Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Mark Your Calendars: Starting July 1, certain negative marks will vanish from credit reports

Posted on June 21, 2017by Admin

Starting July 1, many people with tax liens, civil judgments and certain medical debts will see a boost to their credit scores. The three largest credit bureaus- Experian, Equifax and TransUnion, will no longer report a tax lien or civil judgment on a consumer’s credit report if it does not include the person’s name, address and either their social security number or date of birth. Existing liens missing this information will also be expunged.

Consumer-friendly changes will also be made to the way medical debts are reported. According to the new rules, bureaus will not display medical collections until at least six months after the account became delinquent. They will also remove any existing medical collections that insurance companies have paid or are paying for. After the liens and judgments are expunged, some consumers can expect to see their credit score increase by as much as 40 points- enough to affect a loan approval or the terms. The leading scoring company, FICO, estimated that out of 200 million “scorable” consumers, roughly 12 million will have a lien or judgment disappear from their report.

Starting July 1, the credit bureaus also will check lien and judgment data every 90 days to make sure the information is still accurate. These changes come as credit bureaus have been put under pressure from regulators and state attorneys general to improve the accuracy of credit reporting. To confirm their data is correct, consumers should get a free copy of their credit report from each of the three bureaus once a year at www.annualcreditreport.com.

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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, 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, Foreclosures, Timothy Kingcade Posts

Wells Fargo Accused of Making Improper Changes to Mortgages

Posted on June 20, 2017by Admin

A new class action lawsuit accuses Wells Fargo of making unauthorized changes to home loans held by customers in bankruptcy. The changes, which typically lowered monthly mortgage payments, appeared to benefit borrowers at first- but the details reveal the changes would extend the terms of the borrowers’ loans for decades, which means they would have monthly payments for far longer and owe the bank much more.

Any change to a payment plan for a person in bankruptcy is subject to approval by the court and the other parties involved. But according to the lawsuit, Wells Fargo went ahead and made these changes to the home loans without such approval.

This puts borrowers in bankruptcy at risk of defaulting on the commitments they have made to the courts and could make them vulnerable to foreclosure. According to court documents, Wells Fargo has been putting through these un-requested changes to borrowers’ loans since 2015.

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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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips to Remember When Applying for a Balance Transfer Credit Card

Posted on June 19, 2017by Admin

Some debt is unavoidable and not always a bad thing, like taking out a mortgage to purchase your new home. But if you are carrying a lot of high interest credit card debt, you may have trouble reaching certain financial goals. One of the most effective ways to pay off the credit card debt quickly is by transferring the balance over to an interest-free credit card.

Here are three helpful tips for using these cards.

Read the fine print. Do this carefully and find out what your credit limit will be. You will not be able to transfer more than the limit and if you exceed that limit, you will likely face a fee. Find out if there is a penalty, APR. That is when the credit card company increases your interest rate to 25 – sometimes 30% if you pay a single bill late or commit another violation of the terms & conditions (usually listed in the fine print).
Choose your card wisely. Balance transfer credit cards vary and typically offer initial interest rates at 0%, but beyond that there are some big differences. Remember, the 0% interest rate will only last between six and 12 months, after that a more standard interest rate will apply- and typically not a good one. In addition, a lot of balance-transfer cards will charge a balance transfer fee. The fee will typically be between 3% and 5% of the sum of what you are transferring. For example, if you are transferring $20,000 and paying a 4% balance transfer fee, it will cost you $800.
Pay off your debt within the “promotional” period. To make the most of your balance transfer, set a goal of paying off the debt before the 0% rate expires. This will require you curb your spending habits. Canceling your cable package and instead streaming movies and TV shows can save you $1,500 or more a year. Take your lunch to work three days a week, instead of eating out every day. Making small changes like this to your daily routine can really add up.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Supreme Court will not Expand Debt Collection Abuse Law in Santander Case

Posted on June 16, 2017by Admin

The U.S. Supreme Court declined to expand a federal law protecting consumers against harassment and threats in debt collection attempts. The court unanimously upheld a lower court’s dismissal of a proposed consumer class action lawsuit against the auto-lender Santander Consumer USA Holdings Inc. over allegations it violated the Fair Debt Collection Practices Act.

The case came down to the definition of “creditor” and “debt collector” and whether a company that buys debt should be treated as a creditor, not subject to the the collections law. The law applies only to companies that collect debts on behalf of others and does not apply to businesses like Santander who purchases the distressed debt from other companies after it defaults, the Supreme Court ruled.

The ruling was the first written by the court’s newest justice, Donald Trump-appointee Neil Gorsuch, who wrote that any changes to the law should come from the U.S. Congress, not the court. The four Maryland residents who had defaulted on their car loans filed the proposed class action lawsuit in 2012 in federal court, accusing Santander of violations of the debt collection law including misrepresenting debt loads and bypassing the debtors’ lawyers.

Click here to read more on this story.

Related Resources:

http://www.marketwatch.com/story/supreme-court-wont-widen-debt-collection-abuse-law-in-santander-case-2017-06-12

https://www.reuters.com/article/us-usa-court-debt-idUSKBN1931NA

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The Surprising Debts Holding Many Americans Back

Posted on June 15, 2017by Admin

According to a recent survey, student loans and credit card bills are not the only debt holding many Americans back. Credit Sesame, a site consumers can use to check their credit score, analyzed more than 5,000 user accounts and found they had significant amounts of debt from medical expenses, utility bills and cell phone charges.

Consumers whose medical debt had gone into collections had an average of three accounts, with a combined total of $3,670 in collections. The average balance for customers who had cell phone bills in collections totaled $887 per account. Customers whose utility bills were in collections owe $368 on average per account, the study concluded.

Not surprisingly, having those bills in collections hurt consumers’ credit scores. The average credit score for someone whose medical debt is in collections is 552. Those who have delinquent cell phone accounts have average scores of 550. And those who have outstanding utility bills have a score of 542.

Lenders see applicants with lower credit scores as riskier than applicants with higher credit scores. They oftentimes make you pay for this risk by charging a higher interest rate. A poor credit score can affect your ability to rent an apartment, as landlords often check an applicant’s credit score before allowing you to sign a lease.

Utility companies may require you pay a deposit before setting up your service. Even certain jobs and employers can discriminate against applicants who have a less than perfect credit report. Certain jobs, particularly those in upper management or the finance industry, require a good credit history. Note: employers check your credit report and not your credit score. They are not necessarily checking for bad credit, but for items that could affect your job performance.

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Foreclosures, Timothy Kingcade Posts

How to Protect Yourself if Renting during a Foreclosure

Posted on June 14, 2017by Admin

Imagine paying your rent on time every month and learning that your landlord is not paying the mortgage. Many tenants find out too late that the home they are renting is in foreclosure. This has become a common problem, particularly in South Florida. If you find yourself in this situation, there are some immediate steps you can take to help protect yourself.

You received a letter from the lender’s attorney advising you about the pending foreclosure. You should call that attorney and ask the following questions:

When and where will the foreclosure sale take place?
Can you start making your rent payment directly to the lender, or place it in escrow?
If the lender purchases the property at the foreclosure sale, will they allow you to reside at the property? If so, for how long?

If you are interested in purchasing the property, at a foreclosure sale it is possible to get a good deal if you are the top bidder. However, before moving forward you should discuss it with your own attorney. A title search will need to be performed before the sale. You will need to know what your rights and obligations will be before purchasing the property.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

U.S. Credit Card Debt Expected to Surpass $1 Trillion this Year

Posted on June 13, 2017by Admin

According to a recent report from the Federal Reserve, credit card debt in the United States is $8,038 per household. That is $940.2 billion total- up from $885.4 billion at the same time last year.

This comes after a first-quarter debt reduction when people oftentimes use their end of year bonus to pay down credit card debt in the New Year. While this year’s Q1 payment was 14% higher than the previous year, it is still almost 9% behind the effort in 2015.

WalletHub is predicting an additional $60 billion in new credit card debt in 2017, which would easily push the United States over the $1 trillion mark.

Here are some tips to quickly pay off credit card debt.

2017 Credit Card Debt Study: Trends & Insights

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

Former ITT Tech Students Promised Help, then Silence

Posted on June 12, 2017by Admin

It’s been nearly five months since former ITT Technical Institute students received a glimmer of hope that their student loan debt would be forgiven. Today they are still waiting.

The U.S. Department of Education announced on Jan. 13 that former ITT students — people who graduated or dropped out of the for-profit now defunct college chain long before the Obama administration forced it into bankruptcy — had a chance to get their federal student loans forgiven through a process called borrower defense to repayment.

In a statement, the Education Department said “approvals are beginning” for those students who claimed ITT defrauded them.

That work appears to have stopped altogether. Although the government issued letters to some students promising loan forgiveness within the 120 days, there is no evidence that the Education Department has forgiven loans for any former ITT students since President Trump’s Jan. 20 inauguration.

This is just the latest setback for former ITT Tech students who say they were lured in with false promises and left with a mountain of debt (five- and six-figure student loan debt), few marketable skills and limited job prospects.

Several Democratic senators are seeking answers. U.S. Sens. Dick Durbin of Illinois, Chuck Schumer of New York, Patty Murray of Washington, Sherrod Brown of Ohio and Elizabeth Warren of Massachusetts last week sent a letter to DeVos requesting information on borrower defense claims.

The senators are asking the Dept. of Education to provide detailed information regarding loan forgiveness applications and approvals for past students of ITT, along with two other failed for-profit college chains: Corinthian Colleges and American Career Institute.

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

How to Reduce the Cost of Your Auto Loan

Posted on June 9, 2017by Admin

When applying for an auto loan with less than perfect credit, it is inevitable the loan will come with a higher interest rate. While this makes the vehicle more expensive, there are ways you can reduce the cost of your loan. Follow these simple tips:

Consider the choice of your vehicle. This is probably the most important decision, when it comes to determining the cost of your loan. You can save more money simply by choosing an affordable vehicle. Subcompact, compact and midsize cars are better choices than trucks, vans and large SUVs. These cars not only come with a lower price tag, but insurance rates, gas mileage, depreciation and maintenance costs will also be less. Important consumer tip: Make sure your car payment is below 10-15% of your monthly income.
Keep the loan term short. The length of your car loan plays a big part in how much you will end up paying for your vehicle. The shorter the loan term- the lower the overall cost of the loan.
Make a down payment. Making a down payment will help reduce the cost of your car loan. If you can put down at least 10% at the time of purchase, this will save you a lot of money in the long run. Making a solid down payment will also help offset the higher interest rate over the life of the loan.

Your goal when financing a car should be to get the vehicle you need while getting the chance to improve your credit through on-time loan payments. Here are three more tips to keep in mind: know your budget before beginning your car search; stick to your instincts and do not allow yourself to get talked into a more expensive car; focus on the total cost of the loan as opposed to just the monthly payment.

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 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, Timothy Kingcade Posts

Miami Bankruptcy Attorney Timothy S. Kingcade Selected for Inclusion in Florida Super Lawyers 2017

Posted on June 8, 2017by Admin

Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade & Garcia, P.A. has been selected to the 2017 Florida Super Lawyer list, in the practice area of consumer bankruptcy. This is the fourth consecutive year Mr. Kingcade has been selected to the Florida Super Lawyers list (2014-2017). The prestigious honor is awarded to only five percent of lawyers in the state.

Attorney Kingcade practices exclusively in the field of bankruptcy law, handling Chapter 7 and 13 filings and foreclosure defense cases for the Southern District of Florida. As an experienced CPA and proven bankruptcy attorney, Timothy Kingcade knows how to help clients take full advantage of their rights under the bankruptcy laws to restart, rebuild and recover.

Super Lawyers is a listing of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement, representing the top 5% of Florida lawyers. The annual selections are made using a patented multiphase process that includes a statewide survey of lawyers, an independent research evaluation of candidates and peer reviews by practice area. The result is a credible, comprehensive and diverse listing of exceptional attorneys.

Miami-based Kingcade & Garcia, P.A. 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, P.A. 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.