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Student Loan Debt is Doubling, Tripling, and Even Quadrupling for Some

Posted on May 8, 2018by Admin

For a number of individuals, what they borrow in student loans can end up being only a portion of what they wind of up owing. Student loan debt stands at a staggering $1.5 trillion and outstanding student loan debt has tripled over the last decade in the U.S. This is in part due to many borrowers seeing their balances spiral out of control. According to Persis Yu, director of the Student Loan Borrower Assistance Project at the National Consumer Law Center, “There are ways these loans are structured that encourage this ballooning.”

Many schools have hired consultants to ‘encourage’ struggling borrowers to put their loans into forbearance, which provides a temporary postponement of payments, for a three-year window, according to an April report by the Government Accountability Office (GOA). While forbearance prevents a borrower from defaulting and accumulating late fees, there are better options, such as income-driven repayment plans.

When a borrower’s student loans go into forbearance the interest on the debt continues to accumulate. Borrowers are often shocked by the new, higher balance. Another disappointment is the 2007 program, Public Service Loan Forgiveness, which allows certain student loan borrowers in government or non-profit public service jobs to wipe out their remaining debt after 10 years of on-time payments. However, a number of students claim that after making 10 years of payments and trying to obtain forgiveness on the remaining balance, were told they did not qualify because they had the ‘wrong type’ of loan. The Consumer Financial Protection Bureau issued a report last year about how many people believe they are paying their way toward Public Service Loan Forgiveness only to learn they do not actually qualify for one technical reason or another.

Click here to read more on this story.

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. There are ways to file for bankruptcy with student loan debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Cambridge Analytica to File for Bankruptcy After Misuse of Facebook Data

Posted on May 4, 2018by Admin

Cambridge Analytica, the political consulting firm that has found itself in a firestorm of controversy recently, announced on Wednesday that it would be closing operations and filing for bankruptcy. This announcement comes after the company has been the focus of political scrutiny due its business practices and the part it has allegedly played in the presidential campaign of Donald J. Trump.

For those who are not already aware of the scandal, it was discovered two months ago that Cambridge Analytica and Facebook were involved in the compromise of personal information of about 87 million individuals. It was alleged that this personal information was given to Russian bots or other companies and individuals who were a part of creating propaganda to help influence the Presidential election.

In a statement, Cambridge Analytica said the controversy had driven away essentially all of its customers, resulting in having to file for bankruptcy in both the United States and Britain. It will also be shutting down the elections division of SCL Group, the Cambridge British affiliate.

However, now that the announcement has been made, many are questioning who will hold the company’s intellectual property, which includes the voter profiles that were a part of the data release from Facebook. Where will this information go now that the company is no longer in business?

The company said it conducted its own independent investigation, results of which were released on Wednesday. In its results, Cambridge Analytica seemed to downplay the assertions that were made by former employees about how it acquired the data from Facebook, and the information also downplayed the role Christopher Wylie, the contractor who ended up being the whistle-blower on the whole deal, calling the role Wylie played “very modest.”

Cambridge Analytica is financially backed by a wealthy Republican donor, Robert Mercer, who is said to have invested at least $15 million of his money in the company. The company has been said to have offered tools to help identify the personalities of the typical American voter and ways to influence their behavior. These techniques were what led the company’s work for the Trump campaign, as well as other candidates in the 2014 and 2016 elections. It was the help these techniques gave to the Trump campaign, however, which has brought the company under such scrutiny, scrutiny that has apparently led to the company’s financial downfall.

Click here to read more on this story.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorneywho 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 McMaken 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 McMaken website at www.miamibankruptcy.com

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

The Dangers of Co-Signing a Student Loan

Posted on May 3, 2018by Admin

It has become common practice for parents of high school students looking to enter college in the fall to co-sign or take out private loans to help their children afford the costs associated with a higher education. Many times, the scholarships (if available to the student) have already been maximized, and the financial aid offered through federal loans simply is not enough to cover the complete costs of college. However, according to a recent study taking on a private loan or co-signing on one to help a child go to college can seriously hurt the parent later when it comes to retirement.

Most private student loans require a co-signer since most high school students do not graduate with well-established credit. Parents will often jump to co-sign, not even thinking of the potential consequences.

“It’s portrayed to them as if they’re going to simply be a reference or endorser, when the truth is they‘ll be obligated to pay this loan if something happens and the primary borrower can’t pay,” said Seth Frotman, Student Loan Ombudsman at the Consumer Financial Protection Bureau (CFPB). “We now see more and more cosigners going into retirement facing unprecedented levels of student debt.”

According to a survey released by the website LendEDU, a site that specializes in student loan refinancing and private student loan borrowing, of the 500 parents who co-signed on their children’s loans, one-third of them did not fully understand the consequences of co-signing. Out of that number, 35 percent of them later said they regretted doing it. More than half of them said their credit scores took a hit after co-signing. More than one-third of them said that the lower credit scores later hurt their chances of qualifying for any financing in the future.

The parent’s credit can be negatively affected if the child later misses payments or fails to pay the loan on time. The survey also showed that more than one-third of the parents picked up the loan payments for their children.

However, what happens if the parent is unaware their child is keeping up on the loan payments? Many cosigners are not informed of the status of their co-signed loans until it is too late- many times to the point where interest had accumulated and fees had been assessed. The survey also showed that more than half of the parents worried that their child’s student loan debt would jeopardize their retirement plans.

Every student is different, and while some may naturally be responsible, get a job straight out of college and make payments on the loans without any issue, many students fail to understand the responsibility of paying back these loans and are not so fortunate with their job prospects upon graduation.

One option available is a Tuition Installment Plan (TIP). Through a TIP program, the college may divide tuition into equal monthly payments with no interest added. If the parent or child can afford it, this avoids making one lump sum payment and avoids taking out the additional private loan to cover costs. However, look into whether the student’s specific college offers this option.

We have written previous blog postings on the dangers of co-signing a loan – which puts more than your name on the line. If you have any questions on this topic, feel free to contact our firm.

There are ways to file for bankruptcy with student loan debt. 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 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Can a Person File for Bankruptcy More Than Once?

Posted on May 2, 2018by Admin

Many clients want to know if a previous bankruptcy filing is going to prevent them from being able to file again. Many factors go into when and whether it can be done, but the two biggest factors are what type of bankruptcy was filed previously and how long ago the case was filed.

No Bar for Subsequent Filings Exist

The good news for bankruptcy filers is there are no limits on the number of times a person can file for bankruptcy. However, the bankruptcy courts do not want to see individuals misuse the system with multiple filings made in bad faith. It is for this reason that the law does impose certain statutory requirements and prerequisites that filers must meet to be able to file again. If an individual has filed for bankruptcy previously, it is important that he or she contact an experienced bankruptcy attorney to discuss the options available, as well as the requirements for filing again.

Previous Chapter 7 Bankruptcy Filing

If the previous bankruptcy filing was a Chapter 7 case, the individual must wait at least eight years from the date of the previous bankruptcy filing before filing a second filing, if that person wants to file another Chapter 7 case. However, if the person filed a Chapter 7 bankruptcy case for the first filing but now wants to go forward with a Chapter 13 reorganization case, the time is shorter, and that person must only wait four years from the date of the first bankruptcy filing date.

Previous Chapter 13 Bankruptcy Filing

If the previous bankruptcy filing was Chapter 13, certain time limits do apply. If the previous case resulted in a bankruptcy discharge, the filer must wait at least six years from the date the first Chapter 13 case was filed before he or she can file for and get another discharge in a later Chapter 7 case. However, exceptions do exist to this rule. If the filer paid back all of his or her unsecured debts or at least 70 percent of the unsecured debts were paid, and the plan was to pay them back in good faith, the six-year rule does not apply. If the later case is a Chapter 13 bankruptcy again, the filer cannot get a later Chapter 13 bankruptcy unless the case has been filed at least two years after the date the first case was filed.

Case Dismissed with Prejudice

However, other exceptions exist to the rules listed above. The filer can be prohibited from filing a later bankruptcy case if the bankruptcy court dismissed the previous bankruptcy case with prejudice, meaning the person who had filed the case failed to comply with court orders, filed multiple cases with the purpose of deceiving creditors or the case was not filed in good faith.

If you have questions on this topic or are in financial crisis and considering filing for 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 McMaken 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 McMaken website at www.miamibankruptcy.com

Related Resources:

http://www.attorneys.com/bankruptcy/can-a-person-file-for-bankruptcy-more-than-once

http://www.alllaw.com/articles/nolo/bankruptcy/how-often-file.html

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

Disabled no longer face big tax hit when student loans are forgiven

Posted on May 1, 2018by Admin

Borrowers who have had their federal student loans forgiven due to “total and permanent” disability determinations will no longer have to pay federal income taxes on the amount forgiven. This change is great news for borrowers who anticipate having loans forgiven in the future. However, if the disabled borrowers were granted loan forgiveness prior to the rule change in December, the benefit does not extend to them as the Tax Cuts and Jobs Act is not retroactive.

According to a report issued by the U.S. Government Accountability Office (GAO) in December 2016, the United States Department of Education forgives an estimated $2 billion in loans owed by disabled borrowers annually.

Disabled borrowers include veterans who are no longer able to work due to service-related injuries but also anyone who is determined to be “totally and permanently disabled” by a physician and is now receiving disability benefits from the Social Security Administration. According to the GAO, over 213,000 people were approved for discharges due to total and permanent disability (TPD) in 2014 and 2015. The typical amount forgiven in 2015 was around $17,500, an amount which would be then considered taxable income by the IRS.

In 2016, the Department of Education, utilizing a computer matching software, identified an additional 387,000 borrowers who appeared to be eligible for loan forgiveness. Notifications were then sent to these individuals regarding their eligibility, also warning them of the tax consequences. An additional 19,000 in new approvals for loan forgiveness were then made.

However, the fact that only 19,000 followed through showed that borrowers may have been either intimidated by the paperwork or scared of the tax consequences of the student loan forgiveness.

Now that no federal tax implications are tied to loan forgiveness for disabled borrowers, lawmakers want to see the Department automatically clear out the debt of those who do meet the eligibility requirements by using the same or similar computer matching program that was previously used. In fact, on Feb. 15, eight lawmakers sent a letter to Secretary of Education Betsy DeVos and VA Secretary David Shulkin, asking that the process begin in discharging these debts.

“Veterans who have served our country with honor and sustained a debilitating service-connected disability are still facing the burden of payments on debt that is eligible to be forgiven,” the letter said. “Delaying benefits owed to our veterans due to a lack of coordination among federal agencies is unacceptable.”

Certain issues may delay borrowers from filing for a TPD discharge, especially if the filer is not a veteran. Delays have been known to happen at the Social Security Administration level.

“Borrowers with disabilities who are eligible for loan discharge may still struggle to get relief from the burden of their student loans,” the Consumer Financial Protection Bureau’s student loan ombudsman, Seth Frotman, reports. “Borrowers complain to the Bureau about problems related to every stage of the TPD discharge process.”

Once approval has been given for the disability and the borrower has been approved for loan forgiveness, it is also still possible that the approval can be taken away if the borrower fails to submit to annual income verification that is required for the three years following the approval, also known as the three-year monitoring period. The IRS is not notified that the loan has been forgiven until after the three-year period has been completed.

However, if the borrower was given TPD discharge through a VA application, he or she will not need to do the three-year monitoring period.

The Consumer Financial Protection Bureau (CFPB) suggests borrowers do the following when seeking TPD loan discharges:

Provide proof of disability from a physician, the Social Security Administration or Veterans Administration;
If the borrower’s loans are in default, it is recommended that he or she apply for discharge as soon as possible. Any payments being taken out of social security benefits will then stop while the application is being reviewed;
Remain in touch with the loan servicer during the three-year review period;
Discuss other options if the borrower has been turned down for a TPD discharge. Other income-based repayment plans do exist to help ease the burden if the borrower cannot get a total discharge.

Related Resources: https://www.credible.com/news/student-loans/disabled-no-longer-face-big-tax-hit-student-loans-forgiven/

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Landlord Held in Contempt of Court for Willful Violation of the Bankruptcy Automatic Stay

Posted on April 30, 2018by Admin

Miami bankruptcy attorney Timothy S. Kingcade’s Motion Granted, Creditor Required to Cease and Desist all Eviction Proceedings and Pay Attorney’s Fees

MIAMI – (April 30, 2018) Bankruptcy Attorney Timothy S. Kingcade, founding partner of Miami-based Kingcade Garcia McMaken successfully obtained an Order for his client in a Chapter 7 case, granting Emergency Relief Requested. Florida Bankruptcy Judge, A. Jay Cristol signed an order holding the landlord / creditor, Jonathan Smith and Delores Smith in Contempt of Court for Intentional Violation of the Automatic Stay (In re Montalvo Case No. 18-11489-AJC). Creditor, Jonathan Smith and Delores Smith are directed to immediately cease and desist all eviction proceedings and pay Kingcade Garcia McMaken $2,250.00 in attorney’s fees for having to bring forth the motion to enforce the automatic stay and protect its client.

“We are extremely pleased with this victory for our client today. The landlord in this case completely disregarded the automatic stay put in place that protects bankruptcy clients from harassment and repossession of property. Despite having actual knowledge of the bankruptcy and automatic stay protections, this landlord continued to harass and threaten my client, causing them unnecessary distress, even going so far as to serving them with an eviction lawsuit during the case,” Kingcade said.

The Order directs creditor, Jonathan Smith and Delores Smith, jointly and severally, to pay attorney’s fees to Kingcade Garcia McMaken for having to bring forth this action and to cease and desist all eviction proceedings until further order of court.

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Miami-based Kingcade Garcia McMaken was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade Garcia McMaken specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

For more information visit, https://www.miamibankruptcy.com/.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Seniors See Rise in Personal Debt

Posted on April 26, 2018by Admin

While personal debt can affect people of all ages, few are affected by it more than seniors who are already living on fixed incomes. A recent study by the Washington, D.C.-based Employee Benefit Research Institute highlights the risk of financial strain that comes with aging. Researchers found that between 1992 and 2016, a higher percentage of American families headed by people age 55 and older are struggling with debt.

The increase in those carrying debt has been most prevalent among families headed by those age 75 and older, where the percentage rose from 31.2 percent in 2007 to 49.8 percent in 2016. The debt is coming from different sources. A number of seniors are helping their children and grandchildren attend college by co-signing student loans. In fact, the number of people age 60 and older with student loan debt as quadrupled in the last 10 years to 2.8 million, according to the Consumer Financial Protection Bureau.

As these borrowers age, it becomes more difficult to afford the monthly payments while also paying for necessary food, housing, prescriptions, and medical expenses. The trouble begins for many seniors when they begin using credit cards to pay for basic living expenses.

Click here to read more on this story.

If you have questions on this topic or are in financial crisis and considering filing for 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 McMaken 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 McMaken website at www.miamibankruptcy.com

Bankruptcy Law, Debt Relief

Miami Bankruptcy Attorney Timothy S. Kingcade is proud to announce the release of his new e-book

Posted on April 25, 2018by Admin

Miami Bankruptcy Attorney Timothy S. Kingcade is proud to announce the release of his new e-book, Restart Rebuild and Recover: Filing Bankruptcy in Florida. FREE to download on TimothyKingcade.com and MiamiBankruptcy.com.

It is a must-read for anyone considering filing bankruptcy in Florida.

Here is what the book covers:

THE TOP 3 DANGERS OF FILING BANKRUPTCY WITHOUT EXPERIENCED LEGAL COUNSEL

DANGER 1: Beware of Filing Bankruptcy Pro Se

DANGER 2: Beware of “Do-It-Yourself” Bankruptcy Kits in Florida

DANGER 3: Without experienced legal counsel, you may not receive the best advice on which type of bankruptcy is best for your particular situation – Chapter 7 or Chapter 13?

HOW TO PAY? We will show you how you can afford to hire experienced legal counsel and strategies to cover your legal fees.
CHARTING YOUR PATH TO A BRIGHTER FINANCIAL FUTURE We discuss what happens after you file and the steps you can take to rebuild your credit, your savings and your peace of mind.

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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How to Recover After Bankruptcy

Posted on April 20, 2018by Admin

Even the most financially responsible people can fall on hard sometimes, whether it be a sudden illness, job loss or divorce. As many as 78 percent of full-time workers said they live paycheck-to-paycheck and 71 percent are already in debt, according to a recent study by CareerBuilder. With statistics like this it is not surprising how quickly finances can spiral out of control.

Having to file for bankruptcy can take an emotional and financial toll, but sometimes it is the only option. In 2017 alone, there were 765,863 non-business bankruptcy filings, according to the Administrative Office of the U.S. Courts.

While you cannot offset the impact of bankruptcy to your credit, there are things you can do to improve it over time.

While each case is different, bankruptcy can completely wipe out credit card debt, medical bills, personal loans, past-due utility bills and even rent. Rebuilding your credit after bankruptcy can start by sticking to a budget and paying all of your bills on time.

A powerful tool to help improve your credit score is a secured credit card. These cards require a deposit, which can be equal to your spending limit. Applying for new credit too soon or having multiple denials can hurt your credit even more.

One of the biggest myths about filing for bankruptcy is that it will ruin your credit score and your financial future forever. To the contrary, after filing for bankruptcy you can begin restoring your credit immediately.

Still not convinced? A testimonial from one of our clients in regards to their credit score after filing for bankruptcy.

My credit score said on all three reports 775, I couldn’t believe that I had such a great score before 10 years. Tim for me was the best move I have made for my situation. I have no regrets, I am glad the past is the past. – Bill T.

Click here to read more on this story.

If you are in financial crisis and considering filing for 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 McMaken 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 McMaken website at www.miamibankruptcy.com.