Kingcade & Garcia Archives - Page 16 of 52

Bankruptcy Law, Credit, Timothy Kingcade Posts

Steps to Protect your Credit Score when you get Married

Posted on February 25, 2015by Admin

Many people assume that once you are married, you automatically take on your spouse’s past credit and any debt they have. This is not the case. However, things change when you start incurring debt during the marriage. Once you open a joint account with your spouse, you are both responsible for the debt incurred. If you have worked hard to maintain your credit score and your spouse or future spouse has not, it can greatly impact your own credit score. Below are a few tips to protect your credit score in marriage.

1. Understand your liability for your spouse’s debts: You are not automatically responsible for your spouse’s debts once you say “I do.” However, if you have opened a joint account, applied for joint credit, cosigned on a loan or added your spouse as an authorized user, your credit score will reflect any of your spouse’s financial mistakes. If your spouse incurs debt during the marriage, you may be responsible for the debt to creditors if you live in a “community property” state. If you live in a common law state, you are generally only responsible for debts in your own name. Florida is a community property state.
2. Share your financial past with your spouse: Before you getting married, make sure you know of any debt or past debt your future spouse has owed and vice versa. When you’re planning a wedding, it may seem insignificant; however, disagreements about money is a leading cause of divorce.
3. Wait until you have your finances in order: If your partner has substantial debt, experts suggest waiting until you both have your finances in order to tie the knot. If you do not want to wait, you may consider waiting to open up a joint account in the marriage.
4. Make major purchasing decisions together: Make sure you both agree on when and how to make major purchases before tying the knot.
5. Consider applying for credit individually: If your spouse does not have responsible spending habits; you may want to consider applying for credit individually. If your spouse’s credit score is low, it can make your interest rate higher than usual.
6. Be careful when you cosign: Do not cosign on anything your spouse wants to purchase unless you are fully prepared to make the payments if your spouse fails to do so.
7. Add he or she as a joint account holder: If you decide to add your spouse as a joint account holder, your spouse is then responsible for the balance. The only way it will hurt your credit score is if your spouse uses all of your available credit or an amount that you cannot pay.
8. Add he or she as an authorized user: By adding your spouse as an authorized user, they are not responsible for the debt. They can however, get you in trouble if they spend more than you can afford to pay.
9. Keep your individual accounts open: Even if you open a joint account, keep your individual accounts open. The length of your account history is a factor in your credit score.
10. Consider legal agreements: Although it may make for an uncomfortable conversation, prenuptial agreements can be one of the best ways to protect you from your spouse’s debt in case you divorce. Prenuptial agreements let you and your spouse agree upon how debt and assets will be handled if the marriage does not last.

Click here to read more on ways to protect your credit score when you get married.

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

Who will Claim $380 Million in Unspent Foreclosure-Abuse Money?

Posted on February 24, 2015by Admin

After a 2013 settlement, the Federal Reserve and Office of Comptroller of the Currency are attempting to reissue checks to borrowers whose homes were improperly foreclosed on between 2009 and 2010. The nearly 600,000 checks being reissued range from several hundred dollars to $125,000. In many cases, the Federal Reserve is reissuing these checks to updated addresses. Approximately $3.1 billion dollars has already been cashed or deposited by homeowners who suffered from the foreclosure-related abuse.

An independent review of the banks’ foreclosure practices was conducted in 2011 and found that bank employees were processing foreclosure cases without personally verifying accounts. It was also discovered that the banks were improperly denying loan assistance to homeowners, made errors in assistance plans and charged improper fees. Ultimately, fifteen banks signed the multi-billion dollar settlement leading the Federal Reserve to reimburse some 4.2 million borrowers.

Click here to read more on who will be claiming the $380 million in Unspent Foreclosure-Abuse Money.

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

Protecting Military Service Members from Predatory Loans Issue of National Security

Posted on February 20, 2015by Admin

Laws such as the Military Lending Act are intended to reduce service members’ likelihood of ending up in debt to predatory creditors by capping interest rates on loans at 36%; prohibiting “roll over” loans where the borrower pays off an existing debt with another loan (usually with less favorable terms); eliminating forced arbitration with creditors; banning creditors from requiring that they carve out an automatic amount of money from their paycheck to pay back your loan; and forbidding prepayment penalties for borrowers who pay back some or all of the loan early.

These rules, which protect our military are not just about doing something nice for our soldiers, it is an issue of national security. While it is unfortunate for any consumer to end up with revolving debt, there are particular concerns when the borrower is a service member. Someone looking for unauthorized access to military information or assets may be able to leverage that debt in their favor. This is why service members with significant debt on their credit reports may end up having their security clearance lowered or taken away. Some debt collectors are using this as leverage when trying to get service members to pay up, threatening to reveal their financial situation in a way that will negatively impact their position in the military.

According to the Consumer Financial Protection Bureau, some debt collectors have even threatened to tell the soldier’s superiors about the debt and when their status comes up for review. Such contact is illegal as outlined in the Fair Debt Collection Practices Act. Even if a soldier’s security clearance is damaged by debt, they can appeal their case to an Administrative Judge of the Defense Office of Hearings and Appeals, where they will be given a chance to explain how they ended up in debt and what they are doing to address the problem. This can include the soldier showing that they are currently living within their means; that they are making a good faith effort to resolve the unpaid debts; disputing debts that are not theirs, etc.

Click here to read more on this story.
http://consumerist.com/2015/01/09/protecting-military-servicemembers-from-predatory-loans-is-a-national-security-issue/

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, Credit, Timothy Kingcade Posts

Many States have cracked down on Predatory Payday Loans- But how are Lenders Still Evading the Law?

Posted on February 19, 2015by Admin

Several states have passed legislation, which regulate or completely outlaw payday loans. These types of predatory loans often charge triple-digit interest rates and tend to be a last resort for the poor and extremely desperate consumer. The business of lending to the low-income is a lucrative one and lenders continue to find loopholes.

Below are just five ways lenders have dodged current legislation:

1.) Disguising themselves as “other kinds” of lenders. Many payday lenders have become licensed as mortgage lenders, which operate under different rules and allow them to continue what they are doing.

2.) Altering the definition of “payday lending.” In 2006, Congress passed the Military Lending Act, which in part forbids lenders from charging active military households more than 36 percent interest on short-term loans. That provision has been something of a failure, according to the Consumer Financial Protection Bureau. The problem lies in the definition of a short-term loan. For example, the law regulates payday loans of 91 days or shorter; to evade this law, many lenders are offering loans just slightly longer than 91 days.

3.) Issuing simultaneous loans. Payday lenders are splitting up big loans into small, concurrent loan. For example, in Mississippi, two-week loans cannot exceed $250. Instead, lenders are giving four $100 loans at the same time. Whereas it is illegal to make a $400 loan due in only two weeks, the four $100 loans is perfectly legal.

4.) Referring to themselves as loan middlemen. Many payday lenders have registered themselves as “credit repair organizations.” These groups operate as middlemen, connecting customers to law-abiding loans from third-party lenders. So how do they make their money? By tacking their own fees on top of each transaction.

5.) Using Indian tribes to evade the law. Some payday lenders are partnering with Indian tribes to exempt themselves from local lending laws. These lenders tend to operate online, which allow them to offer their services nationwide- including states where payday lending has been banned.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Consumers Still Struggling with Medical Debt

Posted on February 18, 2015by Admin

The Federal Health Care Law was intended to keep an unexpected illness or injury from bankrupting Americans. When calling for the law’s passage, President Obama proudly declared, “people shouldn’t go broke because they get sick.” Even though the Affordable Health Care Act has authorized states to expand eligibility for Medicaid and created online insurance markets for those without employer coverage to qualify for federal subsidies- it hasn’t solved the problem.

In 2013, medical debt was the largest cause of personal bankruptcy — 1.7 million people lived in households experiencing bankruptcy because of health costs. The health care law brought regulations that limited for the first time the cost-sharing in plans. For example, an individual plan sold on an exchange cannot include out-of-pocket costs greater than $6,600. In practice, the average deductible (which must be paid before insurance kicks in), varies based on how expensive a plan is. This regulation still only applies to “in-network” doctors and specialists, which can be a short list. Many vulnerable consumers are incurring medical debt by visiting unapproved doctors or hospitals.

Deductibles keep growing. Last year, work-sponsored insurance plans had an average deductible of about $1,200. In 2009, the average deductible was $826. And this year, the silver plans sold through the federal marketplace require people to pay on average more than $2,500 or approximately $3,500 before their insurance benefits kick in. Bronze plans, known for having cheaper monthly premiums have average deductibles of about $5,300.

Even with the Affordable Health Care Plan in place, efforts to regulate how providers can collect on patient debt remain limited. For instance, hospitals and doctors can still obtain judgments, garnish paychecks and go after people’s assets, including their homes.

Click here to read more on this story.
http://www.usatoday.com/story/news/2015/02/01/consumers-still-struggling-with-medical-debt/22587749/

Bankruptcy Law, Credit, Timothy Kingcade Posts

BBB’s Top 10 Scams of 2014

Posted on February 17, 2015by Admin

The Better Business Bureau hears from thousands of consumers and business owners each year, reporting a variety of scams and frauds. Below are the Top 10 scams they consider to be most ‘pervasive’ last year:

10. Sweepstakes Scam: The scammers alert you that you have won a contest, a prize or the Publishers Clearing House Sweepstakes! All you have to do is pay some taxes and fees before you collect. This is not a new scam, but continues to be a common one.
9. Click Bait Scam: This scam can take many forms, but the most notorious one this year was when Malaysian Airline Flight 370 went missing, prompting online users to “click here for video.” Enticing stories like this, celebrity images and other fake news can get you to unintentionally download malware.
8. Robocall Scam: “Rachel from Cardholder Services” claims to be able to lower your credit card interest rates, taking personal information (i.e. – your card number) and charging fees to your card.
7. Government Grant Scam: You get a call saying you have been awarded a government grant for thousands of dollars. All you have to do is pay a couple hundred dollars in fees by wire transfer or a prepaid debit card.
6. Emergency Scam: Often referred to as the “grandparent scam,” because it preys on the elderly, the victim receives a call or email claiming to be a grandchild who has been severely injured, robbed or stabbed while overseas and they need money immediately via wire transfer.
5. Medical Alert Scam: This scam also preys on the elderly. The victim receives a call or visit from a company claiming a concerned family member ordered you a medical device in case of emergency. They take down the victim’s credit card or banking account information, but they receive nothing in the mail.
4. Copycat Website Scam: You receive an email, text message or social media post for an excellent deal on a popular product. You click through to what appears to be a popular retailer’s website, but when you order the product, nothing arrives. Now the company has your payment information and personal information.
3. “Are you calling yourself” Scam: The latest phone scam trick puts your phone number in the caller ID, getting you to pick up the phone out of curiosity or return the call.
2. Tech Support Scam: You receive a call or pop-up on your computer screen claiming to be a Microsoft representative from Norton or Apply, regarding a problem on your computer. The scammer says if you give them access to your hard drive, they can fix the problem. Instead, they install malware and have full access to your computer allowing them to steal your personal information.
1. Arrest Scam: You receive a phone call from someone claiming to be a police officer or government official, who says they are coming to arrest you for unpaid taxes or missing out on jury duty. The victim can avoid this by sending money via a prepaid debit card or wire transfer. Being threatened with arrest is scary and most people ultimately pay out of fear.

The Better Business Bureau has identified ways consumers can avoid becoming victims to these scams:
• Do not let anyone pressure you into making fast decisions.
• Research the organization. A quick Google search or visiting www.bbb.org, will bring up any complaints made against the company.
• Never provide your personal information (i.e. – address, date-of-birth, social security number, banking information, ID etc.) to people you do not know.
• Never click on links from unsolicited emails or text messages.
• If you are unsure about a call or email that claims to be from your bank, utility company, etc., call the number on your bill or the back of your credit card to verify.
• Never send money by wire transfer or prepaid debit card to someone you do not know or have never met in person.
• Never send money for an emergency situation unless you have been able to verify the emergency.

Click here to read more on this story.
http://www.bbb.org/council/news-events/news-releases/2015/01/bbb-top-ten-scams-of-2014/

Bankruptcy Law, Credit, Timothy Kingcade Posts

‘70s Pop Icon, David Cassidy Files for Personal Bankruptcy in South Florida

Posted on February 16, 2015by Admin

David Cassidy filed for Chapter 11 bankruptcy protection last week in Fort Lauderdale, where he owns a waterfront home. The 64-year-old former teen idol with hits like “I Think I Love You” and “I Woke up in Love This Morning,” reported debts including a $292,598 mortgage, $39,102 on credit cards and considerable attorney and accountant fees. Cassidy listed assets and debts in the estimated range of $1 million to $10 million.

The clerk’s office concluded that Cassidy’s petition was incomplete for missing 16 documents, including forms listing real property, creditors holding secured claims, executory contracts, unexpired leases and current income. All are due by February 25th.

The filing said Cassidy owes money to more than 10 lawyers and accountants in South Florida. Hallandale Beach attorney, Brian Rodier who represented Cassidy from 2006 to 2011 claims Cassidy racked up $134,221 in legal bills, which he never paid. According to the bankruptcy filing Cassidy owes American Express $21,952 and the Villas at Polo Towers in Las Vegas $1,420 in maintenance fees, where he frequently performs.

The former star and teen heartthrob of the 1970s TV show, “The Partridge Family,” has struggled the past several years. He faced four drunken-driving charges, court-ordered rehabilitation and his wife, Sue Shifrin, filed for divorce last year. Cassidy has been a defendant in 12 civil cases in Broward Circuit Court, with several still pending. One of them involved a foreclosure on a Fort Lauderdale penthouse.

Click here to read more on this story.
http://www.dailybusinessreview.com/id=1202717845853/70s-Pop-Star-David-Cassidy-Isnt-Singing-I-Think-I-Love-You-Now-Files-Personal-Bankruptcy?mcode=1202615581416&slreturn=20150115134105

Bankruptcy Law, Credit, Timothy Kingcade Posts

The Dirty Dozen Tax Scams for 2015

Posted on February 12, 2015by Admin

Aggressive phone calls top the IRS’s list of “Dirty Dozen Tax Scams of 2015.” The government has issued a warning to taxpayers- the early weeks of the filing season are when these phone scams are rampant.

Below is the complete “Dirty Dozen” list of tax scams to watch out for this year:

1.) Phone scams. Aggressive and threatening phone calls by criminals posing as IRS agents remain an ongoing threat to taxpayers. The IRS has seen a surge of these phone scams in recent months as these scam artists threaten arrest, deportation and license revocation.

2.) Phishing. Beware of fake emails or websites looking to steal your personal information. The IRS will never send you an email about a bill or refund. Even clicking on certain strange links and websites can allow scammers access to your personal information and passwords.

3.) Identity theft. Taxpayers need to be aware of the potential for identity theft, particularly around tax time and take every precaution to avoid becoming a victim.

4.) Return preparer fraud. Taxpayers need to be aware of criminals posing as tax professionals. These individuals set up shop each filing season to perpetrate refund fraud, identity theft and other scams.

5.) Offshore tax avoidance. It is a bad bet to hide money and income offshore. Taxpayers need to come forward voluntarily to get their taxes and filing requirements in order with the IRS’s Offshore Voluntary Disclosure Program.

6.) Inflated refund claims. Taxpayers need to be on the lookout for anyone who promises inflated refunds. Taxpayers should avoid anyone who asks them to sign a blank return, promises a large refund before looking at their records, or charges fees based on a percentage of the refund. These scams usually target their victims through flyers, word of mouth, advertisements, community groups and even churches.

7.) Fake charities. Taxpayers should be aware of fake charitable organizations anxious for donations. Oftentimes these charities have a similar or familiar sounding name to nationally recognized organizations.

8.) Hiding income with fake documents. Hiding taxable income by filing false Form 1099s or other fake documents is a scam that taxpayers should always avoid and guard against. In the end, the taxpayer is legally responsible for what is on his or her return, regardless of who prepares the paperwork and does the filing.

9.) Abusive tax shelters. Taxpayers should steer clear of using abusive tax structures to avoid paying taxes. The IRS is committed to putting a stop to these complex tax avoidance schemes and the people behind them. When in doubt, seek a professional’s opinion.

10.) Falsifying income to claim credits. Taxpayers should avoid inventing income to fraudulently claim tax credits. Taxpayers are sometimes talked into this by scam artists. A taxpayer’s best bet is to file the most accurate return possible.

11.) Excessive claims for fuel tax credits. The fuel tax credit is not available to most taxpayers and is generally limited to “off-highway” businessuse, including use in farming. However, the IRS routinely finds taxpayers who erroneously claimed the credit to inflate their refunds.

12.) Frivolous Tax Arguments. The penalty for filing a frivolous tax return is $5,000. Promoters of these schemes encourage taxpayers to make unreasonable and outlandish claims to avoid paying the taxes they owe.

Click here to read more on this story.
http://www.nbcphiladelphia.com/news/local/The-Internal-Revenue-Service-List-of-Dirty-Dozen-Tax-Scams-291445471.html

Foreclosures, Timothy Kingcade Posts

HARP: The Government Refinance Program the Banks Don’t want you to know about

Posted on February 10, 2015by Admin

Despite being launched in 2009, less than 0.5% of people have taken advantage of the Home Affordable Refinance Program (HARP). Few people know about it and even less know how to use it. HARP is designed to help homeowners obtain a more affordable, stable mortgage. It provides a bailout to help millions of homeowners save a significant amount of money by lowering their mortgage payments. Those who have taken advantage of the program have reduced their mortgage payments by as much as $3,000 a year.

The program expires in 2015, but there’s still time to get signed up. If you qualify and refinance through HARP, you may be able to take advantage of a number of significant benefits, including:

• Eliminating up to 15 years of mortgage payments and interest;

• Changing to a lower monthly payment;

• Refinancing at historically low rates.

Banks do not want you to benefit from the program, because it allows homeowners to switch lenders, taking millions out of their pockets and putting it back into the pockets of everyday people. If you feel like your mortgage interest rate is too high with your current lender, it probably is. HARP can help you switch to a new lender, one prepared to offer you today’s low rates, and you could save big. HARP is a government program and is totally free, so you have nothing to lose.

Click here to see if you qualify.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Parents with poor credit: Beware of this Student Loan Rule Change

Posted on February 5, 2015by Admin

There has been much criticism that federal student loans are too easy to get and that borrowers can take on large amounts of debt with little verification that they can ever pay it back. The Department of Education has announced new regulations that are aimed at one type of federal loan that currently does not require a credit check- Parent PLUS Loans.

PLUS loans are available to parents to help provide financing for children who do not qualify for enough financial aid on their own. But there are no specific limits on the amount that can be borrowed under this program- other than that parents cannot borrow more than the total cost of their child’s education after other financial aid has been deducted.

In the final regulations issued by the Department of Education, which go into effect March 29, 2015 borrowers who have an “adverse credit history,” may find it harder to qualify for these type loans. The evaluation will take into account whether the borrower has:

• One or more debts that are 90 days or more delinquent with a total outstanding balance larger than $2,085;

• Accounts placed for collection or charged off in the two years before the credit report is pulled;

• Bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a federal student loan debt in the past five years.

PLUS loans can be dangerous and are often accompanied by higher interest rates than other federal loans and fewer flexible re-payment options. For example, one parent shared on Credit.com’s blog that he has $45,000 in outstanding parent loans, but only makes $28,000. His children are unable to help him repay the loan at this time.

These changes are likely going to make parents look harder at the true burden of student loan debt and the potential return they are getting with taking out these loans. Parents thinking about borrowing money to help their children pay for college would be wise to review their annual credit reports to identify any discrepancies and think twice about whether PLUS loans are the best option.

Click here to read more on this story.
http://www.foxbusiness.com/personal-finance/2015/02/02/student-loan-rule-change-that-could-hurt-parents-with-bad-credit/

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.