Kingcade and Garcia Archives - Page 3 of 23

Divorce Court Cannot Decide on Bankruptcy Obligations

Posted on May 23, 2017by Admin

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

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

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

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

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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, Debt Relief, Student Loans

Government Pays $1B a Year on Student Loan Debt Collectors

Posted on May 22, 2017by Admin

According to a recent report, the federal government has spent $1 billion a year to pay debt collectors to help struggling borrowers make regular monthly payments on their student loan debt. But based on the data, their efforts have been a waste of money.

Nearly half of the student loan borrowers who had defaulted on their student loan payments and worked with the debt collectors defaulted again in three years, according to a report in Bloomberg News.

The data came from the Consumer Financial Protection Bureau (CFPB), which also found that debt collectors get up to $1,710 in payments from the Department of Education in the U.S. each time a borrower makes good on a debt after working with a debt collector through a process known as “rehabilitation.” The debt collector keeps the money, even if the borrower defaults again.

The CFPB told Bloomberg that the government should reexamine whether the program and the contractors awarded to private debt collection are working to truly help the millions of Americans suffering with crippling student loan debt that now stands at $1.4 trillion.

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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, Debt Relief, Student Loans

Public Service Student Loan Forgiveness Program- Here’s how you qualify

Posted on May 19, 2017by Admin

The government’s Public Service Loan Forgiveness Program promises to cancel any remaining student debt for those who work government jobs or for non-profit organizations and have been making continuous payments for 10 years. The first borrowers to receive forgiveness will be eligible in October of this year, which is 10 years from the launch of the program.

Many teachers, public defenders, Peace Corps workers, and law enforcement officers may qualify for forgiveness. More than 400,000 people have applied for the program so far, but signing up for the program can be a confusing, (and not surprisingly) complicated process.

Here are 5 steps you can take to help ensure your eligibility:

Find out if your job qualifies. There are three different types of jobs eligible.

Government jobs, which include federal, state, local and tribal government entities, as well as the military, Peace Corps and AmeriCorps positions.
People who work for a 501(c)(3) non-profit.
People who work for a non-profit that does not have 501(c)(3) status, but provides a public service.

Turn in the Employment Certification form annually. Ask your loan servicing company to certify that your employer qualifies on an annual basis and keep detailed records. Otherwise, you risk finding out that your job does not qualify after making years of payments.
Verify you have the right kind of loan. Only Direct Loans qualify for this forgiveness program.
Enroll in an income-driven repayment plan, each year. You must be enrolled in an income-driven repayment plan for at least a portion of your repayments. These plans cap your monthly bill at a certain portion of your income.
Make 120 qualifying monthly payments. FedLoan Servicing will tell you how much you need to pay each month for the payment to count toward the 120 needed to receive debt forgiveness. If you pay any less, it will not count. And if you pay more, it will only count as one payment. Payments must be made no later than 15 days after the due date. Any payments you make while in school, during the six-month grace period after school, or while in deferment or forbearance do not count toward the 120.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Supreme Court Supports Bids to Collect Expired Debts in Bankruptcy

Posted on May 18, 2017by Admin

Voting 5-3, the U.S. Supreme Court has ruled that debt collectors can use bankruptcy proceedings as a means to collect old debts, where the statute of limitations has expired. The court ruled that this was not a violation of the U.S. Fair Debt Collection Practices Act.

Consumer advocates accused debt collectors of violating the law by filing tens of thousands of outdated claims with bankruptcy courts in hopes that some debtors would not object.

Justice Sonia Sotomayor filed a dissenting opinion in which Justices Ruth Bader Ginsburg and Elena Kagan joined. “Professional debt collectors have built a business out of buying stale debt, filing claims in bankruptcy proceedings to collect it, and hoping that no one notices that the debt is too old to be enforced by the courts. Debt collectors do not file these claims in good faith; they file them hoping and expecting that the bankruptcy system will fail,” Sotomayor wrote. This practice is both “unfair” and “unconscionable,” she added.

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Foreclosures, Timothy Kingcade Posts

Miami–Dade has Second Highest Rate of Repeat Foreclosures in the Nation

Posted on May 17, 2017by Admin

Miami-Dade County has the second-highest rate of repeat foreclosures of any major market, according to a newly released report from Attom Data Solutions. New York City took the number one spot.

Miami-Dade’s rate was 32 percent, followed by Los Angeles County with 39 percent and Maricopa County (Phoenix), with 26 percent, according to Attom’s April 2017 report. New York’s rate was 54 percent.

A repeat foreclosure is defined as a foreclosure start filed in 2016 on a property with an address and owner’s last name combination that also showed a previous foreclosure start with the same property address and owner combination in the last 10 years, according to Attom.

Nationwide foreclosure activity in April dropped to the lowest level since November 2015. Miami-Dade saw its foreclosure rate fall 35 percent in April, year-over-year, to 986 foreclosure filings from 1,509 filings in April 2016.

Miami-Dade’s rate of foreclosures still remains higher than Broward County, which had 730 and Palm Beach County 578 in April.

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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, Debt Relief, Timothy Kingcade Posts

Medical Debt Collectors Accused of Using Aggressive Tactics to Collect

Posted on May 16, 2017by Admin

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.

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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

Lawyer’s Response to His Client’s Facebook Inquiries Result in Suspension

Posted on May 8, 2017by Admin

A Nebraska lawyer’s lackadaisical responses to his client’s inquiries on the social networking site, Facebook have resulted in him being suspended for 90 days. The Nebraska Supreme Court approved the suspension in an April 27 opinion, which includes a one-year probationary period of monitoring in a conditional admission to the allegations.

The lawyer, Dustin Garrison, was accused of failing to adequately answer his client’s questions and explain the status of his client’s personal injury case against a driver who was in a car registered to a Texas corporation.

According to the ethics charges against Garrison, he responded to his client’s Facebook inquiries with statements such as:

Relax.
I will take care of it.
I will explain later.
We are fine.
Be happy. We are in the driver’s seat.
I’m busy right now.
U realize we sued the wrong company right? We got the money from a company that had it. The correct company would never have had this type of money to pay our judgment.
This is complicated.
We’ve been busting our asses getting ready for this hearing.
I can’t explain the whole process.

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

Millennials owe a Record Amount of Debt

Posted on May 5, 2017by Admin

Millennials (also known as Generation Y), those 21 to 34-year-old hold an estimated $1.1 trillion of the country’s $3.6 trillion in consumer debt. Rising student and auto loans are outweighing a decline in mortgages.

With all of the rising debt comes the risk of default. There is evidence that millennials are curbing their spending habits when it comes to smaller purchases, whether searching for the lowest price or waiting for the best time to buy.

But concerns over student loans and auto loans remain. A growing amount of auto loan debt comes from leasing, with 32% of millennials choosing to lease in 2016, up from 21% in 2011, according to a report from Edmunds. Households making $50,000 or less, millenials made up 21% of lessees.

If millennials pay their student loans over their auto loans, lower-credit-score applicants could have a hard time financing vehicle purchases. If that happens, automakers could be in trouble.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

How the Affordable Healthcare Act Had an Impact on Personal Bankruptcy Filings

Posted on May 4, 2017by Admin

As legislators and the President focus their efforts on the repeal and replacement of the Affordable Care Act, they may want to keep in mind the financial consequences. Since its inception, far fewer Americans have filed for personal bankruptcy. Personal bankruptcy filings are down 50 percent since 2010. Coincidentally, those same seven years represent the time frame when the 2010 federal law designed to provide health insurance coverage for the majority of Americans took effect.

Personal bankruptcy filings have dropped from 1,536,799 in 2010 to 770,846 in 2016. Medical bills remain the leading cause of personal bankruptcy. Unlike other debts, medical bills are often unexpected, involuntary, and can be for very large amounts.

Two other contributing factors add to the decline: an improved economy and changes to bankruptcy laws in 2005 that made it more difficult and costly to file. However, expanded health coverage played a significant role in the recent decline of personal bankruptcy filings.

Some of the most important financial protections of the Affordable Care Act apply to all consumers, whether they get their coverage through Obamacare or the private insurance marketplace. These provisions include mandated coverage for any pre-existing conditions, an end to annual and lifetime coverage caps. It also allows young people to be covered by a family policy until age 26.

The first attempt to repeal and replace the Affordable Care Act was in March, failed to gain enough Congressional support and never came to a vote. Then in April, details of a new replacement plan were released. Although President Trump has said that the new version will cover pre-existing conditions, the revised law gives states discretion to allow insurance companies to increase rates for consumers with an existing illness.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The High-Tech Methods Debt Collectors are using to Find you- and Your Money

Posted on May 3, 2017by Admin

Debt collectors are using some new high-tech tactics to collect and track down consumers. New software is allowing debt collectors to insert voicemails into phones by the thousands without a single ring, bypassing regulations that restrict how often they can call consumers.

Ringless Voicemails

Companies such as Stratics Networks maintain that because no phone calls are made, regulations prohibiting auto-dialed collection calls do not apply. But consumer protection attorneys disagree, arguing that just because the phone does not ring, does not mean it’s not a call. The Telephone Consumer Protection Act forbids debt collectors from harassing consumers.

Avatars

Animated cartoon characters show up in borrowers’ inboxes and smooth-talk borrowers into paying up. Collections managers design personalities of avatars, who speak multiple languages and weigh debtors’ credit scores when negotiating payment.

Speech Analytics

Advanced language-recognition programs not only track keywords during a conversation but identify the emotion of the borrower. Cursing out a debt collector? Prompts generated by CallMiner Inc. software help steer conversations back on track.

Supervisors using the speech-analytics company’s system see color-coded boxes on call-center computer monitors. Small green boxes represent routine conversations. During those calls, agents are reminded to recite mandatory “mini-Miranda” statements that inform consumers of their rights. But a box turns red and expands when a call contains expletives or long silences.

Skip Tracing, Spoofing and Scrubbing

In a practice called skip tracing, collection agencies search databases to find borrowers who have skipped out on paying their debts. Some collectors track debtors on Facebook and other social media sites. A Texas agency is linking Social Security numbers to social media accounts, raising privacy concerns. Another tactic known as spoofing, debt collectors insert local area codes in caller-ID displays, enticing the person being called to answer the phone. The Consumer Financial Protection Bureau is proposing to ban the practice.

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 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.