Florida seniors Archives - Page 2 of 3

Bankruptcy and Retirement: How to Assess Your Risk

Posted on October 10, 2018by Admin

Many Americans work their whole lives in the hopes of achieving the American Dream: retiring comfortably and living out their last years in rest and relaxation. However, if you are living with debt and nearing retirement, the dream can seem far off. In recent years, seniors have seen a rise in personal debt.

A study published by the Consumer Bankruptcy Project shows a trend regarding bankruptcy and retirement. It showed that more older Americans are filing bankruptcy before entering retirement. The data showed that bankruptcy rates went down for individuals between the ages of 18 and 54 between the years 1991 to 2016. However, the percentage of individuals between the ages of 65 and 74 tripled. The rates went up four times for individuals over the age of 75.

Seniors are realizing that they can protect valuable assets through bankruptcy. Retirement income and savings are out of reach and protected under federal law, including: 401(k)’s, pensions, social security payments, qualified profit-sharing plans, and individual retirement accounts worth up to $1.245 million are all exempt from creditors during bankruptcy.

Rising healthcare costs have attributed to many of the filings. Chapter 7 bankruptcy wipes out medical debt and there is no limit to the amount of medical debt you can discharge in Chapter 7 bankruptcy. According to the Bureau of Labor Statistics, the average person who is the ages of 65 and over spends more than $6,620 annually on healthcare. One recommendation to help save for unexpected healthcare costs is a Health Savings Account (HSA). Contributions to an HSA are pre-tax, and there are no tax penalties made on withdrawals, so long as they are for qualified medical expenses.

Another recommendation for retirement planning is to make what are known as catch-up contributions to your retirement accounts, if you are able to. You are allowed to make extra contributions to 401(k) or IRA plans after the age of 50. The current annual amount allowed is an extra $5,000 for 401(k) plans and $1,000 for IRAs for the 2018 tax year.

As you reach retirement age, plans do change, which means the budget you created for retirement may need adjusting. It is important that you work closely with a financial advisor to keep up with the cost of living and make appropriate changes in your investments in preparation for retirement.

If you have 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.

Souring Bankruptcy Rates Signal a Calm Before the Storm for the Elderly

Posted on August 20, 2018by Admin

Bankruptcy statistics are showing an alarming trend among senior citizens as more of them are filing for bankruptcy than ever before. In fact, according to the study, these numbers have jumped significantly in the last 25 years.

The numbers come from the Consumer Bankruptcy Project as published by the Social Science Research Network. These figures show that the rate of individuals over the age of 65 who have filed for bankruptcy has grown 204 percent from 1991 to 2016. Further, the percentage that senior citizens who filed compared to all other U.S. bankruptcy filers went up five times over this 25-year period.

It is reported that the rising cost of healthcare, reduced income and decline in pensions are to blame for the increase. All three of these factors have led to the perfect storm, leaving more financially broken retirees than ever before.

Most of these individuals worked their whole lives, thinking Social Security, their pensions and Medicare would carry them through retirement. However, following the 2008 recession, companies began to freeze or completely eliminate pensions. Many also lost their jobs during this time or were forced to retire early and are now delaying collecting Social Security, just barely getting by. All it takes is for one major crisis, whether it be a medical diagnosis or job loss, for their finances to quickly fall apart.

Medical costs seem to be the biggest trigger for financial issues, according to the study. For one, Medicare does not cover all medical expenses that may be needed, including the costs of long-term care, dental treatments or hearing aids. Medicare requires co-pays most of the time, as well as deductibles, and even meeting these costs can be difficult for many. If someone needs major surgery, those costs can be astronomical, even just meeting the deductible.

According to figures from the Kaiser Family foundation, out-of-pocket health expenses for individuals on Medicare took over 40 percent of the average reported Social Security income during 2013. It is anticipated that costs are going to increase to 50 percent of what the average Social Security income is by the year 2030.

The financial institution, Fidelity, reported earlier this year that the average retiree couple, age 65, will need approximately $280,000 alone to cover health care and other medical costs throughout retirement. That figure does not even begin to cover the cost of living. This number is up 75 percent from what Fidelity recommended in 2002, when the company recommended that a retired couple at the age of 65 save up $160,000 for healthcare costs.

One major concern brought up from these statistics is the fact that even though older individuals are struggling, society as a whole does not seem to be all that concerned with their struggles. When the average person is in this type of financial situation, bankruptcy offers him or her a fresh start.

Individuals in this generation can sometimes view bankruptcy as a way of giving up or have trouble asking for help. It is important, however, that if family and friends see their older loved ones struggling financially, that they reach out to them and encourage them to seek help as soon as possible. For many seniors, bankruptcy can provide the relief they so desperately need and help them enter retirement with a fresh financial start.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Seniors See Rise in Personal Debt

Posted on April 26, 2018by Admin

While personal debt can affect people of all ages, few are affected by it more than seniors who are already living on fixed incomes. A recent study by the Washington, D.C.-based Employee Benefit Research Institute highlights the risk of financial strain that comes with aging. Researchers found that between 1992 and 2016, a higher percentage of American families headed by people age 55 and older are struggling with debt.

The increase in those carrying debt has been most prevalent among families headed by those age 75 and older, where the percentage rose from 31.2 percent in 2007 to 49.8 percent in 2016. The debt is coming from different sources. A number of seniors are helping their children and grandchildren attend college by co-signing student loans. In fact, the number of people age 60 and older with student loan debt as quadrupled in the last 10 years to 2.8 million, according to the Consumer Financial Protection Bureau.

As these borrowers age, it becomes more difficult to afford the monthly payments while also paying for necessary food, housing, prescriptions, and medical expenses. The trouble begins for many seniors when they begin using credit cards to pay for basic living expenses.

Click here to read more on this story.

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

More Seniors Struggling with Student Loan Debt

Posted on January 17, 2018by Admin

More than 5 million people began paying off federal student loan debt between October 1, 2013 and September 30, 2016, according to the U.S. Department of Education. And not all of them were young people.

The number of borrowers over the age of 60 with student loan debt has quadrupled over the past decade in the United States. Of the more than 5 million people, 580,671 of them — or 11.5 percent — defaulted on their loans. This is a slight increase from the previous year’s 11.3 percent and the first time the percentage has increased in the last five years.

Many have accumulated the debt helping their children or grandchildren, either by borrowing directly or co-signing on student loans. As these borrowers age, it becomes more difficult to afford the monthly payments while also paying for necessary food, housing, prescriptions, and medical expenses.

Seniors living month-to-month on fixed incomes are most likely to default. When this happens to borrowers 65 and older, a portion of their social security benefits can be seized by the government. Many seniors who are carrying federal student loan debt are eligible for income-based repayment plans, but student loan servicing companies have not made it easy for borrowers to enroll in these programs or even let them know it is an option.

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

Related Resources:

https://www.dcourier.com/news/2018/jan/12/more-seniors-citizens-have-student-loan-debt/

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.

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 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.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Tips for Seniors to Avoid Medical Debt

Posted on November 6, 2017by Admin

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

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

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

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

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

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

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Foreclosures, Timothy Kingcade Posts

More Seniors Taking Out Loans Against Their Homes – But at What Cost?

Posted on August 28, 2017by Admin

An increasing number of seniors facing foreclosure are opting to take out reverse mortgages on their property, according to recent federal data. A reverse mortgage allows cash-strapped seniors to borrow against the equity in their home that has built up over the decades- but it also comes with financial risk. Property owners are still responsible for keeping up with other charges, including the taxes and insurance on the property.

A HUD report issued last fall found that nearly 90,000 reverse mortgage loans held by seniors were at least 12 months behind in payment of taxes and insurance and were expected to end in “involuntary termination” in 2017. That is more than double the number the year before.

More than 18 percent of reverse mortgage loans taken out from 2009 to June 2016 are expected to go into default because of unpaid taxes and insurance, according to the HUD report.

The federal Consumer Finance Protection Bureau has warned seniors about deceptive advertising practices when it comes to reverse mortgages. Last year, the federal agency fined three companies — American Advisors Group, Reverse Mortgage Solutions and Aegean Financial — for alleged false claims, misleading seniors to believe that if they took out a reverse mortgage they would not have to make monthly payments or face foreclosure, leaving out the risks of failing to pay property charges.

Click here to read more on this story.

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 Kingcade & Garcia website at www.miamibankruptcy.com.

Debt Relief, Foreclosures, Timothy Kingcade Posts

New HUD Budget Wording Threatens Reverse Mortgage Protections

Posted on August 15, 2017by Admin

A slight change to the wording in a proposed HUD budget request could lessen the protections of reverse mortgages and increase the risk of foreclosure for some elderly homeowners. The wording change affects 2-year-old provisions in federal housing rules that award certain rights and protections to the spouse of a borrower who takes out a reverse mortgage and later dies.

This wording change could increase the chances that the surviving spouse who did not sign the documents could lose their home in foreclosure.

Senators Marco Rubio (R.-Fla.) and Catherine Cortez Masto (D.-Nev.) sent a joint letter to Ben Carson, the secretary of the Department of Housing and Urban Development, and Mick Mulvaney, director of the Office of Management and the Budget, seeking clarity on the proposed wording in the budget request and asking whether the agency was seeking to reverse the earlier policy change.

The fact that there has been no response from HUD raises concern. Before this change in policy two years ago, a surviving spouse who had not signed the mortgage document often had to pay what was left on the loan in full or was at risk of being evicted, due to the home going into foreclosure.

In the letter to the Department of Housing and Urban Development, the senators referred to the old policy as a “loophole” that had “compounded the stress faced by widows and widowers at a time when they were already grieving the loss of their spouse.”

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Senate Approves Legislation to Fight Scammers who Target the Elderly

Posted on August 10, 2017by Admin

A new law protecting seniors, The Seniors Fraud Prevention Act, passed unanimously and strengthens the federal reporting system for fraud complaints and requires the FTC to monitor fraud schemes targeting seniors.

This story and thousands more like it prompted the new law:

A Duluth elderly mother had picked up the phone to happy news. She had won the lottery- $2.5 million and a new Mercedes! But before she could claim her prize, the contest organizers needed something from her. You can probably guess what it was. In a matter of days, the phone scammers had defrauded the 82-year-old woman out of $47,000, forcing her into bankruptcy.

Seniors are extremely vulnerable and face a constant influx of lies and scams to their mail boxes, inboxes even their phones. These phony contests, fraudulent charities, fake investment opportunities, even scams involving their supposed “grandchildren” who got in trouble overseas and need money wired to them, immediately- all attempt to drain seniors’ of their hard-earned life savings. A new fraud scheme targeting seniors appears almost daily, according to a fraud investigator for the AARP.

The Seniors Fraud Prevention Act of 2017 strengthens the federal reporting system for fraud complaints and requires the Federal Trade Commission to monitor the market for fraud schemes targeting seniors.

This bill directs the Federal Trade Commission (FTC) to establish an office within the Bureau of Consumer Protection to advise the FTC on the prevention of fraud targeting seniors and to assist the FTC in monitoring the market for mail, television, Internet, telemarketing, and recorded message telephone call (robocall) fraud targeting seniors.

The office must: (1) disseminate to seniors and their families and caregivers information on the most common fraud schemes, including methods of reporting complaints either to the FTC’s national toll-free telephone number or to the FTC’s Consumer Sentinel Network, where complaints become immediately available to the Federal Bureau of Investigation, state attorneys general, and other appropriate law enforcement agencies; (2) provide, in response to a specific request about a particular entity or individual, publicly available information regarding the FTC’s enforcement action; and (3) maintain a website as a resource for information on fraud targeting seniors.

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:

http://www.startribune.com/senate-signs-off-on-legislation-to-fight-scammers-who-target-the-elderly/438744333/

https://www.congress.gov/bill/115th-congress/senate-bill/81

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips for Seniors Struggling with Credit Card Debt

Posted on May 2, 2017by Admin

If you are a senior struggling with credit card debt, you are not alone. For the first time, middle-class households headed by someone 50-plus years of age carried more credit card debt on average than households of people younger than 50, according to a recent study by Demos National Survey on Credit Card Debt. Half of the respondents said they carried medical debt on their credit cards and a third said they used credit cards to pay for daily expenses.

Seniors carry credit card debt for a variety of reasons. Some are still paying off educational loans or their children’s educational loans. Many seniors are carrying credit card debt into retirement. The debt may have been management when they were working, but has become a burden when their income level drops. Oftentimes, medical debt compounds the problem, as health insurance only covers a portion of healthcare costs.

Here are some tips for seniors to help take control and manage their credit card debt:

Find a nonprofit credit counselor. The sooner you seek help, the better.
Contact your credit card company to see if you can work out a payment plan.
Adjust your lifestyle. Cut your expenses (i.e. – expensive cell phone plans, cable and Internet packages);
Get help with budgeting. Paying off your debts only works if your spending is under control. Know where your money is going every month. Making a few small changes to your monthly expenses can add up and give you more money to pay down debt.
For medical debt, talk with your doctor’s office to see what your options are. Avoid medical credit cards they may offer you; these come with very high interest rates, regardless of your credit score.
Consider a reverse mortgage. There are many ways you can use your home to get through difficult financial times, but there are risks associated with taking this route. Make sure this will solve your financial problem without adding to it.
Consider bankruptcy. If you are struggling with insurmountable credit card or medical debt, bankruptcy may be right for you. This option will allow you to reorganize your financial situation and discharge your debts if you cannot pay them. There are several different types of bankruptcy, so you want to carefully weigh your options. Many bankruptcy attorneys offer free consultations and will advise you on the best course of action.

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.