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

Posted on September 30, 2020by Admin

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

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

Bankruptcy Law

Bankruptcy Explained: The Qualifications and How to File

Posted on May 19, 2020by Admin

Filing for bankruptcy can be an emotional and sometimes stressful process. However, enlisting the help of an experienced bankruptcy attorney can make the process painless and worry-free. Many clients have little understanding about what is involved when they file for bankruptcy. Bankruptcy is a legal proceeding where a judge and bankruptcy trustee review the financial situation of individuals or businesses who are not able to pay their financial obligations and discharge qualifying debts that they are no longer able to pay.

The Purpose of Bankruptcy

Bankruptcy is meant to give an individual a fresh financial start, allowing that person to wipe the slate clean. It also serves as a way to give the filer some sense of relief through the protection of the automatic stay, which means creditors are prohibited from continuing collection actions against the filer. This allows the person time to regroup, protect valuable assets and work with the bankruptcy trustee to eliminate their debts.

Bankruptcy Law, Debt Relief

Which Type of Bankruptcy Eliminates the Most Debts?

Posted on April 20, 2020by Admin

When it comes to filing for bankruptcy, several different options are available, depending on the filer’s financial situation and types of debt owed. Two of the most common forms of consumer bankruptcy filings are Chapter 7 and Chapter 13.

Chapter 7 is a liquidation bankruptcy that wipes out most of your general unsecured debts such as credit cards and medical bills without the need to pay back balances through a repayment plan.

Bankruptcy Law

Miami Bankruptcy Attorney Timothy S. Kingcade Receives the Prestigious AVVO Clients’ Choice Award for 2020

Posted on January 16, 2020by Admin

MIAMI – (January 16, 2019) Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy law firm of Kingcade Garcia McMaken has received the 2020 AVVO Clients’ Choice Award. To obtain this award, an attorney must receive five or more exceptional client reviews in the same year. This is the sixth consecutive year Kingcade has been honored with this award.

One of attorney Kingcade’s clients had this to say on AVVO: Mr. Timothy Kingcade is not only a living encyclopedia in matters of bankruptcy law, but he cares for you on a personal level. He was very detailed in explaining every step of the way what I had to expect as we entered this legal process and made me feel like family, and the rest of the team were always there to support me whenever I needed help. I definitely recommend his law firm; believe me they are the best!!!

student loan debt, Student Loans

Be on the Look-Out for These Student Loan Scams

Posted on October 7, 2019by Admin

More than 40 million borrowers are carrying an estimated $1.5 trillion in student loan debt. With that many individuals carrying student loan debt, it should come as no surprise that many scams are out there, hoping to take advantage of borrowers who are desperate to get out of debt quickly. Borrowers need to be aware of these debt relief scams in particular, which are now facing investigation by the Federal Trade Commission (FTC).

Student Loan Debt Elimination Scams

Many companies are out there offering the promise of eliminating student loan debt for borrowers who are desperate for a way out. However, if someone is offering a deal that sounds too good to be true, that is usually because it is, in fact, too good to be true. Many companies will promise to wipe away a person’s loans when they have no actual ability to do so. The fact of the matter is no one can promise student loan forgiveness or cancellation. Student loan borrowers can only ever receive forgiveness if they meet very specific conditions, and the fastest any borrower can receive loan forgiveness is five years. Even these forgiveness programs can be very difficult in terms of qualifications.

If the borrower has federal student loans, it should be noted that no student loan debt relief company can negotiate directly with the federal government to obtain lower rates on those loans. If a company promises the ability to negotiate a lower payment, this can normally only be done via an income-drive repayment plan, but most of these can be applied for directly by the borrower, not a third-party entity.

Bankruptcy Law, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

The Best Ways to Pay Off Credit Card Debt In Retirement

Posted on April 22, 2019by Admin

When someone is entering retirement, the last thing that person wants to deal with is mounds of credit card debt. For the most part, retirees are living on a fixed or limited income, which means they have very few financial resources to pay off any lingering debt they may be carrying.

A fixed income also means there is little ability to handle any unexpected financial crises, which can include a costly home repair or medical expense. In the event the unexpected happens, some retirees are forced to rely on credit cards or personal loans to cover the costs. The interest on a personal loan or a single missed credit card payment, can cause the debt to spiral out of control quickly.

Here are some debt payoff tips for seniors struggling with credit card debt.

Refinance your debt.

One possible way to pay off a large amount of credit card debt is through refinancing or consolidation of the credit card debt. This payment could be made through a home equity line of credit (HELOC) if you own your home and hold a good amount of equity in it. A HELOC carries a lower interest rate than other methods of consolidating or refinancing debt since it is attached to collateral and is a secured loan.

Credit card debt can also be paid by consolidating all cards into one card through a balance transfer. By doing a transfer, the cardholder can attack one, larger debt, rather than pay minimum payments on multiple cards every month. However, these transfers normally come with a promotional period which means the cardholder can only benefit from the zero or low interest rate for a set period. After that time period expires, the cardholder will soon find his or her rates increase significantly.

Examine your budget.

Paying off your credit card debt can be nearly impossible, if you do not establish a set budget. By putting together a list of necessary expenses and reviewing what purchasing habits put you into debt, you cannot cut unnecessary expenses and free up money to go towards your credit card debt. It is also recommended that you avoid using your credit cards during this time period when you are working on paying off outstanding balances.

Target the card with the highest interest rate.

If debt consolidation is not a possibility and you are struggling to pay multiple credit cards, one method that is recommended is to focus on paying one card at a time. This method does take time and patience, but it can be successful. Look at what credit cards you have and list what interest rate is on each card. Take the card that has the highest interest rate and throw whatever extra money you may have towards that card first, while continuing the minimum monthly payments on the other cards. Once that card is paid, then focus on the credit card with the next highest interest rate and so on, until all cards are paid in full.

Work a part-time job.

Retirement does not always mean that you will never hold another job. In fact, many retired individuals choose to take a part-time job not only to earn some extra money, but to socialize and be out with people. Many retirees find a great deal of success in part-time consulting or freelance work after retiring from a long-term professional career.

For seniors struggling with insurmountable debt, help is here. Do spend your golden years being hounded by creditors. Credit card debt is one of the most common problems we see facing those with serious financial issues. The stress can become compounded with collection calls and the threat of lawsuits. Bankruptcy not only gives people a financial fresh start, but it is a powerful tool that can be used to protect valuable assets, including property, vehicles and retirement savings.

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.

Source: https://www.theladders.com/career-advice/5-ways-retirees-can-tackle-their-credit-card-debt

Bankruptcy Law, Credit, Timothy Kingcade Posts

How Long Do Debt Collections Affect Your Credit Report?

Posted on March 14, 2019by Admin

When you are being pursued by debt collectors, the incessant phone calls can make you feel anxious and stressed. The number one piece of advice we give when dealing with creditors is to be honest with them. Never make a promise to pay if you are unable to do so and do not avoid creditors or collection attempts.

A collections action is essentially any type of collection on a debt. Whenever a creditor submits an account to collections, a notification is submitted to the credit reporting agencies. This notification will almost always result in the consumer’s credit score dropping. The more collections that show up on the person’s credit report, the bigger the drop will be. Any type of collections will show up on a credit report, including credit cards, medical bills, loans and mortgages.

Once a collections action is reported, it will stay on a person’s credit report for seven years. The same time period applies for missed or late payments. To put these figures in comparison, a Chapter 7 bankruptcy case will stay on a person’s credit report for ten years and Chapter 13 bankruptcy for seven years.

Credit reports treat debts all in the same manner, so if the collection is for a secured debt, such as a home or car, it will be treated the same way as credit card debt. However, medical debt is treated somewhat differently than other unsecured debt. New rules regarding medical debt have made it more difficult for it to impact your credit score as quickly. The new rule builds additional time between patients and insurance companies to resolve such matters. Up until this point, there was no grace period and medical debt could appear on your credit report as soon as it was reported as an unpaid debt. The three credit reporting agencies now have to wait 180 days before putting an unpaid medical bill onto your credit report.

Click here to read more on this story.

Related Resource:

https://www.myfico.com/credit-education/faq/negative-reasons/how-long-negative-information-remain-on-credit-report

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief

Average U.S. Household Carries more than $8,000 in Credit Card Debt

Posted on December 11, 2018by Admin

Americans are borrowing more this year, as the average household carries $8,284 in credit card debt, according to the personal finance site WalletHub. This total surpasses the previous year, where the amount of debt was $8,107 per household.

The total amount of credit card debt held by Americans is now at a staggering $974.2 billion, which is three percent more than the $949.9 billion reported last year. Miami is reported as the second highest metropolitan area with the most credit card debt in the U.S.

One major problem with these figures is how close the debt is to being at the point where it is considered “unsustainable” when comparing the debt held to the average income being brought in by the average American.

The current debt load is said to be $177 from this point of “unsustainability.” What is even more worrisome is the Federal Reserve is expected to increase interest rates on December 19.

The study reports that American credit card debt is nearing the highest point it has been since the Great Recession. Financial experts are concerned that it could go past that point in 2019 if things do not change.

Not all the figures from this study were so dismal. Many Americans have worked diligently to pay off their debt, and WalletHub’s data showed that Americans paid off $40.8 billion in credit card debt in the first quarter of 2018. This figure represents the second-largest quarterly payoff of debt ever reported, which is promising. However, the study did also report that since that time, Americans have added $38 billion back to their credit card debt balances.

Many consumers have looked for resources to find debt relief. For some, credit counseling is a valid option, although it is important you know what to look for when choosing the right credit counseling agency. Our attorneys are here to help you if you are struggling to deal with credit card debt and wish to know your options.

Click here to read more on this story.

Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Going into the holiday season with debt? Proven ways to keep your finances in order.

Posted on November 29, 2018by Admin

The holidays are upon us, and so is the biggest shopping season of the year. U.S. shoppers have already spent $1.75 billion online, up 28.6 percent from 2017. Many people rely heavily on credit cards to make these purchases, and before they know it, their balances quickly spiral out of control. Here are some helpful tips to keep credit card spending under control and help you maintain your finances during the holiday season.

The first of these tips is to know your debt situation before you begin shopping. If you are already in debt, the thought of going even deeper into debt can be daunting. It helps to make a few rules first with yourself before beginning your shopping. The first of these rules is to set limits on your buying. Put together a list of everyone you will be purchasing gifts for before shopping. Set a limit on how much you will be spending for each person on your list.

If you have a large family, focus your efforts on the children first and suggest a holiday gift exchange or Secret Santa program for the adults. Keep in mind that it is not how much you spend on each person but the thought you put into the gift that counts. Consider making something if you cannot spend a great deal of money or give the gift of time or fun experiences for family members.

If you still want to purchase an item for your family members, you do not necessarily need to go with luxury items for gifts. Many stores have discount sections with gifts that are thoughtful and creative, and there is nothing wrong with shopping at a discount store for items. You can use these items as standalone gifts but also as craft supplies to make something unique and personal for your loved one. Many drugstores have a special holiday section that offers inexpensive gifts.

Sometimes you may also have money available to use without even knowing it. If you do have a credit card, check into whether you have credit card rewards that will allow you to purchase gifts using those points. You should also look into using store rewards programs when purchasing your gifts to get special bonuses, as well, for after the holidays. Use caution if you decide to utilize store credit cards, the risks oftentimes outweigh the rewards.

Sometimes using a credit card to make a purchase is unavoidable. If possible, try using a credit card with a zero percent APR on any of these purchases. Make sure you pay off the balance during the introductory period before being hit with penalties on these purchases. Most of these timeframes are anywhere from 12 to 20 months. Be sure to keep the purchases down to an amount that is manageable to pay off in the end.

After the holidays, consider doing a balance transfer on purchases made during the holiday season to a card with a zero percent introductory APR. Many credit card companies have special offers in January based on the assumption that consumers will spend more than they can handle over the holidays. Another option to pay off debt is a consolidation loan through your bank or financial institution.

Click here to read more.

Bankruptcy Law, Timothy Kingcade Posts

Bankruptcy Attorney Timothy S. Kingcade Obtains Successful Order Requiring Miami Regional University to Release Client’s Diploma and Transcripts

Posted on August 27, 2018by Admin

MIAMI – (August 27, 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 (In re: Adriana Gonzalez Case No. 18-15980-RAM), requiring Miami Regional University to immediately release client’s education transcripts and diploma, and make no further attempts to collect on the discharged debt, in compliance with the bankruptcy automatic stay.

“Justice was served today for our client, who prior to this Order was being denied the basic protections of the bankruptcy automatic stay. The creditor in this case (Management Resources Institute, which operates a for-profit school, Miami Regional University) has willfully and intentionally violated the automatic stay by refusing to release our client’s diploma and transcripts. After the bankruptcy case is over, our client will need certified copies of her transcripts, which would have been continually denied by the creditor in this case,” Kingcade said.

Our client filed for Chapter 7 bankruptcy on May 18, 2018. The problems as described in the motion started on June 6, 2018 and have continued through the date of the amended motion. The creditor, Management Resources, Inc. d/b/a Management Resources Institute, which operates a for-profit school known as Miami Regional University was listed on the bankruptcy petition. The creditor in this case was verbally advised of our client’s status in bankruptcy and the pending automatic stay. Our client returned at least twice to the school seeking her transcripts and diploma.

Henry Babani, Vice President of Corporate Finance for the Creditor in the case confirmed to our client that the underlying debt would be discharged in the bankruptcy, but unless she paid what was due, the Creditor would not release her diploma or her transcripts.

The stay violation has continued since our client’s first visit and since the filing of this motion. Even though the Creditor operates a nursing school (Miami Regional University) where this situation is likely to recur, the Creditor’s position is the automatic stay and/or a discharge in bankruptcy is irrelevant to our client’s right to receive a current copy of her transcript, her diploma or future certified copies of her transcripts.

Our client who is currently applying for jobs, which require these documents for employment, is in jeopardy of losing job opportunities because of the Creditor’s willful violation.

Given the continuing nature of the stay violation and Creditor’s untenable position regarding our ability to receive her transcripts and diploma (and the future right to receive certified copies of her transcripts) an award of punitive damages is warranted against Creditor as a coercive sanction to compel Creditor’s future compliance with this court’s automatic stay and/or discharge injunction.

This is not the first time our firm has obtained justice for a client in a similar circumstance, where a school willfully and intentionally violated the automatic stay by refusing to release student transcripts. On December 21, 2016, a successful Order was obtained requiring Belen Jesuit Preparatory School, a Miami-based Catholic school, to release education transcripts in compliance with the bankruptcy automatic stay and to pay our clients’ legal fees.

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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/.