoma-based law firms, both named Works and Lentz, misled consumers by exaggerating the extent to which actual “lawyers” were involved in the collection attempts.

The companies involved in the case attempt to make collections on 700,000 accounts annually, collecting medical debt on behalf of hospitals, doctors, and other healthcare providers. From January 2012 to August 2016, every letter sent to the alleged debtors was printed on the firm’s letterhead, giving the impression that a legal action was pending.

Approximately one month after the letter was sent out; Works and Lentz assigned the account to a manager who contacted the debtor, representing themselves as a law firm.

In addition, when consumers called the firm back, they were greeted with a message stating, “You have reached Works & Lentz, Attorneys at Law.” The letters sent out to consumers ended with a computerized signature of an individual attorney with the title, “Attorney at Law.” The Consumer Financial Protection Bureau alleges that in most cases there was never an attorney who reviewed the collection accounts.

As specified in The Fair Debt Collection Practices Act, it is illegal for firms to use false, deceptive or misleading representations or means to collect a debt, including using false implication that any individual is an attorney or that communications are from an attorney when they are not. This law was designed to protect consumers and help prevent creditor abuse and harassment.

In addition to misrepresenting that they are attorneys, the CFPB alleges that employees of Works and Lentz provided information to credit reporting agencies related to consumers’ debts without verifying the information was correct.

Click here to read more on this story.

Foreclosures, Timothy Kingcade Posts

HAMP Being Replaced with New Foreclosure Prevention Program, Flex Modification

Posted on January 11, 2017by Admin

Fannie Mae and Freddie Mac have announced their replacement for the Home Affordable Modification Program (HAMP). The Flex Modification foreclosure prevention program is designed to help families stay in their homes by offering reductions on their monthly mortgage payments.

“The new Flex Modification announced by Fannie Mae and Freddie Mac (the Enterprises) today was designed based on lessons learned from crisis-era loan modification programs to help borrowers stay in their homes and avoid foreclosures whenever possible,” the FHFA said in a statement.

The Flex Modification also reflects input received over the course of extensive engagement with lenders, mortgage insurers, consumer advocates, and other stakeholders, the statement adds. The FHFA believes that by avoiding the high costs associated with foreclosures, Flex Modification will result in significant savings for the Enterprises and taxpayers, while borrowers facing financial hardships can obtain a sustainable modification.

The new modification will replace the current Fannie Mae Standard and Streamlined Modification offerings on and after Oct. 1, 2017.

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.

Foreclosures, Timothy Kingcade Posts

South Florida’s Foreclosure Rate Continues to Drop

Posted on January 10, 2017by Admin

A recent report shows foreclosure activity on the decline, bringing South Florida’s rank to 10^th in the nation among other metropolitan areas. One in every 786 housing units in South Florida was in some stage of foreclosure last month, according to the real estate research company ATTOM Data Solutions. This number has fallen nearly 18 percent compared to the previous year.

Miami-Dade had the largest number of distressed properties with 1,479 homes in the foreclosure pipeline last month. Broward came in second with 1,012 housing units, followed by Palm Beach with 657.

Miami was one of the hardest hit cities during the housing market crash. This was in part due to lenient mortgage requirements and a surplus of new condo projects.

As home prices recovered and more buyers began purchasing properties in all-cash, South Florida’s foreclosure rate has steadily declined over the past few years.

Related Resources:

http://therealdeal.com/miami/2016/12/15/south-floridas-foreclosure-rate-dives-again-in-november-report/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Student Victims Seek to Become Creditors in ITT’s Bankruptcy

Posted on January 9, 2017by Admin

Five former ITT students have taken matters into their own hands by petitioning a federal bankruptcy court to consider student loan forgiveness as part of the school’s liquidation. The now defunct Corinthian Colleges or ITT Educational Services left students with worthless degrees and mountains of student loan debt. Because tax payers backed most of these loans, the Department of Education has been reluctant to forgive them.

For years federal regulators allowed ITT schools to keep operating, even though they were well aware of the company’s questionable practices. For example, ITT had been under investigation by the Education Department since 2014, and state regulators had accused it of misleading students about the quality of its programs and their job potential upon graduation.

The Consumer Financial Protection Bureau filed a lawsuit against ITT nearly three years ago, accusing the chain of predatory student lending. But even with all of this evidence it hasn’t helped former students of the college discharge their student loan debt.

ITT filed for bankruptcy last year after the Education Department cut off the school’s access to federal student aid. At the time, the company operated 137 campuses in 39 states. The company was successful for years, thanks to the revenues from federal student aid. Over the past 10 years, ITT students took on over $7 billion in debt; roughly $1 billion were private loans.

In a first of its kind approach, student loan borrowers will be at the table, not just banks and regulatory agencies fighting over ITT’s assets. They in fact contributed to the creation of assets at ITT. The five former ITT students involved in the suit are seeking to establish themselves and other former ITT students as creditors in the company’s bankruptcy. Typically a company’s creditors are people or entities to whom it owes money.

ITT reported assets of $389 million and liabilities of $1.1 billion to the bankruptcy court. The company had also deposited $94 million in escrowed funds with the Education Department before it collapsed. That money could go toward some loan forgiveness.

The company’s assets include almost $80 million owed by ITT students who were enrolled at the time of the bankruptcy filing or who had withdrawn funds within the previous 90 days. Some of the $80 million is likely from students who never even had the opportunity to attend a class because of the school’s collapse.

The lawyers fighting on behalf of the students hope the judge will make a legal finding that ITT violated state consumer protection laws. This would make it easier for the students to get their loans canceled by the Department of Education. The lawyers in the case are also requesting that the five students’ claims be asserted on behalf of all former ITT students.

Click here to read more on this story.

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

When Shared Bills Outlast Your Relationship

Posted on January 6, 2017by Admin

Between 1993 and 2005, married couples were legally allowed to consolidate their student loan debts. In 2005 the federal government stopped allowing joint consolidation loans, however, thousands of couples who have since gone through divorce have been stuck with their former spouses’ student loan debts.

The Boston Globe reported an instance where a woman consolidated her student loans with her husband’s in order to get a lower interest rate. At the time, she owed approximately $4,000 and he owed $19,000. When the couple divorced four years later, the woman was stuck with the entire joint debt that had reached over $30,000. After fighting it in court, she was told it could not be split and since her former husband did not have a job at the time, she was ultimately responsible. As a result, she lost her home to foreclosure, declared bankruptcy and had her paycheck and tax returns garnished.

Unfortunately, this is not uncommon for couples who consolidated debt during their marriage and later divorced. The U.S. Department of Education says federal law does not allow the old loans to be split, even in cases involving domestic violence. Joint borrowers also cannot apply for income-based repayment plans unless both parties submit financial information.

Borrowers facing “unique circumstances, such as domestic violence,” are encouraged to contact the Federal Student Aid Ombudsman to explore options.

Click here to read more on this story.