Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

New Payday Loan Rules

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The Consumer Financial Protection Bureau (CFPB) announced new rules on payday loans this week that will help low-income borrowers and families trapped in a cycle of debt. Payday loans are typically between $200 and $1,000 and must be paid back as soon as the borrower receives his or her next paycheck.

On average, a fee of $15 for every $100 borrowed is charged, according to the Community Financial Services Association of America (CFSA). That is an annual interest rate of 391%.

The CFPB argues that most customers who take out the loans are already in financial trouble and cannot afford the fees and penalties associated with these loans.  Approximately four out of five payday loan customers re-borrow their loan within a month.

Here is what the new payday lending rules will do:

Qualify borrowers– Lenders will need to check a borrower’s income, living expenses and their major financial obligations, like their mortgage and car payment, to qualify them for the loan.  In most cases this will involve pulling their credit report.

Rules for loans under $500– Borrowers will not necessarily need to be qualified for these, but they must pay at least one-third of their loan back before they can take out another. Frequent borrowers and those who cannot afford to pay back the loans will be prevented from borrowing, again.

Limits on the number of loans– If a borrower takes out three payday loans back-to-back, lenders must cut them off for 30 days.  Also, unless they can prove an ability to pay it all back, borrowers cannot take out more than one payday loan at a time.

Penalty fee prevention. Lenders cannot continue trying to withdraw payments from a borrowers’ account if they do not have sufficient funds. After two payment attempts, lenders will be required to re-authorize a payment method with the borrower.

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If you have any 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, Credit, Debt Relief, Timothy Kingcade Posts

Professional Athletes and Bankruptcy – How Pro Athletes Lose Everything

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A new study by the National Bureau of Economic Research reports that nearly 16 percent of NFL players drafted between 1996 and 2003 declared bankruptcy within 12 years of retirement.  Eight years earlier a study done by Sports Illustrated suggested 60 percent of NBA players go broke within five years of retiring from the game.

Former Diamondbacks pitcher Livian Hernandez filed for bankruptcy in July after making $53 million in 17 seasons. Pro golfer Billy Mayfair lost many of the millions he made following a difficult divorce and custody battle. Diamondbacks manager Wally Backman, after an accomplished playing career, was sentenced in 2012 on charges of bankruptcy fraud, concealment of assets and money laundering.

So with salaries most of us can only dream of, where does it all go wrong?  A lot has to do with lack of financial knowledge, overspending, career duration, and bad investment decisions.  Marriages that end is another contributing factor.  Many athletes work with the same wealth manager or financial advisor their whole career, assuming they have their best interest at heart.  They are unaware how they are invested or what fees they are being charged.  Money mismanagement is a big problem- not only with the player but on the part of their financial advisor.

Click here to read more on this story.

If you have any 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, Credit, Debt Relief, Timothy Kingcade Posts

Filing for Bankruptcy: Important Things You Need to Know

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For any individual or company contemplating filing for bankruptcy, the decision should not be taken lightly.  It is important to understand what to expect once you initiate the process.  Here are some important things you need to know before filing:

Types of bankruptcy.  Chapter 7 and Chapter 13 are the two basic options individuals have when filing for bankruptcy. There are key differences between the two and choosing the right one is critical for the success of your bankruptcy case. Chapter 7 bankruptcy is a liquidation form of bankruptcy that can discharge all or most of your debts. Chapter 13 bankruptcy is a form of reorganization that involves creating a payment plan to pay back creditors over a period of time. This process can take between three and five years. Businesses can file for Chapter 7 bankruptcy, but at the end of the process the business will cease to exist.  The most popular type of business bankruptcy is Chapter 11, which allows businesses to reorganize their debts and continue operating.

Bankruptcy is not free.  Some people are surprised to hear this.  As opposed to a straightforward Chapter 7 bankruptcy, the cost of filing Chapter 13 bankruptcy is typically more because it is stretched out over the course of several years.  You cannot go wrong scheduling an appointment with an experienced bankruptcy attorney to discuss the best path for your financial future.  Many offer FREE consultations and Saturday appointments to best assess your financial situation and provide guidance moving forward.

Bankruptcy does not eliminate all of your debts.  Bankruptcy will discharge your unsecured debts, such as medical bills, payday loans, outstanding utility bills, and credit card debt, but it will not eliminate the following:

  • Student loans
  • Alimony
  • Child support
  • Taxes
  • Real estate liens

You will also have to attend something called a meeting of creditors before completion of the bankruptcy process. Creditors have one final opportunity to dispute the discharge of any debts that you owe.

When in doubt, meet with a professional. How do you know if filing for bankruptcy is right for you?  It can be difficult to make this decision without consulting with an experienced bankruptcy attorney, first.  Receiving this professional guidance can help ensure you will take the right financial steps, complete all of the proper forms and avoid doing anything that could disqualify you from getting your debts discharged.

If you have any 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:

https://www.forbes.com/sites/larrymyler/2017/10/03/filing-for-bankruptcy-3-most-important-things-you-need-to-know/#81d8d257fe66

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

Student Loan Debt is Taking a Mental Toll on Young People

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Over the last decade, student loan debt has jumped to an all time high of $1.4 trillion.  The average outstanding balance for college students is $34,144.  According to a recent survey, 80 percent of working professionals with student loan debt said it is a source of “significant” or “very significant” stress.

Many millennials said student loans have impacted their ability to go on vacation, buy a car, pay rent or afford necessities like food and clothing.  Then there are the long term effects, such as buying a home, getting married or having children.  A number of young adults have to put these major milestones on hold.

For a graduate with a bachelor’s degree, the typical student loan payment is approximately $265 a month, but some students have $400, $800 or even $1,200 a month in student loan payments.

According to a separate report, more than 60 percent of those surveyed said they fear their student loan debt worries are spiraling out of control, even more reported suffering from headaches or lack of sleep from the stress.

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. 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, 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 McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Credit Stress? Here are 5 Ways to Negotiate with Your Credit Card Company

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Opening up a credit card statement each month can be a daunting task. However, negotiating the terms of your debt with your credit card company is not as hard as you think. If you take the right steps, you will be surprised at how eager some banks and credit card issuers are to work with you.

Here are five things to keep in mind when negotiating with credit card companies.

  1. Go right to the top. When you call your credit card company to negotiate the terms, ask to speak to a manager right away. Be polite and assure the representative there is not a problem. If the representative asks you if there is a way for them to help you, explain what you are trying to accomplish.
  2. Request a due date change. An easy adjustment to make to your credit card terms is to simply change your payment due date. Most credit card companies are willing to move the date to help increase timely payments. If you consistently make late payments, it would be in your best interest to request a more suitable date.
  3. Bargain for a lower interest rate. Have you been getting some competitive offers from other credit card companies? If so, you may be able to use the offers as a bargaining tool. Before you go to your credit card company, make sure you jot down all the perks, interest rates and other benefits that you would be getting if you switched cards. Your credit card company most likely will not want to lose you as a customer and will be willing to work with you.
  4. Request a late payment fee waiver. If you have a responsible payment history with your company, they may be willing to waive late fees. If you consistently make late payments, they will likely suggest you sign up for automatic payments.
  5. Negotiate to get the annual fee removed. Some credit card companies charge as much as $95 per year in annual fees in exchange for a few perks. When you signed up for your card, the annual fees may have worked in your favor because of the benefits you received as a cardholder. However, it may be time to reevaluate whether or not the benefits, such as cash back rewards and travel points, are outweighing the annual fees.

Click here to read more on this story.

If you have any 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, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Just How Often Do Debt Collectors Harass People? The Answer Might Surprise You

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According to the Consumer Financial Protection Bureau (CFPB), debt collectors are required to stop calling once an official request has been made to cease communication. However, approximately 75 percent of consumers who have asked for debt collection calls to stop say that the calls kept coming.

The CFPB released a report earlier this year that surveyed over 10,800 consumers in 2014 and 2015 about their recent experiences with debt collectors. They received approximately 2,000 responses that revealed that over one in four consumers have felt threatened by the debt collector that most recently contacted them. Although debt collection agencies are not allowed to abuse or harass consumers, many collectors do not play by the rules. Approximately 40 percent of consumers surveyed said they asked a creditor or debt collector to stop contacting them, however; only one out of four people reported the collector actually stopped.

Debt collection is a $13.7 billion industry in the U.S. and the most frequent topic of complaint fielded by the CFPB. Approximately 70 million people have been contacted by a creditor attempting to collect on a debt in the past year, according to the CFPB.

The CFPB recently issued proposed rules that would strengthen consumer protections by limiting how often debt collectors can contact consumers. The rules would also require these companies to get the details right and offer an easy dispute process.

Click here to read more on this story.

If you have any 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, Credit, Debt Relief, Foreclosures

Life After Bankruptcy: Getting a Credit Card Again

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If you have recently filed for bankruptcy, you may be wondering about the possibility of getting a new credit card. Before you apply for a credit card, it is important to make sure you have a stable job and the ability to pay your other bills such as rent and utilities.

If bad financial decisions led to your bankruptcy, you may want to avoid getting a credit card for a while. However, if unexpected events such as a divorce or a job loss led to your money problems, you may be able to handle a credit card again.

Below are three important things to consider before filling out a credit card application:

  1. Timing is everything. Your bankruptcy must be discharged before you can get a credit card. Lenders will deny a line of credit during a bankruptcy proceeding because the account can be included in the bankruptcy. It takes approximately three months for debts to be discharged after the initial filing of a Chapter 7 bankruptcy. A Chapter 13 bankruptcy entails a three to five-year partial repayment plan and therefore takes much longer to be fully discharged.
  2. Weigh your options, good and bad. A recent bankruptcy will drag down your credit score for some time. As a result, you will likely receive credit card offerings from subprime lenders. Keep in mind that these credit cards typically come with higher interest rates and low limits. In addition, they typically require frequent fees that are much higher than most. A better option after a bankruptcy discharge is a secured credit card. This type of card is designed for consumers with bad or no credit. They are backed by a security you are required to put down. Secured cards have low limits and high interest rates but do not typically charge annual fees.
  3. Monitor your credit score. If you do get a secured card, do not spend more than 30 percent of the credit limit and pay off the balance every month. If you follow these two rules, your credit score should improve in time.

Click here to read more on this story.

If you have any 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, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Student Loan Debt Forgiven, but Tax Bill Remains

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Wounded war veteran Will Milzarski’s student loan debt was forgiven, but the IRS wants him to pay $62,000 in income taxes on the loan cancellation.  The retired 1st Lt. is a lawyer specializing in disability rights and took a leave from his state job to return to the Army to attend Officer Candidate School.

His two tours of duty in Afghanistan left him with a traumatic brain injury, post traumatic stress disorder and hearing loss. The Department of Veterans Affairs considers him totally and permanently disabled, which lead to a cancellation of $223,000 in student loan debt.

But what he didn’t expect was the IRS notice that followed.  Milzarski is facing $8,000 in Michigan taxes, penalties and interest in addition to federal taxes- that’s $70,000 in total. Milzarski’s high student debt is largely attributed to his law degree, which he earned in 2002 from Cooley Law School.

He was able to subtract his other debts to bring down the amount of income attributed to the loan forgiveness to $161,000. But that pushed him into the top tax brackets.

While there are some exceptions, canceled debt is often considered income.  Milzarski said he is facing garnishment of his disability pay and a lien against his home.  Milzarski led soldiers on 244 combat missions and 43 engagements with the enemy. Among his 18 awards are Purple Heart and Meritorious Service medals.

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. 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, 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 McMaken website at www.miamibankruptcy.com.

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

South Florida Federal Court Shuts Down Student Loan Debt Forgiveness Company, Freezes all Assets

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A student loan debt forgiveness company has been ordered to stop doing business by a South Florida federal court. The court issued a temporary injunction against Student Debt Doctor and its president, Gary Brent White Jr., and froze all assets of the corporation.

The Federal Trade Commission (FTC) has accused Student Debt Doctor and White of violating federal trade and telemarketing laws by promising to reduce or eliminate student loan debt for an upfront fee.

The FTC filed its complaint Oct. 2 seeking an injunction as well as financial relief for the victims. The defendants operated an unlawful student loan debt relief business since January 2014, preying on borrowers’ anxiety in repaying their loans, according to the complaint.

“Defendants often have promised falsely to reduce or eliminate consumers’ monthly payments and principal balances by enrolling them in repayment or debt-forgiveness programs,” the complaint said.

The consumers who signed up for the services discovered that Student Debt Doctor failed to enroll them in a program or reduce or eliminate their debt, even after charging an upfront fee of $750, according to the complaint.  Telemarketers promised borrowers enrolled in the program student loan debt forgiveness in five years or less.

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. 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, 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Key Differences Between Chapter 7 and Chapter 13 Bankruptcy

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There are two types of bankruptcy available to consumers who are struggling with insurmountable debt- Chapter 7 and Chapter 13 bankruptcy. Choosing the right one is critical to your success in eliminating your debt. Below is a comparison guide to help you best decide which bankruptcy is right for you.

Chapter 7 is a form of liquidation and it is often considered the most straightforward type of bankruptcy. Consumers are given a fresh start financially, oftentimes within three months of filing.  Contrary to the bankruptcy myths surrounding Chapter 7, it does not mean you will lose your home, your car and your retirement savings. In most Chapter 7 cases, filers do not have assets above the legal threshold, which is set by state law and therefore they do not have to give up anything.  If you are filing for Chapter 7 bankruptcy in Florida, you can use Florida bankruptcy exemptions to protect your property.

In addition, residents are provided unlimited exemptions for homestead, annuities, and the cash surrender value of a life insurance policy. The average Chapter 7 bankruptcy case lasts approximately three and a half months from filing to discharge. Approximately 96 percent of debtors who file under Chapter 7 receive a discharge of their debts.

When a debt is discharged, it is no longer legally owed. Unsecured debts such as credit cards and medical bills are typically dischargeable, with the exception of student loans. Secured debts such as mortgages or car loans are typically either relinquished or kept by continuing payments.

Chapter 13 restructures your debt into an affordable repayment plan. The debtor’s obligations are combined in one, regular payment calibrated to the debtor’s income.

Chapter 13 plans can last anywhere from three to five years, but most are five-year plans. Approximately 41 percent of debtors who filed under Chapter 13 received a discharge of their debts and another 10 percent first tiled under Chapter 13 and later converted to Chapter 7 and received a discharge that way.

If you have any 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.