Tag: Chapter 7 Bankruptcy

Bankruptcy Law, Credit, Timothy Kingcade Posts

Parents with poor credit: Beware of this Student Loan Rule Change

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There has been much criticism that federal student loans are too easy to get and that borrowers can take on large amounts of debt with little verification that they can ever pay it back. The Department of Education has announced new regulations that are aimed at one type of federal loan that currently does not require a credit check- Parent PLUS Loans.

PLUS loans are available to parents to help provide financing for children who do not qualify for enough financial aid on their own. But there are no specific limits on the amount that can be borrowed under this program- other than that parents cannot borrow more than the total cost of their child’s education after other financial aid has been deducted.

In the final regulations issued by the Department of Education, which go into effect March 29, 2015 borrowers who have an “adverse credit history,” may find it harder to qualify for these type loans. The evaluation will take into account whether the borrower has:

• One or more debts that are 90 days or more delinquent with a total outstanding balance larger than $2,085;

• Accounts placed for collection or charged off in the two years before the credit report is pulled;

• Bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a federal student loan debt in the past five years.

PLUS loans can be dangerous and are often accompanied by higher interest rates than other federal loans and fewer flexible re-payment options. For example, one parent shared on Credit.com’s blog that he has $45,000 in outstanding parent loans, but only makes $28,000. His children are unable to help him repay the loan at this time.

These changes are likely going to make parents look harder at the true burden of student loan debt and the potential return they are getting with taking out these loans. Parents thinking about borrowing money to help their children pay for college would be wise to review their annual credit reports to identify any discrepancies and think twice about whether PLUS loans are the best option.

Click here to read more on this story.
http://www.foxbusiness.com/personal-finance/2015/02/02/student-loan-rule-change-that-could-hurt-parents-with-bad-credit/

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 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 http://www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

New Bill Introduced to Forgive Student Loan Debts during Bankruptcy

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A lawmaker has filed legislation in Congress which will allow student loan debt to be treated just as other forms of debt that can be discharged in bankruptcy. As we all know, student loan debt is treated differently in bankruptcy court than credit card debt, auto loans or mortgage debt, and cannot be discharged.  Representative John K. Delaney, D-Md., introduced the Discharge Student Loans in Bankruptcy Act (H.R. 449).

In a statement he said, “Student loan debt is dragging down economic growth, keeping the American Dream out of reach for many and is a monthly strain for millions.” Student loan debt continues to increase as the cost of college tuition continues to rise. According to a study by the Institute for College Access & Success, 69 percent of graduates from the class of 2013 left school with an average of $28,400 in student loan debt.

Delaney has backed several bills focused on student loans and financial aid. He is also a cosponsor of the Middle Class CHANCE Act, which increases support provided by Pell Grants. In his previous term, Delaney voted for legislation in the House to prevent student loan rates from rapidly increasing and cosponsored the Truth in Tuition Act, which requires institutions to provide multi-year tuition and fee schedules.

Click here to read more on this story.
http://www.accountingtoday.com/news/education-planning/congressman-introduces-bill-to-forgive-student-loan-debts-during-bankruptcy-73395-1.html

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 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 http://www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Top 5 Predictions for Student Loans this Year

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Last year, we saw small signs of change and new advocates gearing up to address the student loan crisis. You may be wondering what to expect this year. Here are five predictions for student loans in 2015.

1.) Policy changes. There will continue to be a lot of attention on student loans in Washington. There will likely be a bill passed by a Congressional Democrat, but it will be tough to pass with a Republican-run Congress.

2.) Rising rates. Interest rates will remain relatively stable, with the possibility of increasing towards the end of the year. It has been widely anticipated that interest rates will rise towards the end of this year.

3.) Better student loan options for more people. New companies have entered the market with the goal of “fixing the broken student loan market.” These online lenders focus on giving student loan borrowers a better rate and overall better experience. They focus mainly on refinancing student loan debt into lower interest rate loans. These companies will continue to expand this year, providing more positive options for those with student loan debt.

4.) More talk about the value of an education. Price-conscious consumers will rigorously evaluate the ROI of their education. People will become more educated on the university system today- and determine the high cost of education is economically “worth it” for some schools and degrees, but not as much for others.

5.) Broader attention from investors. Investor demand for student loan assets will increase. The last 1-2 years have seen increased student loan activity in the capital markets- securitizations, whole loan sales and equity investments. There is expected to be more of this in 2015 and an increased demand from investors.

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 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 http://www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

New Rules Limit Hospitals’ Collection Fee Tactics

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The Obama administration has adopted a new set of rules to discourage nonprofit hospitals from using aggressive tactics to collect payment from low-income patients. These new rules require nonprofit hospitals to offer discounts, free care or other financial assistance to low-income patients. In addition, hospitals are required to try and determine whether a patient is eligible for assistance before the case is referred to a debt collector, negative information is sent to a credit agency, a lien is placed on the patient’s home, filing a lawsuit or seeking a court order to garnish a patient’s wages.

The rules apply to nonprofit hospitals that are seeking or have tax-exempt status, about 60 percent of hospitals nationwide. Because the Consumer Financial Protection Bureau has endorsed these new rules, health care lawyers believe this could set an industry standard, influencing the practices of for-profit hospitals.

These new rules should make it easier for low- and moderate-income patients to get valuable medical care without having to worry about a large hospital bill or collection agency harassing them for money they do not have. The rules do not prevent a hospital from engaging in lawful debt collection; however, it does require hospitals to first evaluate a patient’s need for financial assistance. In addition, each nonprofit hospital must establish and publicize in a written policy stating who is eligible for financial assistance and how patients can apply.

Many people are just one medical emergency or illness away from a financial crisis. In fact, medical bills are the number one reason people file bankruptcy. For those struggling with the financial weight of a health crisis, Chapter 7 bankruptcy is a way for you to eliminate all of your medical bills in only a couple of months, and start fresh!

Click here to read more on this story.
http://www.nytimes.com/2015/01/12/us/politics/new-rules-to-limit-tactics-on-hospitals-fee-collections.html?_r=1

If you are burdened with medical debt and wondering how Chapter 7 bankruptcy can help, 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, Timothy Kingcade Posts

5 Steps to Take after Bankruptcy

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Once your case is finalized and you receive your bankruptcy discharge, there are some important steps you should take to help ensure a secure financial future.

1.) Collect and preserve all paperwork from your case. You should have received a full copy of your petition from your attorney, approximately 40-50 pages of detailed financial information, including the facts about debts and assets involved in your case. You should have received a notice of bankruptcy filing directly from the court along with a copy of your discharge order entered by the bankruptcy judge. This is important to have because lenders typically like to see a copy of the bankruptcy papers when considering you for new credit- particularly mortgage lenders. It is also important to have in case anyone attempts to collect on an old debt in the future.

2.) Check / Monitor your credit report for errors. You can access your credit reports from the three major credit reporting agencies for free. Wait three to six months after you receive your bankruptcy discharge to do this. You want to make sure that all of your discharged debt is being reported to the credit bureaus, so you are not shown to have outstanding debt. This is especially important if you are applying for new credit.

3.) Start a budget. Create a basic budget to better understand your income and expenses. You may remember the Means Test from the bankruptcy paperwork that compared your income and expenses over a six-month period. The concept was to identify those who really had the means to pay their debts, but who were living an extravagant lifestyle financed on credit cards and other debt. Oftentimes, bankruptcy is caused by unexpected expenses, including medical bills caused by illness, loss of income from job loss and divorce. Once you have created a realistic budget, start planning out financial goals for the future.

4.) Start an emergency fund. Once you have established your budget, you should make sure and have a portion of your income set aside for savings.  As the fund grows, you can begin putting some of it aside for retirement or a college savings account.

5.) Consider new credit. When applying for credit, start with a small credit limit and monitor your charges carefully. Charge no more than you can pay in full each month. Unplanned debt is where people get into trouble.

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. 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://finance.yahoo.com/news/5-things-bankruptcy-110053558.html

Bankruptcy Law, Credit, Timothy Kingcade Posts

Common Filing Concerns & Bankruptcy Exemptions

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One of the most common concerns people have when filing for bankruptcy is that they will lose everything. At Kingcade & Garcia, we understand these concerns and want to put your mind at ease. Since 1996, we have helped more than 15,000 Miami-Dade County clients handle their Chapter 7 and Chapter 13 bankruptcies.

Bankruptcy laws were created to give hard-working people a fresh financial start. Whether you have fallen on hard times as a result of a sudden illness, divorce and / or unemployment, federal bankruptcy laws were created to help consumers and families get back on their feet and provide relief from burdensome debt.

A common question people have about bankruptcy is: What assets will I be able to keep? Many people are mislead to believe that bankruptcy can only make problems worse by causing them to lose their home, vehicles or their ability to ever qualify for credit, again. This could not be further from the truth.

In fact, those filing under Chapter 7 or Chapter 13 can keep almost everything.  Depending on your specific case, Florida bankruptcy laws allow you to keep the following:

• Homes
• Cars
• Retirement accounts
• Pensions
• Wages
• Personal property
• Savings
• Veterans or workers’ compensation benefits

If you have any questions on the topic of bankruptcy exemptions or are in a 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, Timothy Kingcade Posts

Medical Bills Cause more than 60% of Bankruptcies in U.S.

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CNN analysts estimate that at least 1.5 million Americans will file for bankruptcy this year, for some it will be the result of overspending, but for 60% medical debt will be the leading cause. Over the past 6 years, the number of bankruptcy filings due to medical debt has almost doubled from 46% to 62%. The majority of those who filed for bankruptcy represent the middle class and those with good education. Many families are unaware that they are just one illness away from financial ruin. Medical bills are causing excessive stress in one out of five American families today.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney who can advise you of all of your options. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney 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.istreetresearch.com/medical-bills-caused-more-than-60-of-bankruptcies-in-the-united-states/2510949/

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Two “Real Housewives of New Jersey” cast members admit to mortgage and bankruptcy fraud

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Teresa and Giuseppe “Joe” Giudice, the couple on Bravo’s hit reality TV show, “Real Housewives of New Jersey” both pleaded guilty this week to mortgage and bankruptcy fraud. The popular reality show featured a handful of “supposedly” wealthy cast mates flaunting their lavish lifestyles for five seasons. The Giudices, in particular, flaunted cash freely on the show.

Teresa, 41, and Joe, 43, admitted to conspiring for years to defraud banks and other lending institutions while seeking nearly $5 million in construction loans home equity loans and mortgages. They also admitted to misleading a federal bankruptcy court. After applying for Chapter 7 bankruptcy protection in 2009, the Giudice’s failed to disclose Teresa’s true income from the “Real Housewives” show and personal and magazine appearances. They also concealed businesses they owned and money made from rental income.

Under federal sentencing guidelines, Joe Giudice is facing a recommended prison sentence of 37 to 46 months. Teresa’s lawyer is pushing for a much lesser sentence of only probation, saying she bears less responsibility than Joe for their decade of fraud and noting that the couple has four daughters who need to be cared for. Under the sentencing guidelines, it is recommended that Teresa receive less than 2 ¼ years in prison.

During the 75-minute hearing, before U.S. District Judge Esther Salas, both of the Giudices admitted to one count of conspiracy to commit mail and wire fraud, one count of bankruptcy fraud by concealment of assets, one count of bankruptcy fraud by false oaths, and one count of bankruptcy fraud by false declarations.

Click here to read more on this story.

If you are in a financial crisis and are considering filing 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, Timothy Kingcade Posts

Country Star Eddie Montgomery Files for Bankruptcy

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After a tough year, country star Eddie Montgomery has filed for Chapter 7 bankruptcy protection. According to the Lexington Herald-Leader, half of the country duo Montgomery Gentry filed for Chapter 7 bankruptcy in Kentucky with debts totaling $13.4 million.

His lawyer confirms the news, telling the Lexington Herald-Leader that the bankruptcy is due to his recent divorce and business closure. Court documents show that much of the debt is property taxes owed on his Harrodsburg, KY restaurant, Eddie Montgomery’s Steakhouse.

Montgomery’s $1.9 million in assets includes a shuffleboard table worth $2,000, a gun collection worth $1,500 and several vehicles worth close to $60,000. His four dogs were estimated to be worth $20 each.

Click here to read more on the story.

If you are in a financial crisis and are considering filing 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, Timothy Kingcade Posts

Aaron Carter Files Chapter 7 Bankruptcy

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Aaron Carter, younger brother of Backstreet Boys singer Nick Carter has recently filed for Chapter 7 bankruptcy. According to TMZ, he filed for Chapter 7 protection last month with assets of a little more than $8,000 and debts of more than $2.2 million, 1.37 million of that is money owed to the IRS for income taxes ranging from 2003 to 2006. Court documents also show he owes more than $31,000 to American Express and $9,000 for a tour bus.

He lists his assets as laptops, furs, jewelry and a dog (which is reportedly worth nothing). A representative for Carter states that the bankruptcy is a “positive thing.” “It’s him doing what he needs to do to move forward.”

Click here to read more on this story.

If you are in a financial crisis and are considering filing 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.