Kingcade & Garcia Archives - Page 9 of 52

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

IRS Warns of Top 3 Tax Scams for 2016

Posted on January 25, 2016by Admin

The IRS anticipates tax scams to be worse than ever this year, despite enacting new anti-fraud measures. Below are the top three tax scams to watch out for in 2016.

Fraudulent Filing

A common tax scam is where scammers use taxpayers’ social security numbers to file and claim their refunds. One Ohio resident who fell victim to the scam last year said it took her four months to prove to the IRS that she had fallen victim to a tax scam and receive her refund. To avoid becoming a victim of this scam, make sure and file early before scammers can access your information.

IRS Phishing Email

Scammers are sending out phony emails claiming to have information regarding tax refunds. The email says, “Click here for the latest on your refund,” or something similar. But it’s a phishing scam designed to get you to enter your social security number. Just clicking on the link can invite malware onto your computer. The IRS will never contact you via email requesting you download files or click on links.

IRS Phone Scam

The most common tax scam in recent years is the scam where taxpayers receive a call from someone claiming to be with the IRS or the Treasury Department who tells you that you are behind on your tax bill. The scammers threaten to arrest or deport you unless you pay immediately. Hang up if you receive a call like this. The IRS would never make these type threats.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Debt Relief, Foreclosures, Timothy Kingcade Posts

Florida’s First-Time Buyers Program is finding its way to Previous Owners

Posted on January 22, 2016by Admin

When Florida received its portion of the Hardest Hit Fund, the goal was to help first time home buyers fund their down payments. However, it is now being used to assist those who have previously owned a home.

Unfortunately, thousands who are behind on their current mortgages in Florida are still waiting for assistance from the program. After five years, only 24,000 of the 116,000 who applied for assistance from the Hardest Hit Fund have received aid. There is reportedly $1 billion in unspent funds that has to be used by December 2017 or it must be returned to the U.S. Treasury Department.

Florida’s Housing Finance Corp. is in charge of the state’s program and says the purpose of the down payment assistance portion is to bolster the real estate market in areas hit hardest by the foreclosure crisis.

One Spring Hill resident said he has been waiting for assistance from the program since August so that his home of 30 years does not go into foreclosure. “You give the guy down the block money to buy a house and then this one has to go into foreclosure. It makes no sense,” he said.

Troubled Asset Relief Program’s (TARP) Christy Romero said, “Florida has not done a good job of getting this money out to homeowners and rather than do a better job on existing programs, they create other programs to spend on someone else.”

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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, Student Loans, Timothy Kingcade Posts

How Victims of School Fraud Can Apply for Student Loan Forgiveness

Posted on January 21, 2016by Admin

This past year, thousands of student loan borrowers have discovered that they can apply to have their student loan debt forgiven. The forgiveness program was enacted in 1994 is called the “borrower defense” or “defense to repayment.” The program is intended to assist students’ whose schools violated a state law during the recruiting process. However, the vague nature of the program has forced the Education Department to begin drafting new rules that will clarify what is required to prove fraud.

How To Apply

Anyone who has borrowed from the government’s Direct Loan program for any institution is eligible to apply for the forgiveness program. If you wish to apply for the program, visit: https://borrowerdischarge.ed.gov and fill out the online application. Although it states that the application is for Corinthian College borrowers, any eligible student from any college can apply.

The U.S. Education Department has hired a “special master” to review the applications and make recommendations to the agency. Two reports have been issued since and can be found at:

https://www2.ed.gov/documents/press-releases/report-special-master-borrower-defense-1.pdf

https://www2.ed.gov/documents/press-releases/report-special-master-borrower-defense-2.pdf

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.

Related Resources:

http://blogs.wsj.com/briefly/2016/01/20/student-debt-forgiveness-for-victims-of-school-fraud-at-a-glance/

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

Thousands Appeal to have their Student Loans Forgiven

Posted on January 20, 2016by Admin

Student loan borrowers are appealing to the government to have their student loans forgiven under an obscure federal forgiveness program. Since 1994 the program has only been used successfully three out of five times. The law forgives borrowers’ debt who prove their schools used illegal tactics to recruit them, such as lying about their graduates’ earnings.

The forgiveness program was used successfully in a case last year where the U.S. Education Department agreed to cancel nearly $28 million in debt for 1,300 former students of Corinthian College. The college was also forced to pay $550 million to the Consumer Financial Protection Bureau and later liquidated in bankruptcy.

The Education Department is unsure what to expect due to the law’s vague explanation of what evidence is needed to prove a school has committed fraud. However, the 7,500 borrowers who applied to have their $164 million in student loan debt expunged believe the forgiveness program will be their lifeline.

The Education Department’s undersecretary, Ted Mitchell said, “The law is clear about giving students redress when they’ve been defrauded.” He went on to say this goes for forgiveness on current loans as well as potential reimbursement of repaid loans.

Education Department officials said the agency failed to draft rules for the law due to a lack in urgency to do so since they had only received five applications since 1994. The recent surge in applications reflects the growing savvy of student activists who discovered it last year.

The majority of the borrowers who have applied for the forgiveness program have attended for-profit colleges such as Corinthian College. Others have attended Art Institutes owned by Education Management Corp. and ITT Technical Institutes owned by ITT Educational Services Inc. The federal government has investigated all three of these institutions in recent years for illegal recruiting tactics.

Related Resources:

http://www.wsj.com/articles/thousands-apply-to-u-s-to-forgive-their-student-loans-saying-schools-defrauded-them-1453285800

https://www.washingtonpost.com/news/grade-point/wp/2015/10/28/government-watchdog-wins-530-million-lawsuit-against-for-profit-corinthian-colleges-too-bad-it-will-never-see-a-dime/

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

Student Loan Relief Scammers Using Social Media to Target Borrowers

Posted on January 19, 2016by Admin

Scammers are now targeting struggling borrowers on social media websites such as Facebook to offer student loan debt relief. Higher education and consumer protection officials say that if you see advertisements on social media sites they are likely a scam. These scammers are circulating personalized ads using school information that is posted on user profile pages.

These companies are not affiliated with any of the student loan servicers and are scamming borrowers with fee-based assistance they can get for free through the federal government’s financial aid office.

Student loan debt in the United States has reached nearly $1 trillion making it the second largest consumer debt market. Approximately eight million federal and private student loan holders are in default and millions more are struggling to make their minimum payments each month.

Moira Vahey, a spokeswoman for the Consumer Financial Protection Bureau (CFPB) said, “Companies offering these type services do not have the ability to negotiate with creditors in order to obtain a special deal under the federal student loan program.”

Companies such as College Education Services (CES) in Florida are telling borrowers they can have their student loans consolidated and lower their monthly payments. CES requires debtors to pay upfront fees and sign over power of attorney to the company. After failing to deliver results, there have been multiple complaints filed with the Florida Attorney General against this company.

Some debt relief companies promise to save borrowers thousands of dollars, charging them upfront fees and then enrolling them in a repayment plan that is available and free to anyone with a federal student loan.

The CFPB offers the following warning tips to borrowers when it comes to these so-called student loan debt relief companies:

The promise of immediate loan forgiveness or debt cancellation;
Demands for a power of attorney;
Requests for federal student aid PIN numbers;
Charging large upfront fees.

Related Resources:

http://www.winknews.com/2015/11/12/warning-student-loan-scams-hitting-swfl/

http://www.wvgazettemail.com/news/20160118/ads-offering-student-loan-relief-scamming-borrowers

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Bankruptcy Code & Debt Collection Laws Clash in Court, Again

Posted on January 18, 2016by Admin

Another court has found that when a creditor files a claim in bankruptcy that the creditor knows is barred by the statute limitations, it is not a violation of the Fair Debt Collection Practices Act (FDCPA). The FDCPA typically protects consumers from fraudulent attempts to collect a debt. However, the Bankruptcy Code explicitly allows creditors to file time-barred claims, creating a possible conflict in federal laws. Under Section 502 of the Bankruptcy Code, any filed claim is deemed allowed if no one objects.

As a result, the courts in Florida and other parts of the country are split on whether or not filing a stale claim violates the FDCPA in bankruptcy. For example, in 2014 there was a controversial case involving a creditor filing a proof of claim in bankruptcy after the statute of limitations to collect had expired. In this case, courts were split on whether or not it violated the FDCPA to file a stale claim in bankruptcy, especially within the Eleventh Circuit. This issue has given rise to a circuit split and could potentially reach the Supreme Court.

In the most recent ruling, Ana Castellanos filed a complaint alleging violations of the FDCPA, including “(1) making a false representation of the legal status of a debt; (2) using a false representation and deceptive means to collect a debt; and (3) using unfair and unconscionable means to collect a debt.” The district court in this case noted that, “the Bankruptcy Code provides the debtor a means to object to impermissible proofs of claim, such as those that are time-barred.”

The court ultimately ruled that even though the FDCPA and the Bankruptcy Code guidelines are conflicting, the FDCPA must yield to the Bankruptcy Code. In Florida, FDCPA claims can proceed while in other parts of the country they cannot. This strong federal law protects consumers against certain unfair collection practices, including:

Calling you repeatedly to annoy or harass you.
Trying to collect more than you owe.
Failing to send a written notice of the debt.
Threatening violence.
Threatening dire consequences (i.e. – lawsuits, criminal prosecution, wage garnishment, jail time, permanently ruining your credit, etc.)
Using profanity and abusive language.
Calling before 8 a.m. or after 9 p.m.
Revealing debt to third parties (i.e. – family, neighbors, friends, co-workers, etc.).
Contacting you at your work, after you have requested them to stop.
Failing to verify disputed debts.
Ignoring cease communication requests.

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

Discharging Student Loan Debt is Easier than You Think

Posted on January 15, 2016by Admin

Contrary to popular belief, it is not impossible to have your student loan debt discharged in bankruptcy. Findings from a study conducted by Jason Iuliano, a Harvard Law graduate and a Ph.D. candidate at Princeton reveal that 40% of those who filed received some sort of discharge from the bankruptcy court.

Iuliano reviewed every bankruptcy case involving student loan debt from 2007. Of the 169,774 student loan debtors who filed for bankruptcy, only 213 filed adversary proceedings. An adversary proceeding is a lawsuit filed within a bankruptcy case. It is also a necessary step in bankruptcy when you are seeking to have student loan debt discharged. Out of the 213 who filed an adversary proceeding, 51 debtors received a full discharge, 30 received a partial discharge and 25 received an administrative remedy.

This means that only 0.1% of those who filed for bankruptcy tried to have their student loan debts discharged and of those who tried, half of them received some form of relief from the court.

Due to the public’s perception that student loan debt cannot be discharged, most student loan debtors who are struggling with large amounts of debt do not attempt to have their loans forgiven.

Below are the steps you should take if you are considering filing for bankruptcy to have your student loan debts discharged:

Hire an attorney. Do not be discouraged if you have to meet with several attorneys before finding one who is willing to take on your case. There are some bankruptcy attorneys who do not take on cases involving student loan debt.

Do some background research for yourself. Look into some of the successful cases where the debtors experienced similar financial struggles that you are experiencing.

Try to negotiate with your lender before filing for bankruptcy. The Department of Education has issued a guidance stating when a lender should not contest a debtor’s claim of undue hardship in bankruptcy.

Bankruptcy court can be invasive. If you decide to file bankruptcy, expect that all of your finances and purchases will be questioned.

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Foreclosures, Timothy Kingcade Posts

Fraudulent Debt Relief Companies Shut Down by Florida Attorney General

Posted on January 14, 2016by Admin

Attorney General Pam Bondi announced the filing of a stipulated consent judgment against Bobby R. Blackmon, Financial Help Services, Inc. and Nation Wide Consumer Debt Relief based on alleged unfair and deceptive business practices.

Blackmon’s two companies provided credit counsel management services to consumers in 48 states. Bondi presented stacks of consumer complaints stating the defendants withdrew consumers’ funds to pay creditors on a monthly basis, but did not pay the creditors within the 30 days as required by law. In some cases, the defendants did not pay the creditors at all.

Bondi and Blackmon reached an agreement that shuts down the two businesses and bans them from engaging in any consumer debt-related services. It will also cost the defendants at least one million dollars, including $600,000 in full consumer restitution. The remainder of the $7 million judgment will be suspended. However, if any of the material terms contained in the judgment are violated, the full $7 million judgment will be reinstated.

Attorney General Lisa Madigan filed a similar lawsuit in Illinois in December, suing a company called Carrey Services, Inc. and its President, Reynaldo Rojas. The “mortgage rescue” company allegedly charged struggling homeowners $20,000 in upfront fees for mortgage relief. Ultimately, the company provided little, if any, assistance to keep consumers in their homes. Madigan’s suit is seeking to shut down the business and obtain restitution for consumers.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

New Bill Introduced to Stop Abusive Government Debt Collectors

Posted on January 13, 2016by Admin

New York Congressman Gregory Meeks has introduced a new bill called the Debt Collection Harmonization Act that would expand current consumer protection laws to include government debts such as speeding tickets and court fees.

Meeks’ bill is similar to the Stop Debt Collection Abuse Act introduced by Senators Cory Booker and Mike Lee. Both are in reaction to the investigation conducted by CNNMoney that found government debt collectors are not held to the same consumer protections as firms that collect debts such as credit card bills or auto loans.

Following the release of CNNMoney’s findings, Meeks was one of the first lawmakers to speak out saying, “private debt collectors often have a financial incentive to draw blood from stones, pressuring individuals to make financial commitments they cannot truly afford.”

Meeks went on to say that the investigation revealed stories from people all over the country who had been “abused by debt collectors operating under the assumed authority of state and local governments.” Debt collectors are reportedly making abusive threats of foreclosure, driver’s license suspension, wage garnishments, even arrest.

Meeks’ hopes that his new bill will put a stop to government debt collectors targeting hard-working Americans and harassing them into paying fees they cannot afford.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Studies Show Cancer Survivors are at a Higher Risk of Filing for Bankruptcy

Posted on January 12, 2016by Admin

A survey of 4,719 cancer survivors, ranging from 18 – 64 years of age, showed that one third of them had gone into debt due to their illness. The study also showed that more than half of the cancer survivors’ debts exceeded $10,000. Dr. Matthew P. Banegas at the Kaiser Permanente Center conducted the survey for Health Research in Portland, Oregon.

Another study showed that three percent of cancer survivors have filed for bankruptcy due to their medical debt. The costs for curing cancer have increased two to three times faster than other healthcare costs. The costs for new cancer therapy ranges on average from $10,000 per month to $60,000 per month.

Health Affairs reported that those who were younger, had lower income and held public health insurance were at a higher risk of filing for bankruptcy.

A separate study conducted by Dr. Yousuf Zafar of the Duke Cancer Institute showed that family members of cancer survivors often had to work longer hours to make up for the loss of income. His study also revealed that one third of those surveyed had to borrow money or incurred debt due to medical bills.

Dr. Banegas said that many of the newer cancer treatments are “coming with a higher price tag.” Although there are many programs geared toward helping aid those who are battling cancer, he went on to say, “Professional societies in oncology are working toward generating this kind of information.”

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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.