Chapter 7 Archives - Page 13 of 16

Tips for Seniors to Avoid Medical Debt

Posted on November 6, 2017by Admin

Open enrollment began November 1, 2017 for health insurance plans through the Affordable Care Act. On October 15, open enrollment began for Medicare recipients. For many seniors, Medicare enrollment is a complex process that does not always cover all medical bills and expenses. As a result, some seniors are left with thousands of dollars in medical debt. Here are some ways seniors can stay one step ahead and avoid medical debt:

Set savings aside to cover unexpected medical expenses. A recent analysis found couples may need as much as $350,000 for medical bills post retirement. Factor this amount in when saving for retirement.

Understand Medicare options and costs. Remember to sign up for Medicare at the right time. Most people are eligible to enroll in Medicare beginning three months before their 65th birthday. Enrollment continues until three months after they turn 65. You can choose standard Medicare or a Medicare Advantage plan. The second option offers lower out-of-pocket costs, but a higher monthly premium, for coverage through an HMO or PPO.

Gather all personal information and keep it organized. Have this information readily available so a loved one or caregiver can help manage your healthcare if you are hospitalized or unable to do so. This should include a daily list of medications, medical providers, your medical history and medical and legal documents such as advance medical directive and a will. Here is a checklist to help manage your personal medical information.

Review medical bills carefully. A recent study found that 49 percent of Medicare medical bills contain errors or unnecessary charges. When you receive a bill for a procedure, hospitalization or nursing care, take time to review it for accuracy. If you received only a total due, request an itemized list of services provided.

Avoid putting medical expenses on a credit card. More than half of adults over the age of 50 put medical bills on their credit cards, according to a recent survey by AARP. Request an affordable payment plan from your medical provider.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. 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 McMaken, 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Student Loans, Timothy Kingcade Posts

FTC and 11 States Announce “Operation Game of Loans” Targeting Deceptive Student Loan Debt Relief Scams

Posted on October 16, 2017by Admin

The Federal Trade Commission (FTC) and 11 states have announced a first of its kind federal-state law enforcement initiative that targets deceptive student loan debt relief scams. The nationwide crackdown includes 36 actions by the FTC and state attorneys general against scammers who allegedly took more than $95 million in illegal upfront fees from struggling student loan borrowers over the years.

It is alleged in these actions that the defendants charged consumers illegal upfront fees, falsely promised to help reduce or forgive student loan debt and pretended to be affiliated with the government or loan servicers, a violation of the FTC’s Telemarketing Sales Rule and the FTC Act.

Operation Game of Loans also includes law enforcement actions by Colorado, Florida, Illinois, Kansas, Maryland, North Carolina, North Dakota, Oregon, Pennsylvania, Texas, Washington, and the District of Columbia. Here is a recent case filed in Florida:

Student Debt Doctor (SDD): In an action filed in the U.S. District Court for the Southern District of Florida, the FTC charged that Fort Lauderdale-based SDD and its owner, Gary Brent White, Jr., collected at least $7 million from consumers struggling to pay student loan debt. According to the complaint, the defendants charged illegal upfront fees of $750 or more. Using social media, e-mail, and telemarketing, SDD promoted its services across the United States, in English and Spanish. SDD falsely promised loan forgiveness often in as little as five years or less, and told consumers not to communicate with their loan servicers. The defendants also fabricated income, unemployment status, and family size information on relief applications in order to qualify borrowers for eliminated or reduced monthly payments. The court entered a temporary restraining order (TRO) on October 3, 2017.

Click here to learn more about the five new cases filed against 30 defendants as part of Operation Game of Loans.

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 McMaken, 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Medical Debt the leading cause of Homelessness in South Florida

Posted on October 10, 2017by Admin

Even with Obamacare still intact, a number of Floridians remain without health insurance. Census surveys say that Florida has one of the highest uninsured populations in the nation, and of the top 25 metro areas, Miami ranks at the bottom three for healthcare coverage.

Medical debt now tops the list of reasons people become homeless in South Florida, according to a recent study. Drug addiction and mental health issues round out the top three.

The recent statistics come from addictions.com, where survey takers conducted in-person interviews with homeless people in South Florida this past July. Interviewees overwhelmingly attributed hospital bills they could not pay or an addiction they could not overcome to the fact they were living on the streets.

Broward County’s homeless population has grown 6 percent since last year. Of those surveyed, 42 percent said they had suffered a head injury and 33 percent said they had been beaten at one point while homeless.

In a number of states, the homeless have been helped by the expansion of Medicaid, and were able to receive healthcare for the first time in years. Not the case in Florida, where state leaders denied the expansion of the program to cover 650,000 low-income residents.

Click here to read more on this story

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Debt Settlement vs. Filing for Bankruptcy: The Pros and Cons

Posted on October 3, 2017by Admin

If you are having trouble affording your monthly expenses and are in over your head in debt, you may consider reaching out to a debt settlement company to alleviate some of the burden. The commercials are appealing enough, touting promises of getting your debt negotiated with the lender for a fraction of what you owe.

Here’s how a debt settlement works and some of the risks involved:

The process starts by explaining your financial situation to the debt settlement company. You provide the names of the creditors and the amount you owe. The debt settlement company then gives you an estimate for reducing your debt along with a new lower monthly payment. As advised by the settlement company, you stop paying your creditors and instead send payments directly to the company.

The debt settlement company puts your monthly payments into a savings account. Once the account has grown to a certain amount, the debt settlement company calls your creditors and begins negotiating a settlement. If the creditor agrees to a settlement amount, the settlement company pays the creditor and assesses a fee for the settlement.

Creditors typically do not settle debts until they are a few months past due, which means if you have not already done so you must stop paying on your accounts and allow them to become past due. During this time, late payments will be reported to credit bureaus, your credit score will drop and you will begin receiving collection calls. Late payments will remain on your credit reports for up to seven years and during this time you will have difficulty qualifying for new credit.

Debt settlement companies typically tackle the smallest debts, first which means your larger debts will continue to accumulate interest and additional fees. Add all that interest you are accumulating to the fees and you do not really end up saving much. If you are unable to meet the terms of the debt settlement, ignore the debt or try and repay the debt and ultimately fail you run the risk of being sued.

Many consumers who have researched debt settlement options should also consider Chapter 7 bankruptcy, which erases credit card balances, medical bills, personal loans and other unsecured debts in three to four months. Filing for bankruptcy will impact your credit score more than a debt settlement, but it legally erases the debts and prevents creditors from filing a lawsuit against you.

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 McMaken, 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

https://www.thebalance.com/the-dangers-of-debt-settlement-960622

http://www.latimes.com/business/la-fi-montalk-20171001-story.html

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Motion Denied After Creditor Attempts to Reopen Miami Bankruptcy Case and Seize Home

Posted on September 26, 2017by Admin

Managing Shareholder, Timothy S. Kingcade and associate Kristina Gonzalez of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade Garcia McMaken, P.A. achieved a recent victory for their clients after a creditor, Bank of New York Mellon (“BONY”), attempted to re-open their 2009 bankruptcy case and compel the surrender of their Miami home.

“With this ruling, I am pleased to announce that my clients will be able to keep their home. BONY made the decision to abandon its foreclosure efforts and enter into modification negotiations with my clients. It was seven years after my clients received their bankruptcy discharge, five years after the initial foreclosure was dismissed and only after those modification efforts proved unsuccessful that they filed the second foreclosure, based on new post-bankruptcy discharge defaults,” Timothy S. Kingcade said.

BONY waited more than a year after the second foreclosure was filed to seek to reopen the bankruptcy case, and only filed the motion when the bankruptcy debtor filed an action in District Court against the creditor’s loan servicer, Specialized Loan Servicing, for violations of the Real Estate Settlement Procedures Act and the Fair Debt Collection Practices Act.

In a consumer win for bankruptcy clients, the Honorable Laurel M. Isicoff ruled that there was “no purpose” in re-opening the bankruptcy case because the debtors’ decision to surrender the property was not binding in the subsequent foreclosure action.

Attorney Timothy S. Kingcade practices exclusively in the field of bankruptcy law, handling Chapter 7 and 13 filings and foreclosure defense cases for the Southern District of Florida. As an experienced CPA and proven bankruptcy attorney, Timothy Kingcade knows how to help clients take full advantage of their rights under the bankruptcy laws to restart, rebuild and recover.

Miami-based Kingcade Garcia McMaken, P.A. was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade Garcia McMaken P.A. specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

Related Resources:

http://www.flsb.uscourts.gov/Opinions/LMI/09-30656Kurzban.pdf

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips to Reduce Your Medical Debt

Posted on September 6, 2017by Admin

When dealing with an unexpected medical bill, such as a trip to the emergency room or overnight hospital stay, one approach many consumers are taking is to negotiate the debt. This trend is likely to continue. According to a recent study, 20 percent of those 65 and older struggle to pay medical bills, and 30 percent of working adults with health insurance struggle with the same. Almost half of Americans surveyed said they had trouble paying an unexpected medical bill of more than $500.

Whether your medical debt is the result of a high-deductible, out-of-network charge or procedure not covered by insurance, these tips will help reduce your medical debt.

Be proactive. For a planned operation, make sure your insurance company covers the cost and the doctors and medical professionals working on you are ALL in-network. Get a confirmation from your doctor in writing or through email correspondence. This will help you later if you learn an out-of-network provider was used.
Research. Whether you are negotiating in advance or after you receive a bill, websites such as Fair Health and Healthcare Bluebook can help you determine what insurers pay in your area.
Confirm the bill is correct. Ask your insurer if a portion of the bill will be covered or all of it. Then call the provider that sent you the bill. There may be some back and forth with this, so it is important to be patient- and persistent.
Offer to pay cash. If you are able to pay most of the bill, offer to do so. Medical advocates say they can often get a 15 to 20 percent “prompt pay” discount this way.
Let them know if you cannot pay. If you are on a fixed income or struggling financially, letting the provider know you are not able to pay will give them a reason to offer you a discount or be placed on a reasonable payment plan. If you cannot pay, tell them why you cannot pay. Some states require hospitals provide free or reduced care to consumers within certain income limits. Florida is one of these states.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. 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:

https://www.consumerreports.org/medical-billing/six-smart-steps-for-lowering-medical-bills/

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

Credit Card Debt a Growing Concern for College Students

Posted on August 30, 2017by Admin

A recent study conducted by Nellie Mae, the nation’s leading student finance firm, revealed that the average undergraduate carries a credit card balance of $2,169. According to the study, many students use their credit cards without knowing how the bills will even be paid off. It also showed that many students used credit cards to pay for tuition and books, instead of federal student loans that offer lower interest rates.

Four out of five college students amass nearly $1,000 a year in credit card debt. One cause of credit card debt is college students’ difficulty in adjusting to their newfound financial freedom. Parents and students need to come up with a budget for credit card spending before their child leaves for college. Make sure your college student knows not to use money they do not have, even for a one-time purchase.

Use resources available to keep them on the right path. You and your college student should sign-up for overdraft alerts on all accounts. Online alerts and apps on your Smartphone can help with this.

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:

https://www.fastweb.com/personal-finance/articles/dealing-with-credit-card-debt

http://www.nbcdfw.com/news/local/Credit-card-debt-a-mounting-concern-for-college-students-441338263.html

Bankruptcy Law, Credit, Debt Relief

Pompano Beach “Debt Relief” Companies Scammed Victims out of $70 Million

Posted on August 7, 2017by Admin

A debt relief scheme headquarted in Pompano Beach has scammed nearly 15,000 people across the country, according the Florida Attorney General’s Office and the Federal Trade Commission (FTC).

A civil complaint filed in federal court in Fort Lauderdale alleged that telemarketers at several of the companies managed from the Pompano Beach office building offered to pay off personal debts for customers, settle or obtain dismissals for these obligations and loan consolidation- all while improving their credit scores.

The defendants in the case were Jeremy Lee Marcus, who was described by the receiver as the CEO and an owner of the group of companies in the debt relief operation; Craig Davis Smith, the COO and also an owner; and Yisbet Segrea, an executive who ran the office in Panama, plus dozens of corporate defendants. These included 321Loans Inc., Financial Freedom National Inc., Helping America Group, Marine Career Institute Sea Frontiers Inc., Instahelp America Inc. and Breeze Financial Solutions.

Customers were convinced to pay a few hundred to more than a thousand dollars per month to the “so-called” debt-relief companies and their operators who orchestrated the scheme.

After numerous customer complaints, it was discovered that in most cases no payments were ever made towards the customers' debts. Customers ended up becoming victims. As a result of the scam they incurred even more debt. Some customers were sued by their old creditors or were forced into bankruptcy.

The scheme used Internet advertising and websites, direct mail and unsolicited phone calls to market itself. The company bought presumably legitimate debt-relief firms and used their clients’ names as well as personal and financial information.

Here is how the scam worked:

Companies in the scam used ads on their website and sent out personal letters to the victims’ home addresses. These companies would go so far as to falsely identify themselves as nonprofits, offering low-interest loans so a consumer could combine all debts and make one payment at a lower interest rate;
Consumers would have to agree to have their bank accounts debited immediately for their first loan “repayment” or for a processing fee. Then monthly “repayments” were automatically taken from their accounts, ranging from $200 to over $1,000;
Few or no payments were ever made to creditors;
When consumers were told by original creditors that none of their bills had been paid, dismissed or settled, the scammers strung them along with false explanations, such as more time was needed to validate the consumers’ debts or to confirm payoff amounts. Clients who called to complain were given excuses and treated poorly. The only contact number available was disconnected.

Click here to read more on the scam.

The following website (www.321loansreceivership.com) has been set up to inform victims and the public about developments in the receivership process.

If you have any questions on this topic 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, Debt Relief, Timothy Kingcade Posts

Rebuilding Your Credit After Bankruptcy

Posted on August 3, 2017by Admin

Chapter 7 bankruptcy allows you to get a fresh start financially and erase past debts, but a legitimate concern consumers have is the effects it will have on their credit score and their ability to take out credit again.

One of the biggest misconceptions about filing for bankruptcy is that it will ruin your credit score and your financial future. To the contrary, after filing for bankruptcy you can begin restoring your credit right away.

Here are some steps you can take to begin rebuilding your credit after filing for bankruptcy:

Create a budget. This will help you stay on top of your finances and is something you should have gone over in the “pre-discharge” credit counseling.

Build an emergency fund. Research shows that having as little as $250 saved up for an unexpected expense can protect families from having to resort to pay day loans and credit cards.

Plan your post-bankruptcy credit strategy. Assess your situation by first checking your credit score. Dispute any inaccurate information on your credit report and have this corrected immediately. Remember, a Chapter 7 filing will wipe out your debts, but it does not wipe your credit reports clean. Make sure and double check all three reports.

Here are some ways to access to new credit while rebuilding your score.

Secured loans are typically offered by credit unions or community banks. One type of secured loan involves borrowing against money you already have on deposit. The other type can be made without upfront cash. Instead, this money is loaned to you and is placed in a savings account and released to you only after you have made the necessary payments. In return, the financial institution agrees to send a report to the credit bureaus.

A secured credit card is backed by the deposit you make and the credit limit is typically the amount you have on deposit. This can help repair your credit while you wait to become eligible for an unsecured card.

A co-signed credit card can improve your score, but it is definitely a big ask. Essentially, this individual (the co-signer) is risking his or her own credit history for you and will be on the hook if the full amount is not paid on the card.

If asking to co-sign is too much, an authorized user status will work. Basically, you are an authorized user on that person’s credit card. Just make sure the credit card will report the payment activity by authorized users to the credit bureaus, otherwise it will have no effect on your score.

A lighter debt burden automatically makes you more desirable to lenders, so be vigilant about paying on time. Keep your credit card balances relatively low compared to the card’s limit. For example, less than 30% is typically advised while using just 10% of the available credit is even better.

Still not convinced? A testimonial from one of our clients in regards to their credit score after filing for bankruptcy.

My credit score said on all three reports 775, I couldn’t believe that I had such a great score before 10 years. Tim for me was the best move I have made for my situation. I have no regrets, I am glad the past is the past. – Bill T.

Related Resources:

https://www.nerdwallet.com/blog/finance/rebuild-credit-after-bankruptcy/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Changes to Healthcare could lead to More Bankruptcies

Posted on August 1, 2017by Admin

Thanks to the Affordable Care Act, personal bankruptcy filings dropped about 50 percent, from 1,536,799 in 2010 to 770,846 in 2016. Studies have shown medical debt as the leading cause of personal bankruptcy filings. As legislators and the executive branch renew their efforts to repeal and replace the Affordable Care Act, there is concern about what that will do to coverage and premiums.

A study conducted by the American Medical Association in 2007 found that 67% of those who filed for bankruptcy cited medical debt as a major factor. For middle class homeowners, the issue of medical coverage was even more influential, with half of all foreclosures caused in part by medical debt. The uncertainty about the fate of healthcare coverage for many Americans may cause the number of bankruptcies and foreclosures to increase in the coming years.

The current healthcare bill that is being debated may result in 22 million to 32 million Americans losing a portion of their current healthcare benefits.

Click here to read more on this story.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. 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:

https://www.consumerreports.org/personal-bankruptcy/how-the-aca-drove-down-personal-bankruptcy/