Your credit score is one of the most vital parts of your financial life. Many people think that keeping your credit score in good standing is only important when it comes to being approved for a loan or credit card. However, it goes far beyond that. Your credit score can affect everything from insurance premiums to employment opportunities.
Below are a few mistakes that can cost you some major points:
1.) Closing old credit cards. It’s easy to assume that if you pay off your bills, cut up your credit cards and stop spending you will magically have good credit. However, good credit is built over time and with smart spending habits. When a credit report is run, points are given for the cards you have carried balances on the longest. Be strong and resist the urge to make large purchases on these cards, if you cannot afford to pay the balances off in full each month.
2.) Using up all your available credit. If a credit card company grants you a line of $5000, you should only use 20% of it. This would allow you to spend no more than $1000 on that particular card. Because the credit card companies report your balances to the credit bureaus monthly, you want the balances to be as low as possible. According to My Credit Group, the balance-to-limit ratio will ultimately have a huge effect on your credit score.
3.) Applying for too much credit. If you are filling out application after application because you are strapped for cash, keep in mind that credit card companies note all of these requests and consider them a red flag. Let there be 6 months between each credit card or loan application.
4.) Not paying late fees. When it comes to late fees, pay up. The longer you wait, the worse it looks on your credit report. Once you acquire a late fee charge, your inability to pay shows up on your credit report.
5.) Moving. Lastly, for those of you who are moving to a new location make sure you change your billing address immediately. Bills can become lost in the mail and even end up going to your old address. This can cause you to miss your payment due date, get stuck with late fees, and rack up additional charges. Paying all of your bills online can help avoid this.
Remember, it is possible to have a good credit score if you discipline yourself to spend wisely. Know your options when it comes to credit and use them to your advantage! For more information on ways to improve your credit score, visit www.mycreditgroup.com. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.info/.
-Bankruptcy Attorney Timothy Kingcade
Florida Supreme Court Enacts New Law to Clean-up Foreclosure Filings, But many Attorneys continue to ignore it
In an attempt to clean up careless legal mistakes and incomplete documentation submitted by attorneys in foreclosure cases, the Florida Supreme Court recently enacted a new law that requires the attorney or bank filing a foreclosure to verify that the allegations and paperwork are accurate when a residential property is at stake. A majority of the paperwork filed up to this point has been submitted incomplete or with careless mistakes made, resulting in time and resources being wasted by the courts.
This issue is of particular importance in South Florida, where it seems many homeowners can’t seem to catch a break when it comes to foreclosures. According to recent numbers from RealtyTrac, foreclosures in South Florida have grown 71 percent in the first quarter compared to the same time frame in 2009. These continuing problems with the foreclosure process could affect the speed at which the housing market recovers, slowing the process of reselling properties and stabilizing the market.
However, a stand still has occurred recently in these cases. The attorneys of large foreclosure firms are choosing to ignore the ruling, claiming the decision from the Supreme Court states “not final,” while Florida judges and defense attorneys fight for the section of the decision that states “shall become effective immediately upon the release of this opinion”. Well, that opinion was released back in February.
The bottom line for South Florida homeowners, who are in the middle of this, is when a foreclosure is filed: Do NOT just hand over your property. Rather, make sure the bank or lender retaking your home has the proper paperwork to show for it. Finally, hire an experienced attorney. 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, P.A. Web site at www.miamibankruptcy.com.
To read more on this story go to:
http://www.heraldtribune.com/article/20100601/ARTICLE/6011046/0/NEWS?p=4&tc=pg
Jury Awards Man $1.5 M after Debt Collection Agency Leaves Harassing and Vulgar Voicemail Messages
The largest verdict of its kind was awarded to Texas resident, Allen Jones after he received a series of racist and vulgar voicemail messages from Advanced Call Center Technologies (ACT) in August of 2007. Advanced Call Center Technologies (ACT), a Pennsylvania debt collection agency began making these calls as early as 6:30 a.m. and would continue till 11:00 p.m. More egregious was the amount in question, which was a mere $200 that Jones had already paid in full. Eight messages were cited in the case and when brought to court the jury sided with Jones, awarding him $1.5 million in punitive damages, $143,000 in attorney’s fees, and $50,000 in mental anguish.
There are several rules and regulations when it comes to collecting debt: no calls before 8 a.m. and after 9 p.m. unless agreed, no false claims, no harassment, and no unfair practices. This verdict should come as a warning to debt collection agencies that are practicing corrupt collection practices. There are strict laws against this that protect the people.
To read more on the Allen Jones story go to :
http://www.aolnews.com/nation/article/vulgar-voice-mails-cost-debt-collection-agency-15-million/19500256
For more information on your rights as a consumer, visit:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
If you have any questions on the topic of bankruptcy or feel you have been a victim of corrupt collection practices please contact me, Bankruptcy Attorney Timothy Kingcade at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.com.
-Timothy Kingcade
Morality of Bankruptcy
Filing for bankruptcy has often been linked with a social stigma for many individuals, often causing those who are on the verge of filing, personal guilt, fear about the future, and morality struggles. But in fact, filing for bankruptcy can often be an economically wise choice for many Americans who have found themselves in financially overwhelming situations. A recent article in the Minneapolis Star-Tribune reported that over 60 percent of all Americans who file for bankruptcy have done so as a result of excessive medical bills. This comes as no surprise to anyone who has had difficulty qualifying for health insurance or was unable to afford their monthly premiums.
At my practice, I have seen a significant increase in the number of senior citizens filing for bankruptcy as a result of having to put their monthly prescriptions on credit cards. Many of these individuals are already on fixed financial budgets and Medicare/Medicaid applies only after a certain amount is covered out of pocket. The article also noted that the average Chapter 7 bankruptcy filer has an income of only $20,000 per year, which isn’t exactly a lot of money, and can easily disappear when one is faced with an unexpected financial burden. Job loss and divorce also play a huge role in bankruptcy filings. Along with medical costs, these two factors account for the vast majority (about 90 percent) of all bankruptcy filings.
The bottom line here is that bankruptcy exists to protect those who truly need its protections. Without it, the American economy would likely not flourish with as much innovation as it does today—thanks to the security that bankruptcy provides, entrepreneurs can take risks that they might not otherwise have.
Filing for bankruptcy is emotionally and mentally exhausting. The day you hire our firm, we will contact your creditors to stop the harassment. We offer free office consultations and will listen and evaluate your individual situation, taking immediate action to help get you back on your feet. If you need relief from creditors calling and are considering bankruptcy as an option contact our experienced and compassionate team of attorneys today for a free consultation at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.info/.
5 Ways to Rebuild your Credit after Bankruptcy
Filing for bankruptcy can be an unfortunate blow to your credit score. However, the good news is there are ways you can rebuild this, it’s just a matter of knowing how. Nothing in credit is “forever.” Adopting responsible credit habits such as paying your bills on time, using only a small portion of your available credit and not applying for too much credit at once can rebuild your credit gradually.
1.) Learn from your mistakes. If your problem was overspending, create a budget and stick to it. If medical bills caused you to file bankruptcy, seek a job with adequate health insurance coverage.
2.) Establish an emergency fund to help get you through a job loss or other financial setback. Try to save at least 25% of your paycheck and get a second job if necessary. This also may require you to live below your means for the first 6 months to save as much as possible.
3.) Open a checking or savings account, preferably through a large bank. 
4.) Attain a secured credit card. To quickly rebuild your credit you need to establish two types of credit: Installment (i.e. – auto loans, student loans or mortgages) and Revolving (i.e. – credit cards or home equity lines of credit). Light, regular use of a credit card will help rebuild your credit.
5.) Become familiar with your credit report. The most important thing is for you to attain positive reports from your credit card issuer through Experian, TransUnion and Equifax- ALL three. Check your credit reports every 4 to 6 months, making sure all information is accurate.
If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy attorneys at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.info/.
5 Things to NEVER do after Filing for Bankruptcy
1.) Do not pay your bills automatically from your checking account. Automatic bill pay can overdraft your account if you are not monitoring it carefully and can hurt your efforts of trying to rebuild your credit.
2.) Never use payday loans. The fees and interest rates are high and it is easy to get into trouble using them.
3.) Do not try to erase bankruptcy from your credit report, it is not possible and will only make matters worse.
4.) Do not enlist credit counseling agencies to clean up bad credit, no matter how legitimate they seem. Too often these companies are more likely to take advantage of the situation than help you.
5.) Do not immediately go out for a $150 dinner or buy a $200 pair of jeans. Curb your spending habits to avoid repeating the same mistakes twice.
If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy attorneys at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.info/.
Renter’s Rights Violated by Foreclosed Property Owners
Many renters, particularly in the Miami-Dade area are under an increasing amount of pressure due to foreclosures placed on the property they are renting. A recent federal law passed by President Obama, called Help Families Save Their Homes Act states that following the date of foreclosure, the renter has 90 days before vacating, if they are renting month-to-month, or until the end of their lease. However, many landlords are taking matters into their own hands and are disregarding the law, evicting tenants before the end of their lease.
A large part of the problem is lack of knowledge on the part of the owner and the tenant. New owners are taking advantage of the fact that lawmakers are not enforcing these laws. A lot of my clients are unaware that only an order by a judge can force them out of their home before their lease ends. In July of 2009, the Affordable Housing Task Force created a packet for individuals in the Miami-Dade area explaining their rights as a tenant and their landlord’s rights as a property owner. The packet is complete with scenarios and different routes you can take in addressing this legally if you have been violated of your rights. http://www.miamidade.gov/foreclosure/library/Know_Your_Rights_Handbook.pdf
If you have any questions on this topic or are facing foreclosure, please feel free to contact Bankruptcy and Foreclosure attorney, Timothy Kingcade at (305) 285-9100. He 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. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.info.
– Timothy Kingcade
If I File For Bankruptcy, Will I Lose My Tax Refund?
In cases where my clients are expecting a tax refund, many wonder if they will have to declare this as an asset of the bankruptcy estate. In many cases it is. But there are methods of preserving your tax reimbursement if you are anticipating one.
1.) The money that the government owes you for a tax refund may be claimed as exempt property.
2.) You can apply your reimbursement toward next year’s taxes. However, should you make this decision it is irrevocable, you cannot change your mind.
3.) Filing jointly if you are married and only one of you files for bankruptcy, the other may still get their share of the tax return, because that spouse does not have to suffer the consequences of bankruptcy.
4.) You can always keep the refund from becoming property connected with the bankruptcy estate by waiting to file until after you receive your refund. After receiving your tax refund, you will likely be able to spend this money on your attorney’s fees or necessities. These are both legitimate purchases to devote your tax refund to.
5.) If you use your tax refund to pay someone back, like any kind of creditor, including family and friends that you may have borrowed money from, then the bankruptcy trustee will ask that you pay the amount received from the tax return. However, if you do not use the money to repay someone and spend it on something like getting your roof fixed or repairing your car, they will usually not go after you to get the tax return money.
If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy and foreclosure defense attorneys at (305) 285-9100. The day you hire our firm, we will contact your creditors to stop the harassment now. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.info/.
– Timothy Kingcade
Can my employer fire me for filing bankruptcy?
No. The law prohibits government units and private employers from discriminating against you because you filed a bankruptcy petition or because you failed to pay a dischargeable debt.
Bankruptcy Filing & Student Loan Exemption
In my practice I have seen an increase in bankruptcy filings among college and graduate school educated individuals. As a result of a 2005 law no longer discharging private student loans, many of my clients have been asking if there is a loophole in the law. When it comes to discharging student loans, unless you can show that your loan payment is an “undue hardship” on you, your family, and your dependents, your student loans are ineligible for cancellation in bankruptcy. 
“Undue hardship” is difficult to prove unless you are physically unable to work and there is no chance of you making money. To discharge your student loans under this exemption, you must file a separate motion with the bankruptcy court and present your situation before a judge. People who are unable to pay their debts may file for bankruptcy under Chapter 7 of the federal bankruptcy code. This allows the court to “erase” your bills and have a fresh start financially.
If you have any questions on the topic of student loans as they relate to your bankruptcy filing please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.info/.
– Timothy Kingcade