Bankruptcy Archives - Page 10 of 34

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

How Student Loan Debt Can Affect Your Tax Return

Posted on April 3, 2017by Admin

The average college student who graduated in 2016 will have approximately $37,00 in student loan debt, according to Forbes. Most college grads spend their time and energy on finding a job. However, another concern for new grads is how their debt will affect their 2017 tax filings. Here are a few tips on deductions and credits grads will be entitled to, and also what to do if you are filing as a dependent.

Student Loan Interest Deduction

If you paid interest on student loans in 2016, you most likely qualify for the Student Loan Interest Deduction. Also, if your student loan was not given to you by a family member or your employer, you were enrolled at last half-time in an accredited institution of higher learning and your modified adjusted gross income (MAGI) was less than $80,000, you can claim interest you paid on your loans as a deduction.

American Opportunity Tax Credit

You might also be able to claim a few education tax breaks if you meet the criteria. The American Opportunity Tax Credit allows undergraduate college students to claim the first $2,000 and 25 percent of the next $2,000 they spend on tuition, school fees, books, equipment and other non-living expenses.

Lifetime Learning Credit

The Lifetime Learning Credit can be claimed by college and vocational students. It allows eligible students to claim up to 20 percent of the first $10,000 they paid toward tuition and school fees. Eligible students can also claim 100 percent of the Lifetime Learning Credit if their MAGI is less than $55,000.

If You Are a Dependent

Your parents can claim you as a dependent if you are 19 years old or younger, live with your parents for at least half the year and they provided for at least half of your financial needs. You can also be claimed as a dependent if you are 24 years old or younger and you are a full-time college student. If you earned at least $6,300 in 2016, you have to file a return, even if you are being claimed as a dependent by your parents.

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, Timothy Kingcade Posts

Americans are Dying with an Average of $62K of Debt

Posted on March 29, 2017by Admin

According to data released in December 2016 by Credit.com, approximately 73 percent of consumers have outstanding debt when they die. On average, those consumers carried a total of $61,554, including mortgage debt. Excluding mortgages, the average balance was $12,875.

The data was collected by Experian’s FileOne database, which includes 220 consumers. Out of the 73 percent of consumers who had debt when they died, approximately 68 percent had credit card balances. The second most common kind of debt was mortgage debt at 37 percent, followed by auto loans at 25 percent, personal loans at 12 percent and student loans at six percent.

Most debt is eligible for cancellation after the borrower dies, such as federal student loan debt. However, the deceased person’s estate becomes responsible for most debt. If someone has enough assets to cover their debts, the creditors get paid and beneficiaries receive whatever remains. If there are not enough assets to satisfy debts, creditors lose out. In most cases, family members do not become responsible for the debt.

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 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

Study Shows Floridians Struggled with Medical Bills in 2016

Posted on March 28, 2017by Admin

According to a survey published last week by the Commonwealth Fund, residents of Florida and Texas reported having more difficulty paying their medical bills in 2016 than residents of California or New York.

All four states have seen an increase in the number of residents with health insurance since the Affordable Care Act was launched in 2014. The difference is, unlike in California and New York, legislators in Florida and Texas refused to expand Medicaid to most of the low-income adults, resulting in higher uninsured rates. Florida’s uninsured resident rate was 16 percent last year.

The survey reported that 41 percent of Floridians reported they had trouble paying their medical bills, they were contacted by a collection agency about unpaid medical bills or they were carrying medical debt last year. Approximately 44 percent of Texans reported they had trouble paying medical bills last year. Only approximately 28 percent of Californians and New Yorkers reported similar challenges with medical debt.

However, state decisions on Medicaid were not the only contributing factors. The rate of illegal immigrants living in each state were also reportedly factors in the survey results due to the fact that undocumented immigrants are not eligible for Medicaid or ACA coverage.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

South Florida Unemployment Rate Remains the Same Despite Growth in Job Creation

Posted on March 27, 2017by Admin

In February, South Florida’s unemployment rate remained stable when compared with the previous year despite the fact that all three counties experienced an annual increase in job creation, according to the Florida Department of Economic Opportunity.

Broward County’s rate of unemployment remained exactly the same compared to last year at 4.5 percent. Palm Beach County’s rate increased from 4.6 percent last year to 4.7 percent this year. Miami-Dade County’s rate remained exactly the same at five percent.

Broward County has reportedly created 20,400 jobs since last year. Palm Beach County created 13,200 jobs, most of which were in leisure and hospitality. Miami-Dade County had the highest increase, creating 22,300 jobs. The county created 9,100 jobs in education and health services; 3,700 in trade, transportation and utilities; 2,700 in other services; 2,500 in government; 2,400 in professional and business services; 1,400 in leisure and hospitality, 500 in construction and mining and 300 in manufacturing.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

9 Common Tax Errors People Make

Posted on March 24, 2017by Admin

Small errors on your tax return can cost you big time. If you want to get your tax refund as quickly as possible and avoid fines, don’t make these nine common errors.

Wrong or Missing Social Security Numbers. All of the tax information that gets reported to the IRS is tied to your Social Security number. As a result, if you provide the wrong number, the IRS will not be able to match up your return with the information that your employer and financial institutions have provided.
Wrong Names. The IRS receives many returns on which people’s names are incorrect. Double check your Social Security card to ensure you are providing your legal name.
Filing Status Errors. Some filing statuses can give additional tax breaks, but it is critical to choose the right one for your particular situation. Often, taxpayers make mistakes in choosing a filing status for which they don’t qualify, such as, head of household for unmarried individuals.
Math Errors. Tax software typically catches math errors; however, if you make a simple data-entry mistake, your numbers will still be off. Double check everything with a calculator to avoid this problem.
Errors in Figuring Credits or Deductions. Some tax breaks are complicated and the IRS says that errors in figuring the earned income tax credit, child and dependent care credit and the standard deduction are particularly common. The best way to avoid these errors is to follow instructions carefully in calculating these credits and deductions.
Incorrect Bank Account Numbers. If you use direct deposit to get your refund, make sure you have provided the correct routing number and account number. If you don’t, your refund won’t get processed correctly.
Not signing or dating your tax forms. It is easy to forget one of these key final steps after spending hours or days preparing your return. However, an unsigned tax return is not valid. Also, if you are filing a joint return, both spouses have to sign.
Errors with validating an electronically filed tax return. If you file electronically, you have to select a personal identification number to use to validate your return. Often, taxpayers do not understand the procedure or fail to provide the correct number.
Not Correcting Erroneous Tax Information Forms. If there are errors on your W-2 form from your employer or on your 1099 forms from financial institutions, you should not ignore them. Rather, talk to the reporting party and ask them to correct the error. Otherwise, the IRS will flag a mismatch between what you filed and what the other party filed and it will be up to you to prove you are right.

Click here to read more on this story.

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

What the Fed Rate Hike Means for Homebuyers

Posted on March 23, 2017by Admin

Last week the Federal Reserve increased its benchmark interest rate by one-quarter of a percentage point. This marked the second increase in three months and the third increase since 2015. As a result, mortgage rates have already increased. The average rate of a 30-year fixed mortgage jumped to a 2017 high of 4.21 percent, up from 3.68 percent last year.

What this means for house hunters is that buying a home is going to be more expensive. “That is going to create a bit of sticker shock for some buyers looking to buy this spring,” said Len Kiefer, deputy chief economist at Freddie Mac.

Fortunately, the changes in the Federal Reserve benchmark interest rate are somewhat predictable. The market expects two more Fed rate hikes before the end of the year. However, another increase is not likely in the next few weeks.

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.

Related Resources:

http://money.cnn.com/2017/03/15/pf/fed-rate-hike-mortgage-rates/index.html?iid=SF_LN

http://www.cnbc.com/2017/03/15/fed-raises-rates-at-march-meeting.html

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

More than 1.1 Million Borrowers Defaulted on Their Federal Student Loans Last Year

Posted on March 22, 2017by Admin

An average of 3,000 borrowers default on their federal student loans every day. The number increased 17 percent from 2015 to 2016, according to a consumer Federation of America analysis of U.S. Department of Education data.

Despite a growing economy, 42.4 million Americans owed $1.3 trillion in federal student loans last year. By the end of the year more than 4.2 million borrowers were in default. This is up from 3.6 million the previous year, meaning that 1.1 million borrowers went into or re-entered default last year.

How to Avoid Defaulting on Student Loans

If your debt is unmanageable, you have options:

If you have federal student loans, you can qualify for income-based repayment plans. The percentage of federal student loan borrowers enrolled in repayment plans has quadrupled over the past four years. Keep in mind you must re-apply every year for income-based repayment.
If you have private loans you have limited options. Some lenders offer forbearance if borrowers can’t make their payments. The benefits are not as vigorous as they are with federal loans and typically last no more than 12 months.

Click here to read more on this story.

Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Trump Administration Erases Restriction on Big Student Loan Fees

Posted on March 21, 2017by Admin

The Trump administration recently repealed the Obama guidelines and instructed guarantee agencies to once again go after defaulters with big fees. Agencies had previously been charging fees of up to 18.5 percent when people defaulted on their student loans. However, in July 2015 the Obama administration issued a memo forbidding such practices as long as the borrower entered into the government’s loan rehabilitation program within 60 days of defaulting and started paying again.

The announcement came after a report was released that found a double-digit increase in defaults. It also came after Sen. Elizabeth Warren asked Education Secretary Betsy DeVos to keep the guidelines in place.

The loans that are affected by the changes are loans through the Federal Family Education Loan Program (FFEL) that were taken out before 2010. There are approximately seven million borrowers with $162 billion of outstanding debt in the FFEL program.

Related Resources:

https://consumerist.com/2017/03/17/trump-administration-eases-restriction-on-student-loan-debt-collectors/

http://www.newser.com/story/239949/trump-change-means-student-loan-defaulters-face-big-fees.html

Credit, Debt Relief, Timothy Kingcade Posts

Consumer Credit Scores to Exclude Some Debt and Liens Starting July 1st

Posted on March 17, 2017by Admin

The nation’s three largest credit-reporting agencies will soon exclude tax liens and some civil debts from their reports. The change by Equifax, Experian and TransUnion will take effect July 1^st. According to the Consumer Data Industry Association, it is part of a plan to ensure that consumer identifications in the data are accurate and current.

The provision is likely to improve millions of American’s credit scores. If reports on those tax liens and civil debts do not include the consumers’ names, addresses and Social Security number, they will not be reported. Additionally, the records will not be included without courthouse visits to obtain newly filed and updated public records at least every 90 days.

However, there are some controversies surrounding the changes. Although they are likely to help consumers appear more credit-worthy, the updated policies could potentially make loan-screening more difficult for lenders.

Click here to read more on this story.

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

Bipartisan Bill Could Help You Pay Off Your Student Loans

Posted on March 16, 2017by Admin

A new bill in Congress aims to encourage companies to offer help to their workers in paying off their student loan debt. Earlier this month, a bipartisan group of 31 lawmakers sponsored legislation that would make employer contributions to their staff’s student loan payments tax deductible. It would be similar to contributions companies make to their workers’ 401(k)s.

“Some companies are already offering this benefit because they see the advantage it gives them when recruiting and retaining younger employees, but we want to encourage more to participate so we can help both struggling graduates and our economy,” said Representative Rodney Davis, a Republican from Illinois who introduced the bill along with Representative Scott Peters, a Democrat from California.

Consulting firm PwC was one of the first companies to initiate a student loan benefit program last year. The company offers new employees $1,200 a year toward their loans for up to six years. Since then, several other companies have launched similar plans.

“Adding tax relief to the equation could elevate student loan assistance alongside 401(k) contribution as one of the most valuable financial benefits a company can offer its workers that directly impact their quality of life today,” said Scott Thompson, the CEO of Tuition IO, a company that helps employers put student loan benefit plans in place.

Click here to read more on this story.