Tag: Kingcade

Foreclosures, Timothy Kingcade Posts

National Foreclosure Scam Results in 11 Indictments

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Eleven people involved in a national foreclosure scam were indicted this week by a federal grand jury in connection with a scheme to defraud homeowners desperate to save their homes. These 11 people come from five different states in connection with the scam. They stand accused of making promises to homeowners that they would negotiate with their mortgage lenders to protect them from losing their homes in foreclosure but never did anything on behalf of the homeowners after money was paid.  This is a common scam we have seen so many times before.

The formal indictment listed MVP Home Solutions, also known as “Stay In or Walk Away,” Bolden Pinnacle Group Corp, also known as “Home Advisory Services Network” and “Home Advisory Services Group,” and Silverstein & Wolf Corp, as parties to this legal matter.

What these parties are accused of doing is using multilevel marketing schemes for recruiting homeowners facing foreclosure. The companies encouraged their employees to be aggressive in pushing homeowners to get on board with the program. They would search court records and online databases to find people who they know were facing foreclosure and were vulnerable and desperate to do whatever necessary to stay in their homes. The individuals targeted were living in states where foreclosure rates were particularly high- including Florida.

The reports show some examples of how persistent these companies were at recruiting homeowners to cooperate with them. In southern Ohio, more than 22,000 postcards were mailed to homeowners, indicating that the company could stop the foreclosure from proceeding or could stop a sheriff sale if the homeowner paid a fixed fee to the company first. In addition, these companies made promises that they could also negotiate the release of mortgage loans for a deed in lieu of foreclosure sale or a short sale or could stop a foreclosure sale from proceeding. They also made statements that, for a fixed fee, the company could achieve the short sale price at a fraction of what the homeowner owed on the mortgage.

Once the victim of the scam paid the upfront fee, there was never any negotiation done on their behalf.  It was a typical “take the money and run” scheme, and the homeowner wound up not only losing their home but additional money in the process that they paid to the company.

The released indictment included charges involving conspiracy to commit mail fraud and wire fraud, four counts of mail fraud, seven counts of wire fraud, one county of bank fraud, 12 counts of bankruptcy fraud, and even one count of aggravated identity theft.

So far, eight of the 11 individuals listed in the indictment have been arrested in Ohio, Virginia, New Jersey, and New York. Three others named in the indictment, including a Rafiq Bashir from Jacksonville, FL, have not yet been arrested.

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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 McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Debt Relief

6 Tips to Get Back on Your Feet After Bankruptcy

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Chapter 7 bankruptcy allows you to get a fresh start financially and erase past debts, but a legitimate concern people have is the effects it will have on their credit score and their ability to take out credit again. One of the biggest misconceptions about filing for bankruptcy is that it will ruin your credit score and your financial future. To the contrary, after filing for bankruptcy you can begin restoring your credit immediately.

It is possible to rebuild your credit after bankruptcy, so long as you exercise discipline and stay on track financially.  The following tips will help you get back on your feet and stay there after filing for bankruptcy.

  1. Put Together a Budget.

Budgeting is not fun for most people, but it is necessary. Preparing a budget and keeping to it is an excellent way to track how much money is coming in and how it is being spent. If you are overspending beyond your means, a budget will be able to track this issue and help keep you in line. Many people have success with online programs for budgeting, while others use a simple spreadsheet. To start, enter in how much income is received on a monthly basis. Next, enter in all fixed expenses, including mortgage payments or rent, utility bills, insurance and other monthly expenses. The first step is to make sure that your income covers all of these expenses. Then put together a list of other expenses that are more discretionary. These discretionary expenses are often where most people overspend. If the budget does not cover these discretionary expenses, then do not spend on those items.

  1. Pay Bills on Time.

After bankruptcy, you can immediately begin rebuilding your credit – but one surefire way to not achieve this goal is by not paying your bills on time. In fact, paying bills on time can account for approximately 35 percent of your credit score. Anytime someone is late on a payment, this signals to lenders that the consumer is not good with his or her money and is thus a lending risk. Once a budget is put together, stick to that budget and make sure all bills are paid on time and in full. If someone struggles with making payments on time, auto-pay could be a good option to ensure that payments are taken out immediately and are not late.

  1. Pay Discretionary Expenses with Cash.

If you wish to spend on extra expenses, such as entertainment or clothing, and worry about keeping to a strict budget, one method that can keep you in line is to only spend using cash on hand. Being restricted to what you have in your wallet, makes you prioritize what you spend. Once the money is gone, the spending stops. Make sure that a credit card is not also in your wallet so that the temptation is not there for when the money runs out.

  1. Use a Secured Credit Card to Rebuild Credit.

Credit cards often bring people into a bad financial situation, but they can also be extremely helpful, especially for when it comes to building up credit. A secured credit card can be an excellent resource for someone with poor credit to help rebuild their credit. Secured cards often require the borrower to put down an amount of money to secure the card, limiting that person on how much money he or she can spend on the card based on how much cash was deposited as collateral. Secured cards are not meant to be used for the long-term but rather for temporary purposes until that person rebuilds his or her credit score enough to take out a regular credit card.

  1. Report Positive Accounts to Your Credit History.

To further help a consumer’s chances of being approved later for a line of credit or mortgage, it can help to add positive accounts to your credit history. Certain expenses, such as utility bills, can be added through major credit reporting companies, such as TransUnion, Equifax and Experian. By adding these positive accounts to the person’s credit history, he or she can demonstrate positive financial behavior through regular, on-time payments on these bills.

  1. Be Wary of Scams.

One very important thing to keep in mind is the fact that not everyone out there has your best interest in mind- particularly if they know you are trying to rebuild your credit. If a company is requiring you pay an upfront fee before they will help you with your credit score, this is a huge red flag that a scam is involved.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

https://www.bankrate.com/personal-finance/debt/bankruptcy-ways-to-bounce-back/

 

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Understanding the Bankruptcy Process in Florida

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Making the decision to file for bankruptcy is never an easy one. The steps taken during a bankruptcy case vary depending on the type of person or entity filing for bankruptcy. Once you decide to file for bankruptcy, it is important that you avoid mistakes that could impact your case or jeopardize your debts from being discharged.

Business filers are limited normally to a Chapter 11 bankruptcy, unless the business is a sole proprietorship. In this situation, the business may be able to proceed with a Chapter 7 or Chapter 13 bankruptcy. If the filer is an individual, depending on qualifications, he or she may be able to do either a Chapter 7 or Chapter 13 bankruptcy.

To qualify for a Chapter 7 bankruptcy case in Florida, the debtor needs to pass the means test. The means test takes into account your income, expenses and family size to determine whether you have enough disposable income to repay your debts. If the debtor does not pass the means test, the next option is a Chapter 13 bankruptcy, which is also known as a repayment or reorganization bankruptcy. In Chapter 13, the debtor works with the bankruptcy trustee on a three-to-five-year-long repayment plan whereby the debtor’s debts are negotiated down and consolidated into one single monthly payment. The debtor will normally get to keep all of his or her assets in this type of bankruptcy.

Many people fear that filing for bankruptcy will result in them losing everything they own. Do not believe this myth.  Many Chapter 7 cases are “no-asset” cases, which means that the debtor gives up no possessions due to the allotted bankruptcy exemptions.  Florida has one of the most generous homestead exemptions in the country. To use Florida’s exemptions, you must have resided in Florida for at least 730 days before filing your bankruptcy petition. To claim the full value of the homestead exemption in Florida, you must have owned the property for at least 1,215 days before the bankruptcy filing.

The state also allows the filer to exempt personal property up to $1,000, education savings and health savings, tax credits and refunds, and up to $1,000 in motor vehicle equity if the filers are married and filing jointly. Additionally, Florida allows for wages of the head of family to be exempt for up to $750 weekly or the greater of 75 percent or 30 times the minimum wage. Florida exemptions also cover different types of pensions and retirement funds, as well as annuities and insurance policies.

If a debtor passes the means test and is able to file a Chapter 7 bankruptcy case, the next question is whether the filer’s debt is dischargeable. For the most part, bankruptcy involves debt that is unsecured and not connected to collateral, such as medical bills or consumer credit card debt. Other debt, such as child support payments, tax debt and spousal support are not dischargeable. If the filer’s debt is mainly unsecured, Chapter 7 bankruptcy can be the better option for him or her to discharge the debt. If the filer’s debt is connected to another asset that the filer wishes to keep, a Chapter 13 filing may be the better option.

It helps to have the assistance of an experienced bankruptcy attorney to guide you through the process. A bankruptcy attorney can review the debtor’s situation, advise him or her on the best route to take with respect to bankruptcy and can ensure that all paperwork is completed correctly to avoid any unnecessary delays.

Please click here for more information.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Credit Card Debt, Debt Relief

Tips for Negotiating with Debt Collectors

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Working with a debt collector is normally not a pleasant experience. Debt collectors are persistent when trying to reach a debtor, and many will stop at nothing until they are successful at getting payment. Any time someone is late on or has missed a payment, that person should expect some type of communication from a collector, whether it be in written form or through phone calls. Many times, it is a combination of both. It helps to know your rights when dealing with a debt collector and know how to work with them on negotiating your debt.

Get Verification of the Amount Owed

Never assume that the information the debt collector is providing is completely accurate. Believe it or not, many scams are out there where debt collectors attempt to collect on debt that belongs to another person or is entirely past the statute of limitations. As soon as the debt collector makes contact, ask them to provide written verification of the amount owed.

Also, verify the credibility of the debt collector. Ask for the person’s name, the name of the company, a business address and a phone number. It pays to do some research into the company to see if they are, in fact, a legitimate debt collector. Also, review the amount they say is owed against your own records to ensure that the amount is accurate. Collection agencies are bound by law to send a validation letter within five days of contacting a debtor, listing the debt amount, the original creditor, and what the debtor should do in the event an error is discovered. It could be possible that a debtor owes on a specific debt but in a smaller amount than the collector is arguing they owe. Always verify before making payment.

Debtor Rights

One big mistake many debtors make is assuming that they have no rights when speaking with a debt collector, which is very far from the truth. Because many times, a debt collector’s actions will border on the edge of harassment or threats, the Fair Debt Collection Practices Act, or FDCPA, was enacted, which prohibits a debt collector from deceiving, threatening or harassing a debtor while collecting on a debt. The FDCPA prohibits any type of communication that threatens the debtor, includes profane language, or makes the debtor feel harassed. The collector can also not lie to the debtor, threaten to arrest or deport him or her, or threaten to take the person to court without any intention of doing so. A debt collector is also prohibited in the times that he or she can contact a debtor. Calls cannot be made before 8 a.m. or after 9 p.m. If a debt collector is violating the FDCPA, inform them of the violation and demand that no more communication be made. The collector can be reported to the Consumer Financial Protection Bureau, as well as the Better Business Bureau and the Florida Attorney General.

Look at the Type of Debt

It also helps to know what type of debt is involved when dealing with a collector. Many times, different options exist for payment plans based on the type of debt, whether it be credit card, medical debt, or something secured with collateral, like a car or home. Medical debt creditors tend to be more willing to work out a payment plan than credit card creditors. Also, if the debt involved is a medical debt, double check to make sure that the debt was processed by insurance first. Student loan service providers may also be more likely to work with a debtor on an income-based repayment plan or even may offer a deferment option to allow the debtor to get back on his or her feet first before continuing payment.

Some collectors will work with a debtor on a lump sum payment that is lower than the amount owed in exchange for releasing the debt. Ask if that is a possibility on the balance, and if it is, see if the collector will settle for a partial repayment over receiving nothing.

Be Aware of the Statute of Limitations

As mentioned previously, debt collectors will also try to get a person to pay on a debt that is past the state’s statute of limitations. It is highly possible that a phone call from a debt collector is on a debt that is past the time frame in which they have a legal right to pursue payment. The statute of limitations for Florida is five years for written contracts and four years for oral contracts or revolving accounts, such as credit cards.

Use the “Bankruptcy” Word

Sometimes it does benefit the debtor to mention that he or she is considering filing for bankruptcy. The collector wants to receive payment, and if the debt is something that is unsecured, such as a credit card or medical debt, it could easily be discharged through bankruptcy. If this happens, the creditor will end up receiving nothing. Tell the collector that bankruptcy is being considered not as a threat necessarily but more as a push to motivate them to negotiate. However, only do this if repayment in any form is an actual possibility. Otherwise you could be making empty threats.

Always Get It in Writing

When dealing with debt collectors, any time someone works out an agreement with the collector, it is imperative that he or she memorialize the agreement in writing. This rule of thumb applies for whatever type of agreement is reached, whether it be a debt repayment plan, a change in payment terms, or a lower interest rate. Request that the agreement be sent via mail, and always review the terms very carefully before signing on the dotted line. Make sure nothing has changed from what was originally discussed. Many times, a debt collector may add some additional language that was not agreed upon, and once the contract is signed, the debtor is bound by that agreement. Always review before signing.

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If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

70 Percent of Americans with Credit Card Debt Admit They Cannot Afford to Pay it Off in One Year

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Credit card debt is a major problem for many Americans. Almost half of all Americans currently carry a balance on their credit cards, but the problem is, most of them are not able to pay off the balance. In fact, 70 percent of cardholders say they cannot pay off the balance within one year.

These figures come from a survey released by real estate data company, Clever. They surveyed 1,000 credit card users regarding their credit card use. The study found that 47 percent of all Americans carry a monthly balance on their credit cards. On top of that, 70 percent of those surveyed say that their card balance is more than $1,000.

Additionally, 56 percent of those surveyed said that they have had their credit card debt for at least one year. Of those surveyed, 20 percent of them say they believe it will take them over three years to pay off the debt. Eight percent of them admit that they do not know when they will be able to pay off the debt.

Depending on how high the balance is, the interest rate on the card can make it virtually impossible to ever make progress on the debt. The average credit card APR currently is 17.65 percent. If a cardholder is only making the minimum monthly payment, he or she is likely only paying on the interest for the card.

Credit card debt has hit an all-time high, according to data from the Federal Reserve. As of December 2018, U.S. credit card debt was estimated at $870 billion, which is the highest it has ever been. Credit card balances were also said to have increased by $26 billion from the prior quarter, which is another notable increase.

What seems to be making this problem worse is the fact that Americans rely heavily upon debt to cover everyday expenses. Even something as simple as buying groceries or paying for gas for their cars can add up if charged on a credit card. In fact, the Clever survey reported that 28 percent of them say that they rely on credit cards to pay for their essential living expenses.

It is no secret that credit card usage has gone up in recent years. It is estimated that currently 480 million credit cards are in circulation nationwide. As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.  It is not surprising with the high interest rates, unreasonable fees, harassing debt collection calls, penalties and never-ending minimum payments that do not even make a dent in your actual debt. We offer additional tips for eliminating credit card debt on our blog.

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If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law

Increase in Bankruptcy Filings Could Indicate an Upcoming Recession

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Bankruptcy attorneys are noticing a trend that could indicate an upcoming recession. The number of bankruptcy filings has long since been used as an economic indicator, and bankruptcy attorneys are reporting their filings have increased.

Bankruptcy filings are still at a much lower rate than they were during the height of the 2007-2008 recession. Many economists are predicting another recession will begin by 2020.

This increase in bankruptcy filings, however, is not necessarily being seen in all 50 states. While more filings have been reported in states, such as Florida and Delaware, other states have not seen the same.

For the most part, anytime a bankruptcy case is filed, or an account goes into default, it is seen as an indicator of the current economic climate, as well as a determining factor as to what is to come.

However, other financial signs can point towards the coming of a recession, including the number of consumers who are delinquent on their mortgages, as well as their car loans.

According to numbers from the Federal Reserve, an estimated seven million American consumers are currently behind by at least three months on their car payments. In comparison, this figure was one million less in 2009, which was the peak of the Great Recession.

The number of retail companies filing for Chapter 11 bankruptcy could also be an indicator of an upcoming economic decline. Recent corporate Chapter 11 bankruptcy filings have included Sears, Toys “R” Us, Sports Authority, CTI Foods, Z Gallerie and the publisher, F+W, just to name a few.

While a number of bankruptcy law firms have reported an increase in filings, they have not jumped the gun on hiring more associates just yet, although it could be a distinct possibility in the future in the event the uptick becomes an upswing in filings. For the most part, bankruptcy filings are relatively recurring, however, some law firms are trying to be cautious in timing out how they handle their workloads.

Other factors that could be behind the increase in bankruptcy filings, include family issues or business disputes between partners.  The increase, economists argue, still points to an economic downturn approaching.

Click here to read more on this story.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Debt Relief, Timothy Kingcade Posts

How to Avoid the Most Common Debt Consolidation Traps

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The debt consolidation industry is filled with pitfalls for consumers. Many of these for-profit companies prey on those struggling with insurmountable debt. Debt consolidation refinances your debt and rolls multiple debts into a single, lower monthly payment. You can use either a personal loan or a credit card to consolidate the debt.

However, this option doesn’t come without risk. What you may not know is that some debt consolidation companies charge high interest rates to go along with the new monthly payment plans they set up for clients. It is important that consumers do their research through the Consumer Financial Protection Bureau (CFPB) to make sure the debt consolidation company is not a scam, as many do exist.

Some of the biggest pitfalls in debt consolidation occur when a consumer falls prey to one of the many scams out there. The Internet is full of scam artists who pretend to be online lenders offering deals that are simply too good to be true to people who are struggling financially. Many of these individuals have been turned down for credit and loans in the past, so they may jump at the chance when someone offers them the opportunity of a reduction in debt.  Debt consolidation is oftentimes a temporary fix to a bigger problem.

Before agreeing to any deal found online, the consumer needs to conduct a thorough background check on the company before going any further. If the company is asking for a large fee upfront or requires the person to make several months of payments before starting, these statements may raise some red flags that it is a scam. The Better Business Bureau is another good resource to see if the company has complaints filed against them.

Another mistake many consumers make is to apply for multiple loans at the same time in hopes that one will be approved. However, what they are not aware of is the fact that every loan application triggers a look into the person’s credit history. Every time a lender pulls someone’s credit history, this causes that person’s credit score to drop.

One helpful tip before making any decisions on a consolidation loan is to know where the consumer’s credit score stands before making any applications. That way the consumer can ask the lender what minimum credit score they require before applying.

Additionally, many consumers make the mistake of assuming that they do not need to keep making payments on their current credit cards while waiting for the debt consolidation process to finalize. Even if the consumer is approved for a balance transfer, he or she will still need to pay at least the minimum payments on the multiple credit cards since balance transfers can take a couple of weeks to process. Check the balance on each card even after the transfer goes through or loan payment is made to ensure that no balance is left on the card. If the card does still show a small balance, be sure to make payment by the due date to avoid a late fee and negative hit to your credit score.

Click here to read more on this story.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Credit, Timothy Kingcade Posts

How Long Do Debt Collections Affect Your Credit Report?

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When you are being pursued by debt collectors, the incessant phone calls can make you feel anxious and stressed.  The number one piece of advice we give when dealing with creditors is to be honest with them.  Never make a promise to pay if you are unable to do so and do not avoid creditors or collection attempts.

A collections action is essentially any type of collection on a debt. Whenever a creditor submits an account to collections, a notification is submitted to the credit reporting agencies. This notification will almost always result in the consumer’s credit score dropping. The more collections that show up on the person’s credit report, the bigger the drop will be. Any type of collections will show up on a credit report, including credit cards, medical bills, loans and mortgages.

Once a collections action is reported, it will stay on a person’s credit report for seven years.  The same time period applies for missed or late payments. To put these figures in comparison, a Chapter 7 bankruptcy case will stay on a person’s credit report for ten years and Chapter 13 bankruptcy for seven years.

Credit reports treat debts all in the same manner, so if the collection is for a secured debt, such as a home or car, it will be treated the same way as credit card debt. However, medical debt is treated somewhat differently than other unsecured debt. New rules regarding medical debt have made it more difficult for it to impact your credit score as quickly. The new rule builds additional time between patients and insurance companies to resolve such matters.  Up until this point, there was no grace period and medical debt could appear on your credit report as soon as it was reported as an unpaid debt. The three credit reporting agencies now have to wait 180 days before putting an unpaid medical bill onto your credit report.

Click here to read more on this story.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Related Resource:

https://www.myfico.com/credit-education/faq/negative-reasons/how-long-negative-information-remain-on-credit-report

 

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

President Trump Plans to End Student Loan Debt Forgiveness Program

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The White House has released President Trump’s budget proposal for 2020, and many of the cuts take aim at the student loan debt crisis. Here are some of the specific proposals, which could affect borrowers’ ability to pay off their student loan debt.

  • The end to public service loan forgiveness. According to Trump’s proposed budget, the Public Service Loan Forgiveness Program would be eliminated. The effects could adversely impact members of the U.S. Armed Forces, police officers, firefighters, first responders, prosecutors, public defenders, and other public servants.
  • A change to federal student loan repayment. The number of income-driven repayment plans would be reduced to just one. Current plans, such as PAYE and REPAYE, allow borrowers to repay their federal student loans based on income, family size and additional factors, and can result in student loan forgiveness.  The changes would favor undergraduate borrowers who typically earn less than graduate school student loan borrowers. Monthly student loan payments would be capped at 12.5% of income and after 15 years of monthly payments, any remaining student loan debt would be forgiven.  This is five years earlier then the current income-driven repayment options. Graduate student loan borrowers would see the opposite effect – a five year increase to student loan debt repayment before their loans are forgiven.
  • The end to subsidized student loans. Subsidized student loans has traditionally meant that the government pays the interest costs on federal student loans while borrowers are enrolled in school. The rationale behind eliminating these type loans is to save the federal government money by collecting additional interest.  This could result in the cost of a higher education being that much more expensive due to additional interest costs.

Click HERE to read more on this story.

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. There are ways to file for bankruptcy with student loan 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Timothy Kingcade Posts

How Do Bankruptcy Courts Handle Income Tax Debt in Chapter 7 Bankruptcy?

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We have all seen or heard the advertisements promising to significantly reduce or even eliminate tax debt. Many of these companies are offering just that – empty promises, while charging clients unethical fees. Of all the types of debts handled in a bankruptcy case, income tax debt tends to be one of the non-dischargeable categories, along with student loan debt and child support obligations.

However, there are certain tax obligations that can be discharged in a Chapter 7 bankruptcy case depending on the following factors:

When You Can Have Your Tax Debt Discharged in Bankruptcy:

  • You must have filed a tax return. This must have occurred at least two years prior to the bankruptcy filing;
  • The taxes must be income taxes. Taxes other than income tax, including payroll taxes and fraud penalties are non-dischargeable in bankruptcy;
  • You must not have committed fraud or willful evasion. If you filed a fraudulent tax return or attempted to evade paying taxes (i.e. – using a false social security number on your tax return) your tax debt cannot be discharged in bankruptcy;
  • The debt must be at least three years old. For the tax debt to be eliminated in bankruptcy, the debt must have been originally due at least three years before filing for bankruptcy;
  • The tax debt must have been assessed by the IRS at least 240 days before you file for bankruptcy.

A Chapter 7 bankruptcy can wipe out your personal obligation to pay the debt and prevent the IRS from garnishing your wages. Whether you should file for bankruptcy may be a matter of timing, depending on the age of the income tax debt.  An experienced bankruptcy attorney who specializes in this area of law can best advise you on the next steps to take.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

https://www.nolo.com/legal-encyclopedia/bankruptcy-tax-debts-eliminating-29550.html