Tag: Bankruptcy

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How does debt affect survivors after a loved one’s death?

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It is a common occurrence that creditors start contacting grieving relatives to nudge them into paying their deceased loved one’s lingering debts. If you ever find yourself in this situation, here is what you need to know.

You do not need to worry about inheriting debt. In most situations, debt does not get passed down to heirs. However, creditors typically won’t tell you that. In fact, they are oftentimes depending on your sense of duty to pay off those debts. They may seem kind and sympathetic, but their ultimate goal is to persuade you into paying.

There are exceptions to the rule. Below are four instances in which you might still be on the hook for a debt after your loved one dies:

  • You co-signed on the debt.
  • You live in a community property state.
  • You are the spouse, and state law requires you to pay certain debts such as medical bills.
  • You were responsible for resolving the estate and did not follow state laws.

 

Estates may be liable. Although you are not personally responsible for your loved one’s debts, the estate may be. The estate is made up of your loved one’s remaining assets and may be required to cover the costs of outstanding debts left by your loved one. Creditors may file a claim in probate court. In which case, the money from the estate is used to pay those claims. What is left is what gets distributed to heirs.

If the estate does not have enough money to pay off creditors, it is considered insolvent. In that case, the unpaid debt should disappear. However, that might not stop some companies from calling you for payment.

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, 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

Woman Wins $83 Million in Lawsuit Against Debt Collector

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A Kansas City woman won $83 million in a lawsuit she filed against a debt collector for illegal debt collection practices for a $1,000 credit card bill. The Missouri jury found the collection agency, Portfolio Recovery Associates LLC, guilty of “malicious prosecution.”

The agency reportedly violated the Fair Debt Collection Practices Act, for which it will pay $250,000 in damages. Maria Guadalupe Mejia was also awarded $82,990,000 for malicious prosecution over a credit card debt that did not belong to her.

PRA Group Inc., which owns Portfolio Recovery Associates, sent a statement about the verdict to Credit.com. “This outlandish verdict defies all common sense. We hope and expect the judge will set aside this inappropriate award, and we plan to file motions to make that request formally in the near term. Any fair reading of the facts of this case makes plain that a verdict of this size is not justice by any means, and cannot stand,” spokesman Michael McKeon wrote.

In 2013 Portfolio Recovery sued Mejia over credit card debt that belonged to a man in Kansas City, Kansas, with a similar name. The agency, which is one of the nation’s largest debt buyers, attempted to collect on the debt for over a year after Mejia first received notice of the lawsuit.

Click here to read more on the 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

Borrowing your way out of Debt

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Oftentimes people take out loans to pay off credit cards or other financial obligations and end up deeper in debt. However, there is a way to use debt consolidation loans successfully.

Emilie Burke of Raeford, North Carolina used a $6,000 personal loan from online lender Upstart to pay off some of the $13,600 credit card debt she incurred as a student. Since taking out the loan last November, she has paid down the balance to $4,500 and reduced her remaining credit card debt to $2,500. She also used balance transfer offers with a zero percent annual rate to lower her credit card interest rates and speed up her debt payoff.

Burke sought help from a financial planner at LearnVest, an online advice site. She then dedicated her earnings from a side job to pay down her debts. She also stopped carrying credit cards altogether. “I figured I couldn’t go back into debt if I didn’t have my cards,” Burke posted on her blog about her journey out of debt.

Five Steps to Successful Debt Consolidation

  1. Objectively assess your situation. If your debts equal more than half of your income, consider consulting a bankruptcy attorney. You are unlikely to be able to pay off your debts within five years, which is typically the longest period you would be forced to do so under a Chapter 13 bankruptcy repayment. If your debt is unmanageable, consider filing Chapter 7 bankruptcy, which erases consumer debt within three to four months.
  2. Avoid high-cost loans. Calculate the total cost of the loan. Add up the monthly payments times the number of payments, plus any other fees. Then compare that number with what you are paying now. Avoid lenders who offer low payments but sky-high interest rates and long terms that will keep you in debt longer. Credit unions tend to offer the best rates and terms on personal loans.
  3. Opt for the shortest possible loan. Choosing the shortest loan will minimize the interest that you will pay. Only use a loan with terms up to three years, if possible. Five years is the maximum you should consider.
  4. Look for direct payment of creditors. If possible, use a lender that will pay your credit card company directly. This will remove the temptation to use borrowed funds for another purpose.
  5. Consider closing your cards. Although this can hurt your credit score, going into further debt can impact your score much worse. According to financial experts, people who closed their accounts were more likely to pay off their debts, regardless of the dollar amount, than those who left them open.

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

How to Pay for Bankruptcy When You’re Broke

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Filing for Chapter 7 bankruptcy costs anywhere from between $500 to $3,500. If you are already in financial distress, it may be difficult to come up with the fees you will need to file. Follow these three strategies to pay for bankruptcy.

Raise the money

First, minimize your outgoing cash. For example, if you are still making credit card payments, stop making them. Chapter 7 bankruptcy discharges unsecured debts such as credit card balances. Next, try to find some additional income. This can be done by selling old electronics or taking on part-time work. You can also use your tax refund to pay attorney and bankruptcy filing fees.

Work out a payment plan

If you find the right attorney, you may be able to make payments for the services and filing fees. Ask about setting up a payment plan in the initial meeting with any bankruptcy attorney you are considering. Your attorney can also with work the court on a payment plan for your bankruptcy filing fee.

Go pro bono

If your income is less than 150% of the official poverty line for your family size, you might qualify for free legal services or waived fees. If you are not sure how to find out if you qualify, your local bankruptcy court will have information on free legal clinics and local free legal aid resources. Also, the American Bankruptcy Institute has a bankruptcy attorney directory that can help you find pro bono attorneys in your area.

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, Florida Bar

Life After Bankruptcy

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You have filed for bankruptcy and are looking forward to a fresh start. However, your credit rating has taken a substantial hit. The bankruptcy is likely to stay on your credit report for ten years, therefore, for a period of time it may be difficult to get a loan or credit card. However, you can take these steps after your debts are discharged to take advantage of your fresh start.

Start an Emergency Fund

If you filed a Chapter 7 bankruptcy, you have likely had most of your debts discharged. This means that your salary is yours to spend and you will most likely be living on cash rather than credit. It is imperative that you build an emergency fund with your extra cash.

Rebuilding your Credit

In order to restore your financial life, you have to rebuild your credit. You can begin establishing good credit immediately after your debts have been discharged. However, it may take some time to build up your credit score. If you own your home, paying your mortgage on time is a good place to start. Mortgage lenders report to the credit bureaus.

Adopt a Positive Attitude

Experts agree that attitude and persistence make a huge difference in your life after bankruptcy. For example, if you start a savings account, carry no debts and have an emergency fund, you are telling yourself that you can take control of your finances.

First New Credit Card

Once you have established good spending and financial habits, you can apply for a secured card as soon as six months after your debts are discharged. Secured cards allow you to put money in an account and the credit card company will give you a credit limit of that same amount. You pay the bill as you normally would and then get the deposit back when you close the account or switch to an unsecured version.

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

Credit Card Debt Approaches Post Recession Levels

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 According to the Household Debt and Credit report released by the Federal Reserve Bank, total household debt balances grew slowly throughout the second quarter of this year. As of June 30, 2016, total household debt had reached $12.29 trillion, up $35 billion from the first quarter of 2016.

At the same time, the nation’s cumulative credit card balance reached $729 billion, which is up $17 billion from the first quarter. While still below its peak of $866 billion in the fourth quarter of 2008, economists say that the numbers are on track to reach pre-recession levels of credit card debt around the second quarter of 2017. However, economists also say that conditions might change and previous numbers do not necessarily mean we will enter into another recession.

While credit card debt is up, credit card usage is actually down substantially from previous highs. Credit card usage peaked in 2008 at 68 percent of borrowers, then swiftly declined to 59 percent during the recession due to banks reactively and proactively closing accounts.

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

Beware of Credit Card Skimming Scams at Gas Stations

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Consumer protection officials are warning consumers about a new form of high-tech theft that can affect all credit and debt card users. Scammers are using devices known as ‘skimmers’ at gas pumps to steal account information from debit and credit cards that are swiped. These devices are also commonly found at ATMs.

According to Mississippi state Attorney General, Jim Hood, the devices are difficult to detect and come in two forms: internal or external. The external devices fit over the actual card readers at the pumps. The internal devices are typically communication cables connected to a device that records data from the cards.

“These devices may go undetected for weeks, all the while gathering sensitive account information from unsuspecting consumers,” Hood said. “Consumers need to call their financial institutions immediately if they see any unauthorized activity on their accounts, and watch closely for signs of tampering when using gas pumps or ATMs.”

Authorities offer the following tips to avoid becoming a victim of card skimming:

  • Pick pumps close to the entrance of the gas station or convenience store. Skimmers usually target pumps that are not near the entrance.
  • Pay with cash.
  • If you’re using a debit card, choose the option to process the payment as credit so scammers do not have access to your PIN.
  • Lightly wiggle the card reader on the pump. External skimmers might feel loose and come off.
  • Ask gas stations and convenience stores what type of anti-skimming measures they have adopted.

According to the Florida Department of Agriculture and Consumer Services, more than 250 skimmers were confiscated from gas pumps between July 2015 and July 2016. Approximately 100 consumers’ card numbers were stolen from each device and $1,000 stolen from each consumer.

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

Wells Fargo Sends Statement to Consumers with Important Updates following Scandal

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Nearly two months after the Wells Fargo scandal was first revealed by the Consumer Financial Protection Bureau (CFPB), the bank has issued statements to customers with important updates about the steps the bank has taken to make amends.

The statement begins by apologizing to consumers stating that, “We are deeply committed to serving you and your financial needs, and in those instances, we did not live up to our commitment. This is inconsistent with our values and with the culture we work hard to maintain. It’s not who we are as a company.”

The statement goes on to say, “Here’s what we are already doing:”

  • Putting your interests first. We have eliminated product sales goals for our retail banking team and members who serve customers in our bank branches and call centers.
  • Proactively communicating with you. We now send a confirmation after you open a new consumer or small business checking, savings, or credit card account so you know what is happening and can tell us if anything we have confirmed is different than what you expected.
  • Full transparency. You can always see your active accounts any time when enrolled in Wells Fargo Online.
  • Fixing what went wrong. We have provided full refunds to customers we have already identified and we are broadening our scope of work to find customers we may have missed. If we have any doubt about whether one of your accounts was authorized, and any fees were incurred on that account, we will contact you and refund fees.

The statement issued by the bank is the result of a CFPB investigation which resulted in the Bureau fining the bank $185 million for unethical business practices. The CFPB found the bank had opened approximately two million unauthorized deposit and credit card accounts.

Click here to read a timeline of events of the Wells Fargo Scandal.

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.

Related Resources:

http://www.bizjournals.com/atlanta/news/2016/10/22/wells-fargo-sends-customers-statement-about.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

U.S. Supreme Court Agrees to Hear Debt Collection Appeal

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The U.S. Supreme Court has decided to hear an appeal filed by Midland Funding, a subsidiary of Encore Capital Group, which was sued by an Alabama debtor named Aleida Johnson. Johnson entered into bankruptcy in 2014 and claims Midland Funding has sought payment of $1,879 in debt that Johnson had incurred more than a decade earlier. Alabama has a six-year statute of limitations for debt to be collected.

Supreme Court Justices will decide whether or not people can sue companies who have attempted to collect debts that they are not legally required to pay back due to their state’s statute of limitations.

It is common practice for some debt collection companies to attempt to collect on an old debt that is not legally recoverable under state law. However, if a debtor does not object to the payment, claims can be made against them when they enter into bankruptcy.

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, Student Loans, Timothy Kingcade Posts

Corinthian College Students Still Waiting for Financial Aid Help

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Eighteen months after Corinthian Colleges Inc. closed the doors of its remaining locations, Heald College, Wyotech and Everest University, tens of thousands of former students are still waiting to receive some form of relief from the student loan debt they incurred to attend the defunct college.

Nearly 80,000 CCI students are facing debt collection related to the loans they took out to attend the schools. Although the Department of Education’s has the ability to provide defense of repayment discharges, which is a process that would eliminate debt based on the college’s alleged fraudulent actions.

The former student’s attempts to obtain discharges have been filled with issues, most stemming from the fact that the process has seldom ever been used and never to the extent it is needed for CCI students.

Due to the alleged fraud, students may be eligible for loan forgiveness of any federal Direct Loans, according to the Department of Education. The investigation process involving federal prosecutors, attorneys general and other agencies is ongoing. However, they have found evidence of fraud by CCI involving the use of inflated job placement rates and pushing students into high cost loans.

A report compiled by the Department of Education found that there are 79,717 people who are eligible to apply for loan forgiveness, but are instead dealing with debt collectors. Of those former students, 30,000 have had tax refunds, tax credits and other benefits seized, while 4,000 have had their wages garnished.

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.