Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Can I include my payday loans in bankruptcy?

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Many individuals on the verge of bankruptcy are also trapped in an endless cycle of payday loans.  This popular source of short-term financing is easy to get, but comes with a high price tag.   Finance charges on these type loans can range from 15 to 30 percent.   That is comparable to getting a loan with an annual percentage rate of nearly 800 percent!  It’s easy to see how these loans can quickly spiral out of control.  But there’s good news- payday loans can be included in a bankruptcy filing.  These type loans are considered an unsecured debt and are dischargeable in bankruptcy.

Because of the predatory nature of many payday loans, bankruptcy courts oftentimes have little patience for the demands of these payday lenders.   However, it is important to avoid taking these loans out immediately before filing for bankruptcy.

After filing for bankruptcy, you should avoid taking out payday loans in the future.  Instead, you should consider the following alternative loan sources:

  • Local credit unions
  • Cash advance on a credit card
  • Small loans from family or friends
  • A small loan company
  • A payroll advance from your employer

If you have any questions on this topic or are in a 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, 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.totalbankruptcy.com/rules/can-you-include-payday-loans-bankruptcy.aspx

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The most important price factor for insurance companies REVEALED!

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A two-year investigation of more than two billion insurance quotes from companies across the country has revealed that credit history has the biggest impact on the cost of your insurance premium. According to the study by Consumer Reports, the score can take into account what kind of credit card consumers have along with whether they have recently applied for credit.

The car insurance credit score is different from your FICO score and how it figures into your premium varies depending on the insurer and your state, according to Consumer Reports.   The insurance companies are using this score not to predict whether you are a good driver, but whether you will file a claim.

A poor credit score has caused rates to more than double in some states.  For example, in Florida, someone with an excellent credit score had a premium of $1,409.  An individual with a poor credit score had a premium of $3,826.  To put this in perspective, the premium amount for someone with a DWI who had an excellent credit score was $2,274.

Consumer Reports’ research reveals that some insurers are penalizing drivers more for having a poor credit score. If you feel your car insurance company has given you a low score, clearing up inconsistencies on your credit report can help.  You can download a copy of your free credit report at www.annualcreditreport.com.

If you have any questions on this topic or are in a 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, 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.wral.com/credit-history-revealed-as-most-important-factor-for-insurance-companies-/14887484/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

NEW Rules will Boost Credit Scores for Millions

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If unresolved medical bills are keeping your credit score low, there’s good news.  Changes are coming this fall to Fair Isaac’s FICO Score, which will take a closer look at unpaid medical bills and accounts sent to collections.  Consumers whose only negative mark is from medical debt can expect their credit score to increase by 25 points.

These new rules are far reaching, as more than half of all debt on credit reports is from medical bills, according to the Consumer Financial Protection Bureau (CFPB).  The changes also expand banks’ abilities to offer loans to borrowers who may not have otherwise qualified.

In July, approximately 64.3 million U.S. consumers had medical debt on their credit reports, according to the credit bureau Experian. Of 106.5 million total consumers with agency collections on their reports, 9.4 million had a zero balance. Under the new credit score system (FICO Score 9), those consumers will not be penalized.

The changes come as a result of an agreement between the three major credit bureaus using FICO scores- Experian, Equifax and TransUnion.  In addition, delinquent medical bills will not be reported to credit bureaus for six months.  This is another win for consumers, allowing them time to pay claims and resolve disputes with their insurance company.

While these changes make it easier to qualify for a loan, it is important consumers keep their debt-to-income ratio under 43 percent.   This is the highest ratio a borrower can have and still qualify for a mortgage in today’s market.

The CFPB gives the following debt-to-income ratio example:

If you pay $1,500 a month for your mortgage and another $100 a month for your car loan and $400 for your remaining debts, your monthly debt payments total $2,000.   If your gross monthly income is $6,000, then your debt-to-income ratio is 33 percent.

If you have any questions on this topic or are in a 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, 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.moneytalksnews.com/new-rules-may-boost-your-ailing-credit-score/

Bankruptcy Law, Credit, Student Loans, Timothy Kingcade Posts

The Affects Bankruptcy has on Children

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Filing for bankruptcy can be a challenging time, especially for those who have children.  However, sometimes it is the only option. Below is a detailed look at the impact bankruptcy can have on children.

Child’s Property Status

Any property you have purchased for your child, including: clothing, furniture, toys, books, etc. is considered your property in a bankruptcy case. However, it will not be included in your bankruptcy estate if you are able to prove that the property was purchased with your child’s income. This would apply if your child received funds from employment or other form of income. Receipts from your child’s bank account are also helpful in excluding the property from your bankruptcy estate.

Child Support Income

In the State of Florida, child support income is exempt in bankruptcy, if it has been saved in a bank account. Again, receipts are important to prove that the money in the account is indeed child support income.

Child’s Financial Assets

Any bank accounts or college savings accounts that are in your child’s name are exempt in bankruptcy.   These include custodial bank accounts and 529 college savings accounts.  Any deposit made to the account less than 365 days before filing bankruptcy may be seized by the bankruptcy trustee and used to repay creditors.  Fortunately, any deposits made between 365 to 720 days or more prior to filing bankruptcy are exempt.

School Tuition and College Student Loans

$1,875 in educational expenses is usually allowed for minor children of bankruptcy filers. While college-aged children will still be able to take out  student loans, you will be excluded from taking out loans on their behalf, after filing for bankruptcy. It is always best to speak with your bankruptcy attorney to explore how trustees view tuition payments in your area.

If you are in a financial crisis and are considering filing 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, 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.

Source:

https://www.myhorizontoday.com/bankruptcy101/how-does-bankruptcy-affect-my-children/

Foreclosures, Timothy Kingcade Posts

Foreclosures Reach Eight-Year Low

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Foreclosures have fallen to their lowest level in almost eight years. This can be attributed to the steady increase in jobs and rising home prices. According to the real estate trend tracking company CoreLogic, there were 38,000 completed foreclosures in July. This figure is down 6.2% from June’s numbers and it is the lowest since December 2007.

July’s figure shows a significant 67.9% decrease from the peak of 117,225 completed foreclosures back in September 2010. Anand Nallathambi, president and CEO of CoreLogic said, “As we enter the final months of 2015, the housing market continues to gather steam buoyed by improving economic conditions and the release of pent up demand for homeownership.”

Nallathambi also stated that the housing market’s recovery is reflected in the decline of delinquency and foreclosure rates. In July, the national foreclosure inventory, tracked homes at varying stages of foreclosure and found approximately 469,000. This was equivalent to 1.2% of all homes with a mortgage, which was far less than the 650,000 homes (1.7 %) in July 2014. The total decline over the past year for the national foreclosure inventory was 27.9%.

Before 2007’s housing market crash, foreclosures averaged at 21,000 per month nationwide from 2000 to 2006. Following the financial crisis that began in September 2008, there have been approximately 5.8 million completed foreclosures nationwide. Mortgages in serious delinquency (90 days or more past due) have also significantly declined by 23% over the past year.

States with the highest number of completed foreclosures from July 2014 to July 2015 were Florida with 98,000, Michigan with 47,000, Texas with 33,000, California with 27,000 and Georgia with 27,000. These states accounted for nearly half of all completed foreclosures nationally. Four states and the District of Columbia had the highest percentage of foreclosure inventory of all mortgaged homes: New Jersey with 4.8%, New York with 3.7%, Florida with 2.7%, Hawaii with 2.5% and the District of Columbia with 2.4%.

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.

Source:

http://thehill.com/policy/finance/252920-foreclosures-nearing-eight-year-low

Student Loans, Timothy Kingcade Posts

College Student Debt Relief Could Reach $3.2 Billion

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More than 3,000 former Corinthian College students can expect to see their student loan debt erased. This marks the first wave of debt relief in relation to the fall of the for-profit higher education chain. In the event that all Corinthian students seek relief, taxpayers can expect to be hit with a $3.2 billion bill.

Nearly 12,000 students have sought discharge of their college loan debt from the federal government. According to the Education Department, many students have claimed that their school has either closed down or they were misled about job prospects. Approximately 3,100 closed-school claims have already been approved, totaling around $40 million in student loans, the department said.

Ted Mitchell, Education Undersecretary stated that proper processing of the remaining claims will take some time, if it is done right. While these figures are unprecedented, these numbers only represent a fraction of the students who might qualify for debt relief. For many students, the relief cannot come fast enough as they struggle to make ends meet while paying their student loans.

Recently, more students are claiming to be victims of fraud and are actively submitting what is known as “borrower’s defense” claims. As of late last month, the majority of nearly 12,000 claims have been Corinthian-related. For the Department of Education, this situation ventures into new territory. Over the past 20 years, officials could recall only five borrower defense cases. Mitchell has been appointed as the department’s new “special master” for debt relief. Approximately 350,000 students have attended Corinthian schools over the past five years, which means there will be more claims to come.

The Obama administration has stepped in to curb the issues surrounding the for-profit college industry. The administration says that the for-profit industry relies too heavily on federal student loans and often misleads students. Investigators have discovered that Corinthian schools charged exorbitant fees and blatantly lied to their students about job prospects.

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 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, 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.

Source:

http://www.columbian.com/news/2015/sep/06/college-student-debt-relief-could-hit-3-2b/

Student Loans, Timothy Kingcade Posts

Corinthian Colleges Student Debt is Cancelled by Department of Education

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This past February, America’s first student debt strike took place when 15 former students of Corinthian Colleges Inc. joined forces. The students refused to pay their student loans, claiming that the degrees they had earned were worthless and the company had used fraudulent marketing and recruitment practices. Other students also joined the strike and soon organizations like the American Federation of Teachers and Jobs with Justice had endorsed the students’ cause.

In May, Corinthian filed for bankruptcy. Arne Duncan, Education Secretary discussed the debt relief plan for some former Corinthian students. According to Duncan, Corinthian brought the ethics of payday lending into higher education and preyed on vulnerable students, leaving them with debt they could never pay. In fact, a third of Corinthian students came from families that earned less than $10,000 per year.

For the strikers, this was a grand victory. However, many feel that the Education Department has not done enough to fully correct the situation. Unfortunately the department is not issuing a complete discharge of debt to all former Corinthian students, which means some students may be left out. To receive relief, most students will have to apply individually and will be required to furnish transcripts and other documents that may be difficult to obtain, since the campuses have shut down or been sold. They must also spell out what parts of a state law that Corinthian violated in their particular case.

For many of the students, this has proven to be complicated and confusing for them. The Education Department has not advised the students of their options and many Corinthian students are not even aware of the debt relief program. In a recent report by the New York Times, only 6% of students have asked for debt cancellation. It seems that the Department of Education does not want to cancel potentially millions of student loans, however many find it absolutely necessary.

This is not the first time Corinthian has come under fire. Corinthian has had a long history of past allegations against them. In 2014, the Education Department accused Everest College of lying to students about job placement rates and briefly cut off federal funding to Corinthian.  However, after the company said it could not survive even a few weeks without the public money, the Education Department continued funding Corinthian while they sought a buyer. That same year, the federal Consumer Financial Protection Bureau (CFPB) sued the company for operating a predatory lending scheme.

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 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, 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.

Source:

http://www.latimes.com/opinion/op-ed/la-oe-0623-taylor-corinthian-colleges-loans-20150623-story.html

 

Foreclosures, Timothy Kingcade Posts

Freddie Mac and Fannie Mae Join Together to Extend Foreclosure Timelines

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Fannie Mae has announced that it will increase the maximum number of allowable days for a foreclosure sale in 33 states, including Florida. According to the announcement, Freddie Mac also increased the maximum number of allowable days for the following jurisdictions: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Nevada, New Mexico, New Hampshire, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Washington, West Virginia, Wisconsin, and Wyoming.  Both enterprises have indicated that these new foreclosure timelines apply to all foreclosure sales completed on or after Aug. 1.

Florida’s new foreclosure timeline went from 810 allowable days to 930 days, as of August 1, 2015. This gives homeowners a 120 day increase. The maximum number of allowable days represents the maximum allowable period between the due date of the last paid installment and the completion of the foreclosure sale, according to Freddie Mac. The allowable time frame also represents the required time frame for foreclosure proceedings that are deemed “routine” or “uncontested.”

These allowable time frames reflect the legal requirements of the applicable jurisdiction, and consider time delays that might occur outside of the servicer’s control. If a foreclosure sale should exceed the indicated maximum number of allowable days and an adequate explanation for the delay is not given, Freddie Mac will require the servicer to pay a “compensatory fee.”

Fannie Mae and Freddie Mac have also extended the state foreclosure timeline compensatory fee assessments for the District of Columbia, Massachusetts, New York (including New York City), and New Jersey, until Dec. 31.

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.

Source:

http://www.housingwire.com/articles/34989-freddie-mac-joins-fannie-mae-in-extending-foreclosure-timelines

http://www.housingwire.com/articles/34983-fannie-mae-extends-foreclosure-timelines-in-33-states

 

 

Foreclosures, Timothy Kingcade Posts

South Florida Foreclosure Rates Fall

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This past June, foreclosures in both Miami-Dade and Broward counties decreased, continuing a long-running decline. The decline dates back to 2012, when the housing market began its steady recovery, following the devastating economic recession.

The property analytics firm CoreLogic, conducted a report to assess the rate of decline in foreclosures in South Florida. The percentage of homes in foreclosure had dropped to just 3.6% in June, down from 3.71% in May. June 2014’s rate had been at 6.29%, indicating a significant drop over the course of a year.

Alternately, Broward County also saw a notable decrease in foreclosures. According to the same report, the foreclosure rate fell to 3.22% in June, down from 3.37% in May. Similar to Miami-Dade’s numbers, Broward County’s June 2014 foreclosure rate was at 5.91%.

The recession took a heavy toll on South Florida’s housing market in particular. Despite the decrease in foreclosure rates, South Florida’s rates are still higher than those in Florida as a whole. Florida’s foreclosure rate is 2.79%. The nation’s foreclosure rate is 1.28%.

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.

Source:

http://www.miamiherald.com/news/business/real-estate-news/article32634810.html

Bankruptcy Law, Timothy Kingcade Posts

Rising Bankruptcy Rates in America

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Hundreds of thousands of Americans file for bankruptcy every year.  Although a bankruptcy can remain on your credit report for up to 10 years, there are times when taking this route is the most efficient and effective way to get out from under insurmountable debt and gain a fresh financial start.

Last year, 898,970 non-business bankruptcy filings were made in the U.S. This was the equivalent to a rate of 2.8 people in bankruptcy per 1,000 people. According to data from the Administrative Office of the U.S. Courts, Tennessee had the highest bankruptcy rate with 5.89 people per 1,000.

Filing for bankruptcy is not a decision to be made lightly. Before you file, it is important to explore all of your options.   Experts warn not to wait too long because this will only prolong your financial struggle.

Below are some tell-tale signs that indicate bankruptcy may be the best choice for you:

  • Your debt balances grow, despite making payments;
  • You are using retirement or savings to cover your debt payments;
  • You are struggling with an underwater mortgage;
  • Family members or loved ones are at risk if you do not address your debt.

Upon deciding to file, you will soon realize the many ways bankruptcy can help you. Depending on the type of bankruptcy you file, you may be able to discharge most or all of your debt, or arrange for a manageable re-payment plan. After filing for bankruptcy, consumers should begin practicing positive credit habits and focus on rebuilding their credit slowly.

If you are in a financial crisis and are considering filing 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, 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.

Source:

http://www.msn.com/en-us/money/credit/the-states-with-the-highest-bankruptcy-rates/ss-BBjewMi#image=1