Florida Super Lawyers

Miami Bankruptcy Attorney Timothy S. Kingcade Selected to Serve on the Super Lawyers Blue Ribbon Panel

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Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade Garcia McMaken has been selected as a Blue Ribbon Panelist for Florida Super Lawyers. Only those in each practice area with the highest point totals are asked as part of the panel to evaluate the candidacy of fellow lawyers to enter the prestigious Super Lawyer rankings.

“It is an honor to be selected among the Blue Ribbon Panelists in the most comprehensive and independent review of exceptional lawyers. Being selected as a Super Lawyer the past seven years is an achievement in and of itself, but to know that Super Lawyers values my opinion in the evaluation of my peers receiving the title of Super Lawyer is a true privilege I graciously accept,” said Timothy S. Kingcade.

Credit Card Debt

How to Negotiate Your Credit Card Debt

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When someone owes a large amount of money on credit cards, the possibility of ever paying down that balance can seem impossible. Simply making the minimum monthly payments can be a struggle, as well, especially during the current pandemic. However, credit card companies would rather work with the consumer directly in lieu of the account going into default, forcing them to pursue a collection on the amount owed. It is possible to negotiate directly with the credit card company on the amount owed in certain circumstances.  

During the coronavirus (COVID-19) crisis, certain credit card companies are working with consumers who are behind on payment. This assistance is temporary in nature but can include pausing payments, reducing interest rates, waving late fees, and putting a pause on interest charges.  

Debt Relief

How To Ensure Student Loan Debt Does Not Prevent You From Getting a Mortgage

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With the cost of attending a university rising each year, more students are taking out student loans to pay for their education.  According to statistics from the Federal Reserve and New York Federal Reserve, more than 44 million American consumers owe a collective $1.6 trillion in student loan debt. Student borrowers oftentimes graduate with up to six figures in student loan debt. Certain steps can be taken to ensure that student loans do not prevent young adults from reaching important milestones, like homeownership.   

Income-to-Debt Ratio 

When being approved for a mortgage, the borrower’s income-to-debt ratio is an important figure considered by potential lenders. Two different ratios are used by potential lenders. One of them is called a front-end ratio, which looks at the loan applicant’s expected mortgage in comparison to his or her monthly income. The second ratio is called the back-end ratio. This figure reviews the applicant’s monthly expenses, including housing costs, car payments, student loan payments, and other monthly expenses, in comparison to the person’s monthly income. If the borrower’s debt far outweighs his or her income, it is unlikely that person will be approved for a mortgage. However, certain steps can be taken to help boost that ratio. If the potential borrower is carrying a high credit card balance, by paying that balance down, he or she can help boost chances of being approved for a mortgage. If the borrower can pay down the balance in full every month, then that debt will not even factor into his or her debt-to-income ratio.  

Business Bankruptcy, Coronavirus, COVID-19

Growing Number of Retailers and Restaurants Are Folding as the Covid-19 Pandemic Continues

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Retailers and small businesses have been hit hard by the pandemic, after facing a brutal 2019.  Now a growing number of businesses and restaurants are folding, as Covid-19 continues to wreak havoc on the retail, restuarant industry and the global economy.

Here are the latest ‘big-name’ companies to file bankruptcy since mid-March.

Ruby Tuesday is the most recent restaurant to file for Chapter 11 bankruptcy.  It will permanently close 185 restaurants while it restructures.

Bankruptcy Law

The Fear of Bankruptcy is What Keeps Many Consumers from Filing

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The fear of the unknown is a powerful force. Unfortunately, the fear of filing for bankruptcy and the unknown keeps many from proceeding with a bankruptcy case, even when it is the best option.

It is for this reason that only a small portion of American consumers file for bankruptcy annually, even though many of them could benefit from either a Chapter 7 or Chapter 13 bankruptcy filing. While many different reasons exist for this failure to file, a misunderstanding of the process and fear of taking that first step keeps them from moving forward.    

Debt Collection

Can a Creditor Come After Money that is Gifted?

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The law allows for a certain amount of money to be gifted to individuals with no tax consequences on an annual basis. For the 2020 tax year, the gift tax exclusion amount is $15,000. Many aging parents take advantage of this exclusion to reduce their probate estate and avoid tax penalties by gifting up to this amount to their adult children annually. However, if the adult child they are gifting this money to has his or her own financial struggles and is being pursued for creditors, that money could be fair game. 

The problem is that this money is not protected if the receiving party is being pursued by a creditor for an outstanding debt. If the debt is valid and still legally collectible, money that is gifted to the consumer is reachable for purposes of satisfying what is owed.   

student loan debt, Student Loans

ITT Tech Student Loan Lender Must Pay $330 Million in Debt Relief to Former Students

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An agreement has been reached between the attorneys general from 43 states and the now-closed ITT Technical Institute (ITT Tech). This agreement was part of a lawsuit brought by former ITT Tech students, requesting approximately $330 million in student loan forgiveness for 43,000 loans.

This lawsuit was a joint legal effort brought on by the Consumer Financial Protection Bureau (CFPB) and 43 different states. The settlement was made with PEAKS Trust, a private lending institution that is run by ITT and is also affiliated with several Deutsche Bank entities.

Debt Collection

How to Avoid Resetting the Clock on Old Debt

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Once a debt is past a certain age, collecting on that debt through legal channels is barred under Florida’s statute of limitation laws. However, if the person owing the debt is not careful, the debt can be reset, making the amount owed legally collectible once more. Knowing what to do to prevent that from happening is important for this reason.

Understanding the Statute of Limitations

Every state has a set of laws that governs how long a person or entity has to bring a legal claim on any given issue, including debt collection. If a claim is brought after that period has passed, the claim will likely be barred. When it comes to debt collection, this timeline is five years from the date the debt began for written contracts, including personal loans. If the debt is one with a revolving account, including credit card debt, the statute of limitations is four years.

student loan debt, Student Loans

Half a Million Borrowers Petition President Trump to Have Their Student Loan Debt Cancelled

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More than half a million student loan borrowers have signed a petition posted on Change.org, asking that President Trump sign an executive order that would effectively cancel all federally held student loans. This request makes up around 85 percent of all outstanding student loan debt.

The creator of the petition and founder of student loan advocacy group, StudentLoanJustice.org, Alan Collinge, stated he created this petition as he believes this would be the least expensive way, as well as the most effective way, to bring in trillions of dollars into the national economy. During a time of global pandemic, where the economy has taken a hit, he believes this would be the best way to give the economy a boost.