Kingcade & Garcia Archives - Page 11 of 52

Former NFL Running Back Clinton Portis Files for Bankruptcy

Posted on December 21, 2015by Admin

Clinton Portis, former Washington Redskins and Denver Broncos running back, who made more than $40 million during his NFL career, has filed for bankruptcy. With that amount, most of us would be set for life, but Portis is flat broke. This shouldn’t come as a huge surprise, since studies have shown that a high percentage of NFL players declare bankruptcy after their game days are over. A Sports Illustrated (SI) article from 2009 indicated that after two years of retirement, a whopping 78 percent of former NFL players went bankrupt or suffered financial stress due to joblessness or divorce. Taken in total, almost 16 percent of the players studied declared bankruptcy during the first twelve years of retirement.

The federal bankruptcy filing showed Portis owes nearly $5 million to creditors, including $500,000 to his own mother. Portis, 34, also lists debts of $500,000 to Entertainment Tonight correspondent and former sideline reporter Nischelle Turner, $412,000 in “domestic support obligations” to four different women, and $175,000 in car loans, according to court records.

But Portis’ biggest debt is owed to a mortgage company. The debt is listed as a “mortgage deficiency” of $1,023,020. Portis also owes the IRS $390,000, an amount he is disputing. The MGM Grand Hotel and Casino has also won a judgment of $287,178 against Portis.

Some of the running back’s failed business ventures attributed to his bankruptcy filing, which included sinking $8 million into a casino that went belly-up, and putting $2 million into a ‘wealth management’ firm that was later termed a Ponzi scheme.

Portis rushed more than 1,200 yards during his nine-season NFL career. He finished with 9,923 rushing yards and 80 total touchdowns. Portis’ final NFL game was with the Redskins in November 2010. A hearing is scheduled for Portis’ bankruptcy case on February 4, 2016 at the U.S. Courthouse in Gainesville, FL.

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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.

Foreclosures, Timothy Kingcade Posts

SunTrust to Pay Florida Homeowners as Part of Multi-State Mortgage Abuse Settlement

Posted on December 18, 2015by Admin

More than 4,000 Florida residents will be receiving checks this week from SunTrust Mortgage as part of a multi-state settlement over mortgage origination, servicing and foreclosure abuse. SunTrust has agreed to a $550 million joint state-federal mortgage settlement. The banking giant began mailing checks to claimants on December 8, totaling more than $1,300 for each valid claim.

SunTrust entered into the three-year settlement that provides direct payments to Florida borrowers for past foreclosure abuses, loan modifications and other relief for borrowers in 2014. The bank also had to agree to more stringent mortgage servicing standards and to oversight authority by an independent monitor.

According to the agreement, Florida, 48 other states, the District of Columbia and the federal government required SunTrust to provide $550 million in various forms of relief to homeowners, including a $40 million fund to payments to certain borrowers who lost their homes in foreclosure.

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

Make Managing Your Student Loan Debt an Objective this New Year

Posted on December 17, 2015by Admin

It’s almost the New Year and if managing your student loan debt is one of your resolutions in 2016- this post is for you. Student loan debt is the only form of consumer debt that has grown since the peak of consumer debt in 2008. Balances of student loans have surpassed both auto loans and credit cards, making student loan debt the largest form of consumer debt outside of mortgages, according to the Federal Reserve Bank of NY.

Below are some actionable items that can help you start off on the right foot when it comes to managing your student loan debt in 2016.

Take Inventory of your Debt. Create a detailed list of all of your liabilities starting with the highest cost debt, first. Private loans are often more costly than federal loans, due to their higher interest rates and less flexible repayment terms. Begin to pay down the highest cost obligations more aggressively.

Alert your Lender and Prepay your Loans. Even if it is a small amount each month, a prepayment will reduce the amount of interest you pay and the length of time you have the loans outstanding. You may need to let your lender know that you want to pre-pay your loan with the extra payments.

Check and See if your Loans are Tax Deductible. In certain cases, student loan debt is tax deductible. Your deduction can reduce the amount of your income subject to tax by up to $2,500 subject to income limitations. Remember, the student loan interest deduction is claimed as an adjustment to income.

Consider Consolidation. If your goal is to purchase a home this year, you may want to lower your monthly student loan payment to qualify for better mortgage terms. Consolidating your loans and lengthening your repayment schedule can help improve your mortgage approval prospects.

Live Below your Means. A sound financial plan begins with spending less than you make. This can be difficult to do- but once you are free of debt imagine the possibilities of what you can do with the extra cash- savings, vacations, etc.

Consider Borrowing against Home Equity while Creating a Repayment Plan. If you own your home, you should consider a “cash out refinance” to benefit from potentially lower cost debt that may be tax deductible. You should also consider a home equity line of credit as you may qualify for a lower interest rate and tax deduction.

Whatever you decide, make sure the approach you take is a methodical one. Write down a list of your financial obligations and think measurable objectives. You have options and help is here.

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, Timothy Kingcade Posts

This County wants to ease the burden of student loan debt for its residents

Posted on December 15, 2015by Admin

Lawmakers in Montgomery, Maryland are in the process of developing legislation that would allow them to “establish a loan authority,” a move that would give the county the ability to leverage its municipal borrowing power to extend the lowest interest rates to its residents. It’s also a way the county hopes to attract young, college-educated workers and entrepreneurs.

If the bill succeeds in the next legislative session, Montgomery would join a growing list of states entering the student loan market to ease the burden of student loan debt for its residents. Minnesota, Maine, North Dakota, California and Connecticut have passed legislation that allows them to refinance student loans, while politicians in Virginia and Wisconsin are fighting for the same. Proponents say student loan debt has become a significant economic barrier, keeping people from full participation in the local economy.

However, refinancing federal student loans through state authorities could mean forfeiting consumer benefits like income-driven repayment plans and public-service loan forgiveness. At this time, there are few options for lowering interest rates on student loans. Consolidating federal loans will bring down the rate by only a small percentage, because the interest is calculated by taking an average of those rates. Consumers who are considering these programs need to evaluate what they might be giving up. If the interest rate difference is not that much, it may not be worth it.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What is “good debt” and how to make it work for you?

Posted on December 14, 2015by Admin

The word “debt” predominately carries a negative connotation. However, some debts are good for you as all financing is not created equal. So what is good debt? Good debt is “any debt that offers a return on investment.” For example, a mortgage is often considered good debt. Other examples of good debt include: federal student loans (which offer greater protections for borrowers and come with the potential return of a higher salary and improved job prospects), and low interest lines of credit taken in order to invest in stocks or retirement funds.

Bad debt is any credit that you are taking out and using without a clear-cut plan of paying it back. Think of using a high-interest credit card to fund a shopping trip or taking out a payday loan to cover extra holiday spending.

Most credit score models reward consumers for having a diverse portfolio of accounts and revolving debt, like credit cards, depending on how much of the credit you are going to use and pay off each month. Making on-time payments and keeping your balances low on these cards is important when it comes to keeping a healthy credit score.

So how can consumers avoid taking on bad debt? First, remember that you do not have to take every credit card that comes your way. Ask yourself if you will be able to pay off the debt. If you do not have a plan to pay off the debt, it is probably a bad debt.

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Foreclosures, Timothy Kingcade Posts

Foreclosure Filings Fall in South Florida

Posted on December 10, 2015by Admin

South Florida had a sharp decrease in foreclosure filings in November, losing its spot on the “Top 10 states with the highest number of foreclosures,” according to RealtyTrac’s foreclosure report. There was one foreclosure filing per 645 homes in South Florida, ranking 12^th among metro areas. The region once had the highest foreclosure rate in the nation. However, with property values rising, homeowners who were previously underwater have been able to refinance or sell their homes.

Banks are continuing to work through the backlog of foreclosures. The recent numbers mean the share of active foreclosures tied to the housing bubble burst are shrinking, with 59 percent of all loans in foreclosure originated between 2004 and 2008. It continues to decrease from 61 percent earlier this year and 75 percent two years ago, according to Daren Blomquist, VP of RealtyTrac.

There were 3,824 South Florida foreclosure filings in November, down 38.9 percent from the same month a year ago. This total includes new lawsuits, judgments and repossessions. Repossessions accounted for the largest amount at 1,845, as most of the foreclosures are in their final stages.

Atlantic City, New Jersey led the nation in foreclosure filings with one foreclosure every 307 homes.

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Foreclosures, Timothy Kingcade Posts

South Florida Still in Need of Mortgage Debt Forgiveness

Posted on December 9, 2015by Admin

South Florida was hit harder by the 2008 mortgage, housing, banking and economic crises than any other region in the U.S. and continues to lag behind the nation as a whole in the housing market recovery. We continue to hear stories of families who are struggling to piece their financial lives back together after this seven year ordeal. To make matters worse, without the re-authorization of the Mortgage Debt Relief Act, a number of South Florida homeowners will continue to be unjustly burdened.

The Mortgage Forgiveness Debt Relief Act eliminates the income tax on forgiven mortgage debt, eliminating a particularly punitive burden resulting from plummeting home values. In the aftermath of the housing crisis, many homeowners found that their homes were underwater- worth far less than their outstanding mortgage balance.

The most recent foreclosure statistics reveal that Florida’s foreclosure activity remains the nation’s second highest. Five Florida cities were among the 10 highest foreclosure rates for metro areas in the U.S. in the third quarter, including Jacksonville (No. 2), Deltona-Daytona Beach-Ormond Beach (No. 3) Tampa (No. 4), Miami (No. 5), Lakeland (No. 7) and Ocala (No. 8).

Without the re-authorization of the Mortgage Forgiveness Debt Relief Act, any forgiven principal reduction is currently taxable in 2015. This means struggling homeowners, who have already faced job loss and sought loan modifications, will be left owing thousands of dollars in taxes this year on top of the loss of their home and its equity.

Banks and investment firms in the mortgage industry have received numerous breaks throughout the recovery. South Florida homeowners, who have been hit particularly hard by the crisis, have earned the right to this temporary tax break. We urge the Florida congressional delegation to pass the Mortgage Forgiveness Debt Relief Act.

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Bankruptcy Law, Credit, Debt Relief

RushCard Disruption Reveals Flaws in Prepaid Debit Cards

Posted on December 8, 2015by Admin

Thousands of account holders of one of the most popular prepaid debt cards, the RushCard, found themselves unable to access their funds for the better part of two weeks. Essentially, they could not purchase groceries, pay rent or purchase gas using their cards because of a so-called “technology transition,” the company said. Hip-hop mogul, Russell Simmons who is the founder of the card simply said he was “praying” for those affected, in a since-deleted tweet.

It’s a sad reality that the poorer you are the more you pay for banking in America- but it can also be dangerous to live outside the mainstream banking system as this type of problem is not limited to RushCard. The Pew Charitable Trusts reported in June that about 23 million Americans use prepaid cards such as RushCard regularly, up about 50% between 2012 and 2014, with many treating them like bank accounts and having their pay checks directly deposited to the card.

It’s not the first time that a prepaid debit card backed by a celebrity and marketed directly at the financially most vulnerable segment disappointed consumers. Last year, Suze Orman and Bancorp Bank shut down their approved card project. Part of the card’s marketing pitch was that this might be a way for Americans with poor credit to rebuild their damaged FICO scores. However, the minimum annual cost to use Orman’s product for a typical “unbanked” consumer came closer to $81 in fees.

For many individuals, using these type cards seem like a rational choice, as a number of banks are beginning to charge fees for smaller accounts. The banking industry has stopped serving those who are “too poor to bank”, pushing them into the arms of non-bank service providers to provide the most basic services: to cash pay checks, pay bills or transfer money. But in reality, consumers are forking over approximately 10% of their income for these services when they use these type cards.

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Bankruptcy Law, Student Loans, Timothy Kingcade Posts

More Student Loan Debt Forgiven for Corinthian College Students

Posted on December 7, 2015by Admin

The government is erasing student loan debt for more than 7,000 former students of the now-defunct Corinthian Colleges- totaling over $100 million. According to a recent report, the Education Department has approved a second wave of loan forgiveness for students who attended this college and took out loans. This one is for students who filed “borrower’s defense” claims with the government, alleging they were lied to or mislead. At one time, Corinthian was one of the largest chains of for-profit colleges, but filed for bankruptcy protection in May 2015 after allegations of fraud surfaced.

The department’s undersecretary, Ted Mitchell said, “We will continue to provide forgiveness to every student who has been similarly mistreated.”

In a progress report released by the department, Joseph Smith, who is overseeing the debt relief, said his team has approved relief for 1,300 former Heald College students, totaling nearly $28 million in loans that now will not have to be repaid to the government.

Heald, which had campuses in California, Hawaii and Oregon, was one of three schools under the Corinthian umbrella. The other two were Everest (with 10 Florida campuses) and WyoTech.

Another 5,800 former students from Heald, Everest and WyoTech who filed “closed-school” claims with the government will see their debt discharged, totaling $75 million. It is expected that tens of millions of dollars of additional relief will be granted in the coming months under the closed-school claims.

Education officials have predicted that if all Corinthian students who borrowed government money (dating back to 2010) would seek relief, the total cost would be $3.2 billion in student loan debt relief.

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Bankruptcy Law, Credit, Student Loans, Timothy Kingcade Posts

Student Debt in America: Extend with a Smile, Collect with a Fist

Posted on December 4, 2015by Admin

The student loan debt crisis is nothing new, but the interest accruing on these loans represents a new threat. Of the 43.3 million borrowers with outstanding federal student loans, 1.8 percent, or 779,000 people, owes $150,000 or more. And 346,000 owe more than $200,000. A Missouri high school teacher and mother of four owes the federal government a staggering $410,000! She took out loans for her undergraduate education, but also for law school, which she was unable to complete after becoming ill with a life-threatening autoimmune disease that required a lengthy hospitalization. Today, the interest has accumulated to twice the original principal. The monthly loan payments of $2,750 will stretch for 30 years.

With her forbearance options exhausted, the loan servicer has threatened to “come after her,” garnishing her wages and eventually her social security. This woman’s story reveals the deep contradictions in the federal government’s approach to student loans. People have always struggled with debt and access to capital is what fuels the modern economy. Borrowing for college is often seen as a good idea because it represents an investment in a person’s future potential. However, borrowing is risky and people often do a poor job- particularly young people- of properly weighing the interests of their present and future selves.

The private enterprise system is built to limit over-borrowing by sharing risk between lenders and borrowers. Lenders examine credit and income histories and ask for collateral that can be repossessed in case of default. Because most loans can be discharged in bankruptcy, lenders share on the cost of default. But federal student loans do not work that way. “No Cash? No Credit? No Problem!” is essentially the Department of Education’s policy on student loans.

The number of active borrowers enrolled in college has declined roughly nine million today from about 12 million in 2010, according to the Federal Reserve Bank of New York. But the total amount of outstanding student loan debt continues to increase, because many borrowers are struggling to pay back their older loans.

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