Debt Relief, Student Loans, Timothy Kingcade Posts

Student Loan Debt Impact on Older Americans

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Student loan debt is not just a problem for younger Americans; a new study shows older Americans are shouldering an increasing share of the nation’s $1.34 trillion student loan debt.

A new report released by FICO showed the percentage of Americans ages 65 and older with student loan debt increased 300 percent from 2006 to 2016. This jump is three times higher than the increase in student loan debt seen in Americans ages 35-64. The trend is expected to continue increasing as the population ages and older employees turn to workforce retraining programs to learn new labor skills.

The report also showed that the age group with the highest amount of student loan delinquencies is Americans aged 25-34, with a default rate of 25.1 percent. However, older Americans are also having a more difficult time repaying their debts. Delinquencies for Americans ages 65 and older were 13.5 percent last year, which is an increase of 3.6 percent from the prior decade.

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, 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.

Debt Relief, Student Loans

Settlement Wipes Away Student Loan Debt for 41,000 Borrowers

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Financial services firm, Aequitas Capital Management, Inc., will make refunds to the 41,000 students who borrowed money to attend Corinthian Colleges, per a settlement with federal and state agencies. The settlement is in the final stages and must win approval from the court in Oregon that is handling the Aequitas bankruptcy.

“Thousands of New Yorkers signed up at Corinthian College to build the skills they need to compete in today’s economy,” said New York Attorney General Eric Schneiderman. “But Aequitas Capital Management took advantage of their ambition and schemed with Corinthian to saddle these students with high-default loans at the now-bankruptcy college. This was nothing more than a sham that victimized unwitting students and deceived the government and taxpayers.”

According to the terms of the settlement, students who borrowed money from Aequitas Capital to attend a Corinthian school and were attending school when it closed in 2014, or students who defaulted on their loans, will receive a full discharge of their student loans, in addition to accrued interest.

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, 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, Debt Relief, Student Loans

Over 44 Million People Affected by Student Loan Debt

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According to a survey by LendEDU, a private firm that connects students and their families with student loans and loan refinancing, student loan debt affects more than 44 million borrowers, who owe about $1.3 trillion.

Student loan debt surpassed auto loan and credit card debt. However, mortgage debt remains higher than education debt.

The survey used data from 1,161 four-year colleges throughout the country and found that college students at in-state public schools paid an average of $20,090 in annual tuition for the 2016-2017 school year. This is up 2.6 percent from 2015-2016.

Despite these trends, the average amount of debt incurred by graduating students in the U.S. fell 1.5 percent to $27,975 last year.

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, 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.

Credit, Debt Relief, Timothy Kingcade Posts

Law Firm Faces Debt Collection Lawsuit

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On August 18th, a federal appeals court reinstated a Fair Debt Collection Practices Act (FDCPA) lawsuit against a law firm that misstated the principal and interest due on a credit card loan in a collection effort.

The FDCPA prohibits debt collectors from making false statements when collecting debts. It also states that any such false statement would be considered “material.” However, the FDCPA does not specifically define the term “material.” As a result, the U.S. Court of Appeals for the Ninth Circuit focused on that question when issuing a ruling in the case of Afewerki v. Anaya Law Group. The lawsuit came after the Anaya Law Group of Westlake Village, California attempted to collect on a debt from Robel Afewerki, who owed $26,916.08 on a loan with a 9.65 percent interest rate.

The Anaya Law Group sued Afewerki in state court, stating that he owed $29,916.08, which is $3,000 higher than the loan. The firm also misstated the interested rate, saying that it was 9.965 percent, which is 0.315 percent higher than the rate. Afewerki sued the firm under the FDCPA, but a district court held for the firm on summary judgment, said the misstatements were not material.

The Ninth Circuit Court disagreed and vacated that ruling, saying the misstatements were material based on how the “least sophisticated debtor” might react to the misstatements. The court said the least sophisticated debtor in Afewerki’s position, “may well have simply paid the amount demanded in the complaint and would have overpaid by approximately $3,000.”

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, 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, Debt Relief, Timothy Kingcade Posts

Top Debt Mistakes to Avoid

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From credit cards to car loans, there are many ways to get in over your head with debt.  Here are some common debt mistakes to avoid.

  1. Credit card debt. Avoid this at all costs- if you can.  Most of these cards come with high interest rates, so any remaining debt at the end of the month increases daily.  Make sure you are only using credit cards on items you can (and will) pay off each month.
  2. Amassing bad debt. Borrowing money should be something you do as an investment in your future.  Student loan debt and a mortgage loan are examples.  In contrast, “bad debt” is money you borrow for purchases that decrease in value.
  3. Paying late. Constant late payments or missing payments can cost you penalties and lower your credit score. If you struggle to remember your payments, take advantage of automatic payments.
  4. Paying only the minimum. Making minimum payments on your credit card is tempting, but it will ultimately cost you more money due to the loan debt interest rate.
  5. Not budgeting. The only way to get out of debt is to stop living beyond your means, and the only way to stop living beyond your means is to stick to a strict budget.
  6. Ignoring your lender.  Lenders want their money, and they want you to be able to pay it- even if that means settling for less. Do not ignore their calls.  If you cannot afford to pay, tell them.  Never promise to pay or give your bank account information if you cannot afford to pay.  Chances are, a simple conversation will lead to a solution, whether that is a lower interest rate or a simple payment plan.

Click here to read more on this story.

If you have any questions on this topic or are in a 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, 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, Debt Relief, Student Loans, Timothy Kingcade Posts

The Costs of Deferring Your Student Loans

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Many Americans are struggling to pay back their student loans.  According to a recent study, 30 percent of direct loans are in deferment.  When a borrower defers a student loan, temporarily suspending repayment due to unemployment or other financial hardship- the interest on the loan continues to accrue.  If no payments are made during the deferment period, the interest will capitalize and be added to the total amount of the loan.

Interest rates are expected to rise in 2018.  Undergrads will pay 4.45 percent on loans distributed from July 1, 2017 to June 30, 2018, which is up from 3.76 last year. There are limited time frames for how long a loan can be in deferment.  Deferring your student loans can also eliminate your eligibility for certain public forgiveness programs.

Deferring your student loans can be costly.  Here are some alternatives:

  • Utilize income-driven repayment plans offered by your lender;
  • Refinance your student loans;
  • See if your employer offers loan assistance to employees;
  • Forbearance, which suspends student loan payments is typically at the loan holder’s discretion. These specific qualifications are detailed on the government’s Federal Student Aid

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, 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, Debt Relief

Record High Credit Card Debt Exceeds Previous Numbers Set Prior to the 2008 Recession

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U.S. credit card debt is just over $1 trillion, exceeding the previous high set in April 2008 right before the Great Recession. The average amount of credit card debt per household is $9,600. That equals about 17% of the average U.S. household income. Since the average interest rate on a credit card is 16%, and about 24% for those with “less than perfect” credit, that debt grows between $1,600 and $2,300 each year.

A recent survey found millennials’ knowledge on credit card use troubling. A few millennials (6%) actually believe that missing a credit card payment would “improve” their credit rating. 17% said missing a card payment would have no effect on their score. Some 36% have maxed out credit cards and 48% carry card balances over to the next month, paying high interest rates and other monthly fees.

Click here to read more on this story.

If you have any questions on this topic or are in a 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, 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.

Debt Relief, Foreclosures, Timothy Kingcade Posts

New HUD Budget Wording Threatens Reverse Mortgage Protections

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A slight change to the wording in a proposed HUD budget request could lessen the protections of reverse mortgages and increase the risk of foreclosure for some elderly homeowners.  The wording change affects 2-year-old provisions in federal housing rules that award certain rights and protections to the spouse of a borrower who takes out a reverse mortgage and later dies.

This wording change could increase the chances that the surviving spouse who did not sign the documents could lose their home in foreclosure.

Senators Marco Rubio (R.-Fla.) and Catherine Cortez Masto (D.-Nev.) sent a joint letter to Ben Carson, the secretary of the Department of Housing and Urban Development, and Mick Mulvaney, director of the Office of Management and the Budget, seeking clarity on the proposed wording in the budget request and asking whether the agency was seeking to reverse the earlier policy change.

The fact that there has been no response from HUD raises concern.  Before this change in policy two years ago, a surviving spouse who had not signed the mortgage document often had to pay what was left on the loan in full or was at risk of being evicted, due to the home going into foreclosure.

In the letter to the Department of Housing and Urban Development, the senators referred to the old policy as a “loophole” that had “compounded the stress faced by widows and widowers at a time when they were already grieving the loss of their spouse.”

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.

 

 

Credit, Debt Relief, Timothy Kingcade Posts

Wells Fargo Latest Lawsuit Involves Customer Car Loans

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After settling one class action lawsuit involving the exploitation of customers by opening bogus credit card and savings accounts to meet sales goals, Wells Fargo faces another lawsuit involving its auto lending business and unnecessary auto insurance policies.

A borrower who financed an automobile in February 2016 through Wells Fargo filed a lawsuit in U.S. District Court in San Francisco on Sunday, July 30, claiming he was charged for insurance he did not need and is seeking class-action status to represent all U.S. borrowers in the same situation.

After more customer complaints, an internal investigation revealed that some 490,000 customers were charged for auto insurance they did not need and an additional 60,000 customers in states with specific disclosure requirements may not have been told about the insurance by the third-party vendor that issued it.

The loan contracts required customers to maintain auto insurance and allowed Wells Fargo to purchase it for them if the customer did not have insurance with another company.  Some 20,000 customers may have defaulted on loans and had their cars repossessed because of the additional charges, the bank said.

Click here to read more on this story.

If you have any questions on this topic or are in a 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, 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, Debt Relief, Timothy Kingcade Posts

How do you know if it’s the IRS Contacting You?

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When the IRS contacts you, their first form of communication is through the U.S. Postal Service.  The IRS will NEVER initiate contact though email, social media or text messages.

Here are some additional ways the IRS will contact tax payers. It is important to be aware of these so you do not fall victim to an IRS-related scam.

  • An IRS agent or tax compliance officer may call you after mailing a notice to confirm an appointment or discuss an item for a scheduled audit;
  • Private debt collectors can call taxpayers for the collection of certain outstanding inactive tax liabilities- but only after the taxpayer and their representative has received written notice;
  • Private debt collectors for the IRS must respect taxpayers’ rights and abide by the consumer protection provisions of the Fair Debt Collection Practices Act (FDCPA).

All payments should be made to the U.S. Treasury.  Taxpayers should never use a prepaid debit card or wire transfer to make a payment.  Specific guidelines to make tax payments can be found at irs.gov/payments.

IRS employees will NEVER:

  • Be hostile or insulting;
  • Demand payment without giving taxpayers the opportunity to question or appeal the amount;
  • Require a specific payment method (i.e. – a prepaid debit card);
  • Threaten lawsuits, arrest or deportation for not paying;
  • Request credit or debit card numbers over the phone.

A special page on IRS.gov, “How to know it’s really the IRS calling or knocking on your door,” helps taxpayers determine if a person claiming to be from the IRS is legitimate or a scammer.

If you have any questions on this topic or are in a 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, 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.

Related Resources:

http://www.examiner-enterprise.com/business/20170806/how-do-you-know-when-irs-is-contacting-you