Tag: FDCPA

Bankruptcy Law, Timothy Kingcade Posts

The Cost of Bankruptcy and How to Pay for It

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You are struggling financially and need to file for bankruptcy.  A common question is how I can afford the cost of hiring an attorney when I can’t even meet my bills?  Many people think they cannot afford to file for bankruptcy.  However, bankruptcy laws allow you to eliminate some debts and lower payments on others.   This now “freed-up” money, oftentimes hundreds of dollars a month, can be used to cover the cost of your bankruptcy attorney and filing fees.

The U.S. Federal Bankruptcy Laws were designed to give you a fresh start and a second chance when it comes to your finances.  

When it comes to the cost of bankruptcy, you will face two expenses: the court filing fees to handle your case and the attorney fees for your bankruptcy lawyer who files your case and represents you in court.

There are several types of bankruptcies to choose from, but the most common consumer bankruptcies are Chapter 7- where most of your debts are forgiven, and Chapter 13- where your debt is reorganized and restructured into a payment plan.

Filing fees remain the same nationwide, but your attorney fees can vary greatly, depending on location, the complexities of your case and your attorney.

  Chapter 7 Chapter 13
Filing fees $335 $310
Attorney fees* $500 – $3,500 $1,500 – $6,000
Total $835 – $3,835 $1,810 – $6,310

 

Here are some tips on how to pay for your bankruptcy:

  • Work out a payment plan with your attorney. Payment plans can vary.  Some lawyers allow you to spread the payments over six months, others over three months.  Most will want payment in full before filing your case.  The simple reason: Chapter 7 bankruptcy eliminates most of your debts, so you would not be legally obligated to pay your attorney any outstanding fees after filing.
  • Raise the money. Try to earn some additional income.  Consider having a garage sale, selling items on consignment, on Ebay or Craigslist (i.e. – think old electronics, hand bags, etc.) or taking on a part-time job to earn some fast cash.

Consumers who owe debt know the fear associated with going to the mailbox, answering the phone when it is an unknown number.  This fear is eliminated once hiring an experienced bankruptcy attorney.  Debt collectors must stop contacting you immediately and communicate only with your attorney- thanks to the protections in the Fair Debt Collection Practices Act (FDCPA).

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.

Related Resources:

https://www.nerdwallet.com/blog/finance/bankruptcy-costs-pay/

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

The New Age in Digital Debt Collection

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Experian announced a self-service platform named eResolve, which it says will let consumers negotiate and resolve past-due debts without ever speaking to a debt collector.  The latest technology in “digital” debt collection is allowing consumers to interact on their terms at any time of the day, using a digital channel that is more preferred over the traditional phone calls during dinnertime and having to deal with aggressive debt collectors.

TrueAccord, another digital debt collection technology says they have had “hundreds of thousands” in successful resolutions where consumers can easily click and tell them they have been victims of identity theft or had recently filed for bankruptcy so collection attempts can stop.

Negotiating debt through digital platforms seems to be more straightforward as well. For example, with TrueAccord a similar digital-type platform:  Debtors get an email with an offer such as making three payments with 0% interest, or 90 cents on the dollar if paid in full. Depending on what lenders say they will accept, a consumer who turns down that offer might get a subsequent pitch for an 80-cents-on-the-dollar settlement.  According to certain experts, this digital-based debt collection solves two problems. Chief among them: Regulatory issues. Computers do not call or text at the wrong times. They do not use profanity or threaten arrest to get you to pay, which are all in violation of the Fair Debt Collection Practices Act (FDCPA).

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.

Credit, Debt Relief, Timothy Kingcade Posts

FTC Shuts Down Debt Collector for Allegedly Threatening Lawsuits, Arrests against Consumers Who Don’t Owe Anything

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The Federal Trade Commission (FTC) is cracking down on “Phantom” debt collection schemes that go after individuals for money they do not actually owe.  The FTC shut down an operation that collected more than $690,000 in fake debts by threatening consumers with lawsuits and arrests, a violation of the Fair Debt Collection Practices Act (FDCPA).

A court order has stopped the business operations of Hardco Holding Group and S&H Financial Group.  The debt collection operation is accused of using deceptive and abusive practices to collect fake debts.  Since June 2015, the companies and their operators Daryl M. Hall and Dequan M. Sicard illegally collected supposed payday loan and other debts from consumers using the threat of legal action and arrest.

Often, doing business as Alliance Law Group, the companies employed a two-step collection process. The complaint alleges the first step involved calling victims claiming that a lawsuit had been or would soon be filed against them due to an outstanding debt they owe.  The victim of the scam would then be provided with a phony case number for reference.

The FTC claims that during most of these calls, the operators of the scheme did not identify themselves as debt collectors. To make the collections seem legitimate, the FTC notes that the collectors would often possess or claim to possess individuals’ personal information, or claim to be from an unrelated, legitimate small business.

The reps advised callers that they could settle the action by making a payment over the telephone using a credit or debit card.  If the victim refused to pay immediately, collectors would threaten legal action and arrest.  The FTC charged Hardco and S&H Financial with violating the FTC Act and the Fair Debt Collection Practices Act, and seeks to refund individuals affected by the fake debt collection scheme.

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

Medical Debt Collectors Accused of Using Aggressive Tactics to Collect

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According to a recent report by the U.S. PIRG Education Fund that reviews reports from the Consumer Financial Protection Bureau, medical debt collectors have been employing aggressive tactics to collect, even from the wrong consumers, putting their credit reports at risk.

The collection attempts range from repeated calls, calls harassing family and friends, threats of legal action, and abusive language- All a violation of the Fair Debt Collection Practices Act (FDCPA), designed to prevent creditor harassment and abuse.

Here are some important tips to remember if you are struggling with medical debt:

Confirm you owe the debt.  Almost 90 percent of medical bills have costly errors, according to the Medical Billing Advocates of America and Medical Recovery Services.  Request a detailed, itemized statement of charges and medical services you received.

Speak up.  If you find errors in your medical records or billing, contact your doctor or the hospital billing department.  Negotiate payments. They may even give you the option to defer payments for a few months or to put you on an interest-free plan where you pay a small amount toward the bill each month.

Get help. Hospitals and insurance companies often have case workers who can help with bills and resolve payment issues.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What happens when credit card companies sell your debt?

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Barclaycard sold $1.6 billion of credit card balances in the first quarter of 2017 to the personal-loan company, Credit Shop Inc.  Oftentimes, the accounts that are sold are ones that the card issuer has determined to be too risky for its business or are already in delinquency.  In these type instances, a card issuer can sell the account balances for pennies on the dollars.

Here is what you need to know if your credit card company sells your debt.

The reasons card issuers buy and sell debt.  Some debts are more “reliable” than others.  For this reason, cardholders pay widely different interest rates, depending on how risky the lender judges them to be.  “Subprime” borrowers tend to pay substantially higher interest rates to make up for the possibility that they might not be able to pay back the debt.

How will you know if your debt has been sold?  In many you will only find out if your debt has been sold when you hear it from the new owner or a debt collector calls you and demands payment.

What if a debt collector calls? If you receive a call from a debt collector, the Fair Debt Collection Practices Act protects you from abuse and harassment.  A debt collector is not allowed to call you excessively or make any threats.  They are also prohibited from calling you before 8 a.m. or after 9 p.m. and cannot misrepresent the amount you owe.  By law, you have the right to demand documented proof of the existence of the debt and the amount you reportedly owe. This request must be made in writing within 30 days of the first contact from a debt collector. During the time it takes to investigate and reply to your request, all calls from the debt collector must stop.

You also have the right to request that all future contact be made in writing. This can prevent disruptive and embarrassing calls at home or at work.  You have the right to sue if a debt collector violates any of these rules.

What responsibilities do credit card companies have? Under the federal CARD Act, which went into effect in 2010, credit card companies are required by law to give cardholders 21 days from the date the statement mails to make a payment.  Credit card companies are also required to provide a 45-day written notice before any rate increases. If you receive this notification, consider paying off the account if you are able to or transferring your balance to a low-interest credit card or zero-percent interest card, which overtime will be less costly to repay.

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.

Related Resources:

http://www.nasdaq.com/article/what-happens-when-credit-card-companies-sell-your-debt-cm776572

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Debt Collection Dispute Headed to the Supreme Court

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The U.S. Supreme Court will decide whether firms collecting on a debt they bought for pennies on the dollar can be held liable in lawsuits brought by consumers.  The justices agreed to review a lower court’s decision to dismiss a consumer class action lawsuit against Santander Consumer USA Holdings Inc. over allegations it violated the Fair Debt Collection Practices Act– a debt collection law enacted in 1977 that prohibits collectors from using abusive, unfair or deceptive practices to collect a debt.

The current case hinges on the definition of “creditor” and “debt collector” and whether a company that purchases debt should be treated as a creditor and therefore not subject to the law.

The case (Ricky Henson et al v. Santander Consumer USA, Inc et al, in the Supreme Court of the United States, No. 16-349) involves four Maryland residents who defaulted on their auto loans, and filed a proposed class action lawsuit against Santander in 2012 in federal court alleging violations of the Fair Debt Collection Practices Act, such as misrepresenting the debt amount and bypassing debtors’ attorneys.

The debts had been sold to Santander, a Dallas-based vehicle-financing and lending company owned in part by a subsidiary of Banco Santander.  Santander then tried to collect on the loans.

The 4th U.S. Circuit Court of Appeals in Richmond, Virginia threw out the lawsuit last March, saying the law applied only to debt collectors, and Santander became a creditor when it purchased the loans.

The Maryland residents told the Supreme Court the 4th Circuit’s reasoning would “hamper both government and private efforts to combat abusive debt-collection practices.” The appeal to the Supreme Court comes as the Consumer Financial Protection Bureau is considering proposals to toughen regulation of the industry.

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.

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

When Debt Collectors Call Know your Rights

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When a debt collector calls, it’s important to know your rights.  In July, the Consumer Financial Protection Bureau required debt collectors to do their “due diligence” to help ensure they are collecting on legitimate debt and put a cap on their weekly attempts to reach a consumer.  The bureau also increased enforcement, bringing more than 25 cases on debt-collection tactics that deceive or abuse consumers.

The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers against unfair collection practices, including:

  • Calling you repeatedly to annoy or harass you;
  • Trying to collect more than you owe;
  • Failing to send a written notice of the debt;
  • Threatening violence, using profanity or offensive language;
  • Threatening dire consequences (i.e. – lawsuits, criminal prosecution, wage garnishment, jail time, permanently ruining your credit);
  • Calling you before 8 a.m. or after 9 p.m.;
  • Revealing debt to third parties (i.e. – family, neighbors, friends, co-workers, etc.);
  • Contacting you at your work, after you have requested them to stop;
  • Failing to verify disputed debts;
  • Ignoring cease communication requests.

It is important that consumers verify everything when it comes to a debt they may (or may not) owe.  In a recent CFPB survey, half of Americans contacted about a debt in the past year said they were given inaccurate information about what they owed. Debt collectors are legally required to follow up their phone call with a written notice detailing the debt.

Understand that just because someone is calling to collect a debt, does not mean you should pay it right away.  It is always important to verify.  The collection attempt could be for a so-called zombie debt that is past the statute of limitation or a debt collection scam.

If you do in fact owe the debt, make sure and take notes. Write down every name and employee number you speak with, including the agency, the number they called, the time of the call, etc. Take notes on what was said.  This detailed record keeping can prove helpful if you need to file a complaint about the debt collector’s behavior in the future.

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.

Related Resources:

http://www.cnbc.com/2017/01/12/know-your-rights-when-a-debt-collector-calls.html

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

More Consumers Report Debt Collectors are Denying Requests for them to STOP Calling

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A shocking three out of four consumers reported that debt collectors ignored their requests to stop calling, according to a recent survey by the Consumer Financial Protection Bureau.  The survey also revealed that consumers felt threatened by debt collectors, were contacted late at night and early in the morning and the debt collectors oftentimes used false information- all violations of The Fair Debt Collection Practices Act.

The survey examined a sample of consumers drawn from credit-reporting records about their experiences with debt collectors. More than 1 in 4 consumers contacted by a creditor or debt collector felt threatened, 3 out of 4 consumers who asked collectors to stop contacting them said they refused to do so. More than a third said debt collectors called between 9 p.m. and 8 a.m., according to the survey.

In addition, more than half reported a mistake in the debt, such as an incorrect amount, a debt not owed or a debt owed by a family member.  The frequency of calls was also excessive- 17% said they received eight or more calls in a single week.

Consumers are protected from these predatory and unfair practices by The Fair Debt Collection Practices Act– but only if they exercise their rights.  The law’s consumer protections include:

Communication: Consumers can tell debt collectors how and when to contact them- including telling them to stop contacting them entirely.

Harassment and abuse: Debt collectors cannot use abusive language, threaten violence or repeatedly call and harass them.

Truthfulness: Debt collectors must be honest about the amount of the debt, whether it is past the statute of limitations for lawsuits and cannot misrepresent themselves.

Debt validation: Consumers must receive a validation letter within five days of the first contact with information about the amount owed, the original creditor seeking payment and their rights on disputing the debt.

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.

Related Resources: http://www.latimes.com/business/la-fi-cfpb-debt-collectors-20170115-story.html

Bankruptcy Law, Credit, Debt Relief

Medical Debt Collection Firms Ordered to Pay $577K for Threatening Consumers

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Two medical debt collection firms must refund hundreds of thousands of dollars after they were caught falsely claiming there were attorneys involved in the collection actions. Two Oklahoma-based law firms, both named Works and Lentz, misled consumers by exaggerating the extent to which actual “lawyers” were involved in the collection attempts.

The companies involved in the case attempt to make collections on 700,000 accounts annually, collecting medical debt on behalf of hospitals, doctors, and other healthcare providers.  From January 2012 to August 2016, every letter sent to the alleged debtors was printed on the firm’s letterhead, giving the impression that a legal action was pending.

Approximately one month after the letter was sent out; Works and Lentz assigned the account to a manager who contacted the debtor, representing themselves as a law firm.

In addition, when consumers called the firm back, they were greeted with a message stating, “You have reached Works & Lentz, Attorneys at Law.”  The letters sent out to consumers ended with a computerized signature of an individual attorney with the title, “Attorney at Law.”   The Consumer Financial Protection Bureau alleges that in most cases there was never an attorney who reviewed the collection accounts.

As specified in The Fair Debt Collection Practices Act, it is illegal for firms to use false, deceptive or misleading representations or means to collect a debt, including using false implication that any individual is an attorney or that communications are from an attorney when they are not. This law was designed to protect consumers and help prevent creditor abuse and harassment.

In addition to misrepresenting that they are attorneys, the CFPB alleges that employees of Works and Lentz provided information to credit reporting agencies related to consumers’ debts without verifying the information was correct.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Select Portfolio Servicing Accused of Violating Telephone Harassment Law

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Debt collector, Select Portfolio Servicing, Inc., is being sued for violating telephone harassment statutes.  A consumer filed the complaint in the U.S. District Court for the Southern District of Florida alleging that the debt collector called his cell phone hundreds of times in an attempt to collect a debt.  The plaintiff alleges he suffered damages when he received more than 350 collection calls after he demanded the company stop contacting him.

Select Portfolio Servicing, Inc. allegedly used an automatic telephone dialing system to contact the plaintiff in this case.  The plaintiff is requesting a trial by jury, $1,000 in statutory damages, actual damages, all attorney fees paid, and any additional relief the court deems appropriate.

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.

Click here to learn more about the Fair Debt Collection Practices Act (FDCPA), designed to help prevent creditor abuse and harassment.