debt relief Archives - Page 9 of 12

Settlement Wipes Away Student Loan Debt for 41,000 Borrowers

Posted on August 23, 2017by Admin

Financial services firm, Aequitas Capital Management, Inc., will make refunds to the 41,000 students who borrowed money to attend Corinthian Colleges, per a settlement with federal and state agencies. The settlement is in the final stages and must win approval from the court in Oregon that is handling the Aequitas bankruptcy.

“Thousands of New Yorkers signed up at Corinthian College to build the skills they need to compete in today’s economy,” said New York Attorney General Eric Schneiderman. “But Aequitas Capital Management took advantage of their ambition and schemed with Corinthian to saddle these students with high-default loans at the now-bankruptcy college. This was nothing more than a sham that victimized unwitting students and deceived the government and taxpayers.”

According to the terms of the settlement, students who borrowed money from Aequitas Capital to attend a Corinthian school and were attending school when it closed in 2014, or students who defaulted on their loans, will receive a full discharge of their student loans, in addition to accrued interest.

Click here to read more on this story.

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

Bankruptcy Law, Credit, Debt Relief, Student Loans

Over 44 Million People Affected by Student Loan Debt

Posted on August 22, 2017by Admin

According to a survey by LendEDU, a private firm that connects students and their families with student loans and loan refinancing, student loan debt affects more than 44 million borrowers, who owe about $1.3 trillion.

Student loan debt surpassed auto loan and credit card debt. However, mortgage debt remains higher than education debt.

The survey used data from 1,161 four-year colleges throughout the country and found that college students at in-state public schools paid an average of $20,090 in annual tuition for the 2016-2017 school year. This is up 2.6 percent from 2015-2016.

Despite these trends, the average amount of debt incurred by graduating students in the U.S. fell 1.5 percent to $27,975 last year.

Click here to read more on this story.

Credit, Debt Relief, Timothy Kingcade Posts

Law Firm Faces Debt Collection Lawsuit

Posted on August 21, 2017by Admin

On August 18^th, a federal appeals court reinstated a Fair Debt Collection Practices Act (FDCPA) lawsuit against a law firm that misstated the principal and interest due on a credit card loan in a collection effort.

The FDCPA prohibits debt collectors from making false statements when collecting debts. It also states that any such false statement would be considered “material.” However, the FDCPA does not specifically define the term “material.” As a result, the U.S. Court of Appeals for the Ninth Circuit focused on that question when issuing a ruling in the case of Afewerki v. Anaya Law Group. The lawsuit came after the Anaya Law Group of Westlake Village, California attempted to collect on a debt from Robel Afewerki, who owed $26,916.08 on a loan with a 9.65 percent interest rate.

The Anaya Law Group sued Afewerki in state court, stating that he owed $29,916.08, which is $3,000 higher than the loan. The firm also misstated the interested rate, saying that it was 9.965 percent, which is 0.315 percent higher than the rate. Afewerki sued the firm under the FDCPA, but a district court held for the firm on summary judgment, said the misstatements were not material.

The Ninth Circuit Court disagreed and vacated that ruling, saying the misstatements were material based on how the “least sophisticated debtor” might react to the misstatements. The court said the least sophisticated debtor in Afewerki’s position, “may well have simply paid the amount demanded in the complaint and would have overpaid by approximately $3,000.”

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

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

The Surprising Debts Holding Many Americans Back

Posted on June 15, 2017by Admin

According to a recent survey, student loans and credit card bills are not the only debt holding many Americans back. Credit Sesame, a site consumers can use to check their credit score, analyzed more than 5,000 user accounts and found they had significant amounts of debt from medical expenses, utility bills and cell phone charges.

Consumers whose medical debt had gone into collections had an average of three accounts, with a combined total of $3,670 in collections. The average balance for customers who had cell phone bills in collections totaled $887 per account. Customers whose utility bills were in collections owe $368 on average per account, the study concluded.

Not surprisingly, having those bills in collections hurt consumers’ credit scores. The average credit score for someone whose medical debt is in collections is 552. Those who have delinquent cell phone accounts have average scores of 550. And those who have outstanding utility bills have a score of 542.

Lenders see applicants with lower credit scores as riskier than applicants with higher credit scores. They oftentimes make you pay for this risk by charging a higher interest rate. A poor credit score can affect your ability to rent an apartment, as landlords often check an applicant’s credit score before allowing you to sign a lease.

Utility companies may require you pay a deposit before setting up your service. Even certain jobs and employers can discriminate against applicants who have a less than perfect credit report. Certain jobs, particularly those in upper management or the finance industry, require a good credit history. Note: employers check your credit report and not your credit score. They are not necessarily checking for bad credit, but for items that could affect your job performance.

Click here to read more on this story.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Divorce Court Cannot Decide on Bankruptcy Obligations

Posted on May 23, 2017by Admin

A Superior Court judge in Georgia could not order that a divorce settlement be wiped out in bankruptcy, a federal bankruptcy judge has ruled. Even though the divorce decree provided that “the property division payments to the Plaintiff shall not be dischargeable in bankruptcy,” Judge W. Homer Drake of the Northern District of Georgia makes it clear that the Georgia court lacked jurisdiction to decide the effect of bankruptcy on the divorce.

There are certain kinds of debts that are non-dischargeable in bankruptcy. However, these bankruptcy exceptions include support obligations arising from divorce, but do not include property settlements distinct from support.

The divorce decree included provisions that the defendant would pay his ex-wife $1,300 a month for child support and $53,000 “as part of the property division,” the court said. But the decree also said that “the property division payments to the plaintiff shall not be dischargeable in bankruptcy,” it said.

The bankruptcy court rejected the Georgia court’s decree that the obligation would not be dischargeable because it violated public policy. In addition, it found that the state court lacked jurisdiction to make that call.

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 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.

Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Good News for Home Buyers with Student Loan Debt

Posted on May 12, 2017by Admin

Mortgage lender Fannie Mae has just made significant rule changes that should make it easier for former students with costly student loan debts to purchase their first home or do a “cash-out” refinancing to pay off debt.

These new policies could be game changers for a large number of consumers. Approximately 43 million Americans are carrying student loan debt, totaling $1.4 trillion nationwide. Costly student loan debt not only impedes on borrowers’ ability to save money for a down payment, but it is also a key reason why so many young, potential home buyers remain renters or are living with their parents.

Below are three big changes that Fannie Mae has made that could affect you:

If you’re one of the 5 million borrowers who participate in federal-reduced payment plans on your student loan, your actual monthly payments, as reported to the credit bureaus, will count toward your debt-to-income (DTI) ratio calculations. For example, if your payments were originally supposed to be $500 a month but you have had them reduced to $100 through an income-based repayment plan, only the $100 will be added to your monthly debts for DTI purposes. Previously, lenders were required to factor in one percent of your student loan balance as your monthly payment on the student loan, even though you were actually paying a fraction of that.
For an estimated 8.5 million American homeowners who are still carrying student debt, Fannie Mae has lowered the costs of a “cash out” refinancing, provided the extra cash you pull out from your equity is used to retire your student debt. Among the potential beneficiaries: parents participating in “parent plus” programs that help pay off their kids’ student loan debts, and parents who have co-signed for their children’s student loans. Fannie is eliminating the usual extra fee it charges for cash-outs, as long as the funds that borrowers withdraw pay off student loan debts.
If you have nonmortgage debts that are being paid for by someone else such as your parents, these will no longer be included in your DTI computation, provided the payments have been made steadily for 12 months. This should improve the DTI ratios of young buyers who are still getting a little help from their parents.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Puerto Rico Files for Largest U.S. Municipal Bankruptcy

Posted on May 11, 2017by Admin

Last week Puerto Rico filed for municipal bankruptcy with a total of $123 billion in debt and pension obligations. It is the largest municipal bankruptcy filing in U.S. history, far exceeding Detroit’s $18 billion bankruptcy filing in 2013.

Governor Ricardo Rossello said, “Given the deficit that we inherited, it is my responsibility to guarantee the best interests of the Puerto Rican people.”

The court proceedings could potentially make the island solvent again for the first time in decades. However, many of the prominent Wall Street firms who own Puerto Rico’s bonds are not too happy about the bankruptcy filing because they fear they won’t get paid back the money they are owed.

Puerto Rico has been in an economic recession for more than a decade and the unemployment rate is 11.5 percent. The island’s financial crisis is so bad that Congress installed a Fiscal Oversight Board last year to call the financial shots. However, the board stopped negotiations with creditors last week and filed for bankruptcy.

While on the campaign trail, Donald Trump said he would not “bail out” Puerto Rico. He repeated that again in a recent tweet. His budget director also said that the White House pushed hard to ensure no federal dollars would go toward paying the island’s debts in the latest Congressional budget deal.

Related Resources:

http://money.cnn.com/2017/05/03/news/economy/puerto-rico-wants-to-file-for-bankruptcy/

https://www.nytimes.com/2017/05/03/business/dealbook/puerto-rico-debt.html?_r=1

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

400 Percent Increase in Scams this Tax Season

Posted on April 17, 2017by Admin

According to the IRS, there has been a 400 percent increase in tax scams during this year’s filing season, compared to last year. The IRS has issued warnings about the growing threat of scams as the end of tax season nears. Scammers use tax season to trick taxpayers into disclosing confidential information so they can access bank accounts, make fraudulent purchases, apply for loans and steal tax refunds.

The most common way scammers steal W-2s is through phishing emails. Hackers create a fake email address, posing as a CEO or CFO of a company and send a request to an employee in payroll asking for a PDF of all employees’ W-2s.

According to the Department of Justice, stolen identity tax refund fraud has affected hundreds of thousands of taxpayers and has cost the United States Treasury billions of dollars.

Other common scams claim there is an urgent situation requiring taxpayers’ immediate attention, such as an issue with processing refunds, additional forms or an audit warning.

The best way to protect yourself from tax scams is to know the signs:

Emails that appear to be from the IRS with suspicious links and attachments
Text messages that instruct you to call a toll-free number
Phone calls with pre-recorded messages that ask for confidential information

Click here to read more on this story.

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

The New Shape of U.S. Household Debt

Posted on April 14, 2017by Admin

Household debt in America has been reshaped in ways that could potentially affect how financial experts are able to help manage a consumer’s liabilities. The overall debt of U.S. households is $100 billion smaller than it was in 2008. According to the Federal Reserve Bank of New York, it also looks a lot different now than it did then.

Mortgage debt remains the largest debt burden. However, its share of household debt has declined along with that of credit card debt, while the share of student loan debt and auto loan debt has grown.

By the end of 2016, mortgage debt accounted for 71 percent of household debt, down from almost 79 percent in 2008. Student debt had more than doubled since 2008 and more than tripled since 2003 to 10.4 percent.

Auto loan debt had a 9.2 percent share at the end of 2016, which is approximately one-third larger than it was in 2008. All three types of debt had larger shares of households’ income than credit card debt.

All of this means that housing debt fell $1 billion from its peak in 2008 of $9 trillion, while student loan debt rose $700 billion and auto debt rose $350 billion.

Financial experts attribute the change in household debt to a change in the demographics of U.S. debt. Households that are headed by those 60 years old and older now account for just over 22 percent of outstanding U.S. debt, which is up from 16 percent in 2008.

Click here to read more on this story.