Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Timothy Kingcade Posts

BOA ordered to pay customers $727 million for illegal credit card actions

Posted on April 10, 2014by Admin

The Consumer Financial Protection Bureau (CFPB) has ordered Bank of America to pay $727 million to consumers who were misled by its credit card add-on products. The CFPB says 1.4 million consumers were affected by the bank’s deceptive marketing tactics and 1.9 million accounts were illegally charged for these credit monitoring products.

The CFPB’s complaint is alleging that from 2010 to 2012 Bank of America marketed “Credit Protection Plus” and “Credit Protection Deluxe,” two products said to help cancel some debt if a borrower was faced with financial hardship. According to the complaint, telemarketing scripts provided to BOA employees contained misstatements and omitted important information that misled consumers.

Bank of America has already reimbursed consumers for the unfair billing practices related to the identity protection products. For the credit protection products, remaining BOA customers will receive a credit to their accounts. Consumers are not required to take any action to receive their refunds.

Bank of America is also required to make a $20 million penalty payment to the CFPB’s Civil Penalty Fund. In addition, the Office of the Comptroller of Currency is ordering BOA to pay $25 million in civil money penalties for its unfair billing practices.

Click here to read more on this story.

If you have any questions on this topic or 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

Bankruptcy linked to GM’s faulty ignition switch recall?

Posted on April 9, 2014by Admin

Federal authorities are investigating whether GM committed bankruptcy fraud by concealing its ignition switch defect when it filed for bankruptcy back in 2009. The ignition switch problems led to the recall of 1.6 million vehicles last month.

GM is a different legal entity than the one that filed for bankruptcy in 2009. The “new” GM is not responsible under the terms of its bankruptcy exit for legal claims relating to incidents that took place before July 2009. Those claims must be brought against the “old” pre-bankruptcy GM.

The class action lawsuit said plaintiffs should be allowed to sue over the pre-bankruptcy actions “because of the active concealment by the Old GM and GM.” The lawsuit has also said that GM is responsible for reporting to the federal government any safety-related problems for cars made before its bankruptcy.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

U.S. Supreme Court to decide Bankruptcy Case Involving Inherited Retirement Funds

Posted on April 8, 2014by Admin

Clark v. Rameker, a bankruptcy case having to deal with inherited retirement funds could have an impact on future bankruptcy cases across the U.S. The case involves a personal bankruptcy filed in 2010 by a husband and wife after the pizza shop they opened failed. It left the couple nearly $700,000 in debt to their landlord, mortgage lenders and business creditors.

The wife inherited approximately $450,000 from her mother’s IRA when she passed away. The couple argued that these funds were protected from their creditors. Federal bankruptcy code allows up to $1.3 million in retirement funds (i.e. – Roth IRA’s, 401K’s, etc.) be exempt from creditors. However, the issue before the Supreme Court is whether someone else’s IRA that was inherited by the debtor is allotted that same protection.

The bankruptcy trustee in this case argues that the funds should be made available for repaying the couple’s creditors and that once the IRA money is passed down to an heir, the money no longer functions in the same way the retirement money once did (i.e. – it is no longer subject to penalties and taxes).

The trustee appealed to a three-judge panel and the appellate court held that the funds ceased to be protected when they were inherited. The appellate court’s decision conflicts with the two other court decisions holding that retirement funds remain protected even if they are passed down through inheritance.

The Supreme Court’s decision will settle the dispute. The Court noted that retirement funds are the only ones listed in the Bankruptcy Code that do not specifically note that it has to be the petitioner’s property. In order to settle the matter, the Court must interpret Section 521(b)(3)(C) of the Bankruptcy Code, which states that “retirement funds to the extent that those funds are in a fund or account that is exempt from taxation” are protected in bankruptcy cases. This decision is seen as an important one because it will have an impact on future cases, but experts say it will be months before the Court issues its ruling.

Bankruptcy Law, Timothy Kingcade Posts

Divorce often tied to Bankruptcy

Posted on April 2, 2014by Admin

A recent study from the Minnesota Population Center at the University of Minnesota revealed that the age-standardized divorce rate has grown by 40 percent since 1980. The age-standardized divorce rate is an important factor in calculating divorce risk, because the U.S. had a younger population in 1980 and statistically younger couples are at a higher risk of divorce. The study also revealed that since 1990, the divorce rate for those ages 60 to 65 has tripled.

Divorce can be costly for a variety of reasons and is a common cause of many bankruptcy filings. Considering the court costs, attorney fees and similar expenses, the divorce process can cause financial hardship. Not to mention splitting into two households, the financial strain of alimony or child support payments and the loss of certain economic benefits associated with marriage.

Depending on your unique circumstance, bankruptcy may be better to file before or after divorce. In some instances it can be advantageous to file for bankruptcy before divorce. Eliminating your debts can simplify the divorce settlement process. On the other hand, filing a joint bankruptcy can save on court costs and legal fees. Incomes generally decrease after a divorce so while you may not qualify for bankruptcy prior to divorce, you may qualify for it afterwards.

The best way to determine if and when bankruptcy is the right option for you before a divorce is to speak with 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.digitaljournal.com/pr/1826759

Bankruptcy Law, Timothy Kingcade Posts

How to get your Student Loan Debt Erased

Posted on April 1, 2014by Admin

Two-thirds of college students in the U.S. are graduating with some level of debt. According the Institute for College Access and Success, the average borrower will graduate $26,600 in the red. That’s a staggering number! Getting student loan debt erased in bankruptcy court is difficult, but not impossible. Several recent court decisions have challenged the notion that only the worst-off borrowers, typically those who are permanently disabled, can get student loan debt erased.

In many cases, borrowers filing for bankruptcy do not even ask about their student loan debt being discharged because they figure it’s a rare possibility. A recent study published in the American Bankruptcy Law Journal, found that only 213 out of 170,000 student loan debtors tried to have their education debt discharged by filing what’s known as the “adversary proceeding.”

Of those who tried to get their student loan debt discharged, two out of five received at least some relief. Based on the characteristics of those who were able to get discharges, the researcher who conducted the study calculated that an additional 69,000 people who filed for bankruptcy that year would have a “good chance” of erasing their student loans after filing adversary proceedings.

The study concluded that one reason so few student loan borrowers seek to discharge their student loan debt is because they have been convinced that it is a hopeless fight. A borrower must prove that repaying his or her student loans would be an “undue hardship.” This means meeting following requirements:

1.) A current inability to pay the loans, because doing so would not allow you to maintain a minimal standard of living given current income and expenses;

2.) A future inability to repay the money, because your financial situation is likely to continue;

3.) A good-faith effort to repay what you owe.

In two recent decisions, courts granted relief to borrowers who had not made voluntary payments on their debt and who refused to enroll in income-based repayment plans. The appeals court judges in both cases said enrolling would have been pointless given the women’s incomes. In a third case, the borrower was both employed and healthy, but wage garnishments by his student lenders left him unable to support his wife and two children.

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.

Foreclosures, Timothy Kingcade Posts

Foreclosures and Short Sales Decline in South Florida

Posted on March 31, 2014by Admin

Distressed home sales have accounted for a smaller portion of the market across South Florida in 2013. Palm Beach County posted 3,598 transactions involving a short sale or foreclosure last year, representing 23 percent of all single-family home sales, according to data from the Realtors Association of the Palm Beaches.

Distressed home sales have been slowly shrinking over the past three years. In the condominium sector, 20 percent of sales involved a troubled mortgage in 2013, compared with 24 percent in 2012. Rising home prices have turned South Florida back into a seller’s market. Short sales and foreclosures are now selling for the list price and above.

With less distress in the market, thousands of underwater homeowners are now beginning to have equity. Federal lawmakers have even allowed the Mortgage Forgiveness Debt Relief Act to expire this year, meaning the amount of debt forgiven in the short sale or primary residence is considered income and taxable.

Click here to read more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

What to do if an employer wants to pull your credit

Posted on March 27, 2014by Admin

Running credit checks on job applicants is a fairly common practice. There are credit reports that are designed specifically for potential employers use. Here is what you need to know about them. These reports contain much of the same information found in credit reports pulled by lenders, but do not show your account numbers, date of birth or references to your spouse. Also, your credit score will not be included in these reports.

These reports contain basic personal information (i.e. – your home address and your maiden name), information on public records like bankruptcies or liens and your credit history. These reports also include your work history. Employer credit checks are referred to as a “soft pull” on your credit, meaning it will not affect your credit scores.

A potential employer cannot legally pull your credit report without your permission. You will have to sign a release form giving the potential employer access to this information. It’s always a good idea before beginning your job search to pull your credit report and fix any errors. You are entitled to your credit reports for free every year from the three major credit reporting agencies.

Bankruptcy Law, Timothy Kingcade Posts

Bankruptcy Fraud Linked to GM’s Ignition Switch Recall

Posted on March 25, 2014by Admin

Authorities are investigating whether General Motors hid an ignition switch defect when it filed for bankruptcy in 2009, the New York Times has reported. The Justice Department is investigating if the automaker committed bankruptcy fraud by not disclosing the ignition switch problem, which led to the recall of 1.6 million vehicles last month. It is also being investigated as to whether GM understated the defect to federal safety regulators. The ignition switch defect has been linked to 12 deaths and the company is facing multiple investigations into how it handled the recall.

GM has been hit with a lawsuit demanding it be held liable for allegedly concealing ignition problems before its 2009 bankruptcy. The lawsuit also claims GM was responsible for not reporting to the federal government any safety-related problems for cars made before its bankruptcy. This is just the latest in a string of lawsuits filed against the company since the recall was announced.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

CareCredit Fined for Deceptive Marketing Practices

Posted on March 21, 2014by Admin

The popular medical credit card, CareCredit has been fined by regulators for its deceptive marketing practices. More than 100 professional groups, including the American Dental Association endorse the card. A regulatory filing done this week revealed the credit card company paid dozens of professional associations to convince their members to pitch the high-interest credit cards to their patients.

Protections in the U.S. Truth in Lending Act are designed to help consumers compare different financing options. CareCredit has been cited for faulty marketing practices by the New York Attorney General’s office and by the U.S. Consumer Financial Protection Bureau.

This is not the first time the company has come under scrutiny. Back in December of 2013, it was required to refund up to $34.1 million to consumers who were victims of deceptive credit card enrollment tactics at doctors’ and dentists’ offices around the country. Consumers signed up at the medical offices thinking the credit cards were interest free, but they were actually accruing interest of up to 26.99%, which kicked in if the balance was not paid at the end of the promotional period.

CareCredit had relationships with 107 professional associations and other groups as of December 31, 2013. Of these relationships, 63 were paid endorsements linked to member enrollment, according to the U.S. Securities and Exchange Commission.

Click here to read more on this story.

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.

Foreclosures, Timothy Kingcade Posts

Big banks meet obligations of robo-signing settlement, Homeowner relief falls short

Posted on March 20, 2014by Admin

Big banks are cheering now that they have fulfilled their obligations under the National Mortgage Settlement. However, new reports reveal the $20 billion “robo signing” deal has fallen short, leaving many struggling borrowers underwhelmed.

While the U.S. Department of Housing and Urban Development said in 2012 that a million homeowners would see reduced mortgage principals or refinanced loans, data show only 630,000 homeowners across the country have seen any sort of relief.

In Florida, approximately 120,000 homeowners were offered $9.2 billion in relief, the nation’s second-highest level of assistance behind California. However, much of this money went toward short sales or second-mortgage forgiveness- relief, which did not help distressed borrowers stay in their homes.

Nearly $3.5 billion went toward eliminating second-loan debt that the lenders likely would have never collected. Banks earned another $3.5 billion in credit though short sales, by approving sales of distressed homes for less than the homeowners owed. Investors are the ones who largely benefited from banks’ focus on short sales. Approximately 11,000 of the 120,000 Florida homeowners offered settlement aid were allowed principal forgiveness.

Click here to read more on this story.