Bankruptcy Law, Credit, Foreclosures

U.S. Consumer Debt on the Rise- Highest Since Early 2008

Posted on by Admin

According to data from the Federal Reserve Bank of New York, U.S. household debt increased in the latest quarter by the most it had in more than five years and student loans in delinquency hit a record high. Total consumer debt rose to $11.28 trillion, which marked the biggest quarterly jump since 2008. The increase in the third quarter suggests that the cycle may be nearing its end.
There is has been an increase of household debt essentially across all spectrums. Americans have recently put more on credit cards, borrowed more money to buy houses and cars and took out more student loan debt.

The continued rise in student debt continues to be a cause for concern. Outstanding balances increased $33 billion to $1.03 trillion in the third quarter. A record 11.8 percent of loans were behind by 90 days or more, the New York Fed said, up from 10.9 percent in the second quarter. Student loan debt can unfortunately not be discharged under current bankruptcy law. Economists worry that in the coming years delinquencies could lock people out of economic participation.

Foreclosures which continue to decline, hit their lowest levels since the end of 2005.

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

Foreclosure Activity Increases Nationwide in October

Posted on by Admin

According to RealtyTrac Inc., foreclosure filings in October- default notices, scheduled auctions and bank repossessions- were reported on 133,919 U.S. properties, a 2 percent increase from the previous month but a 28 percent decrease from a year ago. The report states that one in every 978 U.S. homes had a foreclosure filing during the month of October.

Among the nation’s 20 largest metro areas, the highest foreclosure rates were in Miami, Tampa, Chicago, Baltimore and Riverside-San Bernardino. The biggest annual increases in foreclosure activity were in Baltimore (up 296 percent for 13th consecutive month with an annual increase), Washington, D.C. (up 48 percent for fifth consecutive month with an annual increase), New York (up 20 percent for 16th consecutive month with an annual increase), Philadelphia (up 15 percent for eighth consecutive month with an annual increase), and Miami (up 7 percent for first annual increase after two consecutive months of annual decreases).

According to Daren Blomquist, vice president of RealtyTrac, this is attributed to the “backlog of delayed judicial foreclosures making their way through the pipeline, with many of these properties scheduled for public auction.”

States with the biggest annual increases in scheduled judicial foreclosure auctions included Maryland (up 177 percent), Delaware (up 142 percent), New York (up 98 percent), New Jersey (up 97 percent), Pennsylvania (up 58 percent), Connecticut (up 35 percent), and Florida (up 32 percent).

Miami posted the highest foreclosure rate: one in every 264 housing units with a foreclosure filing. Miami foreclosure activity in October increased 7 percent from a year ago boosted by a 51 percent jump in scheduled foreclosure auctions.

Click here to read more on the 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

Company’s Fourth Bankruptcy Filling Sets Unprecedented Record

Posted on by Admin

The charter air transport company, Global Aviation Holdings, Inc. filed a record fourth Chapter 11 bankruptcy. The company is the largest provider of commercial charter airline services to the U.S. military and has attributed the bankruptcy filing to the recent government cutbacks.

Global Aviation had previously filed for bankruptcy in 2004 and 2006 in the Southern District of Indiana and last year in the Eastern District of New York.

Repeat filings by companies like Global Aviation are not uncommon. In fact, about one-third of larger companies that file for Chapter 11 find themselves back in bankruptcy court within four years. But it’s pretty rare to end up there a third time, a fourth time is unprecedented.

Global Aviation’s previous bankruptcies were particularly hard on general unsecured creditors, such as suppliers. The best they did was in the company’s 2006 bankruptcy, when court records indicate they were expected to get as much as 2.4 percent of what they were owed.

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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Private Student Loans Just as Dangerous as Using a Credit Card to Pay for College

Posted on by Admin

A recent analysis done by the Consumer Financial Protection Bureau’s Student Loan Ombudsman report concluded that private student loans are a “risky and high-cost” method to pay for a college education, “no better than paying for college on a credit card.” These private student loans total approximately $165 billion and account for 15 percent of the nation’s total outstanding student loan debt.

Private student loan repayment was the subject of nearly 65 percent of more than 4,300 complaints received by the Consumer Financial Protection Bureau from October 1, 2012 through September 30, 2013. Repayment concerns included fees, billing, deferment, forbearance, fraud and credit reporting.

What’s most concerning is how borrowers incurred these private student loan debts. “In 2008, a majority of private student loan borrowers took out less in federal student loans than they could have. Of these borrowers, a full quarter took out no federal student aid whatsoever … In large part, private student borrowers fell prey to a range of unsavory marketing tactics… Some lenders deliberately misled borrowers into believing that their private student loans were superior to federal loans.”

The CFPB’s Student Loan Ombudsman is a statutory office created within the Bureau to assist consumers in resolving their issues with private student loan lenders. Through this effort, the CFPB has assisted hundreds of borrowers obtain relief from their lenders. The median monetary recovery is $700; the maximum amount of relief granted thus far is $75,000.

Click here to read more on this story.

If you are having trouble making your student loan payments or you have recently defaulted on your federal or private student loans, contact an experienced Miami bankruptcy attorney. Although student loans are often not dischargeable in bankruptcy court, an attorney can help you eliminate other debts and obligations so you can take control of your finances and better handle your student loan debt. 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. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Foreclosures, Timothy Kingcade Posts

Bank of America Ordered to Pay $863.6 Million Following Fraud Verdict

Posted on by Admin

The U.S. government has declared that Bank of America pay $863.6 million in damages after a federal jury found it liable for fraud over defective mortgages sold by its Countrywide unit. In addition, the government also asked for penalties against Rebecca Mairone, a former midlevel executive at the bank’s Countrywide unit who the jury also found liable.

The government said these penalties were necessary and it intends “to send a clear and unambiguous message that mortgage fraud for profit will not be tolerated.” Bank of America and Mairone were each found liable for defrauding government-controlled mortgage companies Fannie Mae and Freddie Mac through the sale of fraudulent loans purchased from Countrywide in 2007 and 2008. Mairone has since joined JPMorgan Chase & Co and denied any wrongdoing.

The government said that Countrywide’s program emphasized short term gains and rewarded employees for quantity over quality, eliminating checkpoints designed to ensure the loans were sound. The verdict has been considered a major victory for the U.S. Department of Justice, which has been criticized for failing to hold banks and individuals accountable for their roles in the events leading up to the 2008 financial crisis.

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

Advantage Rent A Car to File for Bankruptcy

Posted on by Admin

Advantage Rent A Car will file for bankruptcy after Hertz terminated lease agreements that provided the company with its cars. Shares of Hertz fell as much as 17 percent after Advantage’s owners said the book value of the cars passed to them at the time of the sale was too high. Hertz terminated lease agreements on 24,000 Advantage vehicles last Saturday, saying Advantage’s owners had failed to make some payments.

Franchise Services of North America (FSNA), which also owns the U-Save and Canada’s Rent-a-Wreck brands, said it would file for Chapter 11 bankruptcy protection for Advantage as early as Tuesday. Advantage operates in 33 states, including airport locations serving 60 of the top 70 airports across the United States.

Click here to read more on the 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

“Extreme Makeover: Home Edition” Not Always a Fairytale

Posted on by Admin

A number of families that appear on the popular TV show, “Extreme Makeover: Home Edition” encounter obstacles once the cameras and crew leave town. Oftentimes, it is the struggle to afford the upkeep on their expensive new homes and the hefty monthly mortgage payments.

The first of several foreclosures for the show involved Eric Hebert. In an early 2006 episode, his family home, described as a basement with a roof over it, received a huge makeover. The new home resembled a multi-story mountain lodge. Public records show Mr. Hebert’s original mortgage was for $110,000 in September 2004. In January 2006, just before the show aired, he refinanced for $250,000. About a year later, came another refinance with Wells Fargo for $382,500. A notice of default was recorded in January 2009 and the home was foreclosed on in October.

The Okvaths received a 5,346-square-foot home with six bedrooms, a movie theater and carousel in the backyard for their home makeover. After falling upon hard times, the family could no longer afford the $3,056 monthly mortgage payment. The area has an 18-month supply of homes in that price range and the Spanish-style mansion is out of place in its modest surroundings.

Some contestants have opted for a quick fix and attempted to sell their new homes. However, the homes featured on the show are big, luxurious residences built in working-class, rural communities making the properties a tough sell.

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

Rapper DMX’s Latest Bankruptcy Drama

Posted on by Admin

Rapper DMX, whose real name is Earl Simmons, filed for bankruptcy in July, but according to the Justice Department there have been some problems. DMX’s attorney is urging the Manhattan bankruptcy court to let the rapper exercise his right to reorganize under Chapter 11.

However, watchdog, U.S. Trustee Tracy Hope Davis, has asked the court to convert the rapper’s Chapter 11 restructuring into Chapter 7 liquidation or throw out the case entirely. This is following the rapper’s failure to appear at a meeting with his creditors and inconsistent information regarding his financial standing.

In court papers filed last week, DMX’s bankruptcy lawyer said his client “is committed to fulfilling his obligations as a debtor in possession and successfully reorganizing under Chapter 11.” This includes attending a rescheduled meeting with his creditors and turning over financial information related to the noted discrepancies. One in particular, involves a filing listing of $0 worth of clothing among his assets, while another says he spends $1,000 a month on clothing.

The rapper filed for Chapter 11 bankruptcy protection just days after his arrest on suspicion of drunk driving; listing less than $50,000 in assets and $1 million to $10 million in debt- $1.2 million being in child support obligations.

Click here to read more on the 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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Big Bank Pays a Big Price for Creditor Harassment

Posted on by Admin

Bank of America has been ordered to pay $10,000 per month for every time it continues to harass a couple to pay off a loan that was discharged in bankruptcy. Judge Robert Drain of the U.S. Bankruptcy Court in New York says, “He means to send a message by the ruling.”

Chapter 7 bankruptcy relieved Edwin and Michelle Ramos of the obligation to pay off their home loan while preserving the bank’s right to foreclose on its collateral. However, the calls and letters kept coming to the Ramoses; even after their attorney pointed out that their personal liability had been discharged in bankruptcy. According to court records, the bank ignored this fact and failed to respond to Judge Drain until 10 days after he signed an order imposing sanctions on the lender.

Following the penalty, Bank of America agreed to stop the calls and letters except for informational notices that inform the Ramoses of what they have to do keep their home.

This is not the first time Bank of America has been reprimanded for these type practices. In March, U.S. Bankruptcy Court Judge Karen Jennemann in Orlando, Fla., fined the bank $220,000 for repeated violations of court orders involving a loan-modification arrangement.

Click here to read more on the 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

Squatting Scheme Targets Victims of Foreclosure

Posted on by Admin

Two men in Colorado Springs are accused of squatting in homes as part of a scheme targeting homeowners facing foreclosure. It is alleged that Bryan Jensen, 31, and Ethan Eaton, 34, were hoping to use adverse possession to gain ownership of homes with distressed mortgages. Under Colorado law, if someone uses a property for at least 18 years, it becomes theirs- free and clear.

According to police, Jensen and Eaton set up businesses to promote the scheme under the names, American Home Ventures LLC and Austin Home Ventures LLC. The website hopeforyourhome.com, defines their purpose as, “Establishing a plan that will turn your distressed property into a cash machine, regardless of equity” and that their company exists “to help good people out of tough financial real estate situations.”

Investigators allege the two were squatting in homes owned by people who reside out of state. They also helped several people trespass onto vacant properties in the city. Police have yet to identify those individuals. Police can confirm that Jensen and Eaton set up utilities in their names at the homes and filed adverse possession claims with the county clerk’s office.

This type of scheme is not limited to Colorado, adverse possession cases have been seen in areas across the country, including Florida, with a high rate of foreclosed homes.

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.

Related Resources:

http://www.miamiherald.com/2013/10/30/3721164/squatting-scheme-alleged-in-colorado.html