As student loan debt in America continues to grow, college graduates continue to have trouble finding jobs and paying off their debt. Instead, many graduates are enrolling in further schooling, which is deferring their repayment but deepening their debt. Student loan debt has now reached the $1 trillion mark, surpassing auto-loan and credit card debt.
This year, the average amount of student loan debt per borrower averaged about $25,000, that’s a 25% increase from 10 years ago. However, it is not just young adults suffering from student loan debt. A recent study revealed that the baby boomer generation (60+ years) owes about $36 billion in student loans. The Federal Reserve Bank of New York reported that about one-third of student loan payments are at least 30 days delinquent, nationwide. Not to mention, since new bankruptcy laws in 2005 were passed, the majority of student loan debts are unable to be discharged through bankruptcy.
President Obama has openly voiced his concern about the student loan debt crisis, proposing many ideas before Congress to aid struggling borrowers. Although Obama has shown his concern, he still promotes the importance of a higher education. Many Republican candidates find his ideas about modifying student loan repayment, creating ways to make repayment easier, and student loans in general to be a burden to the government. Former Senator, Rick Santorum announced his belief that rather than promote higher education and utilization of student loan programs, the focus should be on promoting blue collar jobs that do not require a college education.
To read more on this story visit: http://www.nacba.org/News/NACBANews/tabid/87/articleType/ArticleView/articleId/277/Associated-Press-Explosion-in-Student-Loan-Debt-Reaching-Crisis-Proportions-But-Largely-Flying-Under-Radar.aspx
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced 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, P.A. at www.miamibankruptcy.com
Tag: Bankruptcy
Mortgage Balance, Default and Foreclosure
Statistics show that the wealthy may be able to stay in their homes longer after default than the average homeowner. The length of time that a homeowner may be in default before the bank takes action may depend in part on the value of the property. A new report suggests that banks may be more lenient with homeowners who live in million-dollar homes than the average homeowner with a mortgage of $250,000 or less. These homeowners have been able to stay in their homes an average of 792 days without making a payment, while a homeowner with a $250,000 mortgage will likely be required to vacate their home up to six months sooner.
The exact reason for the difference is unclear. Some speculate that several factors weigh into the bank’s decision to initiate foreclosure proceedings, including:
• The expense in maintaining these types of homes during the foreclosure process
• The greater likelihood that the wealthy individual will regain the ability to repay the mortgage in the near future
• The fact that a lot of banks do not package and sell larger mortgage loans, loans which may be made to individuals who banks feel are important citizens in the community or with whom they have a long-standing relationship.
All of these factors may play a role in the bank’s decision to initiate foreclosure proceedings.
Bank foreclosures are happening everywhere in this country. Many homeowners are faced with the reality of losing their homes. But homeowners may have options that will stop or delay the process. One of these options is filing for bankruptcy.
Bankruptcy allows debtors to get a fresh start. Essentially wiping the slate clean, individuals can start over and begin the road to recovering financial stability. Once an individual files for bankruptcy, the court implements an automatic stay. This “automatic stay” requires creditors to hold off on their collection actions while the bankruptcy is pending. Whether individuals are able to keep their homes following the bankruptcy may depend on what type of bankruptcy was filed. But often debtors are able to keep their home and vehicle so they have a place to live while rebuilding credit.
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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, P.A. website at www.miamibankruptcy.com.
Palm Beach County Courts Hold approximately 7,000 Zombie Foreclosure Cases
In Palm Beach County, 17 percent of the foreclosure cases are currently lying dormant in Palm Beach County courts. A large portion of the 6,927 ‘zombie cases’ have stalled for more than a year, some dating as far back as 1997. This growing number of vacant and deteriorating homes is creating a widespread problem and affecting the value of other homes on the market. While some of the dormant cases are mistakes due to one party forgetting to request a dismissal, much of the inaction is a result of homeowners filing for bankruptcy, lenders inability to prove ownership, and loan modification negotiations. Whatever the reason, many homeowners are clueless about the status of their cases and have not been making payments for years.
If a case has been dormant for 10 months, the homeowner can legally file for a dismissal of the case. The lender then has 60 days to act. If no action occurs, then the case is thrown out. Peter Blanc, Palm Beach County Chief Judge, thinks Palm Beach County will see a rise in dismissals due to the recent state funding received to hire extra help for foreclosure cases. Another frustrated Palm Beach County Judge, John Hoy’s advice to banks is, “If you can’t take care of old cases, don’t file new ones.” Both judges were in agreement that the problems with zombie cases now, stem from malpractices by banks in earlier years.
To read more on this story visit: http://www.palmbeachpost.com/money/foreclosures/the-zombie-files-nearly-7-000the-zombie-files-nearly-7-000-stagnating-foreclosure-2305388.html?viewAsSinglePage=true
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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, P.A. website at www.miamibankruptcy.com.
Bank of America Sells Credit Card Debts to Collectors Despite Inaccurate Records
There have been countless lawsuits filed against collection agencies for unlawful debt collection practices. Agencies such as CACH LLC have been buying debt from banks, like Bank of America for a number of years. In many cases the banks are selling debt and not providing proper legal documentation as to who swore in the affidavits or who the actual debtor was. In other cases, Bank of America sold debt to CACH LLC, in which some payments had been made, but banks failed to credit the borrowers.
Thousands of lawsuits have been filed due to the inaccurate debt Bank of America sold to CACH. In many cases where collection agencies file a suit against a borrower and the borrower does not show up for the hearing, a default judgment occurs. However, in some cases the borrower will fight the claim in which the collection agency would be found at fault due to inadequate documentation. Many court officials believe the banks should be held accountable, because in these cases, the suits stem from their inability to produce adequate documentation.
To read more on this story visit: http://www.americanbanker.com/issues/177_62/bofa-credit-cards-collections-debts-faulty-records-1047992-1.html?zkPrintable=1&nopagination=1
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced 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, P.A. at www.miamibankruptcy.com
Wall Street’s Multi-Billion Dollar Trading Scandal That no one is talking about
Wall Street’s latest billion-dollar scandal might end with a prison sentence for some traders. The federal government recently announced they are pursuing an investigation of banks and traders who have been manipulating LIBOR rates. The LIBOR rate, or London InterBank Offered Rate, is the average lending rate banks in London use when lending to other banks.
Banks were illegally setting their own LIBOR rates lower than the actual rate and then persuading municipalities and pension funds to bet against the rate. Ultimately, the banks would come out on top with millions of dollars from the municipalities. The banks were also giving Wall Street traders access to the systems they used to set up the manipulated rates so they could go in and change them as they saw fit. So far the research into the investigation shows that this could be a $750 million scheme. The two banks that have been targeted in the investigation are Barclays and Deutsche. Analysts believe this scandal will far exceed the repercussions of the mortgage/foreclosure scandal for Wall Street.
In addition, many Wall Street traders may find themselves facing jail time over the scandal. These recent events are having a powerful impact on the credibility of Wall Street.
To read more on this story visit: http://finance.fortune.cnn.com/2012/03/23/the-wall-street-multibillion-scandal-no-one-is-talking-about/
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced 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, P.A. at www.miamibankruptcy.com.
Hearing Held to discuss the Student Loan Debt Crisis
On March 20, 2012 the U.S. Senate Committee on the Judiciary Subcommittee on Administrative Oversight and the Court held a hearing to discuss the student loan debt crisis. The hearing was entitled, ‘The Looming Student Debt Crisis: Providing Fairness for Struggling Students.’ Since the recession, college graduates have struggled to find not only well paying jobs, but jobs in general. In 2005, a provision was made to the bankruptcy code that prevents borrowers from discharging their student loan debt in bankruptcy court. Financial analysts predict that a crisis with effects similar to the crash of the real estate market could happen if things to do not change.
A variety of professionals who are familiar with the current affects of student loan debt on the economy gave testimonies to remove this provision. In attendance, were Attorney’s Generals from Kentucky and Illinois, borrowers who are struggling to pay their student loan debt and representatives from organizations such as the Student Loan Borrower Assistance Organization. Most of the testimonies were in agreement that student loans should be treated in bankruptcy court just as any other consumer debt. There was also talk about loan modifications being available to borrowers who cannot afford to pay back their student loans, due to economic circumstances.
To read more on this story visit:
http://www.judiciary.senate.gov/hearings/hearing.cfm?id=eb997a7c3376c76b36a041cf2a10ca10
http://www.studentloanborrowerassistance.org/2012/03/24/bankruptcy-and-fairness-for-struggling-students/
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced 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, P.A. website at www.miamibankruptcy.com.
Stockton, CA. could become the Nation’s Largest City to File Bankruptcy
Within the next three months, Stockton could become the nation’s largest city to file for protection from creditors under U.S. bankruptcy code. Using a new California law, the City Council is attempting to stall the process by entering mediation with creditors, including public employee unions. The Central Valley port city of 300,000 has suspended several bond payments and will not cash out vacation or sick time for employees who leave.
Before the recession, the city’s officials were spending large amounts of money on a new sports arena, a theatre complex, a marina and much more with the intention of creating a more cultured city. There is speculation that this could be one of the many reasons the city has been hit so hard by the recession. Residents believe the problem is the inflated salaries of city officials and their generous retirement packages. Others speculate that it is a result of the city’s dedication to employee unions. No matter the reason, Stockton’s economy has taken a severe hit. Crime has also increased in the area due to lack of funds for public employees such as police and firefighters.
To read more on this story visit: http://www.standard.net/stories/2012/03/14/stockton-calif-could-become-largest-city-file-bankruptcy
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced 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, P.A. website at www.miamibankruptcy.com.
TaxMasters Inc. is the Latest Tax Representation Firm to File for Bankruptcy
It was announced recently that another tax representation firm, Houston-based TaxMasters Inc., will file for bankruptcy. The company spent millions of dollars in TV advertising promising taxpayers’ resolution from their IRS debt, but was rarely able to deliver on its promise. Texas and Minnesota have both accused TaxMasters Inc. of “deceptive tax practices.”
TaxMasters Inc. is just the latest tax representation firm to file for bankruptcy. Months earlier, J.K. Harris filed for bankruptcy after a number of lawsuits were filed against it by multiple states’ attorneys general and taxpayers. Like TaxMasters, J.K. Harris also advertised the ability to relieve consumers of their tax debts to the IRS.
Another similar case was the one involving Roni Deutch, also known as the “Tax Lady,” based out of California. After a California attorney general filed a lawsuit against Deutch in 2010 citing similar allegations, Deutch eventually surrendered her license to practice law and filed for bankruptcy.
Americans struggling with debt owed to the IRS are not encouraged to utilize tax representation firms due to their history of charging outrageous fees and their lack of success. Instead, consumers and businesses with outstanding tax debt are encouraged to contact the Taxpayer Advocate Service sector of the IRS, or a certified lawyer or CPA. There are affordable payment plans available to those who owe $50,000 or more to the IRS and in some extreme cases; it is possible to receive an “offer in compromise,” due to extenuating circumstances.
To read more on this story visit: http://www.forbes.com/sites/janetnovack/2012/03/18/owe-the-irs-taxmasters-bankruptcy-shows-why-not-to-get-help-from-tv-pitchmen/.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced 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, P.A. website at www.miamibankruptcy.com.
Californians Fear Medical Debt Resulting in the Hesitation to Seek Proper Health Care
A study recently conducted by researchers at UCLA showed that California residents are not seeking medical care due to a lack of health insurance. A shocking 50 percent of adults who are uninsured claimed they did not see a doctor one time last year. On the contrary, 92 percent of insured adults did visit a doctor’s office last year. Children with parents who are uninsured are also lacking proper medical care because an even lower 40 percent visited a doctor last year, while 87 percent who were covered under their parent’s medical insurance did seek medical care during the last year.
Medical debt throughout the nation is at an all-time high. Therefore, it is suggested to be the reason the uninsured population is hesitating to seek medical care. Even those in California who have medical insurance, but limited coverage show high rates of medical debt. The study showed that of the non-elderly population in California, 2.6 million uninsured are struggling with medical debt. The rate of unemployment in California is at an extremely high level and is not expected to lower any time soon. Those individuals struggling with extreme debt as a result of their medical bills have been forced to consider filing Chapter 7 bankruptcy as a solution.
To read more on this story visit: http://www.chapter7.com/job-cuts-leave-californians-facing-record-levels-of-medical-debt/
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. 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, P.A. website at www.miamibankruptcy.com.
Houston Man Convicted of Internet and Bankruptcy Fraud Sentenced to 15 years in Federal Prison
A 64 year old Houston man, James Maceo Ramey, was recently sentenced to 15 years in federal prison for 25 counts of fraudulent activity. Ramey was charged with bankruptcy fraud after an investigation proved he had filed 15 different bankruptcy cases in less than five years, all in different jurisdictions. Under Chapter 7 and Chapter 13 bankruptcy laws, an individual is prohibited from filing bankruptcy more than one time in an eight-year period, regardless of the jurisdictions.
During the period of Ramey’s bankruptcy scandal, he was conducting an Internet gold scheme as well. Ramey launched a website under a fake business name, “Manhattan Gold, Inc.” The website solicited the selling of numerous gold items, most in the form of coins, all of which, Ramey had no possession of or intent to actually distribute to consumers. During the gold scandal Ramey profited some $400,000, all of which he did not claim in any of the bankruptcy cases he filed.
After five days of deliberation, Ramey was convicted on all 25 counts. Eight of those counts were mail fraud, due to the Internet gold scheme. The other 17 counts were due to false oaths and declarations, concealment of assets, and conspiracy to commit bankruptcy fraud.
To read more on this story visit: http://7thspace.com/headlines/403574/internet_gold_scam_lands_houston_man_15_years_in_federal_prison.html
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. 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, P.A. website at www.miamibankruptcy.com.