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More Americans Facing Retirement with Debt

Posted on February 18, 2014by Admin

According to a recent study, the majority of people who contribute to retirement plans, such as 401(k)s, have accumulated more debt than retirement savings in recent years. More troubling is the fact that those approaching retirement- between 50 and 65 years old- had a monthly debt obligation in 2010 equivalent to 22% of their earnings, up 69% from 1992, according to the analysis.

A study by the Center for Retirement Research at Boston College found that the proportion of people in their 60s with debt increased from just under half in 1998 to nearly two-thirds in 2010. Debt as a percentage of assets nearly doubled, from 10% to 18% over that time frame.

Mortgages account for the largest portion of that debt. Older Americans are not only more likely to have mortgages than in previous years; they are also taking longer to pay them off. Some owners enjoy low enough mortgage rates and large enough investment assets to feel comfortable taking out a home equity line of credit to pay for emergency expenses. But in some cases, this is not a good idea. Many financial institutions are encouraging homeowners to look at their houses as a cash machines, with low interest rates. A lot of baby boomers have done this and are now stuck with higher mortgages. To keep debt from derailing your retirement plans, it is important to meet with an experienced financial advisor to manage your post-retirement cash flow.

The typical worker – between 50 and 65 years old- has saved enough for just two years of working income, even though the median post-retirement life span is about 17 years. Balancing debt and saving for retirement starts with carefully measuring what your income and your expenses will be. Many people facing retirement will be on a fixed-income. It is important to make sure that the income streams have the ability to pay your debt.

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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.

Credit, Foreclosures, Timothy Kingcade Posts

NEW Mortgage Protections for Members of the Military

Posted on February 17, 2014by Admin

The responsibilities of home ownership and having a mortgage are demanding enough for the average consumer, but the process becomes increasingly more complicated for borrowers who are serving our country.

To help ease these hardships- which include job and relocation stress, along with time constraints- the Consumer Financial Protection Bureau (CFPB) has written new mortgage protections for these consumers, which are now in place for military men and women.

Holly Petraeus, head of the CFPB’s military office said the new rules have come after the CFPB conducted nationwide listening sessions and heard stories from military families about poor mortgage servicing practices, inconsistent foreclosure practices and sloppy recordkeeping by lenders. These new rules will help military families struggling with a mortgage and those that just got orders requiring them to relocate.

Some of CFPB’s new rules include:

• Require a servicer to evaluate a borrower for all available options as soon as they receive an application for mortgage help.

• Servicers must have policies in place to ensure consistent and constant contact with borrowers.

• One of the big changes relates to what is known as dual-tracking. In the past, a member of the military struggling to make a mortgage payment might have been working on a potential loan modification at the same time their servicer was moving to foreclose on the home. This practice is now restricted under the new rules.

• Eliminate the issue of misplacing documents and other factors that make it hard for borrowers to get accurate and consistent answers regarding their mortgage.

• Mortgage servicers are now required to train their employees to be more readily able to answer questions for borrowers who run into trouble and must assign someone to help military borrowers to ensure a positive experience.

• In the past, service members had to apply multiple times for programs to help keep their homes. The new rules require mortgage servicers to evaluate a borrower who files a complete application for help for all the options that are available to that borrower. This will eliminate multiple rounds of applications.

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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, Foreclosures, Timothy Kingcade Posts

Foreclosures Hit Lowest Level in More than Six Years

Posted on February 14, 2014by Admin

Banks took back 30,226 homes last month, a 4 percent drop from December, according to RealtyTrac. Lenders have repossessed fewer U.S. homes in January, bringing the number of foreclosures down to its lowest level in more than six years.

Even with the recent drop, many states posted a sharp increase in the number of homes entering the foreclosure process for the first time, a trend that raises the likelihood that those states will see a surge in foreclosed homes later this year.

It looks as if the U.S. housing market has finally emerged from its slump. Home prices have steadily increased, there has been steady job growth and more homeowners are keeping up with their mortgage payments.

Florida and New York, two states which continue to have a backlog of homes with unpaid mortgages, are only now entering the foreclosure process or being scheduled for auction. Foreclosures peaked in 2010 at 1.05 million and have been declining ever since.

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Bankruptcy Law, Credit, Timothy Kingcade Posts

1 in 4 Families Face Medical Debt Crisis

Posted on February 12, 2014by Admin

According to a recent report released by the Centers for Disease Control and Prevention (CDC), one out of every four American families struggled with medical debt last year. Even more compelling is the fact that one out of every 10 individuals with medical debt is “unable to pay at all.” The typical American family of four had total healthcare costs exceeding $22,000 last year, which included out-of-pocket costs of $3,600.

The nation’s out-of-pocket healthcare costs for 2013 are estimated to have totaled $322 billion, representing a significant amount of debt. Millions of these medical accounts are sent to collection agencies annually. Medical bills comprise more than half of the accounts in collections, according to research by the Federal Reserve.

Families that had children under the age of 18 were more at risk of falling into financial trouble due to medical expenses, along with those families who were within 250 percent of the federal poverty level.

The report revealed that having a mixture of coverage types increased the chances of families falling victim to medical debt. For example, a family of four with two individuals on Medicaid and two individuals on private insurance had an increased risk.

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Medical bills can be financially devastating- even if you have health insurance and are employed. Filing for bankruptcy can eliminate your medical debt and give you a fresh financial start. 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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Medical Debt: The Number One Cause of Personal Bankruptcy

Posted on February 10, 2014by Admin

This year it is expected that 1.7 million American households will be forced to file for bankruptcy due to overwhelming medical debt. This makes medical debt the largest cause of personal bankruptcy filings- surpassing credit card bills and unpaid mortgages, according to new data. Even having health insurance does not shield many Americans from the weight of medical debt.

According to recent data, 25 million Americans hesitate to take their medications in an effort to control medical costs. However, delaying the needed medication is only a short-term fix which can often result in expensive emergency room visits or worse.

More than 20 percent of the population between the ages of 19 and 64 will struggle to pay some sort of medical debt. High-deductible insurance plans, requiring consumers to pay more out-of-pocket expenses, are the most challenging for Americans. With the average American family bringing home just $50,000 a year, an unexpected medical bill coupled with a high-deductible insurance premium can quickly become unmanageable debt.

Obamacare is not likely to fix the problem. While the Affordable Care Act will give more people coverage, those with year-round coverage are likely to still be overwhelmed with medical debt. The number of households forecast to file for medical-related bankruptcies this year is three out of every five filings.

Data from NerdWallet Health revealed that 15 million people will deplete their savings to cover unexpected medical bills. Another 10 million will be unable to pay for necessities such as rent, food and utilities because of those bills.

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Bankruptcy Law, Credit, Timothy Kingcade Posts

Distressed Real Estate Continues to Hold Down Miami-Dade’s Housing Market

Posted on February 7, 2014by Admin

According to a recent report from Core Logic, distressed real estate continues to put a damper on Miami-Dade’s housing market. New numbers show a nearly four-point spread between price gains in the overall housing market and price gains when distressed sales are eliminated. That is higher than the one-point spread nationwide and Broward’s spread of 1.5 percentage points.

In Miami-Dade, home prices increased 10.6 percent at the end of 2013 compared to the end of 2012. When leaving out sales of distressed properties (i.e. – sales by banks or homes in the foreclosure process) the gain would have been 14.5 percent, Core Logic said.

In Broward, the overall market saw prices rise 13.7 percent. Leaving out sales of distressed properties, the gains were 15.2 percent. Nationwide, it was an 11-percent gain for all property sales and a gain of 9.9 percent for non-distressed properties, according to Core Logic.

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Bankruptcy Law, Credit

Is Bankruptcy Right for you? Review our 5-point Checklist

Posted on February 6, 2014by Admin

1.) You must be eligible to file. The “means test” will determine this. If you have enough money to pay your creditors, you will likely be ineligible to file Chapter 7 bankruptcy. If you make less than the median income for your state, you are fine. If your income exceeds that figure and you have enough money to pay for your necessary expenses and part of your debts, you will not be eligible to file.

2.) You do not see your financial situation improving in the near future. If your financial hardship is only temporary and you are due money with a gift, inheritance or better paying job, you may want to wait it out. However, if debt collectors are constantly calling you and you see no end in sight, it may be time to sit down with an experienced Miami bankruptcy attorney to discuss your options.

3.) Most of your debts are unsecured. Not all debts are discharged in bankruptcy. Unsecured debt- including credit cards, medical bills, collection accounts are dischargeable in bankruptcy. However, student loans, recent tax debt, legal bills and child support payments are not. Asses your liabilities. If the bulk of them are dischargeable debts, bankruptcy may be a good option.

4.) You are comfortable walking away from your financial obligations. Filing for bankruptcy is a big decision, and for many, it can be an emotional process. Take plenty of time to project how you will feel after filing. Many feel a sense of relief, and looking back, wish they had filed sooner.

5.) You will be in a better place. The big advantage to filing for bankruptcy is that it allows you to start over, wipe the slate clean and gain a fresh financial start. Immediately after you file for bankruptcy, an automatic stay is created which stops future collection attempts against you. This includes debt collector calls, wage garnishments, foreclosure proceedings, repossessions, etc. Bankruptcy can provide you time to catch up on your mortgage payments, and save your home from foreclosure. It can also lower your monthly car payments and eliminate second mortgages.

Before filing Chapter 7, it is important that you consult an experienced Miami bankruptcy attorney to determine if bankruptcy is the right option for you. 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

7 Ways to Build Credit without a Credit Card

Posted on February 5, 2014by Admin

Whether you are buying a home, car or other big purchase item, the first thing a lender will look at is your credit score. Before applying for a major loan, it is important you know where you stand with your credit score. Many people believe that the only way to establish and build credit is by opening and using a credit card.

Here are a few alternatives to help you put the plastic away and establish good credit.

1.) Ask companies to report on your behalf. If you have recurring bills that you pay on a monthly basis (i.e.- rent, utilities, cell phone, etc.) request that these providers report your payment activity to the three major credit bureaus- TransUnion, Experian and Equifax. Of course before you do that, make sure you have a responsible/on-time payment history. Payment history accounts for 35 percent of your credit score and can have significant impact if there is not a lot of other data on your credit report.

2.) Become an authorized user on another credit card. Do this ONLY if the cardholder has a strong credit background. Signing on as an authorized user will enable you to piggy back off their stellar credit.

3.) Open an account with a credit union and take out a small personal loan. Credit unions typically offer financing options at lower interest rates than traditional banks. To give your credit score a boost, apply for a small personal loan. If denied, inquire about a secured loan-where a certificate of deposit or savings account- will be used as collateral. This request will likely be approved because the risk in minimal on the lender’s end.

4.) Apply for an installment loan. These loans paid in a timely manner over an extended period of time build your credit score because they show creditors that you are a responsible borrower.

5.) Federal student loans. A credit check is not required to obtain a federal student loan. Since it is an installment loan, it can help boost your credit score. Aim for one that is subsidized and deposit the money into a safe interest-bearing account so the funds will be available when repayment starts.

6.) Peer-to-peer loans. Companies like Prosper and Lending Club offer peer-to-peer loans, where borrowers are connected with individual investors. The interest rates are low and these lenders report to the major credit bureaus.

7.) Try an alternative credit score. Check out Payment Reporting Builds Credit (PRBC), which helps consumers create a nontraditional credit score, an alternative to the big three credit bureaus.

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Bankruptcy Law, Credit, Timothy Kingcade Posts

Never Give Debt Collectors Access to This

Posted on February 4, 2014by Admin

Debt collectors are looking to get as much information as they can on a bad or late debt. NEVER, under any circumstances allow them electronic access to your debit card or personal checking account. There have been numerous situations where collectors have taken more than the agreed-upon amount from someone’s account once they have gained access, leaving unsuspecting people without money to pay their rent, the electric bill or even groceries.

Do not be intimidated by the collection company’s threats or lies. There are safer ways to pay off the debt. You can send money overnight or wire the cash to them. You can also send a cashier’s check. You can also invest in a pre-paid debt card that is not attached to any of your personal accounts.

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Bankruptcy Law, Credit

Three Potential Student Loan Changes to Watch for in 2014

Posted on February 3, 2014by Admin

Student loan debt and borrower default rates continue to capture headlines. Federal student loan programs and interest rates for 2014-2015 are expected to change- and not for the better. Below are three potential student loan changes borrowers should watch out for in 2014.

1.) PLUS loans: Unlike Stafford loans, approval of PLUS loans and graduate PLUS loans are subject to credit history. Borrowers that have either filed for bankruptcy, foreclosure or have loan default within the last five years are not eligible for a PLUS loan. Congress is set to tackle this issue next month. Adjustments being proposed would help reduce default rates, but could also shut out a larger portion of students and parents.

2.) Interest rates: Congress battled student loan interest rates throughout 2013, finally agreeing on market-based rates. While the agreement lowered student loan interest rates- this was only a temporary fix. Experts predict the Treasury rate will rise as high as 3.75 percent, while others have a more conservative forecast of 2.96 percent. Either way, students taking out federal loans for the upcoming year should expect to pay more.

3.) Student loan counseling. The Smarter Borrowing Act could make student loan counseling more comprehensive by requiring colleges and universities to send students annual updates on their balance, interest rates and repayment options. The bill would also require colleges with higher default rates to include financial literacy and budgeting to their student loan counseling sessions.

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