Kingcade & Garcia Archives - Page 7 of 52

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

Student Borrowing Affects Retirement and Home Ownership

Posted on February 25, 2016by Admin

New data released from The Center for Retirement Research at Boston College revealed that student loan debt is preventing Americans from saving for retirement. Student loan debt has reached massive levels, with 40 million people stuck with at least one student loan. It accounts for more than 30 percent of non-mortgage related household debt. According to the St. Louis Federal Reserve, more than 27 percent of student loan borrowers in repayment are delinquent on those payments.

The report found that student loan debt has the same impact on retirement savings as unexpected healthcare costs. This means that a greater percentage of households are at risk of not being able to maintain their standard of living in retirement, because they are unable to save while they are in the workforce.

Most college bound students are not thinking about retirement when they take out student loans for expensive degrees. Unfortunately, if students choose a degree that will prepare them for a low-earning career or a career with a deficit in jobs, student loans are going to be harder to pay back.

Student loan debt is not only affecting retirement, it’s also affecting borrowers abilities to purchase homes and buy new cars. Many borrowers are unable to obtain a mortgage because their student loans push their debt-to-income ratio disqualifies them.

The Center for Retirement Research used the National Retirement Risk Index, which measures the percentage of working households age 30 to 60 who are on track to be able to maintain their standard of living in retirement. It looks at what a person’s age 60’s retirement security would be if the person had the same level of student loan debt as today’s average, $31,000.

The Center found that the percentage of people at risk went from 51.6 percent to 56.2 percent, a 4.6 percent increase. Although it doesn’t seem like a great increase, a 19.6 percent across-the-board cut in Social Security benefits would raise the index by 10.7 percentage points. This means that the impact is roughly half of the impact of an unprecedented move such as cutting Social Security benefits.

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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, Timothy Kingcade Posts

Student Loan Relief Tax Bill Introduced in Congress

Posted on February 24, 2016by Admin

Congressman Austin Scott (R-GA) recently introduced the “Student Tax Affordability and Relief Act,” into the House of Representatives. The bill would provide gross income exclusion for amounts that employers pay on employee student loans.

The bill excludes from gross income amounts paid as “qualified student loan payment assistance.” It defines their assistance as “amounts paid or incurred by an employer under a plan for the exclusive benefit of the employees of the employer to provide such employees with student loan payment assistance.” The bill provides a taxable limit of $10,000 per year.

Student loan debt has been an economic concern for some time. The Consumer Financial Protection Bureau reported in 2013 that the amount of outstanding student loan debt exceeded $1 trillion.

Individual states have recognized the economic ramifications of student loan debt and are taking matters into their own hands. States such as New York and Virginia have introduced their bills to assist struggling student loan borrowers. New York’s program will pay up to two years of student loans for eligible residents. While one of Virginia’s pending bills would allow students to refinance their student loans.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How to Get a Loan After Bankruptcy

Posted on February 23, 2016by Admin

Many Americans believe their credit will never be the same after filing for bankruptcy. However, if you take the right steps, it’s possible to build a good credit score while you wait for bankruptcy to fall off your credit report.

If you developed bad financial habits that led to your credit problems, improving your credit score may be difficult. It is important to remember that it is possible to get your credit score to 700 within three years after filing for bankruptcy. If you are able to improve your credit score after bankruptcy, your odds of getting approved for a new loan are much higher.

Below are some tips to help you get a loan after bankruptcy:

Check your Credit Reports.

Although bankruptcy damages your credit score, having debts discharged will likely improve your chances of getting approved for new credit because your credit-to-debt ratio will be lower. However, you still want to check your credit history to make sure your bankruptcy was reported correctly to the three major credit-reporting agencies (Equifax, Experian and TransUnion).

You should also make sure that all of the accounts involved in your bankruptcy have a zero balance and are labeled as discharged. This will tell all of your prospective lenders that your income is now yours to spend.

Build a Positive Payment History.

Make sure to pay all of your bills on time after filing for bankruptcy. You want to prove to lenders that you are moving forward in a positive way. One of the best ways to build a positive payment history is to keep one account open with a zero balance. This does not mean that you should not use the account; it means you should make small purchases and pay the balance in full each month.

Shop for (Re-) Starter Credit.

If you do not have any credit accounts open after filing for bankruptcy, apply for a secured credit card or credit-builder loan at your local bank. These types of credit are designed specifically to help people fix their credit scores.

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If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, 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

Rapper 50 Cent Ordered to Appear in Bankruptcy Court after Instagramming Cash

Posted on February 22, 2016by Admin

Curtis J. Jackson III better known as rapper, 50 Cent has been ordered back to bankruptcy court following a string of posts to his Instagram and Twitter accounts flaunting numerous piles of cash.

Jackson first filed for bankruptcy in July of last year. Since October, he has posted several pictures of himself with dozens of stacks of $100 bills on his Instagram account. In one post, he lined the stacks of bills up to spell out the word “broke,” seemingly to mock his bankruptcy filing.

Last Thursday, U.S. Bankruptcy Judge Ann M. Nevins told the rapper’s attorney, “I’m concerned about allegations of nondisclosure or a lack of transparency in the case. There’s a purpose of having a bankruptcy process be transparent, and part of that purpose is to inspire confidence in the process. When that process becomes very public, the need for transparency, I believe, is even higher,” said Nevins.

Jackson’s attorney later issued a statement saying that his client would show up to court and answer all of the court’s questions. The statement also said, “Mr. Jackson has been forthcoming and transparent with all creditors.”

The issue was brought up in court papers filed in January by headphone maker Sleek Audio, SunTrust Bank and 50 Cent’s ex-girlfriend Lastonia Leviston, who claim the rapper owes them a combined $29 million. They also said he has posted videos of performances that he has probably gotten paid for and has not disclosed to the court. They also pointed out that the rapper never admitted he owned property in Africa, contrary to a post on his Twitter account.

This should come as a warning to anyone who plans to hide assets from the bankruptcy court and their attorney. Bankruptcy trustees are experts at finding undisclosed money, property, vehicles, jewelry, antiques, and collectibles. If you are caught trying to hide assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing. In addition, the potential penalty for bankruptcy crimes include fines and imprisonment of up to five years.

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

Texas Man Arrested by U.S. Marshals for Unpaid Student Loan

Posted on February 19, 2016by Admin

U.S. Marshals arrested Paul Aker of Texas last week for $1,500 in unpaid federal student loans. Aker borrowed the loan in 1987 and claims that he was unaware he had any outstanding debt.

“I paid two other student loans and thought I had consolidated everything and paid it all off,” Aker said. The U.S. Marshals reportedly made several attempts to serve Aker with a court order requesting that he appear in federal court. The agency said they had searched numerous known addresses before locating Aker. They also said they made contact with Aker by phone in 2012 requesting that he appear in court and he refused.

According to CNNMoney, Aker does not remember having that conversation and said he has not received any notification about the outstanding loan in a long time. A warrant was issued for his arrest soon after he failed to appear in court in 2012.

Two U.S. Marshals went to arrest Aker last Friday at his home. “I went inside to get my gun because I didn’t know who these guys were,” Aker said. The Marshals called for backup after Aker told them he was armed.

After two hours, Aker finally put down the gun and went outside to be arrested without further incident.

Although Aker’s original loan was for $1,500, he now owes approximately $5,700 including interest. He agreed to be placed on a payment plan before a judge last week.

According to CNNMoney, it is common practice for U.S. Marshals to serve summonses to people who fail to appear in court for unpaid federal student loans. However an arrest warrant is only issued after the debtor fails to appear in court.

Arrest warrants were issued for 25 people in the Houston, Texas area for failure to appear in court regarding unpaid student loans.

After 90 days, the loan becomes delinquent and damages the borrower’s credit score. However, student loans are not considered to be in default until nine months of nonpayment.

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Foreclosures, Timothy Kingcade Posts

Florida Supreme Court to Rule on Statute of Limitations in Foreclosures

Posted on February 17, 2016by Admin

In Florida, there is a five-year statute of limitations that prevents banks from proceeding with a foreclosure beyond that time period, even after a lengthy court process. However, some mortgage servicers are making payments on behalf of their borrowers to help keep the accounts active in an attempt to preserve their foreclosure rights.

These servicers are waiting on the Florida Supreme Court’s decision on the case U.S. Bank v. Bartram. This case will determine if servicers can restart foreclosures after five years or if they will be barred by Florida’s statute of limitations.

If the court rules that mortgage servicers cannot restart the clock, some foreclosures could be permanently barred, forcing banks to accept less, give deals or greatly lower the monthly payment, according to the article by Moody’s Investors Service. Banks may also opt for a short sale in order to get any recoveries.

According to the report, the court’s ruling will impact a minor amount of cases. “Only approximately three percent of private label loans backed by properties in Florida had a prior foreclosure dismissed and are greater than 60 days delinquent or 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, Timothy Kingcade Posts

Americans Borrow No Matter the Economy

Posted on February 16, 2016by Admin

The Federal Reserve recently released data that indicated that American’s borrowing habits are excessive whether the economy is booming or hurting. Over the past decade, credit card debt has gone from $1.02 trillion in 2008, down to $835 billion in 2011 and back up to $935.6 billion by the end of last year.

Americans between the ages of 18 and 65 have an average of $4,717 in credit card debt. The average interest rate is 15 percent, according to creditcards.com. Therefore, if a credit card user makes a minimum payment of $189 per month, it will take more than ten years to pay off a debt of $4,717. Ultimately, the debtor would pay a total amount of $22,869, a cost of $18,155 for a very small loan.

A study released by the Boston Fed examined American credit card debt and found that the biggest reason Americans have such high debt is due to the availability of credit.

The study also showed that only 35 percent of credit card users do not carry a balance. This means they pay off their bill every month and only use their cards for convenience. The other 65 percent of credit card users are “revolvers,” meaning they do not pay their balance in full so the debt revolves. Revolvers tend to see credit limit increases as an invitation to spend more.

Many credit card users are reeled in when companies offer free teaser years that come with as much as $600 worth of miles or hundreds of dollars in cash back as incentives to sign-up and spend. Studies show that credit card debt typically starts in a debtor’s 20’s. Often times the debtor is not earning very much at the time and the availability of funds through credit essentially amounts to extra wealth and reduces the need to save. Although the habit typically starts early in adult life, credit card debt follows most Americans into middle, even old age.

Keep in mind; there are incentives to breaking your credit card habits. According to the Federal Reserve, paying off your credit cards comes with a return that averages 14 percent. This means simply paying off your credit card debt is the best investment you can make.

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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 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

Florida Student Debt Relief Company Files for Chapter 7 Bankruptcy

Posted on February 15, 2016by Admin

A Doral, FL-based student loan debt relief company filed for Chapter 7 bankruptcy this month. The company, Student Aid Center, Inc. estimated between $500,000 and $1 million in assets and 50 to 99 creditors.

Student Aid Center reportedly offered assistance to students dealing with student loan debt. However, a lawsuit filed by the Minnesota Attorney General in July 2015 claimed that the company misled consumers by promising to reduce or eliminate their student loan debt and not producing results.

According to a statement from the Attorney General’s office, the debt relief company promised students that it could immediately qualify them for loan forgiveness with advertisements such as, “Get Your Student Loans Forgiven Now!” and “Say Good-Bye to Student Loan Debt.” The company promoted itself on social media sites and collected upfront fees from borrowers.

After numerous consumer complaints, the company was named in a class action complaint on September 21^st that alleged the company used robo-dialing without obtaining consumer consent.

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Bankruptcy Law, Debt Relief

Is a trust safe in bankruptcy?

Posted on February 12, 2016by Admin

To determine whether or not your trust is safe from creditors in bankruptcy, you will need to know if your trust is a revocable or irrevocable trust. This is important to the bankruptcy court because it reveals who controls the assets of the trust. When you file for bankruptcy, a trustee is assigned to your bankruptcy case to search for your assets. Your assets can include your properties, checking accounts, savings accounts, investment accounts, cars, etc. These types of assets are the more common assets that trustees can take, sell and use the proceeds to pay your creditors.

Revocable trusts are those where the trust beneficiary is waiting to receive something and does not immediately control those assets. In a revocable trust, you or your spouse may be listed as a trustee, however if you are the successor trustee, you have no rights to do anything with the assets until the grantor or creator of the trust passes away.

In a revocable trust, the grantor has complete control over all trust assets prior to their death. The beneficiaries of the trust cannot control or influence what is done with the assets. Once the grantor dies, the trust may now become assets of the beneficiaries. As long as there are no provisions in place, restricting access, the beneficiaries now have a legal claim to the trust. Once the beneficiaries have legal control over the trust, it may not be safe from creditors when filing for bankruptcy.

In an irrevocable trust, terms of the trust cannot be changed or terminated without the permission of the beneficiaries. In this case, the grantor has transferred assets into the trust and effectively withdrawn his or her rights of ownership to those assets. Although beneficiaries might not be able to immediately access the trust, each beneficiary has a legal right to some portion of those assets.

Irrevocable trusts can be more difficult to protect in a bankruptcy proceeding, however there may be some exceptions allowing you to do so. For example, a “spendthrift” provision may limit creditor claims to trust assets even when the trust is irrevocable or the grantor has died.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Credit Card Debt on the Rise

Posted on February 10, 2016by Admin

While the economy indicated signs of financial hardship in November 2015 with low spending, consumers were spending more confidently in December and January with credit card debt increasing at its fastest pace in more than seven years. Outstanding consumer credit, which includes all credit outside of mortgages, increased by an annualized $21.27 billion in December. Economists had only predicted consumer credit would rise $16.5 billion.

Revolving credit, which is mostly credit card debt, rose by $5.84 billion after rising $6.36 billion in November. Since last year, revolving credit rose 5.1 percent. This is the fastest gain since October 2008.

So where were consumers using their credit cards in the fourth quarter? Amazon.com accounted for a vast majority of credit card use, bringing in 51 percent of the total retail sales growth in the fourth quarter. The online retail giant also accounted for 42 percent of total retail sales growth for the entire year. However, companies such as Apple iPhone indicated sales were flat worldwide in December. Apple also forecasted its first yearly decline in sales in 13 years.

Non-revolving credit, including auto and student loans, increased $15.43 billion, up from $7.66 billion in November. However, economists anticipate auto sales will plateau or fall in 2016 from fourth quarter levels.

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