Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Protect Yourself: Top Unlawful Tactics Debt Collectors May Try Use Against You

Posted on July 22, 2015by Admin

Dealing with debt is difficult enough without having to be harassed by insistent debt collectors. Unfortunately, many of the strategies used by collection agencies are illegal. According to the Federal Trade Commission (FTC), an estimated 30 million Americans have accounts in collection. Consumers should be aware of the scheming tactics collection agencies may use because your rights are being violated.

In recent years, the FTC has targeted collection agencies that practice unlawful strategies in order to collect debt. Several lawsuits have been filed against the companies for violating the Fair Debt Collection Practices Act. This federal law was created to protect your rights, by preventing third-party debt collection agencies from harassment, threats, unwanted contact and disclosure of your personal information to others.

The following is a list of the most common unlawful tactics used by debt collectors:

• Dishonesty. Collection agencies are not allowed to tell a consumer that they will be arrested or face other false consequences, if they do not pay immediately.

• False Representation. It is illegal for debtors to pose as a government agent or law enforcement official, in order to collect a payment.

• Threats. Collection agencies cannot threaten violence against you. They also cannot threaten a lawsuit if they are not truly filing one.

• Illicit Disclosure. It is prohibited for debtors to share or divulge any of your personal information about your debts to friends, family, co-workers or otherwise.

• Inopportune Contact. Collection agencies may only contact you between the hours of 8 a.m. and 9 p.m., local time. Contact outside of this time frame is harassment.

• Indecency. By law, debtors must treat you with respect and professionalism. Use of profanity and obscenities is strictly prohibited.

• False Documentation. Collection agencies may not forward any kind of documentation resembling an official government notification to you. Pretending to work with a government agency is illegal.

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.cbsnews.com/news/7-things-debt-collectors-arent-allowed-to-do/

Bankruptcy Law, Timothy Kingcade Posts

Fraudulent Debt Collectors Targeting Spanish-Speaking Consumers Banned by FTC

Posted on July 21, 2015by Admin

A recent announcement by the Federal Trade Commission (FTC) reveals that the operators of a fraudulent debt collection scheme have agreed to be banned from the debt collection and telemarketing business. The agreement was met to settle FTC charges of false demands for fake debts, targeting Spanish-speaking consumers. Defendants Centro Natural Corp., Sumore LLC, Jessica Anzola, Damian Biondi, Carolina Orellana, Javier Sumbre, and Susana Sumbre, were smacked with a hefty fine of almost $7 million for the scam.

The FTC’s vote to initiate a permanent injunction against the defendants was unanimous, and the decision was filed with the U.S. District Court for the Southern District of Florida. The FTC first filed the complaint last year, alleging that the defendants threatened consumers with arrest, immigration status investigations and even lawsuits, if they did not pay the phony debts.

The settlement order’s ruling to ban all defendants from telemarketing and debt collection activities means that they are permanently prohibited from making further misrepresentations about any product or service, as alleged in the complaint. Bionore Inc., Jager International Inc., Allianza Inmobiliaria Corp. and Jorge Sumbre were also named as defendants who stood to gain from the con. The defendants are also forbidden from selling or benefitting from customers’ personal information.

Source:
http://www.insidearm.com/daily/debt-collection-news/debt-collection/ftc-bans-fraudulent-debt-collectors-who-targeted-spanish-speaking-consumers/

Bankruptcy Law, Timothy Kingcade Posts

Rapper 50 Cent Files for Bankruptcy

Posted on July 20, 2015by Admin

Last week, Curtis Jackson, better known as rapper 50 Cent, filed for Chapter 11 bankruptcy protection, only days after a messy lawsuit forced him to pay out $5 million to his rival Rick Ross’ ex-girlfriend. Both fans of the rapper and the media were surprised to learn of the filing, especially since Jackson was regarded as a man of “exceptional business instincts,” by The New York Times. He was also ranked No. 4 on Forbes’ May list of the wealthiest hip-hop artists, for his net worth of $155 million.

Jackson’s attorneys stated that the filing will allow the rapper to reorganize his financial affairs. However, others believe he is filing for bankruptcy as a way to protect himself following his lawsuit. In a recent late night appearance on TBS’ The Conan O’brien Show, Jackson addressed his decision to file for bankruptcy. “I need protection,” Jackson claimed. He also stated that success often makes people a target for lawsuits.

Prior to his filing for bankruptcy, Jackson did little to hide the extravagant lifestyle he was leading. He was often seen seated in the front row at fashion shows, catching frequent private flights, flashing expensive jewelry and clothing, and driving luxurious cars. The rapper’s Instagram is full of images supporting this, as he constantly posted updates for his 5.4 million followers. Despite this, Jackson said in his interview with Conan, “Times are hard out here, for real.”

Sources:
http://www.businessinsider.com/50-cent-bankruptcy-to-conan-i-needed-protection-2015-7
http://www.businessinsider.com/50-cent-biography-pictures-of-luxury-2015-7

Bankruptcy Law, Timothy Kingcade Posts

Benefits of Bankruptcy Receives Praise from Donald Trump

Posted on July 16, 2015by Admin

For those uncertain as to whether or not they should file for bankruptcy, Donald Trump appears to have stepped up as a spokesperson on why filing for bankruptcy is a wise move. Although the multi-million dollar real estate investor claims to have never filed for bankruptcy personally, he fully supports how bankruptcy can be a smart and legal move when needed.

Last month on Twitter, Trump stated, “Out of hundreds of deals & transactions, I have used the bankruptcy law a few times to make deals better. Nothing personal, just business.” He also stated that nearly every major dealmaker has used bankruptcy laws as a business tool. According to Trump, buying deals and then immediately placing them into bankruptcy for a better deal is effective and commonly used.

Despite his positive reviews of utilizing bankruptcy for better business deals, Trump is deeply irritated by others thinking that he has personally filed for bankruptcy. In 2013, Trump vehemently denied this in an angry post directed at the journalist, Touré Neblett.

In the past, Trump’s corporations have filed for bankruptcy, if the enterprise was failing or struggling. It seems that if business tycoons can use bankruptcy laws to their advantage, so can the average consumer. While bankruptcy may help in business transactions, there is still a negative stigma attached for some individuals.

Bankruptcy continues to provide a fresh start for struggling consumers buried in debilitating debt. According to the Federal Reserve Bank of New York, those who file for bankruptcy are better off financially than those who do not. Keeping this in mind, some of the common myths of filing for bankruptcy are simply not true. It is important consumers keep an open mind. Whether it is business or personal, filing for bankruptcy is indeed a smart and useful tool for people to consider.

Source:
http://www.huffingtonpost.com/steve-rhode/donald-trump-praises-beneficial-power-of-bankruptcy_b_7746322.html

Student Loans, Timothy Kingcade Posts

Student Loans and Bankruptcy: What the Department of Education Has to Say

Posted on July 15, 2015by Admin

Last week, the Department of Education provided guidance on how it will deal with bankruptcy discharge requests for government backed student loan debt. The Department of Education hopes to provide a balance when collecting on student loans, taking possible undue hardship on the debtor into consideration.

The July 7th document has broken down the updated Undue Hardship Formula, which will be used to help the Department of Education find a suitable balance between collecting debts versus allowing debt to be discharged.

The following factors will be considered regarding undue hardship when it comes to the discharge of student loan debt:

• If a debtor has filed for bankruptcy;

• If a debtor asserts undue hardship due to physical or mental impairment;

• If a debtor is a veteran who is unemployable, as determined by the Department of Veterans Affairs;

• If a debtor is approaching retirement, taking into consideration the debtor’s age at the time student loans were borrowed;

• If a debtor’s health has significantly changed since the student loan debt was incurred;

• If significant time has elapsed since the debt was incurred;

• If a debtor’s expenses are reasonable, without unnecessary expenses to provide funds for student loan repayment;

• If a debtor had the mental and/or physical capacity to pursue discharge or aid;

While the Department of Education has provided guidance to clarify the process, developments are still underway. If a debtor cannot discharge student loan debt as an undue hardship, there is still the opportunity to “agree to discharge of a portion of the amount owed.”

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.huffingtonpost.com/steve-rhode/department-of-education-r_1_b_7753076.html

Foreclosures, Timothy Kingcade Posts

South Florida Sees a Decline in Zombie Foreclosures

Posted on July 14, 2015by Admin

RealtyTrac reports that zombie foreclosures have dropped across South Florida. In the past, homeowners were forced to abandon their homes during foreclosure proceedings—creating the term “zombie foreclosures.” However today, thousands of homeowners remain in their homes while foreclosure proceedings take place.

In last year’s second quarter, approximately 7,021 residents left their homes behind once the foreclosure process began. This was 46% less than the year before, according to RealtyTrac’s Zombie Foreclosure Alert. Increased consumer awareness and knowledge of the law appears to be the reason for this rapid change. Unless the home has sold, homeowners are not required to move out; therefore, they opt to stay.

The average value for owner-occupied homes is $251,236, while zombie homes averaged at $195,856. This data indicates that the foreclosing bank would actually benefit from the home being occupied during the process. In the past, the number of zombie foreclosures was negatively affecting neighborhoods across the nation. Overgrown yards, disrepair and code violations only caused problems for lenders seeking to recover the property.

With homeowners staying put and keeping the home maintained, lenders are eager to offer loan modifications to keep borrowers in their homes. The foreclosure process is very lengthy in South Florida, and lenders seem to be fed up. Statistics reveal that on average, a foreclosure in Florida can take over 2½ years to litigate. The decline in zombie foreclosures is good news for all as the economy slowly improves.

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.dailybusinessreview.com/home/id=1202731962896/RealtyTrac-Zombie-Foreclosures-Decline-in-South-Florida?mcode=1202617073880&curindex=3

Credit, Foreclosures, Timothy Kingcade Posts

Surviving Spouses Receive Assistance on Reverse Mortgages

Posted on July 13, 2015by Admin

Reverse mortgage loans handled by the Department of Housing and Urban Development (HUD) are the most common type available, representing more than 90% of reverse mortgage loans in the United States. However, HUD’s rules and regulations regarding these loans have sparked much criticism and even lawsuits. The issue concerns spouses whose names are not included on reverse mortgage documents.

A reverse mortgage allows those who are 62 and older to withdraw funds against their home’s equity. The debt is not paid back until the borrower dies, moves, or sells the property. Many senior citizens have obtained a reverse mortgage only to discover that they could possibly lose their home upon the passing of their spouse.

This is exactly what happened to a Louisiana woman, when her husband passed away in January. The 65-year-old widow was told by her mortgage company that she owed $107,000 for the principal, accrued interest and fees from the couple’s reverse mortgage on their home of 16 years. The woman was a “surviving spouse,” whose name did not appear on the reverse-mortgage note. Loan officers and representatives had assured the couple that she could remain in the home, if her husband passed away. Unfortunately, she was not protected as she had been led to believe. Instead, she was told to pay the money or her home would be foreclosed.

An estimated 12,000 other widows and widowers face similar circumstances because their name does not appear on the reverse mortgage note. Research has shown that in some cases, the loan broker offered a higher maximum mortgage to those who only had the older spouse on the note. In other cases, one spouse might not have reached the required borrower threshold age, therefore only one of the spouse’s names was placed on the note.

Fortunately, a recent federal policy shift may help surviving spouses in this situation. Up until last month, all non-borrower surviving spouses whose loans were issued before Aug. 4, 2014, were subject to payment demands, similar to the Louisiana woman’s case. On June 12, HUD changed its policy and advised loan servicers of an updated option. Instead of foreclosing on non-borrower surviving spouses, the loan would be assigned back to HUD, which would make a claim for monies owed against the agency’s FHA insurance fund.

Source: Kenneth Harney – The Washington Post

Bankruptcy Law, Timothy Kingcade Posts

Bankruptcy Checklist: What to Bring when Meeting with your Lawyer

Posted on July 10, 2015by Admin

Are you considering filing for bankruptcy? Before you sit down with an experienced and qualified bankruptcy attorney, there are several important documents you need to bring with you. If you decide bankruptcy is the best option for you, your attorney will thoroughly review your financial background. Additional documentation will be required by your attorney to determine the type of bankruptcy you should file.

The following documents are needed when you first meet with your bankruptcy attorney:

• Financial Documentation. Wage statements, tax returns, bank account statements and large purchase receipts.

• Creditor Information. A list of credit accounts, account numbers, the amounts you owe and their contact information.

• Loan documentation. Any mortgages and outstanding loans you may have, such as: car loans, business loans, etc.

• Real Estate documentation. Forms and information pertaining to any property you may own or rent.

• Personal Property Documentation. Any major personal property items like vehicles, boats, valuable jewelry, electronic items, appliances or other items that could be repossessed.

• A list of any personal questions you may have for your attorney.

If you are a business filing for bankruptcy, additional documentation will be required such as company reports, financial statements, budget reports, and company property information.

While it is best to be as prepared as possible, if you are unable to obtain all of these documents, do not worry. You will be provided with adequate time to contact your banks, lenders and creditors to obtain the necessary documentation for your bankruptcy proceeding. It is important to be open and honest with your bankruptcy attorney to prevent possible fraud or being accused of “hiding” assets. By providing all necessary documentation and working closely with your attorney, you will help ensure that the bankruptcy process runs as smoothly as possible.

Source:
http://www.legalmatch.com/law-library/article/bankruptcy-checklist-what-to-bring-when-meeting-your-lawyer.html

Foreclosures, Timothy Kingcade Posts

More than Half of Underwater Homeowners Still Struggling

Posted on July 10, 2015by Admin

Home values in the U.S. are growing at such a slow rate, many struggling homeowners may be stuck with their mortgages for years to come. Zillow’s Negative Equity Report sheds some light on the situation. When a homeowner’s mortgage balance is higher than the fair market value of their property, it is called an “underwater” mortgage. Of those homeowners who were underwater, nearly half—about 4 million—owed 20% or more of their home’s actual value. In 2015’s first quarter, 15.4% of homeowners had negative equity in their home. While this is a decrease from 16.9% in 2014’s last quarter, the outlook is grim for homeowners who want to sell. Also, the report showed that lower-end homes were more than three times as likely to have negative equity as higher valued homes.

With spring and summer marking the busiest time of year for buying and selling homes, there has been a spike in demand. Unfortunately, many homeowners remain stuck because they cannot afford to sell at the buyers desired price. While it is great news to see the amount of negative equity decreasing across the nation, the extent of negative equity is a concern for many. Millions of Americans’ homes are so far underwater, they may not be able to regain equity for a decade or longer, according to Zillow’s Chief Economist, Dr. Stan Humphries.

The fact that the highest amount of negative equity is found in lower-valued homes means that this imbalance will directly affect future affordable home sales. With so many homeowners stuck underwater, the housing economy will face inflated home prices, limited inventory and a strained growth on home values. Among the 35 largest housing markets, Miami and Detroit were shown to have the greatest amounts of homeowners underwater. Both Miami and Detroit showed more than 60% of homeowners with negative equity and more than 20% percent of those homeowners were underwater.

Source:

http://www.nhbr.com/June-26-2015/4-million-US-homeowners-still-underwater/

http://www.prnewswire.com/news-releases/more-than-half-of-underwater-homeowners-are-nowhere-near-re-surfacing-300098266.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How Puerto Rico’s Bankruptcy Crisis Could Affect Florida

Posted on July 8, 2015by Admin

Puerto Rico’s recent financial crisis has sparked a heated debate among Congress. More than $72 billion in debt, the island territory is ready to declare bankruptcy. However, our nation’s bankruptcy code currently does not allow Puerto Rico access to do so. In a recent statement, Puerto Rico’s governor Garcia Padilla stated that the commonwealth’s debt is far too much for them to handle and now Congress is under pressure to make a decision.

Lawmakers have been considering whether they should implement a legislative solution to allow Puerto Rico to declare bankruptcy. If Congress passes a new law to remedy this, advocates believe it will finally resolve a technical oversight from a 1984 update to the nation’s bankruptcy law. Apparently the update inadvertently excluded Puerto Rico. Since the law says nothing about Puerto Rico, it is currently unable to receive aid. Even though Puerto Rico is supposed to have the same ability as the states, lawmakers called it an “error.”

Puerto Rico’s Resident Commissioner Pedro Pierluisi (D), is working to build support for legislation, as well as Senators Chuck Schumer (D-N.Y.) and Richard Blumenthal (D-Conn.), who are also working to build support for similar legislation in the Senate. Former Florida Governor Jeb Bush (R) expressed support for the bankruptcy proposal when he visited Puerto Rico in April. Hillary Clinton also expressed her support for allowing Puerto Rico to declare bankruptcy. At this time, the path ahead is unclear but Pierluisi states that he hopes to see the bill move before Sept. 1, 2015.

Meanwhile, many investors oppose the possible change, fearing that they too might go bankrupt if the law does pass. Skeptics say that the law would put billions of investors’ dollars at risk across the country. Even with a granted bankruptcy, many feel this will not solve all of Puerto Rico’s financial problems. Puerto Rico’s financial troubles have been long standing, since the territory was hit hard by the global financial collapse of 2007. Since then, many Puerto Ricans have moved to the U.S. mainland, namely Florida, to seek better opportunities.

More than 2 million Puerto Ricans reside in Florida. These numbers continue to grow as Puerto Rico looses approximately 1% of its population every year as thousands migrate to Florida’s more robust economy. South Florida is one of Puerto Rico’s largest trade partners. As a result, millions of Puerto Ricans living and working in Florida are an important part of the economy on the island. Unfortunately, if Puerto Rico defaults, Florida’s economy will certainly be affected.

Sources:

http://thehill.com/policy/finance/246820-puerto-rican-debt-crisis-hits-congress

http://www.miaminewtimes.com/news/puerto-rico-is-broke-what-you-need-to-know-about-looming-bankruptcy-7718094