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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

5 Signs it’s Time to File for Bankruptcy

Posted on December 6, 2017by Admin

Filing for bankruptcy is a complicated process and a decision that should not be taken lightly. But for some, it is the only solution that will get them out of debt and serious financial problems. So how do you know if bankruptcy is right for you? Here are five signs it’s time to consider filing for bankruptcy:

You are being sued by debt collectors. When you fail to make payments on a debt, that debt gets turned over to a collection agency. If the collection agency’s calls and letters go unanswered they may file a lawsuit against you. Fighting these lawsuits can be difficult and if you lose, you will likely end up paying more in attorneys’ fees and court costs. It is best to not let it get to this point. Filing for bankruptcy provides you legal protection against creditors and debt collectors. Once the automatic stay is issued, it bars any additional collection attempts, including lawsuits being filed against you.

Your credit cards are maxed out. This not only is affecting your credit score negatively, but you are likely trapped in a cycle of making only the minimum payment on these cards while the interest accrues to amounts you will never be able to pay off. Credit card debt is one of the easiest kinds of debt to discharge in bankruptcy.

Your wages are being garnished. If a creditor obtains a court order for a wage garnishment, your employer is required by law to abide by the order and withhold money from your check each pay period until the debt is paid off. If your wages are being garnished you can still be protected by the automatic stay, which will halt further wage garnishment.

You cannot afford your bills. If you were recently laid off from your job or had an unexpected medical expense, for many Americans it is just a matter of time before even a small amount of debt can spiral into something much greater. Chapter 7 bankruptcy is specifically designed for individuals and families whose income level is not sufficient to pay their debts.

You are in danger of losing your home. If your financial situation has reached the point where you are behind on mortgage payments and facing possible foreclosure, filing for bankruptcy can help you get caught up on those payments while staying in your home.

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 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://smartasset.com/credit-score/4-signs-its-time-to-file-bankruptcy

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Seniors and Bankruptcy: The Reasons Older Americans Are Filing

Posted on November 28, 2017by Admin

Medical debt is the No. 1 cause of personal bankruptcy filings in the United States and a key reason more seniors are filing for bankruptcy. Another reason for the uptick in bankruptcy filings among Americans 50 and older is the rising cost of healthcare. We recently did a posting on Tips for Seniors to Avoid Medical Debt. The 2005 Bankruptcy Reform Act made it more difficult for some consumers to qualify for bankruptcy, but it did not change the number of people who had more debt than they could afford to pay.

Making matters worse for older Americans are the collection practices of unscrupulous debt collectors. A recent report from the federal Consumer Financial Protection Bureau found that debt collection was the most-complained about product or service for consumers over 62.

Bankruptcy brings with it emotional relief and getting their case filed and debts discharged relieves so much stress for our clients. Seniors can protect assets through bankruptcy. Social security, 401(k)’s, pensions, qualified profit-sharing plans, and individual retirement accounts worth up to $1.245 million are all exempt from creditors during bankruptcy. This means that retirement income and savings are out of reach and protected under federal law. Protecting equity, which is the value of a property, minus the amount owed, is important for seniors. Using a homestead exemption, designed to protect the equity of a main residence in a bankruptcy, will usually keep retirees from losing their homes. Florida homeowners can take advantage of the fact that Florida does not have a limit on the equity that is exempt.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What Debt Collectors Can and Cannot Do

Posted on September 7, 2017by Admin

The Fair Debt Collections Practices Act (FDCPA) limits the tactics that debt collectors can take to collect on a debt. Here are 10 things debt collectors can and cannot do.

5 Things Debt Collectors Cannot Do:

Come to your place of work. It is illegal for a debt collector to come to your workplace to collect on a debt. The FDCPA prohibits a debt collector publicizing your debts and showing up at your place of work to collect on a debt.
Harass you. Harassment can come in a variety of forms and include: repeated phone calls, threats of violence, publishing information about you, abusive or obscene language.
Arrest you for debt. You cannot be arrested for a debt you owe.
Purse you for a debt you do not owe. Incomplete or inaccurate documentation can lead to a debt collector pursuing the wrong person for payment. The issue is not uncommon, but it is illegal.
Call you at any time. It is illegal for debt collectors to call you before 8 a.m. and after 9 p.m. You can request that a debt collector stop calling you, but your obligation to pay still remains.

5 Things Debt Collectors Can Do:

Seek payment on an expired debt. Even debts that expired according to the statute of limitations can still be requested from debt collectors. These unsecured debts can include credit cards and medical bills. Remember: You cannot be sued for payment on these expired debts.
Pressure you. While debt collectors cannot threaten you, they can apply pressure to collect payment. Pressure can include daily calls, frequent letters or talk about pursuing a lawsuit for payment.
Sue you for payment on a debt. A debt collector can sue you for non-payment. These type lawsuits can result in wage garnishment, bank levies or both. It is best to consult with an experienced bankruptcy attorney before you are sued or there is a judgment entered against you in regard to an outstanding debt.
Sell your debt. A collector can resell debt it has not been able to collect on. So if one debt collector stops contacting you about a debt, do not be surprised if another starts.
Negotiate what you owe. Because debt collectors buy debts for sometimes pennies on the dollar, they have fairly large profit margins if they collect the original amount owed. This gives them more flexibility in negotiating payment. You may be able to negotiate a settlement for 25% or 30% of what you originally owed. Remember, to get the agreement in writing so you have proof that the amount paid was all that was required in the settlement.

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.

Related Resources:

https://www.nerdwallet.com/blog/finance/things-debt-collectors-cannot-do/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Bankruptcy & Divorce: Which comes first?

Posted on July 14, 2017by Admin

Going through a divorce can be stressful enough, but when you pile on financial issues the effects can be overwhelming. Your financial situation can be greatly affected by a divorce, as divorce is commonly cited as the leading cause of bankruptcy. Here are some important facts you should know when it comes to bankruptcy and divorce.

Do not file for divorce and bankruptcy at the same time. This is for the sake of simplicity. People typically file bankruptcy before divorce for several reasons. Once you file for bankruptcy an “automatic stay” is put in place. This is a court order that prohibits creditors from contacting you and protects your property and assets. This hold is in effect throughout the bankruptcy process.
Chapter 7 bankruptcy is ideal for a quick divorce. One of the benefits of filing for Chapter 7 is the timeline. A Chapter 7 bankruptcy typically eliminates all dischargeable debts within three to six months, allowing you to file for divorce relatively soon after. In comparison, a Chapter 13 bankruptcy establishes a three- to five-year payment plan for you to pay off your debt, which can drag your divorce out longer.
Conditions of Bankruptcy. Abiding by the rules listed in the Bankruptcy Code is critical for having your debts discharged. A Chapter 7 discharge may be denied if the debtor:

Fails to provide requested tax documents;
Hides property for the purpose of defrauding creditors;
Destroys financial books or records;
Commits perjury in connection to the bankruptcy case;
Violates a court order;
Fails to complete the mandatory credit counseling course.

Bankruptcy and divorce are chances for you to make a fresh start for you and your family. However, both of these processes can be extremely complex and detailed in nature. You should consult with an experienced bankruptcy attorney and have a strong divorce attorney on your side who can guide you through the process and obtain the most successful outcome for 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, 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

The IRS is Using Private Debt Collectors- Here’s what Consumers Need to Know

Posted on April 21, 2017by Admin

The IRS has entered into contracts with four private debt collection agencies- Conserve, Pioneer, Performant and CBE Group. These agencies will only take over accounts if several criteria are met:

The tax debt has been removed from the IRS’s active inventory due to a lack of resources or an inability to find the taxpayer;
More than one-third of the applicable limitation period has passed and no IRS employee has been assigned to collect the debt;
The debt has been assigned for collection, but more than 365 days have passed without interaction with the taxpayer for purposes of furthering collection of the debt.

These collection agencies are required to abide by the consumer protection provisions of the Fair Debt Collection Practices Act. This means they cannot call you before 8 a.m. or after 9 p.m.; they cannot contact you at work if you have told them not to; they cannot falsely claim you have committed a crime; they cannot misrepresent the amount you owe or threaten you with harm or arrest for lack of payment.

Consumers need to be aware of tax scammers looking to capitalize on this new IRS protocol. Tax scammers oftentimes ask their victims pay their alleged debts by purchasing prepaid cards and then call back with the cards’ codes. Another common scam involves having large amounts of money sent via wire transfer.

This will never be the case with the listed contracted debt collectors, according to the IRS. In fact, taxpayers will not be asked to pay the private debt collectors anything. Instead, these collectors will provide information about electronic payment options for taxpayers on IRS.gov/Pay. Even written checks will need to be made payable to the U.S. Treasury and sent directly to the IRS, not the private collection companies.

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 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

What to do When Debt Collectors Call

Posted on August 12, 2016by Admin

According to the Consumer Financial Protection Bureau (CFPB), collectors have reached out to one-third of all consumers over the past year in an attempt to recover a debt. Although there are many laws in place to protect consumers, the CFPB reported that approximately 25 percent of all grievances the agency has received are complaints about debt collection practices. The CFPB recently proposed new rules to better protect consumers against illegal or unethical debt collection practices.

The CFPB recommends these four measures you need to take when debt collectors call:

Know your rights. Familiarize yourself with the Fair Debt Collection Practices Act (FDCPA), this will help you better understand your rights as a consumers and how you are protected by the CFPB. When a debt collector contacts you, make sure you tell them you are aware of your rights under the FDCPA.
Verify everything. Under the FDCPA, debt collectors are legally require to follow up their call with a written notice detailing your debt. Make sure you ask for that information while you have them on the phone. You also need to verify the debt and the collector. Sometimes debt collectors try to collect “zombie debt” that is past the statute of limitations in your state.
Take detailed notes. Write down every time the collector makes contact with you. In your notes include: the agency’s name, the number they called from or the email address used, the time of the call and the name of the representative you spoke with. Also write down any threats that are made or unethical tactics the collector used to get you to pay the debt.
Complain to the CFPB. If you know your rights and you are aware that a debt collector has violated the FDCPA to try to collect debts, report the encounters to the CFPB.

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, Timothy Kingcade Posts

8 Things Debt Collectors Won’t Tell You

Posted on August 8, 2016by Admin

Debt collectors often use extreme and dishonest measures to try to collect on debts. However, there are a number of things that they are not likely to tell you, and knowing these things can make all the difference in resolving your debts.

Below are eight things debt collectors are not telling you:

Some of their threats carry no weight. Oftentimes, debt collectors use empty threats such as, “We are going to inform your creditor that you are refusing to pay this bill.” However, your creditor already knows you are not paying the bill, which is why the bill was sent to a collection agency.
If you tell them not to call during work hours, they must comply. According to the Fair Debt Collection Practices Act, debt collectors cannot continue to call you while you are at work, if you tell them not to. However, the 2011 Annual Report to Congress about the Fair Debt Collection Practices Act complaints proved that 17,008 complaints were filed in 2010 related to debt collection calls to consumers at work. This number is up from 11,991 complaints the previous year.
They cannot talk about your debts to others. Debt collectors are only allowed to discuss your debt with you, a co-signer, your spouse or your attorney. According to the Fair Debt Collection Practices Act, debt collectors can only contact “third parties” to locate you.
Your debt may be stale. Each state has its own statute of limitations that makes debt of certain ages not collectible. However, some debt collectors continue to target borrowers to collect on old debts.
Debt collectors are under pressure to collect, just like you are to pay. Most collectors work on sliding scale commissions. This means that the quicker they collect money from debtors, the higher their commission.
They cannot go after your possessions unless they sue you. Debt collectors must sue you before they can go after your property, including money in your bank account. Even threatening to sue you to collect a debt may be illegal if the collector has no intention of doing so.
Paying off this debt will not boost your credit ratings. When a debt is sent to collections, it will remain on your credit report for seven and a half years from the date you fell behind with the original creditor. Collectors will often tell you they will “update your credit report to paid in full status.” However, the change will not likely affect your credit report.
You probably do not have to pay your deceased relative’s debt. You are generally not responsible for the debts of relatives who have died unless you were a co-signer of the debt or the debt belonged to your spouse who died.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Florida Bar, Timothy Kingcade Posts

5 New Rules Can Protect You From Extreme Debt Collection Practices

Posted on August 4, 2016by Admin

The Consumer Financial Protection Bureau (CFPB) has taken many steps to protect borrowers from illegal debt collection practices. However, debt collectors continue to use extreme measures to try to collect on debt. The Director of the CFPB, Richard Cordray said, “We continue to hear about serious problems with debt collection – debiting accounts without authorization, calling at all hours of the day or night, threats of arrest or criminal prosecution or threats of physical harm to consumers and even their pets.”

As a result, the CFPB has proposed a new set of rules that will further monitor debt collectors’ practices and prohibit them from harassing and tricking consumers. Below are five of the new rules that will protect consumers from abusive debt collection practices.

According to the CFPB, approximately one-third of all consumers who are contacted by debt collectors said the attempt to collect was for the wrong amount. This occurs because debts are often sold to debt collectors with limited and inaccurate or incomplete information about the consumers and their debts. However, new proposed rules would force debt collectors to “scrub” their files and make sure they have the correct consumer and debt information before contacting the borrower.
The CFPB’s new proposal would also prohibit debt collectors from contacting consumers more than six times per week. Some debt collectors contact consumers multiple times per day, causing a major disruption to their daily lives. The new limits would also give consumers the right to tell collectors not to call on a particular phone line or at a particular time of the day, such as during work hours.
Another new rule would force debt collectors to disclose more information to consumers regarding their debt. This rule gives consumers the opportunity to defend themselves against illegal practices and enable them to spot a debt collection scam. The same rule would also force collectors to tell consumers if their debt is too old to initiate legal action.
Debt collectors would also be forced to provide consumers with a debt report if they disputed a debt via written notice. Until the debt report is provided to the consumer the collectors would not be permitted to actively pursue debt collection.
Finally, the new rules would also prevent debt collectors from transferring debt without responding to debt disputes. If the debt is transferred before the dispute, the next collector would not be able to pursue the debt until a response is submitted.

Click here to read more on this story.

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

Class Action Lawsuit Filed Against Student Loan Debt Collector

Posted on July 19, 2016by Admin

A class action lawsuit has been filed against Balboa Student Loan Trust for harassing former Everest College students for repayment of their student loans. The harassment came as a shock to former students whose debt had been previously forgiven by the U.S. Department of Education after it was determined that the institution was misleading students. Balboa Student Loan Trust, the company that purchased a portion of Everest College debts, has ignored the findings and has reportedly called students up to five times per day to collect on the student loan debts.

Everest College is owned and operated by Corinthian Colleges. The U.S. Department of Education fined Corinthian Colleges $30 million in April of last year for misrepresenting their job replacement rates. Later that month, Corinthian Colleges filed for bankruptcy and has since lost its accreditation. The colleges were also offering loans through a student loan program called Genesis, which was later found to be a scam by the Consumer Financial Protection Bureau when nearly 60 percent of the students defaulted on their loans due to outrageous repayment rates. Balboa Student Loan Trust later purchased these loans and promised to forgive 40 percent of the debt and stop harassing students to repay their loans. However, the consumer class action suit claims the debt collector has violated the terms that were agreed upon with the federal government.

“These private lenders are victimizing these students a second time by continuing to try and collect on debt that was incurred through fraud and deceit,” Anne Richardson said. Richardson is an attorney with Public Counsel, one of the law firms that filed the class action suit.

Click here to read more on the story.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

6 Steps to Defeat Student Loan Debt Collectors

Posted on March 27, 2015by Admin

President Obama has promised to take action against abusive student loan debt collectors. Through his Student Aid Bill of Rights, his goal is to ensure consumer protections for student loan borrowers. More than 70 percent of college graduates have student loan debt, the second largest source of debt in America.

In the first quarter of 2015 more than twelve percent of student loan debts were in default, according to the National Student Loan Data System. Analysts predict the number of borrowers in default will continue to increase unless something is done.

Below are six steps you can take to help better manage your student loan debt:

1. Contact your lender. Lenders often sell loans, therefore several agencies may be involved in the collection of your debt. The first thing you must do is contact your lender to make sure you have information on any and all balances you have outstanding. You will need to make a list of all of your debts along with the specific lenders and account numbers.
2. Check your credit report. Oftentimes, collection agencies will report student loans multiple times and will report a separate line per semester with different account numbers. Make sure there are no duplicate loans on your credit report.
3. Apply for the rehabilitation program. Contact the collection agency that now has your student loan and explain that you wish to apply for the loan rehabilitation program with more affordable payments. The benefits of rehabilitation include: bringing your loan out of default, repairing the damage on your credit report, and after five months in the program, you can stop any garnishments being taken out of your paycheck or tax refund.
4. Make your payments on time. If you successfully make nine payments on time, your loan will be taken out of collections. In addition, the default status will be removed.
5. Ask the collection agency for a letter to confirm that your loan has been removed from the default status. You will need to request letters from every collection agency that you have been paying.
6. Contact the three major credit bureaus. Once you receive the confirmation letters, contact all three credit bureaus – Experian, TransUnion and Equifax and forward a copy to each of them.

Click here to read more on the 6 steps to defeat student loan debt collectors.

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.