Tag: debt

Bankruptcy Law, Credit, Timothy Kingcade Posts

Beware the Dangers of Payday Loans

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Financial mistakes can have lasting effects that may take you years to recover from. Overspending on shopping trips, overusing credit cards and taking out payday loans are a few of the most common mistakes Americans make with their finances.

What is a Payday Loan?

Payday loans are also known as cash advances or paycheck advances. They are usually short-term loans that you must repay by the time you get your next paycheck. The lender charges you a fee, plus interest on the amount you borrow. Lenders do not typically run a full credit check for payday loans; another reason why they are becoming popular. Since the lender is taking a very large risk by loaning you the money, payday loans tend to have extremely high interest rates.

Disadvantages of Payday Loans

Some states do not allow payday loans at all. Of those that do, these states limit how high the annual percentage rate (APR) can be. Other states do not set restrictions on payday loan APRs. In these states, the APR can be anywhere from 300% to 900%. Although it is a very easy and fast way to get cash, you should be very careful when taking out a payday loan because you might end up paying more in interest than you originally borrowed.

When you take out a payday loan, you write a check for the amount borrowed plus a fee that will be cashed by the lender on your next payday. If you cannot repay it on that day, it rolls over to the following payday. Many borrowers get into trouble this way. If you continue to let the loan rollover, your debt substantially grows due to your inflated APR.

Alternatives to Payday Loans

Credit union loans – your local credit union may offer small, short-term loans to members.

Small bank loans – many small banks offer alternatives to those looking into payday loans.

Advances from employers – it may serve your best interest to ask for an advance from your employer instead of getting a loan that will accrue interest.

Borrow from family or friends – although it may put a strain on your relationship, this can be your best option because they will likely be lenient on the repayment date.

Click here to read more about the dangers of payday loans.

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, Credit, Timothy Kingcade Posts

Many Americans Using their Tax Refund to Pay for Bankruptcy Protection

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Many Americans are finding it difficult to come up with the money to file for bankruptcy protection. As a result, more than 200,000 families used their tax refunds in 2011 to pay for bankruptcy filing and legal fees, according to the National Bureau of Economic Research (NBER). Each year, personal bankruptcy filing rates spike in the first part of the year after Americans receive their tax refunds. The cost of filing for bankruptcy has jumped in recent years due to a reform in bankruptcy laws, just before the Recession. In 2005, the average cost of legal and administrative fees was $921 compared with the 2007 average of $1,477, according to reports from the U.S. Government Accountability Office.

Attorney fees make up the largest portion of the costs associated with filing for bankruptcy. Since the reform, attorneys are required to verify more information in a bankruptcy case than they did before 2005, which had a direct impact on the increase in attorney fees. The increase in bankruptcy filing fees has made it much harder for those who actually need to file for bankruptcy protection to afford it. Many who are in dire need of relief from their debt use their entire wages just to live and have little leftover for legal fees. The average tax refund is approximately $2,913 according to NBER, which is enough for many Americans to file for bankruptcy protection. The bankruptcy reform was initiated to deter abuse of the system. Since the laws have changed, fewer people have filed for bankruptcy. However, experts say that does not necessarily mean that the change has “curtailed abuse of the system.”

Click here to read more about using your tax refund to pay for your bankruptcy filing.

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, Credit, Timothy Kingcade Posts

When Should I File my Tax Return if I plan to File Bankruptcy and Anticipate a Tax Refund?

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Oftentimes, bankruptcy filers worry that if they file their taxes before their bankruptcy petition, they will be forced to forfeit their tax refund to the bankruptcy court or creditors. According to bankruptcy laws, debtors must be current on all tax filing obligations to federal and state taxing authorities in order to file for bankruptcy. This rule applies to income taxes, personal property taxes, real property taxes and all other forms of taxes. The best course of action for potential bankruptcy filers is to file their taxes as far in advance of the bankruptcy filing as possible. As long as you obtain your tax refund and spend it on household expenses, car or home repairs, medical expenses, etc. prior to filing for bankruptcy, the court cannot require you to forfeit the refund. This is true regardless of the amount you receive in your refund.

In the event that your refund is due after bankruptcy has been filed, your refund is subject to state or federal exemption limits. If the debtor elects to use federal exemption amounts or the state’s exemption schedules, the refund may be retained by the debtor and is outside the grasp of the bankruptcy court and creditors. It might also be within partial or total reach of creditors if exemptions are exhausted by the debtor’s other claimed property. The most common occurrence is one where the debtor would retain part of the refund and part of it would go to the creditors because the exemption amount is exceeded by the size of the refund. Again, the best thing to do is file your tax return as quickly as possible to avoid losing any of it. A debtor can also apply part or all of the refund to next year’s tax liability to avoid losing it to creditors.

Click here to read more about the best time to file your tax return if you are considering filing for bankruptcy protection.

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, Credit, Timothy Kingcade Posts

Forbes’ Ten Easy Steps to Achieve Financial Success

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Many Americans have struggled to regain control of their finances and subsequently, their life. Take these ten easy steps to achieve financial success!

1. Spend less than you earn. One problem in America is that many people spend more than they make and live beyond their means. A simple solution to this is to live within your means.

2. Pay yourself first. Each month, remember to pay yourself first. This can be in the form of a savings account, a retirement plan, an investment account, etc. Many Americans pay their bills first and save what is “leftover.” The problem with this is there is little or nothing leftover.

3. Insure big risks. Think about your own unique situation in life and the biggest financial risk that is posed. If you are a single parent, life insurance is the best thing for you to consider. Consult with a financial advisor to measure the risk and pricing options.

4. Know your numbers. Many Americans are disconnected from their finances. It is not uncommon for people to pay their bills and not pay attention to anything beyond that or simply gather data for their CPA’s. It is better to know where you stand, what you make, what you spend, your debts and your net worth and monitor all of these things closely.

5. Understand your money attitude. Your attitude about money determines your behavior with money. Whether you are a spender, saver or an avoider, it is better to know how you act with money. Think about your history with money, this can help you succeed and avoid financial failures.

6. Discuss your musts. Many people choose not to talk about money and their views regarding money. However, it is in your best interest to discuss your life and what is most important to you. You can decide what is a financial MUST for you and the best way to get there.

7. Invest. Most Americans are scared to invest in stocks because the media portrays this as a surefire way of losing all of your money. This is simply not true. Educate yourself on stocks, speak with a financial advisor (whom you trust) and invest in stocks. If you can live without immediate gratification, it will payoff for you big time in the future.

8. Be willing to give up potential return for short-term needs. Short-term money and emergency funds should not be invested in the stock market. While it is good to invest, you should be rational and always have an emergency fund available for the unexpected.

9. Protect yourself from the stupidity of others. Everyone has known of someone who has had a “get rich quick scheme” or at least been victim to one. Do not allow yourself to be fooled into these types of schemes. If it sounds too good to be true, it usually is.

10. Goals are important. Everyone needs to set goals for themselves. Think about your goals both long-term and short-term. Think of where you want to be in five years and ten years. This will enable you to set personal and financial goals for yourself.

Click here to read more about Forbes’ ten easy steps to financial success.

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, Credit, Timothy Kingcade Posts

What’s Not on Your Credit Report May Hurt You

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Everyone worries about their credit score and what’s on their credit report, particularly when they are about to make a big purchase such as a car or a home. However, the things that are not on your credit report can be just as harmful as what is. There are several ways that good credit references, such as secured cards and bank loans paid on time, can help your credit:

Accentuate the positive. Positive payment history can be the best thing for your credit score. However, many people do not realize that one of the things credit scores take into account is the proportion of positive and negative items. For example, even if you have negative information on your report, having more positive information can offset the negative.

Length of credit history. Your credit score considers the age of all of your accounts. Even older accounts such as a paid-off mortgage can help your credit score for years to come.

Credit mix. Credit scores also take into account the different types of credit you have. It is best to have both installment and revolving accounts listed on your report.

Missing the good stuff. Not all lenders report their customers’ payment histories to credit-reporting agencies. This can be harmful to your credit score, because many report only negative information. Unfortunately, there is nothing you can do to force a lender to report your account, you just have to continue good bill-paying habits until they begin showing up on your credit report.

Click here to read more about the missing information on your credit report and how it may hurt your credit score.

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, Credit, Timothy Kingcade Posts

Trends in Credit Card News- How New Legislation is Keeping Consumers Safe

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Congress is taking steps to limit checking account overdraft fees that continue to charge consumers billions of dollars every year. Reps. Carolyn Maloney and Maxine Waters have introduced a bill that limits the cost of overdraft fees and prohibits practices that increase the likelihood accounts will be overdrawn. Also known as the Overdraft Protection Act, it limits overdraft coverage fees in many ways. It would prohibit financial institutions from charging more than one overdraft fee per month or more than six per year; it would require overdraft fees to be “reasonable and proportional” to the amount of the overdraft; and it would prohibit a fee if the overdraft results solely from a hold placed on an account that exceeds the amount of the transaction. Many merchants, such as hotels and gas stations, automatically place a hold on the money in your checking account when you pay with a debit card. The bill also addresses the practice of posting checking account transactions in a way that maximizes overdraft fees.

In other credit card news, a Massachusetts court ruled that zip codes could no longer be required at a check out. The Supreme Court unanimously ruled that zip codes are private information and consumers should not be prompted for a zip code when using a credit card. The decision came from a lawsuit where a merchant was prompted for her name and zip code, after which the retailer used this information to find her address and send her junk mail. The collection of personal information violates state law.

Richard Cordray was again nominated to head the Consumer Financial Protection Bureau (CFPB) last week. The decision came following a 12-10 vote by the U.S. Senate Banking Committee. Every Democrat approved Cordray, while every Republican opposed him. However, his approval will be stalled due to a deadlock preventing his vote. The CFPB is a federal consumer watchdog group that monitors and tracks the complaints on credit cards, mortgages, student loans, bank accounts, services and other consumer loans.

Click here to read more of the latest credit card news.

Click here to find out more about the Consumer Financial Protection Bureau.

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.

Credit, Foreclosures, Timothy Kingcade Posts

Rebuilding Your Life After Foreclosure

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Record-breaking foreclosure rates have been a popular topic in the media since the housing market crashed. Unfortunately, we do not hear much about what happens to these families after they have lost their homes. Homeowners who have been foreclosed on by their lenders face many hardships, even after the dust has settled from their case. Below are some of the issues that foreclosure victims face and some smart solutions to their problems.

Finding a New Place to Live
Finding a new place to live is the most dire and immediate challenge foreclosure victims face. Many who have recently been foreclosed on do not have the cash for a deposit for rental property. Also, many landlords will not accept a renter with lower credit scores, which many foreclosure victims have. The best thing to do is to make plans as soon as you think you might be foreclosed on. This will allow you time to save up some cash to rent, if need be.

Suffering Through the Credit Fallout
Once other creditors find out that you have been foreclosed on, they tend to think it is likely that you will default on your debt with them, as well. As a result, you are likely to be forced to pay an inflated interest rate. Some foreclosure victims see interest rates rise as much as 30 percent. The best thing you can do is work toward rehabilitating your credit score as fast as you can, to be eligible for lower interest rates.

Purchasing a New Home
If you were foreclosed on due to circumstances that were beyond your control, such as unemployment, you are more likely to be eligible for a mortgage in the near future. Many foreclosure victims are able to obtain a mortgage again within three years of a foreclosure. Federally insured mortgages are the best option for foreclosure victims, i.e. FHA loans. However, you must understand that in order to obtain a mortgage in three years, you will need to prove that you have been practicing good bill-paying habits since the foreclosure.

Explaining Your Foreclosure to a Potential Employer
In financial-related fields, it is not uncommon for employers to run credit checks on potential employees to see how financially responsible the person is. If you have recently been foreclosed on and are applying for a position where you will be handling money, you should have an explanation ready for your potential employer.

Post-Foreclosure Tax Bill
If you have been foreclosed on and your home has been sold in an auction, you may be billed for taxes your lender was not able to recover from the sale of the property. However, there are some reasons you may not be obligated to pay the tax bill. If you are financially insolvent, the IRS may allow the debt to be forgiven.

Click here to read more on ways to rebuild after a foreclosure.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the website, Kingcade & Garcia, P.A.

Bankruptcy Law, Credit, Timothy Kingcade Posts

5 Steps to Rebuilding your Life after Bankruptcy

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It can be overwhelming trying to re-build your credit score, finances and emotional well being after filing for bankruptcy. However, it is important to realize that there is life after bankruptcy. In fact, if you strategize and take the necessary steps, bankruptcy protection can be extremely rewarding. Your life after bankruptcy depends on your recovery process. See below the five steps you can take to recover quickly from bankruptcy.

1. Let go of the guilt and shame. In 2010, there were 1.53 million personal bankruptcy filings; therefore, you must realize that you are not alone. Millions of Americans are battling the after effects of the Great Recession, just as you are. Rather than beating yourself up with shame and guilt, make peace with yourself, knowing that you made the best decision for your family and your finances.

2. Reflect and Regroup. One of the best things you can do to recover from bankruptcy is to reflect on where your financial situation went wrong. Whether it was something you did or something beyond your control, such as losing your job, finding the cause of your bankruptcy can help you move forward and prevent financial problems in the future.

3. Create a Budget and Pay Your Existing Bills on Time. After you have filed for bankruptcy protection, you must create and stick to a budget. Your budget will help you manage your money and help you avoid racking up more debt. Within your budget, you should create an emergency fund. This fund will help you if something comes up in the future. You should also set up automatic payment for your current bills, so that you can build your credit score and avoid delinquent bills.

4. Pick a Credit Card that will help you Rebuild your Credit Score. You may be wary of any kind of debt such as credit card debt; however, applying for a credit card can be the key strategy to rebuilding your credit score after bankruptcy. The best cards for bankruptcy filers to apply for are secured credit cards. These credit cards allow you to deposit money into a bank account, which becomes the amount you can spend on your credit card.
5. Educate Yourself on Bankruptcy. There are many myths and misconceptions about bankruptcy. For example, it is widely believed that bankruptcy will keep you from getting a mortgage for ten years. In reality, many bankruptcy filers are able to get a mortgage just two years after filing for bankruptcy. Myths such as these can deter those who really need it from filing for bankruptcy.

Click here to read more about the steps you can take to rebuild your life after bankruptcy.

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, Credit, Timothy Kingcade Posts

Florida Bankruptcy Court’s Non-Dischargeable Debts

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Millions of Americans have struggled to gain control of their finances following the Great Recession. Many have filed for bankruptcy protection in order to have their debts discharged and gain a fresh start. If you are considering filing for Chapter 7 bankruptcy protection, one important thing to understand is that not all debts are dischargeable in Florida’s bankruptcy court. Non-dischargeable debts are those that you will still be responsible for repaying, even if your other debts are relieved through bankruptcy protection.

The following debts are non-dischargeable in Florida’s bankruptcy court:

1. Back child support, alimony obligations and other debts dedicated to family support.

2. Debts for personal injury or death caused by driving while intoxicated.

3. Student loans, unless undue hardship can be proven.

4. Fines and penalties for violating the law, including traffic tickets and criminal restitution.

5. Recent income tax debts (within 3 years) and all other tax debts.

6. Debts you forget to list in your bankruptcy papers, unless the credit learns of your bankruptcy case.

There are also some debts that may be declared non-dischargeable in a Chapter 7 bankruptcy case if the creditor challenges your request to discharge them.

1. Debts you incurred on the basis of fraud.

2. Credit purchases of $1,150 or more for luxury goods or services made within 60 days of filing.

3. Loans or cash advances of $1,150 or more taken within 60 days of filing.

4. Debts from willful or malicious injury to another person or another person’s property.

5. Debts from embezzlement, larceny or breach of trust.

6. Debts you owe under a divorce decree or settlement unless after bankruptcy you would still not be able to afford to pay them or the benefit you would receive by the discharge outweighs any detriment to your ex-spouse (who would have to pay them if you discharge them in bankruptcy).

Click here to read more on Florida bankruptcy court’s non-dischargeable debts.

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, Credit, Timothy Kingcade Posts

The Devastating Effect Medical Bills can have on your Credit Score And what you can do about it

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One thing that can be the most devastating to your credit score is an unpaid medical bill. Many Americans find themselves with a low credit score due to unpaid medical debt. Commonwealth fund estimated that nearly 30 million Americans were contacted by collection agencies for unpaid medical bills during 2010. In many cases, they did not know about the debt until it already damaged their credit score. A combination of sky-high bills, insurance processing delays and billing mistakes are often to blame for credit-harming medical bills. Unfortunately, many patients believe that medical bills cannot harm their credit score, when in reality even unpaid $15 co-pays can cause your credit score to plummet.

See below four medical bill myths that can wind up hurting your finances and your credit score:

1. As long as I am making payments on a medical bill, it cannot be sent to collections.

2. I have to be notified before a medical bill is turned over to a collection agency.

3. Medical collection accounts are treated differently than other types of collection accounts when credit scores are calculated.

Another unfortunate fact about medical debt is that most of those who are contacted by collection agencies do not fully understand their rights regarding the debt. If you are contacted by a collection agency you have (1) the right to receive written confirmation of the debt and (2) the right to dispute the debt. Under the Fair Credit Reporting Act, you also have the right to dispute inaccurate information on your credit report. Congress is currently considering the Medical Debt Responsibility Act, which will help out those who are struggling with medical debt. The proposed legislation would require medical bills to be removed from credit reports 45 days after they are paid as long as the original amount does not exceed $2,500.

Click here to read more on the negative effects medical bills can have on your credit score.

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