Tag: Kingcade and Garcia

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

At Capital One, easy credit comes with numerous lawsuits

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No lender sues more of its customers than Capital One, according to ProPublica’s review of state court data.  The debt collection lawsuits target workers who earn below $40,000 a year.  Unfortunately, state laws offer little protection- even workers near the minimum wage could have a quarter of their take-home pay taken or their bank accounts completely cleaned out.

ProPublica obtained and analyzed court data from 11 states, including Florida.  Capital One stood out in every state for having the most number of lawsuits against its customers.  For example, in Indiana counties for which court data is available — home to about two-thirds of the state’s population — the bank filed about 3,360 suits in 2014. That’s about a quarter of the suits Capital One filed in 2010, but still more suits than all other national banks combined in 2014. In Clark County, Nevada, which includes Las Vegas, Capital One’s suits comprised about 40 percent of all suits by major banks. In Miami-Dade County, Florida, the total was about the same.

The lawsuits were often over debts as small as $1,000, which reveals a hidden side of Capital One’s business. The bank has only the fourth-largest credit card portfolio, but such a large portion of its cards are held by those with poor credit that it is the country’s largest subprime lender. With those loans comes a high risk of default, and the company is particularly aggressive at recouping its losses.

Experts agree, the “disturbing” volume of lawsuits filed by Capital One should prompt regulators to investigate whether the perils of subprime credit cards outweigh the benefits.  The federal Consumer Financial Protection Bureau is in the process of writing new rules for debt collection that are expected to cover a wide range of activities, including the filing of lawsuits.

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, Debt Relief, Student Loans, Timothy Kingcade Posts

‘Doctors’ Loophole’ in Student Loan Debt-Forgiveness Helps more Americans than Intended

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The federal government is getting ready to forgive billions of dollars in student loan debt for doctors and other professionals with expensive educations, under a law designed to help “modestly paid” workers in public service.

At issue is the 2007 student loan forgiveness program that allows borrowers who have made a decade of payments and work for government or nonprofit entities, have the rest of their debt forgiven.  The program was designed to encourage young Americans to pursue traditionally hard-to-fill positions, such as: public defenders, social workers, teachers and modestly paid doctors in underprivileged  areas.

However, the program is helping far more than intended, many of the borrowers being well-paid.  Thousands of workers with expensive graduate degrees are set to discharge five- and six-figure student debt amounts as they approach typically lucrative careers.

The biggest beneficiaries will be med school students, who owe an average of $180,000 upon graduation and are increasingly working for nonprofit hospitals to qualify for the program.  What is being called the “doctor’s loophole,” financial advisors estimate that many will have 80% or more of their original balances forgiven.

The government will not start forgiving loans under the program until 2017, a decade after it was signed into law. But the estimated tab is growing quickly as enrollment surges.  As of September, about 295,000 borrowers in all fields had submitted paperwork and were on track to have debt forgiven under the program, according to the Education Department. That is an increase of 368% from two years prior, likely reflecting growing awareness of the program and a boom in higher-education attainment during the recession. The agency projects a total 600,000 borrowers will have loans forgiven over the next decade.

Supporters of the program note it is achieving the goal of increasing interest in jobs that are tough to fill, like public defender positions.  A surge has been reported in applications for legal positions, partly linked to lawyers hoping to shed their law school debt.

The typical borrower in the program owes between $60,000 and $70,000 in student debt, with 1 in 4 owing more than $100,000, according to a Government Accountability Office report. This suggests most enrollees are workers with postgraduate degrees.  Critics say the program does little to help the millions of Americans who truly need the relief from student loan debt, like those borrowers who did not complete college and have much smaller loan balances or who graduated with degrees that pay far less in today’s economy.

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, Timothy Kingcade Posts

New Bankruptcy Paperwork May Result in More Inaccurate Filings

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As we discussed in an earlier blog, the paperwork that people and businesses have used to file for bankruptcy protection since the 1980s is being replaced effective December 1, 2015. Perhaps the biggest change with the new forms is that people and business owners will use two different sets of paperwork to file for bankruptcy. Historically, they have used the same three-page petition.

Bankruptcy experts have expressed concern that the new forms with clearer and more concise instructions (free of legalese) will encourage more people to file for bankruptcy without the help of an attorney.  This could lead to people making BIG mistakes.

It is estimated that approximately 10% of bankruptcy filers nationally file without an attorney.  While you may think you are saving money, the results can be devastating- jeopardizing your chances of a successful bankruptcy discharge.  Studies have shown that filers who hire an attorney to file their Chapter 7 bankruptcy obtained a discharge 95% of the time. By contrast, those debtors who filed “pro se” only received their discharge in 61% of cases.

There are other benefits to hiring an attorney when filing for bankruptcy.  A bankruptcy petition incorrectly or untimely filed can negatively affect a debtor’s future, rather than provide them with a much-needed financial fresh start.  Bankruptcy is not about filling out forms, it is about understanding the rules, statutes and case law that determine how these forms are completed.

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, Student Loans, Timothy Kingcade Posts

More Lawsuits being filed over Student Loans

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Lenders are taking more extreme measures when it comes to collecting student loan payments- they are taking borrowers to court for the money.  It used to be that if you fell behind on your student loan payments you would receive collection calls and threatening letters, now borrowers are being sued.

The number of lawsuits filed over delinquent student loans has significantly increased in the past two years.  The lawsuits come as the student loan industry finds itself under heightened government scrutiny over complaints involving paperwork errors and deceptive collection practices.

Why the increase in these lawsuits?  One explanation  is that many lenders are now able to sue because bankruptcy cases filed by borrowers around the recession have been resolved.  Another reason is the sheer amount of money at stake- billions of dollars in delinquent loans.  Another possible reason for the rise in lawsuits: Loan companies are more efficient at producing the thorough documentation some judges are now demanding.

Litigation has become a more accepted (and effective) collection practice.  Lenders typically go to court to try and garnish the borrower’s wages or force the person to make a certain payment every month.  Student loans backed by the federal government come with rules that allow the lender to take such action without going to court, while holders of private loans must get a judge to sign off on such steps.

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 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.

Foreclosures, Timothy Kingcade Posts

South Florida has highest risk of mortgage fraud in the country

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According to a new report, South Florida is the nation’s capital of mortgage fraud.  Miami-Dade, Broward and Palm Beach counties have the highest risk of mortgage fraud in the country reveals the property analytics firm, CoreLogic.

Mortgage fraud typically involves hiding information from lenders so borrowers can obtain loans they would not have qualified for otherwise.  The report covered the second quarter of 2015.

The number of inexpensive foreclosed homes in South Florida has made the region more vulnerable and a magnet for fraud.  Some local scammers have even been prominent members of the community, including former North Miami Mayor Lucie Tondreau, who was sentenced to 65 months in federal prison for her role in an $11 million mortgage fraud scheme.

But according to the report, this activity is on the decline as the foreclosure inventory dwindles down.  The risk of mortgage fraud fell by 9 percent year-over-year in South Florida.

The Miami, Tampa, Orlando, Sarasota and Jacksonville markets accounted for five of the six riskiest areas in the country. (The other being New York City.) Nationwide, the value of fraudulent mortgage applications is estimated at $17.3 billion, according to CoreLogic.

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.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

FTC Uncovers another Mortgage Relief Scam

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According to the Federal Trade Commission, the company “Wealth Education” deceptively promised mortgage relief services to financially distressed homeowners. The company charged hefty upfront fees and advised homeowners to take steps that ultimately led them into foreclosure.

The Los Angeles-based company has been one of many scammers that used the housing market crash of 2008 to take advantage of struggling homeowners. The company allegedly used a variety of names and sold phony services that promised to lower homeowners’ mortgage payments or refund their money. According to the FTC, the company never made good on its promise. The company charged rates as high as $5,000 and never issued a refund when it failed to provide homeowners with lower mortgage payments.

It is illegal for companies to charge upfront fees for the promise of a mortgage modification. Companies can only charge fees if you have an acceptable written offer from the lender.

Wealth Education was also advising homeowners to stop communication with their lenders. This would delay victims from figuring out the scam and cause them to stop making payments, which in turn resulted in their homes going into foreclosure.

Click here to read more on this latest mortgage relief scam.

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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

6 Tips to Get a Car Loan After Bankruptcy

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If you have filed for bankruptcy or are considering filing for bankruptcy, you may be under the impression that it’s impossible to ever get approved for a home or car loan, again. This is simply not true.

Below are six tips to help you buy a car after filing for Chapter 7 or Chapter 13 bankruptcy:

1. Get a copy of your credit report and credit score. Be prepared before you go to the dealership. Your credit report is available for free at AnnualCreditReport.com or Credit.com. The dealership will pay particular attention to your previous auto loans, so make sure you familiarize yourself with that information.
2. Start saving for a down payment. Most consumers’ cash flow improves after bankruptcy, so you can put some of that extra money towards your down payment. Remember that the larger the down payment, the less risky you look to the lender.
3. Shop around. Try to do your car shopping in one day to avoid having multiple pulls on your credit report. It is better to be preapproved before you visit the dealer, that way you have some leverage.
4. Avoid “buy here, pay here” dealers. Do not assume that dealers with the highest interest rates will be the only option for you. Some of these dealers do not have a great selection and you may end up with a car payment with a higher interest rate along with repair bills.
5. Pay on time. Chances are your credit score has taken a hit after filing for bankruptcy. Use your auto loan to help improve your scores by making your payments on time.
6. Refinance your car loan. If you have been making your car payments on time each month, you may be eligible to refinance your auto loan at a lower interest rate after six to 12 months.

Click here to read more on ways to purchase a car loan after filing for 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.

Credit, Foreclosures, Timothy Kingcade Posts

Florida Homeowners find a way to “Free” Foreclosed Homes

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States such as Florida, New Jersey and New York have a five or six year statute of limitations on foreclosure cases. This allows cases of foreclosure to potentially be thrown out of court if dragged on for five or more years. Many Florida homeowners are using this statute of limitations to stay in their homes without having to make another payment to their lender.

Many defaulting homeowners continue to live in their homes after the foreclosure process has begun. For example, Bank of America has started the foreclosure process on approximately 20,000 mortgages that have not been paid in five or more years and 90 percent of those homeowners are still living in their homes.

While the issue is still being argued in the court system, Florida attorneys say lenders have five years to file a foreclosure once a homeowner defaults on his or her mortgage. The lenders argue that the clock resets every time a homeowner misses a payment.

Florida attorneys argue that once a foreclosure case is dismissed for technical reasons, the lender cannot re-file a foreclosure on the home because the statute of limitations has passed. However, in these types of cases the lender can keep a lien on the home that must be paid off before it is sold.

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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

How Avoiding Bankruptcy can Backfire

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Bankruptcy is often misunderstood and accompanied by a negative stigma. However, bankruptcy can mean different things to different types of entities. For example, a business filing for bankruptcy is often seen as a healing process, allowing the company to reorganize and restructure its debts, while continuing its operations.

Oftentimes, credit counselors and debt relief services will advise against bankruptcy to steer consumers toward their services of financial assistance, postponing the inevitable.  Banks and personal finance gurus manipulate consumers into believing that it is impossible to rebuild your credit after bankruptcy.

The reality is that most consumers who have filed for bankruptcy have access to more “new lines of credit” than those who continue struggling with insurmountable debt. This was proven in a study conducted by the Federal Reserve Bank of New York. The study focused on the financial lives of people who continue struggling with debt and those who opted for bankruptcy.

The study revealed that those individuals who filed for bankruptcy early in the year opened a larger number of unsecured accounts than those who chose not to file for bankruptcy. The study proves that filing for bankruptcy opens doors to new lines of credit rather than closing them.

The study also revealed that those who filed for bankruptcy saw a greater improvement in their credit scores than those who did not. Also, those who did not file for bankruptcy lost a significant amount of retirement income, compared to those who did file for bankruptcy.  Under federal law, most retirement accounts are fully exempt in bankruptcy.

Click here to read more on this story.

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 Student Loan Borrower’s Bill of Rights Explained

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Following President Obama’s introduction of the “Student Aid Bill of Rights” the Senate followed suit by reintroducing the Student Loan Borrower’s Bill of Rights.  The bill was first introduced last year, but failed to move forward. The bill is an effort to ensure that the 40 million Americans with student loan debt are protected and understand their rights as consumers.

“The Student Loan Borrower’s Bill of Rights” will ensure that all borrowers have basic rights and protections as they repay their student loans and offer more repayment options to them if they are unable to make their monthly payments in full,” according the Senator Dick Durbin. He was one of three senators to reintroduce the bill.

The legislation’s authors explained that the new bill would give six basic rights to both federal and private student loan borrowers:

1. The right to have options such as alternative payment plans to avoid default.
2. The right to be informed about terms and conditions of the loan and repayment options to ensure changing plans will not cost more.
3. The right to know your loan’s servicer and who to contact when there is a problem.
4. The rights to have consistent monthly payments. Lenders and servicers will also be required to honor promotions and promises that are advertised or offered to borrowers.
5. The right to fairness when it comes to issues such as grace periods, when loans are transferred, or debt cancellation when the borrower dies or becomes disabled.
6. The right to accountability including timely resolution of errors and certification of private loans.

The Bill of Rights will also ensure that service members and veteran borrowers will be provided with a liaison specifically trained in the benefits available to military borrowers.

Click here to learn more about the Student Loan Borrower’s Bill of Rights.

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