Tag: Miami bankruptcy attorney

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Debt Settlement vs. Filing for Bankruptcy: The Pros and Cons

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If you are having trouble affording your monthly expenses and are in over your head in debt, you may consider reaching out to a debt settlement company to alleviate some of the burden.  The commercials are appealing enough, touting promises of getting your debt negotiated with the lender for a fraction of what you owe.

Here’s how a debt settlement works and some of the risks involved:

The process starts by explaining your financial situation to the debt settlement company. You provide the names of the creditors and the amount you owe. The debt settlement company then gives you an estimate for reducing your debt along with a new lower monthly payment. As advised by the settlement company, you stop paying your creditors and instead send payments directly to the company.

The debt settlement company puts your monthly payments into a savings account. Once the account has grown to a certain amount, the debt settlement company calls your creditors and begins negotiating a settlement.  If the creditor agrees to a settlement amount, the settlement company pays the creditor and assesses a fee for the settlement.

Creditors typically do not settle debts until they are a few months past due, which means if you have not already done so you must stop paying on your accounts and allow them to become past due.  During this time, late payments will be reported to credit bureaus, your credit score will drop and you will begin receiving collection calls.  Late payments will remain on your credit reports for up to seven years and during this time you will have difficulty qualifying for new credit.

Debt settlement companies typically tackle the smallest debts, first which means your larger debts will continue to accumulate interest and additional fees. Add all that interest you are accumulating to the fees and you do not really end up saving much.  If you are unable to meet the terms of the debt settlement, ignore the debt or try and repay the debt and ultimately fail you run the risk of being sued.

Many consumers who have researched debt settlement options should also consider Chapter 7 bankruptcy, which erases credit card balances, medical bills, personal loans and other unsecured debts in three to four months.  Filing for bankruptcy will impact your credit score more than a debt settlement, but it legally erases the debts and prevents creditors from filing a lawsuit against you.

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 McMaken, 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

https://www.thebalance.com/the-dangers-of-debt-settlement-960622

http://www.latimes.com/business/la-fi-montalk-20171001-story.html

Debt Relief, Foreclosures, Student Loans, Timothy Kingcade Posts

Lennar Offers Millennials Unique Mortgage Opportunity that Helps Pay off Student Loan Debt

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It’s no surprise that the amount of student loan debt many Millennials have, has been holding them back from purchasing a home.  A National Association of Realtors (NAR) study showed that only 20% of Millennial respondents own a home, while the majority of them carry an average student loan balance of $41,200, which exceeds their average annual income of $38,800.

Among the Millennials surveyed who do not own a home, 83% said that their student loan debt affected their ability to purchase a home.

Eagle Home Mortgage, a mortgage lender and a subsidiary of Lennar, announced this week that it will offer a new mortgage program that will help home buyers pay off their student loan debt. Eagle Home Mortgage’s Student Loan Debt Mortgage Program offers borrowers as much as $13,000 that can be used to pay off student loan debt.

Here are some of the program’s terms and conditions:

  • Borrowers who use Eagle Home Mortgage’s Student Loan Debt Mortgage Program can direct up to 3% of the purchase price to pay their student loans, but only if they purchase a new home from Lennar.
  • Borrowers must meet credit and income requirements when using the Student Loan Debt Mortgage Program, and can qualify for loans with down payments as low as 3%.
  • The program is not intended for parents who took out loans to finance their child’s education.
  • The program’s maximum loan amount is $424,100, but Lennar said that in addition to the 3% contribution to student loan balances, buyers may also be eligible for other incentives – such as credits toward closing costs.

According to Lennar, the homebuilder will contribute up to 3% of the purchase price of a new home to be used to pay down student loans incurred while attending universities, colleges, community colleges, trade schools and other certificate-granting programs.  The Student Loan Debt Mortgage Program is being offered on a trial basis with new Lennar homes nationwide.

Click here to learn more about the program.

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 McMaken, 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

https://www.housingwire.com/articles/41396-lennar-targets-millennials-with-mortgage-that-pays-off-student-loan-debt

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Motion Denied After Creditor Attempts to Reopen Miami Bankruptcy Case and Seize Home

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Managing Shareholder, Timothy S. Kingcade and associate Kristina Gonzalez of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade Garcia McMaken, P.A. achieved a recent victory for their clients after a creditor, Bank of New York Mellon (“BONY”), attempted to re-open their 2009 bankruptcy case and compel the surrender of their Miami home.

“With this ruling, I am pleased to announce that my clients will be able to keep their home.  BONY made the decision to abandon its foreclosure efforts and enter into modification negotiations with my clients. It was seven years after my clients received their bankruptcy discharge, five years after the initial foreclosure was dismissed and only after those modification efforts proved unsuccessful that they filed the second foreclosure, based on new post-bankruptcy discharge defaults,” Timothy S. Kingcade said.

BONY waited more than a year after the second foreclosure was filed to seek to reopen the bankruptcy case, and only filed the motion when the bankruptcy debtor filed an action in District Court against the creditor’s loan servicer, Specialized Loan Servicing, for violations of the Real Estate Settlement Procedures Act and the Fair Debt Collection Practices Act.

In a consumer win for bankruptcy clients, the Honorable Laurel M. Isicoff ruled that there was “no purpose” in re-opening the bankruptcy case because the debtors’ decision to surrender the property was not binding in the subsequent foreclosure action.

Attorney Timothy S. Kingcade practices exclusively in the field of bankruptcy law, handling Chapter 7 and 13 filings and foreclosure defense cases for the Southern District of Florida.  As an experienced CPA and proven bankruptcy attorney, Timothy Kingcade knows how to help clients take full advantage of their rights under the bankruptcy laws to restart, rebuild and recover.

Miami-based Kingcade Garcia McMaken, P.A. was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade Garcia McMaken P.A. specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

Related Resources:

http://www.flsb.uscourts.gov/Opinions/LMI/09-30656Kurzban.pdf

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Boost Your Credit Score in 30 Days by Doing This

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Rebuilding your credit score can take time and there are not many shortcuts, but paying your credit card bill early can give you an added boost in just 30 days. Some consumers saw their credit score increase as much as 100 points.  Here is how it works:

Timing is everything. There are two factors that have the biggest impact on your credit score: One is paying bills on time versus paying late.  Making early payments can help with the second factor: credit utilization (i.e. – how high your balance is compared to your credit limit).

It is recommended that you keep a balance below 30% of your credit card limit and the lower the better.  Consumers with the highest credit scores typically use less than 10% of their available credit.  Here are some tips to reducing your credit utilization.

  • Set up alerts to let you know when you have reached a certain percentage of your available credit. When you get an alert, go online to make a payment.
  • Setting up charge alerts or checking your account regularly so you can pay off purchases as soon as they post.
  • Making scheduled “micropayments” every week or two to keep balances low.
  • Be cautious with retail credit cards that typically offer lower credit limits. If you have just $250 in purchases on the card and the credit limit is $500.  You have already used 50% of your credit utilization.

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 McMaken, 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

https://www.usatoday.com/story/money/personalfinance/2017/09/11/credit-move-can-bump-up-your-score-30-days/629455001/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

We are pleased to announce the launch of our NEW website and new firm name, Kingcade Garcia McMaken!

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The new site URL is https://www.miamibankruptcy.com/ and features valuable consumer information and extensive resources in our main area of practice: Bankruptcy law. The updated site is interactive and mobile-friendly.  We have improved the configuration of our content, making it easier to navigate.

Special features of the new site include an updated News & Resources section with informative videos and media coverage, a special section devoted to Tips for Dealing with Debt Collectors, hundreds of new Client Testimonials and the Miami Bankruptcy Law Blog, your go-to resource for all things bankruptcy!

Have a bankruptcy question?  Visit our Miami Bankruptcy Q & A section.

The new site is customized for our Spanish speaking clients as well. Readers can find biographical information about the attorneys and staff, along with notable case results and significant verdicts the firm has obtained for its clients.

We offer a wide array of information to potential clients seeking bankruptcy information. Among other topics, we invite you to learn about:

We have included numerous calls-to-action throughout the new site and an opt-in form to sign up for our firm’s monthly e-newsletter.  We will be updating the new site continuously with informative articles, blogs and firm announcements – so please come back and visit, soon!

Since 1996 Kingcade Garcia McMaken, 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.

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

U.S. Cracks Down on Collection of Private Student Loan Debt

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The U.S. consumer financial watchdog has ordered National College Student Loan Trusts and its debt collector, Transworld Systems Inc., to pay at least $21.6 million for attempting to collect on out-of-date loans and possible non-existent loans.

The Consumer Financial Protection Bureau (CFPB) alleges that the companies sued borrowers without being able to prove the debt was even owed or pursued collections where the debt was too old, relying on false and misleading legal documents.  There were at least 486 lawsuits filed where the statute of limitations had expired on the debt.

As a result, consumers made payments of at least $3.5 million on debt they did not owe, according to the CFPB. Transworld agreed to settle by paying a $2.5 million, which is part of the total of amount of at least $21.6 million.

Offered by banks and other companies, private student loans do not provide the same borrower protections and repayment options as federal student loans.

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. 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, 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Step-by-Step Guide to Surviving the Equifax Data Breach

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One of the largest data breaches in history has compromised the personal data of 143 million people. Equifax, a major credit bureau, lost control of customer data that included social security numbers, home addresses, credit card numbers, drivers’ license numbers and date of births.  The company estimates roughly half of the U.S. population has been affected by the breach, and this sensitive data could have been exposed to hackers.

Equifax will not specifically tell you if you are a victim, but we have a guide for you and a quick recap of what you may have missed post Hurricane Irma.

The data breach could have started as early as May 2017, which means the data could have been exposed for more than three months.  It is unclear what the hackers may have done with the data during those months.

Here is what you can do to protect yourself:

Check your credit reports. When looking through your reports, keep an eye out for any new accounts you did not open, late payments on debts you do not recognize and any other suspicious activity.  You are guaranteed a free annual credit report from the three major bureaus.  Click HERE to download your free credit report.  You will not be held responsible for charges made on a fraudulent credit card.  However, this must be reported in a timely manner.

Freeze your credit. Even if your credit comes back clean it is still early and one of the most reliable ways to prevent someone from opening up credit cards in your name is to place what is called a “credit freeze.”   You can contact each of the three credit bureaus by calling:

Set up a fraud alert.  When you set up a fraud alert, credit card companies will be required to verify your identity before opening an account. To activate a fraud alert, contact just one of the credit card bureaus and ask for an initial fraud alert. When the alert is set, it will be in effect for 90 days.

Be mindful of tax season.  Identity thieves can use stolen social security numbers to file fraudulent tax returns and receive refunds.  Many victims find out they are a victim of tax fraud after the IRS tells them their taxes have already been filed.  One of the best ways to prevent this from happening is to file early.

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.

Related Resources: https://www.cnet.com/how-to/your-guide-to-surviving-equifax-data-breach/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What Debt Collectors Can and Cannot Do

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The Fair Debt Collections Practices Act (FDCPA) limits the tactics that debt collectors can take to collect on a debt.  Here are 10 things debt collectors can and cannot do.

5 Things Debt Collectors Cannot Do:

  1. Come to your place of work. It is illegal for a debt collector to come to your workplace to collect on a debt. The FDCPA prohibits a debt collector publicizing your debts and showing up at your place of work to collect on a debt.
  2. Harass you. Harassment can come in a variety of forms and include: repeated phone calls, threats of violence, publishing information about you, abusive or obscene language.
  3. Arrest you for debt. You cannot be arrested for a debt you owe.
  4. Purse you for a debt you do not owe. Incomplete or inaccurate documentation can lead to a debt collector pursuing the wrong person for payment.  The issue is not uncommon, but it is illegal.
  5. Call you at any time. It is illegal for debt collectors to call you before 8 a.m. and after 9 p.m. You can request that a debt collector stop calling you, but your obligation to pay still remains.

 

5 Things Debt Collectors Can Do:

  1. Seek payment on an expired debt. Even debts that expired according to the statute of limitations can still be requested from debt collectors.  These unsecured debts can include credit cards and medical bills.  Remember: You cannot be sued for payment on these expired debts.
  2. Pressure you. While debt collectors cannot threaten you, they can apply pressure to collect payment.  Pressure can include daily calls, frequent letters or talk about pursuing a lawsuit for payment.
  3. Sue you for payment on a debt. A debt collector can sue you for non-payment. These type lawsuits can result in wage garnishment, bank levies or both.  It is best to consult with an experienced bankruptcy attorney before you are sued or there is a judgment entered against you in regard to an outstanding debt.
  4. Sell your debt. A collector can resell debt it has not been able to collect on. So if one debt collector stops contacting you about a debt, do not be surprised if another starts.
  5. Negotiate what you owe. Because debt collectors buy debts for sometimes pennies on the dollar, they have fairly large profit margins if they collect the original amount owed. This gives them more flexibility in negotiating payment. You may be able to negotiate a settlement for 25% or 30% of what you originally owed.  Remember, to get the agreement in writing so you have proof that the amount paid was all that was required in the settlement.

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.

Related Resources:

https://www.nerdwallet.com/blog/finance/things-debt-collectors-cannot-do/

 

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

Regulators able to get $192 million in Student Loan Debt Settlement from Aequitas

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Aequitas Capital executives believed they had purchased a gold mine when they began buying student loans from Corinthian Colleges- instead, the debt proved to be the company’s downfall.  Following the for-profit college’s decent into bankruptcy and liquidation; Aequitas also collapsed amid accusations the company’s top execs were running a Ponzi scheme.

However, Aequitas continued to collect payments on the debt- until now. The U.S. Consumer Financial Protection Bureau and several state attorneys general and the Aequitas receiver reached a deal in which about 41,000 former Corinthian students whose debt is held by Aequitas could get more than half- possibly all, of their debt eliminated.

In July 2015, Aequitas became a key ally and vital source of liquidity for Corinthian by buying massive amounts of student debt. By helping finance Corinthian’s in-house private loans, Aequitas enabled Corinthian to access billions in student loan money from the U.S. government.

The bureau recently filed a lawsuit against Aequitas as part of the settlement. It claims Aequitas employees privately expressed anxiety about the huge percentage of Corinthian students who were failing to make their loan payments. “With defaults this high, how can we defend our practices,” the unidentified employee wrote in a 2011 note.

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

Credit Card Debt a Growing Concern for College Students

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A recent study conducted by Nellie Mae, the nation’s leading student finance firm, revealed that the average undergraduate carries a credit card balance of $2,169.  According to the study, many students use their credit cards without knowing how the bills will even be paid off.  It also showed that many students used credit cards to pay for tuition and books, instead of federal student loans that offer lower interest rates.

Four out of five college students amass nearly $1,000 a year in credit card debt.  One cause of credit card debt is college students’ difficulty in adjusting to their newfound financial freedom.  Parents and students need to come up with a budget for credit card spending before their child leaves for college.  Make sure your college student knows not to use money they do not have, even for a one-time purchase.

Use resources available to keep them on the right path.  You and your college student should sign-up for overdraft alerts on all accounts. Online alerts and apps on your Smartphone can help with this.

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.

Related Resources:

https://www.fastweb.com/personal-finance/articles/dealing-with-credit-card-debt

http://www.nbcdfw.com/news/local/Credit-card-debt-a-mounting-concern-for-college-students-441338263.html