Tag: Miami bankruptcy attorney

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

New Legislation If Passed Would Allow Student Loan Debt to be Discharged in Bankruptcy

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Bipartisan legislation was introduced last week by Rep. John Delaney, D-Md., that would allow student loan debt to be discharged in bankruptcy.

The Discharge Student Loans in Bankruptcy Act (H.R. 2366) reforms federal bankruptcy rules to establish parity between student loan debt and other forms of debt. Rep. John Katko, R-New York, is the lead republican co-sponsor of the bill.

Currently, student loan debt is non-dischargeable in bankruptcy.  The only exception is if a filer can prove undue hardship, which is extremely difficult in most circumstances.  Last year, total student loan debt hit a record high of $1.3 trillion dollars.

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.

Foreclosures, Timothy Kingcade Posts

Cities Can Sue over Predatory Mortgage Lending but the Standard is high

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The U.S. Supreme Court ruled that cities can sue banks over predatory mortgage lending to minorities that harms municipal finances, but cast doubt on whether these cases can succeed by throwing out a lower court decision (ruling 8-0) that had allowed litigation brought by the city of Miami to even move forward.

Miami accused Wells Fargo, Bank of America and Citigroup into pushing “non-white” borrowers into higher-cost and riskier loans they often could not afford, even if they had decent credit. As a result of these alleged discriminatory lending practices, property values declined due to the high rate of loan defaults, which led to foreclosures. The city of Miami said it lost property tax revenue and was forced to pay to repair and maintain the properties that went into foreclosure.

Justice Stephen Breyer said Miami had the legal standing to sue the banks, but needed to present more evidence that the injuries it claims to have suffered were tied to alleged violations of the federal Fair Housing Act. Miami accused the banks of a decade of lending discrimination in its residential housing market. Los Angeles, Oakland and several other U.S. cities have filed similar lawsuits.

Click here to read more on this story.

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, Student Loans, Timothy Kingcade Posts

Millennials owe a Record Amount of Debt

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Millennials (also known as Generation Y), those 21 to 34-year-old hold an estimated $1.1 trillion of the country’s $3.6 trillion in consumer debt.  Rising student and auto loans are outweighing a decline in mortgages.

With all of the rising debt comes the risk of default.  There is evidence that millennials are curbing their spending habits when it comes to smaller purchases, whether searching for the lowest price or waiting for the best time to buy.

But concerns over student loans and auto loans remain.  A growing amount of auto loan debt comes from leasing, with 32% of millennials choosing to lease in 2016, up from 21% in 2011, according to a report from Edmunds.  Households making $50,000 or less, millenials made up 21% of lessees.

If millennials pay their student loans over their auto loans, lower-credit-score applicants could have a hard time financing vehicle purchases.  If that happens, automakers could be in trouble.

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 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

How the Affordable Healthcare Act Had an Impact on Personal Bankruptcy Filings

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As legislators and the President focus their efforts on the repeal and replacement of the Affordable Care Act, they may want to keep in mind the financial consequences.  Since its inception, far fewer Americans have filed for personal bankruptcy.  Personal bankruptcy filings are down 50 percent since 2010.  Coincidentally, those same seven years represent the time frame when the 2010 federal law designed to provide health insurance coverage for the majority of Americans took effect.

Personal bankruptcy filings have dropped from 1,536,799 in 2010 to 770,846 in 2016.  Medical bills remain the leading cause of personal bankruptcy.  Unlike other debts, medical bills are often unexpected, involuntary, and can be for very large amounts.

Two other contributing factors add to the decline: an improved economy and changes to bankruptcy laws in 2005 that made it more difficult and costly to file. However, expanded health coverage played a significant role in the recent decline of personal bankruptcy filings.

Some of the most important financial protections of the Affordable Care Act apply to all consumers, whether they get their coverage through Obamacare or the private insurance marketplace. These provisions include mandated coverage for any pre-existing conditions, an end to annual and lifetime coverage caps.  It also allows young people to be covered by a family policy until age 26.

The first attempt to repeal and replace the Affordable Care Act was in March, failed to gain enough Congressional support and never came to a vote. Then in April, details of a new replacement plan were released. Although President Trump has said that the new version will cover pre-existing conditions, the revised law gives states discretion to allow insurance companies to increase rates for consumers with an existing illness.

Click here to read more on this story.

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.

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The High-Tech Methods Debt Collectors are using to Find you- and Your Money

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Debt collectors are using some new high-tech tactics to collect and track down consumers. New software is allowing debt collectors to insert voicemails into phones by the thousands without a single ring, bypassing regulations that restrict how often they can call consumers.

Ringless Voicemails

Companies such as Stratics Networks maintain that because no phone calls are made, regulations prohibiting auto-dialed collection calls do not apply.  But consumer protection attorneys disagree, arguing that just because the phone does not ring, does not mean it’s not a call.  The Telephone Consumer Protection Act forbids debt collectors from harassing consumers.

Avatars

Animated cartoon characters show up in borrowers’ inboxes and smooth-talk borrowers into paying up. Collections managers design personalities of avatars, who speak multiple languages and weigh debtors’ credit scores when negotiating payment.

Speech Analytics

Advanced language-recognition programs not only track keywords during a conversation but identify the emotion of the borrower.  Cursing out a debt collector?  Prompts generated by CallMiner Inc. software help steer conversations back on track.

Supervisors using the speech-analytics company’s system see color-coded boxes on call-center computer monitors. Small green boxes represent routine conversations. During those calls, agents are reminded to recite mandatory “mini-Miranda” statements that inform consumers of their rights.  But a box turns red and expands when a call contains expletives or long silences.

Skip Tracing, Spoofing and Scrubbing

In a practice called skip tracing, collection agencies search databases to find borrowers who have skipped out on paying their debts.  Some collectors track debtors on Facebook and other social media sites. A Texas agency is linking Social Security numbers to social media accounts, raising privacy concerns. Another tactic known as spoofing, debt collectors insert local area codes in caller-ID displays, enticing the person being called to answer the phone. The Consumer Financial Protection Bureau is proposing to ban the practice.

Click here to read more on this story.

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 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, Timothy Kingcade Posts

Tips for Seniors Struggling with Credit Card Debt

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If you are a senior struggling with credit card debt, you are not alone.  For the first time, middle-class households headed by someone 50-plus years of age carried more credit card debt on average than households of people younger than 50, according to a recent study by Demos National Survey on Credit Card Debt.  Half of the respondents said they carried medical debt on their credit cards and a third said they used credit cards to pay for daily expenses.

Seniors carry credit card debt for a variety of reasons.  Some are still paying off educational loans or their children’s educational loans.  Many seniors are carrying credit card debt into retirement.  The debt may have been management when they were working, but has become a burden when their income level drops.  Oftentimes, medical debt compounds the problem, as health insurance only covers a portion of healthcare costs.

Here are some tips for seniors to help take control and manage their credit card debt:

  • Find a nonprofit credit counselor.  The sooner you seek help, the better.
  • Contact your credit card company to see if you can work out a payment plan.
  • Adjust your lifestyle. Cut your expenses (i.e. – expensive cell phone plans, cable and Internet packages);
  • Get help with budgeting. Paying off your debts only works if your spending is under control.  Know where your money is going every month.  Making a few small changes  to your monthly expenses can add up and give you more money to pay down debt.
  • For medical debt, talk with your doctor’s office to see what your options are. Avoid medical credit cards they may offer you; these come with very high interest rates, regardless of your credit score.
  • Consider a reverse mortgage. There are many ways you can use your home to get through difficult financial times, but there are risks associated with taking this route.  Make sure this will solve your financial problem without adding to it.
  • Consider bankruptcy. If you are struggling with insurmountable credit card or medical debt, bankruptcy may be right for you.  This option will allow you to reorganize your financial situation and discharge your debts if you cannot pay them.  There are several different types of bankruptcy, so you want to carefully weigh your options.  Many bankruptcy attorneys offer free consultations and will advise you on the best course of action.

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 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.usatoday.com/story/money/personalfinance/retirement/2017/04/09/seniors-rising-credit-card-debt-squeezes-tight/100102614/

 

Bankruptcy Law, Credit, Timothy Kingcade Posts

Collection Call Scam Takes New Twist

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The Better Business Bureau is warning consumers of a new debt collection scam.  It involves a supposed debt collector informing you that a civil complaint has been filed against you- and scammers are doing an excellent job of making it seem real.  They may rattle off specific details, such as the amount of the debt, a complaint case number and a phone number where you can follow up.  If you end up calling that number, another phony representative will inform you of the same.  To avoid a pending lawsuit you must pay up immediately via wire transfer or prepaid debt card, the scammer says.

Consumers can protect themselves from scams like this by knowing their rights.

  • Hang up: If you know that you do not have any outstanding loans, hang up. Do not press any numbers or speak to an “agent.”
  • Ask to be provided with an official “validation notice” of the debt: Debt collectors are required by law to provide this information in writing. The notice must include the amount of the debt, the name of the creditor and a statement of your rights. If the person calling you will not provide that information, hang up immediately.
  • Ask for the details: Get the caller’s name, company, street address, and telephone number.  Confirm the collection agency is real.
  • Do not provide any personal information: Until you have verified the call, do not provide or confirm bank account, credit card or other personal information over the phone.
  • Check your credit report: Check with one of the three national credit reporting agencies (i.e. – Equifax, TransUnion, Experian) to determine if you have any outstanding debts or there has been any suspicious activity on your accounts.
  • Place a fraud alert on your credit report: If the scammer has personal information, place a fraud alert with the three national credit reporting companies.  And to report a scam you can always go to the BBB Scam Tracker.
    ­

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 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://www.bbb.org/council/news-events/bbb-scam-alerts/2017/04/scam-alert-collection-call-con-takes-new-twist/

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

Class Action Lawsuit May Offer Hope to Student Loan Borrowers in Bankruptcy

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Student loan servicer, Navient has agreed to stop collection attempts on certain borrowers who filed for bankruptcy, providing at least temporary relief for thousands of people and signaling there may be a chance of discharging student loan debt in bankruptcy.

As part of an ongoing class-action lawsuit, Navient has voluntarily agreed to stop collection activities on loans used by borrowers who filed for bankruptcy after October 2005 and used the loans to attend non-accredited schools.

Under the voluntary agreement filed with the court this month, Navient can still continue to send borrowers monthly statements, but the company will no longer aggressively call borrowers multiple times a day.

Plaintiffs in the case allege Navient attempted to collect on loans that were discharged in bankruptcy, including calling their relatives and employers multiple times a day.

The judge overseeing the class-action has not made a ruling yet, so it is unclear if he believes the debts should be discharged. But in a hearing to discuss whether Navient would stop collection on the loans at issue in the case, he pushed the company to do so, expressing sympathy for the borrowers.

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, Debt Relief, Timothy Kingcade Posts

Who Actually Files for Bankruptcy? The Answer May Surprise You

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Many people feel guilty about filing for bankruptcy, but the reason they file is often beyond their control.  The majority of people who file for bankruptcy do so because they lost their jobs, became sick or had a medical emergency, or got a divorce.   Financial mismanagement is becoming a less common factor in bankruptcy filings, while job loss is one of the biggest factors.

Even if someone is able to get a new job after being laid off, oftentimes they are already too far behind on their mortgage, car and credit card payments, and their debt spirals.  Exorbitant medical bills are another factor that are out of a family’s control.  Even with health insurance, there are still out-of-pocket expenses and co-pays that can add up quickly.

Divorce causes two incomes to be taken down to one, with separate homes, additional bills and possible child support payments.  Predatory lending and the misuse of credit during these desperate times can play a role in consumer bankruptcy filings.

Chapter 7 bankruptcy allows you to discharge your debt and get a fresh start.  Common categories of dischargeable debt include:

  • Credit card debt (including overdue and late fees)
  • Collection agency accounts
  • Medical bills
  • Personal loans from friends, family, and employers
  • Utility bills (past due amounts only)
  • Dishonored checks (unless based on fraud)
  • Student loans (only if undue hardship can be proven)
  • Repossession deficiency balances
  • Auto accident claims (except those involving drunk driving)
  • Business debts
  • Money owed under lease agreements (includes past due rent)
  • Civil court judgments (unless based on fraud)
  • Tax penalties and unpaid taxes past a certain number of years
  • Attorney fees (except child support and alimony awards)
  • Revolving charge accounts (except extended payment charges)
  • Social security over-payments, and
  • Veterans’ assistance loans and over-payments.

In most cases, Chapter 7 bankruptcy filers automatically receive a discharge at the end of their case. A discharge releases you from personal liability for the debt and prevents the creditor from taking any collection actions against you. In other words, you are no longer legally required to pay any debts that are discharged. In Chapter 7, the court usually grants the discharge 60 days after the 341(a) Meeting of Creditors. Typically, this means you will obtain a discharge about four months after filing your Chapter 7 bankruptcy petition.

If you are in financial crisis and considering filing for bankruptcy, 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://www.thenewsstar.com/story/money/2017/04/21/who-files-bankruptcy-answer-surprise-you/100565822/

http://www.nolo.com/legal-encyclopedia/debt-discharged-chapter-7-bankruptcy.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What happens when credit card companies sell your debt?

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Barclaycard sold $1.6 billion of credit card balances in the first quarter of 2017 to the personal-loan company, Credit Shop Inc.  Oftentimes, the accounts that are sold are ones that the card issuer has determined to be too risky for its business or are already in delinquency.  In these type instances, a card issuer can sell the account balances for pennies on the dollars.

Here is what you need to know if your credit card company sells your debt.

The reasons card issuers buy and sell debt.  Some debts are more “reliable” than others.  For this reason, cardholders pay widely different interest rates, depending on how risky the lender judges them to be.  “Subprime” borrowers tend to pay substantially higher interest rates to make up for the possibility that they might not be able to pay back the debt.

How will you know if your debt has been sold?  In many you will only find out if your debt has been sold when you hear it from the new owner or a debt collector calls you and demands payment.

What if a debt collector calls? If you receive a call from a debt collector, the Fair Debt Collection Practices Act protects you from abuse and harassment.  A debt collector is not allowed to call you excessively or make any threats.  They are also prohibited from calling you before 8 a.m. or after 9 p.m. and cannot misrepresent the amount you owe.  By law, you have the right to demand documented proof of the existence of the debt and the amount you reportedly owe. This request must be made in writing within 30 days of the first contact from a debt collector. During the time it takes to investigate and reply to your request, all calls from the debt collector must stop.

You also have the right to request that all future contact be made in writing. This can prevent disruptive and embarrassing calls at home or at work.  You have the right to sue if a debt collector violates any of these rules.

What responsibilities do credit card companies have? Under the federal CARD Act, which went into effect in 2010, credit card companies are required by law to give cardholders 21 days from the date the statement mails to make a payment.  Credit card companies are also required to provide a 45-day written notice before any rate increases. If you receive this notification, consider paying off the account if you are able to or transferring your balance to a low-interest credit card or zero-percent interest card, which overtime will be less costly to repay.

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 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://www.nasdaq.com/article/what-happens-when-credit-card-companies-sell-your-debt-cm776572