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Bankruptcy Law, Credit, Timothy Kingcade Posts

Consumers Beware: No one can Erase Bad Credit

Posted on February 6, 2015by Admin

The Better Business Bureau is warning consumers to beware of companies making false promises of quick credit repairs. They have seen an increased number of complaints against local and national credit repair companies that are claiming to be able to erase bad credit for upfront fees of $250 or more. So can you actually erase bad credit? Consumers can have credit reporting errors corrected, but unfortunately, if the debt is valid no company can make it disappear.

For a fee, credit repair companies promise to clean up your credit report so you can obtain a car loan, mortgage or even a job. Based on the BBB experience, many of these companies fall short on their promises. After consumers pay these companies, sometimes thousands of dollars in fees, they do nothing to improve the consumer’s credit and simply disappear with the money.

The Federal Trade Commission has the following tips to help consumers avoid the pitfalls associated with these credit repair companies:

•Avoid any company that tells you it can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.

•Avoid any company that charges an upfront fee for credit repair services. This is against the law.

•Beware of any credit repair company that does not tell you your legal rights and steps you can take to repair your credit score free of charge.

•Avoid any credit repair company that tells you not to contact a credit reporting company directly.

•Avoid any credit repair company that advises you to dispute ALL of the information in your credit report.

•Avoid any company that suggests creating a new credit identity or applying for an Employer Identification Number to use instead of your Social Security number. Not only is this illegal, it leaves consumers open to prosecution for fraud.

Click here to read more on this story.
http://www.theadvertiser.com/story/money/business/2015/01/03/beware-claims-one-can-erase-bad-credit/21251883/

If you are in 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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Parents with poor credit: Beware of this Student Loan Rule Change

Posted on February 5, 2015by Admin

There has been much criticism that federal student loans are too easy to get and that borrowers can take on large amounts of debt with little verification that they can ever pay it back. The Department of Education has announced new regulations that are aimed at one type of federal loan that currently does not require a credit check- Parent PLUS Loans.

PLUS loans are available to parents to help provide financing for children who do not qualify for enough financial aid on their own. But there are no specific limits on the amount that can be borrowed under this program- other than that parents cannot borrow more than the total cost of their child’s education after other financial aid has been deducted.

In the final regulations issued by the Department of Education, which go into effect March 29, 2015 borrowers who have an “adverse credit history,” may find it harder to qualify for these type loans. The evaluation will take into account whether the borrower has:

• One or more debts that are 90 days or more delinquent with a total outstanding balance larger than $2,085;

• Accounts placed for collection or charged off in the two years before the credit report is pulled;

• Bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a federal student loan debt in the past five years.

PLUS loans can be dangerous and are often accompanied by higher interest rates than other federal loans and fewer flexible re-payment options. For example, one parent shared on Credit.com’s blog that he has $45,000 in outstanding parent loans, but only makes $28,000. His children are unable to help him repay the loan at this time.

These changes are likely going to make parents look harder at the true burden of student loan debt and the potential return they are getting with taking out these loans. Parents thinking about borrowing money to help their children pay for college would be wise to review their annual credit reports to identify any discrepancies and think twice about whether PLUS loans are the best option.

Click here to read more on this story.
http://www.foxbusiness.com/personal-finance/2015/02/02/student-loan-rule-change-that-could-hurt-parents-with-bad-credit/

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 http://www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

T-Mobile will Ignore Bad Credit if Bills are paid on Time for One Year

Posted on February 4, 2015by Admin

Many Americans miss out on qualifying for the favorable rate plans mobile carriers offer due to having a less than perfect credit score. In fact, 63% of Americans have a less than desirable credit score, so they do not qualify for the deals many of the wireless companies spend billions of dollars promoting.

John Legere, T-Mobile’s CEO and President, wants to change all that by offering a new service called Smartphone Equality. This plan will offer the same financing options for all customers, including those with bad credit. This will be available to customers who have paid their T-Mobile bill on time for 12 months.

Smartphone Equality puts the relationships the cellular company has with loyal customers above their credit scores. Legere believes that T-Mobile’s relationship with those customers is a better predictor of future behavior than their credit history.

Click here to read more on this story.
http://www.forbes.com/sites/amitchowdhry/2015/01/26/t-mobile-smartphone-equality/

Bankruptcy Law, Credit, Timothy Kingcade Posts

New Bill Introduced to Forgive Student Loan Debts during Bankruptcy

Posted on February 3, 2015by Admin

A lawmaker has filed legislation in Congress which will allow student loan debt to be treated just as other forms of debt that can be discharged in bankruptcy. As we all know, student loan debt is treated differently in bankruptcy court than credit card debt, auto loans or mortgage debt, and cannot be discharged. Representative John K. Delaney, D-Md., introduced the Discharge Student Loans in Bankruptcy Act (H.R. 449).

In a statement he said, “Student loan debt is dragging down economic growth, keeping the American Dream out of reach for many and is a monthly strain for millions.” Student loan debt continues to increase as the cost of college tuition continues to rise. According to a study by the Institute for College Access & Success, 69 percent of graduates from the class of 2013 left school with an average of $28,400 in student loan debt.

Delaney has backed several bills focused on student loans and financial aid. He is also a cosponsor of the Middle Class CHANCE Act, which increases support provided by Pell Grants. In his previous term, Delaney voted for legislation in the House to prevent student loan rates from rapidly increasing and cosponsored the Truth in Tuition Act, which requires institutions to provide multi-year tuition and fee schedules.

Click here to read more on this story.
http://www.accountingtoday.com/news/education-planning/congressman-introduces-bill-to-forgive-student-loan-debts-during-bankruptcy-73395-1.html

Bankruptcy Law, Credit, Timothy Kingcade Posts

Top 5 Predictions for Student Loans this Year

Posted on February 2, 2015by Admin

Last year, we saw small signs of change and new advocates gearing up to address the student loan crisis. You may be wondering what to expect this year. Here are five predictions for student loans in 2015.

1.) Policy changes. There will continue to be a lot of attention on student loans in Washington. There will likely be a bill passed by a Congressional Democrat, but it will be tough to pass with a Republican-run Congress.

2.) Rising rates. Interest rates will remain relatively stable, with the possibility of increasing towards the end of the year. It has been widely anticipated that interest rates will rise towards the end of this year.

3.) Better student loan options for more people. New companies have entered the market with the goal of “fixing the broken student loan market.” These online lenders focus on giving student loan borrowers a better rate and overall better experience. They focus mainly on refinancing student loan debt into lower interest rate loans. These companies will continue to expand this year, providing more positive options for those with student loan debt.

4.) More talk about the value of an education. Price-conscious consumers will rigorously evaluate the ROI of their education. People will become more educated on the university system today- and determine the high cost of education is economically “worth it” for some schools and degrees, but not as much for others.

5.) Broader attention from investors. Investor demand for student loan assets will increase. The last 1-2 years have seen increased student loan activity in the capital markets- securitizations, whole loan sales and equity investments. There is expected to be more of this in 2015 and an increased demand from investors.

Click here to read more on this story.

Foreclosures, Timothy Kingcade Posts

Foreclosures decreased in Broward, Palm Beach Counties last year

Posted on January 30, 2015by Admin

Foreclosure cases dropped sharply in South Florida last year, another sign the housing market is recovering. Broward County had 6,287 filings in 2014, a 42% decline from 2013 and Palm Beach County had 3,920 filings, down 55 percent from the previous year, according to RealtyTrac.

Some real estate experts predict a new wave of cases this year, but it will not be enough to derail the housing market recovery- and it may even be a good thing because it will put more homes on the market for avid buyers. Others argue that these foreclosed homes typically are not in good condition because of poor maintenance, and a fewer number of foreclosures and a steady increase in property values will reduce the number of “desperate sellers.” A decline in these desperate sellers could mean we see better quality homes hitting the market.

Although total filings fell 24 percent in Florida last year, the state still ranked No. 1 in foreclosures nationwide, with 2.3 percent of all Florida housing units receiving a notice in 2014.

Click here to read more on this story.
http://www.sun-sentinel.com/business/realestate/fl-realtytrac-foreclosures-20150115-story.html

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, Credit, Timothy Kingcade Posts

To Collect Debts, Nursing Homes are Seizing Control over Patients

Posted on January 29, 2015by Admin

Lillian Palermo did her best to prepare for end of life care. She arranged for her power of attorney and health care proxy to be her husband, if she ever became incapacitated. Now in her 80’s, her husband Dino, eight years her junior, feeds her home-cooked Italian meals, sings her favorite songs and pays a private aide to be there when he cannot at the Catholic nursing home in Manhattan.

Last summer, after he disputed nursing home bills that had suddenly doubled his wife’s co-pays, and complained about the inexperienced employees who dropped his wife on the floor, Mr. Palmero was shocked to find a six-page legal document lying on her bed. It was a guardianship petition filed by the nursing home, asking the court to give a stranger full legal power over Mrs. Palermo, now 90, and complete control of her money.

Many people are unaware that a nursing home can take such a step. However, interviews with system veterans and a review of the guardianship court data show this practice has become routine, shedding light on the growing power nursing homes have over residents and family members amid changes in the financing of long-term care. At least one judge has ruled this tactic by nursing homes is an abuse of the law, but the petitions, even if they are ultimately unsuccessful, force families into costly legal battles.

Mr. Palermo, 82, was devastated by the petition. A court evaluator eventually reported that Mr. Palermo was the appropriate guardian, but not before his legal expenses reached $10,000. In the end, Medicaid’s recalculation put his wife’s monthly co-pay at $4,558.54, almost $600 less than the nursing home had claimed, but far more than the $2,642 Mr. Palermo had been paying under an earlier Medicaid calculation. As soon as the nursing home cashed his check for the outstanding balance, it withdrew the guardianship petition.

Click here to read more on this story.

http://www.nytimes.com/2015/01/26/nyregion/to-collect-debts-nursing-home-seizing-control-over-patients.html

Bankruptcy Law, Credit, Timothy Kingcade Posts

New Rules Limit Hospitals’ Collection Fee Tactics

Posted on January 28, 2015by Admin

The Obama administration has adopted a new set of rules to discourage nonprofit hospitals from using aggressive tactics to collect payment from low-income patients. These new rules require nonprofit hospitals to offer discounts, free care or other financial assistance to low-income patients. In addition, hospitals are required to try and determine whether a patient is eligible for assistance before the case is referred to a debt collector, negative information is sent to a credit agency, a lien is placed on the patient’s home, filing a lawsuit or seeking a court order to garnish a patient’s wages.

The rules apply to nonprofit hospitals that are seeking or have tax-exempt status, about 60 percent of hospitals nationwide. Because the Consumer Financial Protection Bureau has endorsed these new rules, health care lawyers believe this could set an industry standard, influencing the practices of for-profit hospitals.

These new rules should make it easier for low- and moderate-income patients to get valuable medical care without having to worry about a large hospital bill or collection agency harassing them for money they do not have. The rules do not prevent a hospital from engaging in lawful debt collection; however, it does require hospitals to first evaluate a patient’s need for financial assistance. In addition, each nonprofit hospital must establish and publicize in a written policy stating who is eligible for financial assistance and how patients can apply.

Many people are just one medical emergency or illness away from a financial crisis. In fact, medical bills are the number one reason people file bankruptcy. For those struggling with the financial weight of a health crisis, Chapter 7 bankruptcy is a way for you to eliminate all of your medical bills in only a couple of months, and start fresh!

Click here to read more on this story.
http://www.nytimes.com/2015/01/12/us/politics/new-rules-to-limit-tactics-on-hospitals-fee-collections.html?_r=1

If you are burdened with medical debt and wondering how Chapter 7 bankruptcy can help, 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.

Foreclosures, Timothy Kingcade Posts

How to Bounce Back after Foreclosure

Posted on January 27, 2015by Admin

Going through a foreclosure can be a traumatic experience, but it doesn’t mean you can never own a home again. If you have recently been through a foreclosure, here are some ways you can bounce back and put yourself back on the path to homeownership.

• Clean up your credit. The first step on the road to recovery is rebuilding your credit score. According to a recent study by FICO, the higher your credit score before the foreclosure, the longer it takes to fully recover. For example, a homeowner with a credit score of 680 would take around three years to get back to their pre-foreclosure credit score. But a homeowner who started out with a score of 780 would require seven years after a foreclosure to return to their pre-foreclosure credit score. The best way to repair your credit is to keep using credit- RESPONSIBLY. To avoid missing a payment, set up automated payments. The biggest mistake people make is cutting up their credit cards or closing out lines of credit. This leaves you with a large gap in your credit history. Lenders want to see that you are using credit regularly in a responsible way.

• Putting in the time. You will need to find a lender willing to offer you a mortgage. Some government backed loans can help speed up the process. For many people, an FHA loan will be the quickest path back to homeownership. After a foreclosure, the government requires a three-year waiting period before you can qualify for another FHA-backed loan. Fannie Mae and Freddie Mac loans have an even longer wait time. Those lenders both require a seven year period before you will be considered for a new loan. There are exceptions. For example, if you can prove that the foreclosure was the result of an unexpected job loss or a death in the family.

• Tax Obligation. It comes as a shock to many that the federal government considers a forgiven debt as a form of income, which means you may have to pay income tax on a foreclosure. Congress passed a law in 2007 that exempted up to $2 million in forgiven debt in most cases of foreclosures. The law expired at the end of last year, but if your foreclosure was finalized before then, you will likely be in the clear. Even if you do not qualify under this act, there are other exceptions. For instance, in cases of bankruptcy the government will not pursue you.

Click here to read more on this story: http://www.foxnews.com/leisure/2015/01/23/how-to-bounce-back-after-foreclosure/

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Former NFL Player Receives Prison Sentence for Mortgage Fraud Scheme

Posted on January 26, 2015by Admin

Former Tampa Bay Buccaneers player, Jeffrey Charles Leroy Taylor, was sentenced to three years in prison for his part in a $7 million loan modification scheme that affected thousands of homeowners. In addition to his prison term, Taylor was ordered to pay more than $350,000 in restitution to the victims of the fraud.

Taylor, who also played football for the University of Miami and lives in Fort Lauderdale, pled guilty to the charges in late 2014. The scheme was reportedly organized by the operator of FHA All Day.com, Jason Vitulano, Housing Assistance Law Center and Safety Financial Corp. The defendants allegedly defrauded more than 2,000 struggling homeowners out of millions of dollars through fraudulent loan modifications in 2008 and 2009.

Taylor reportedly acted as the team manager of four telemarketers who made thousands of phone calls to homeowners offering to reduce their mortgage payments or stop the foreclosure process for a fee paid to FHA All Day.com.

Click here to read more on this story.