Miami bankruptcy attorney Archives - Page 79 of 100

The Medical Debt Crisis: Americans still struggling to pay off Massive Healthcare bills

Posted on August 19, 2016by Admin

Recent data shows that Americans are forgoing medical care and using extreme measures in an effort to pay off their medical debt. Although, the Affordable Care Act is helping reduce the burden of medical debt for some American consumers- for states that have not expanded Medicaid, millions of Americans still lack insurance and many of the affordable plans offer minimal coverage. The result is that in 2014, 64 million people were struggling with medical debt, the number one cause of bankruptcy in the United States.

Two surveys (in 2008 and 2012) explored the finances of lower to middle-income households carrying credit card debt. It was found that households carrying medical debt on their credit cards were more likely to take extreme measures to pay off their debts and forgo necessary medical treatment. Even for the insured, medical debt can negatively impact household finances.

In the 2008 and 2012 surveys, the average total credit card debt fell from $11,019 in 2008 to $8,762 in 2012, a 20 percent decline. Medical debt alone fell from $2,055 in 2008 to $1,679 in 2012, an 18 percent decline. A possible reason for the decline could be the Credit Card Accountability Responsibility and Disclosure Act (CARD Act). Studies show that the CARD Act dramatically reduced fees for credit card users. Research by the Consumer Financial Protection Bureau suggests the CARD act reduced hidden fees, saving consumers billions of dollars. It is also possible the Affordable Care Act played a role along with the improving economy.

Costly medical procedures can quickly lead to a household’s debt spiraling out of control. A key contributor is the out-of-pocket costs, not covered by insurance. The survey revealed dental expenses were the most frequently cited as a contributor to credit card debt; of those respondents who report they experienced a dental expense, a large share said that the expense contributed to their credit card debt. Many basic insurance plans do not include dental. Emergency room visits and purchasing prescription medication contributed to nearly half of the reported credit card debt.

There are some legislative options in the works. The Medical Bankruptcy Fairness Act, proposed by Senators Sheldon Whitehouse (D-RI) and Elizabeth Warren (D-MA), would help families dealing with medical debt keep their homes by providing them with bankruptcy protection, and would forgive student debt. It also waives the requirement that individuals who file for debt relief receive credit counseling, if the debt is medical-related. The Medical Debt Responsibility Act, introduced by Senator Jeff Merkley (D-OR) and Rep. Maxine Waters (D-CA), would require that fully paid medical debt be removed from credit reports within 45 days.

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Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

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

How the Presidential Candidates will Address Student Loan Debt

Posted on August 17, 2016by Admin

Student loan debt has topped $1.3 trillion and impacts approximately 43 million Americans, prompting a variety of efforts to help struggling students pay for college. It is also a very hot topic politically, with both presidential candidates expressing concerns about the federal government profiting off these loans. While some attribute the decline of state funding to driving up education costs, the presidential campaign has emphasized what Democratic nominee Hillary Clinton has called “the crushing burden of debt.”

Hillary Clinton’s Plan

One of the provisions in Mrs. Clinton’s plan to provide tuition-free education at public colleges and universities for students whose families make under $125,000 a year has sparked the most debate. But when she originally rejected Democratic rival Bernie Sanders’ more expansive plan, it invoked a long-running argument about who should shoulder the costs.

“I disagree with free college for everybody. I don’t think taxpayers should be paying to send Donald Trump’s kids to college,” she said at a Democratic debate in November 2015.

But some researchers have argued that certain provisions in Clinton’s plan will not have as much impact on how students pay for college as she claims. One example is her platform’s promise to “significantly cut interest rates so the government never profits from college student loans.”

Donald Trump’s Plan

Mr. Trump’s plan would give more oversight to colleges to decide whether to grant loans to a student based on their prospective major and future earnings.

“If you are going to study 16th-century French art, more power to you. I support the arts,” said Dr. Clovis, a professor at a professor at Morningside College in Iowa, who now serves as the campaign’s policy director. “But you are not going to get a job.”

Some researchers say these efforts defeat the purpose of providing government aid for students hoping to attend college in the first place, putting lenders in the positions of picking “winners and losers,” and determining destinies for young people who, like all of us, deserve a shot at the American dream. The campaign’s plan would also give private banks oversight over government-backed student loans, reversing a 2010 decision under President Obama to make the federal government the lender.

There is a substantial racial gap in who holds student loan debt. Some 54 percent of young African-American households (aged 25 to 40) have student debt, compared to 39 percent of young white households, according to a recent study.

Some advocacy groups have pushed for more transparency in how the Education Department collects debts from borrowers. In March, the American Civil Liberties Union and the National Consumer Law Center sued the department, in an attempt to learn more about how debt collection practices could impact borrowers of color.

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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

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

Dept. of Education Debt Collectors Face Added Scrutiny

Posted on August 16, 2016by Admin

Following recent scrutiny from Congress and the Obama administration, private companies that service student loans for the federal government are about to face new rules from the Consumer Financial Protection Bureau.

Under the new regulations introduced in July, debt collectors would be limited in the ways they can contact borrowers in an effort to curb abuse and harassment. For example, debt collectors could be prevented from calling borrowers more than a half-dozen times a week and likely would have to document that the debt they are trying to collect is legitimate before contacting borrowers.

Student loan servicers have drawn criticism from the government, after federal regulators including the bureau warned in September of “widespread problems” in the student loan industry.

Among the bigger issues is that millions of borrowers have had their debts transferred between servicers with little notice and that millions of borrowers have fallen into default despite the availability of federal programs that offer income-based repayment plans.

Nearly 4 million people with federal student loans are in default, according to the Department of Education. This year, the consumer bureau has received almost as many complaints about servicing of federal student loans as it has for private student loans.

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Credit, Debt Relief, Timothy Kingcade Posts

How soon can a Creditor Send my Account to Collections?

Posted on August 15, 2016by Admin

A bill sent to collections can stay on your credit report for up to seven years and have a negative impact on your credit score. Sometimes people are unaware they have an unpaid bill until a debt collector contacts them, others have fallen on hard times and do not have a choice but to let their debt go to collections.

So how quickly can a creditor send an unpaid bill to a debt collector?

This can occur as soon as the default in payment has occurred. For example, if you made a promise to pay on a certain date and failed to do so, you could be sent to collections the very next day. However, if there is a contractual grace period, the creditor cannot send the account to collections until the grace period has expired.

You may be able to negotiate with the creditor (or landlord, doctor’s office, utility company, etc.) by explaining your situation and working out a payment plan. Keep in mind, they want to get paid, rather than write the debt off as a loss.

If you end up with a collection account on your credit report, you can try to have it removed. If it cannot be removed, focus on other aspects of your credit, like paying down debt and making future payments on time. This will help rehabilitate your credit score overtime.

It is also a good idea to regularly review your credit report for mistakes, because credit report errors are common and can damage your credit- unnecessarily. You are entitled to a free annual credit report from each of the three major credit reporting agencies — Equifax, Experian and TransUnion.

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

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Bankruptcy Legislation for Big Banks Gains Momentum

Posted on July 14, 2016by Admin

Legislation to make the bankruptcy of a big bank more realistic is gaining momentum in Washington, a development that could help the largest U.S. financial firms counter criticism that they remain “too big to fail,” without a taxpayer bailout.

Changes to the bankruptcy code were included in a financial-services budget bill the House passed last week, along with other regulatory provisions such as congressional oversight of the Consumer Financial Protection Bureau’s budget. The bankruptcy legislation has broad support, giving it a greater chance to become law this year.

The Financial Institutions Bankruptcy Act would establish a section of the bankruptcy code specifically for large financial firms and is designed to prevent a repeat of 2008 Lehman Brothers downfall, when the investment bank’s bankruptcy filing caused widespread financial panic and economic consequences. Under the bill, regulators and bankruptcy judges would have more power and flexibility to sort out the liabilities of a failing firm and to stabilize its continuing operations.

Rep. David Trott (R., Mich.), the bill’s primary sponsor, “believes the inclusion of the language in the appropriations bill further builds momentum for this bipartisan plan to protect taxpayers and he hopes the Senate will take up the legislation soon,” a spokesman said last week.

The bankruptcy provisions are part of a number of changes instituted after 2008 to lessen the chances of a Lehman-like collapse and the bank bailouts that followed. The 2010 Dodd-Frank financial overhaul law required big banks to show they have credible plans for going through bankruptcy, known as “living wills.”

By making the bankruptcy code a more feasible option for large financial firms, the bill would help ease GOP concerns about future bailouts. That is part of the reason big banks have been in favor of it. The bill is also less controversial than some related proposals because it does not seek to repeal regulators’ new powers to “unwind financial firms outside bankruptcy.”

Changes to the bankruptcy code could also have a positive effect on big banks by bolstering their “living will” bankruptcy plans. Regulators told five of the eight U.S. banks considered critical to the global economy their plans to go through the existing bankruptcy code were not credible, and the banks face sanctions if they cannot address regulators’ concerns.

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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all 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

Consumer Debt Increases in May on Student and Auto Loans

Posted on July 13, 2016by Admin

The Federal Reserve reported that borrowing increased by $18.6 billion in May, an increase from $13.4 billion in April. Borrowing in the auto and student loan category climbed 16.2 billion. Borrowing in the credit card category increased 2.4 billion.

This gain in May pushed total consumer credit to a record 3.62 trillion. Consumer spending, which accounts for 70 percent of economic activity, is expected to surge, helping boost the overall economy. Non-revolving debt, a category that includes auto loans, student loans, boats, and vacations accounts for $16.2 billion of the total increase.

Student loans and motor vehicle loans typically represent the bulk of non-revolving credit. Due to easy credit, subprime auto loans likely played a part in this.

Economists are forecasting that second quarter growth will accelerate to a rate of around 2.5 percent. The increase is due to the expected employment growth, which slowed this spring, but will continue to increase in the coming months. A recent report reveals employers added 287,000 jobs in June, a substantial improvement from the small gain of 11,000 jobs in May.

Related Resources:

http://www.newsmax.com/Finance/StreetTalk/consumer-debt-auto-student/2016/07/08/id/737822/

http://www.minyanville.com/business-news/markets/articles/2523economy/7/9/2016/id/57742

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

You can sue over Robocalls- Know your rights when it comes to Collection Calls

Posted on July 12, 2016by Admin

Debt collectors have the right to contact you, but they do not have the right to harass you. Recently, a woman received robocalls from the same business four or five times a day, all hours of the day and night, even on holidays- including Christmas day! She received a total of 800 robocalls in a year and a half period. After repeatedly telling the company to stop contacting her, she took legal recourse. The woman had suffered complications from bypass surgery and had fallen behind on her car payments.

The unwanted calls are in violation of the Telephone Consumer Protection Act, the number one complaint to the FCC. Consumers have the right to sue and can be awarded up to $1,500 for every call that does not fall within these guidelines.

Here are five illegal tactics that unethical debt collectors use:

Harassment. Relentless calling, 4-5 times a day falls into this category.
Timing. Debt collectors must limit their calls between 8 a.m. and 9 p.m. on weekends and weekdays.
Pretending to be someone else. Debt collectors always have to identify themselves and who they work for.
Making threats. It is illegal to make threats to get you to pay. The debt collector cannot threaten physical harm, jail-time or let your neighbors know about an outstanding debt.
Contacting third parties. It is illegal for a debt collector to contact employers, neighbors or leave messages with anyone regarding your debt.

Know your rights as a consumer. The Fair Debt Collection Practices Act (FDCPA) was designed to help prevent creditor abuse and harassment.

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

Parents Responsible for Nearly Every New Private Student Loan

Posted on July 11, 2016by Admin

Student loans are no longer just for students. New private student loans are requiring parents to sign on the dotted line as well. This change comes as lenders continue to strengthen the guidelines on underwriting requirements. Nearly every, or 94%, of private student loans distributed to undergraduates for the 2015-2016 academic year had more than one borrower responsible for the debt–not only the student but a co-signer, according to the report.

Five of the largest private student lenders distributed $6.46 billion in loans between July 2015 and March 2016, up 7% from the same period a year earlier–and the fifth consecutive year of increases, according to recent data from MeasureOne.

Cosigners are becoming more common with graduate school student loans as well. Nearly 61% of student loans dispersed for 2015-2016 had cosigners versus 57% the previous year. For lenders, cosigners increase the chance that the loan will be repaid, avoiding defaults. When the student borrower cannot make the payments, co-signers- usually the parents- have to pay up. Otherwise lenders can report both the student and co-signer of being late to the credit bureaus. That would lead to lower credit scores for both the student borrower and the cosigner, making it harder to obtain other types of financing.

Student loans are considered among the riskiest type of consumer loans, because it is difficult to determine whether borrowers will graduate or end up with a salary that is enough to repay the debt. In case you missed it, read our blog on the dangers of co-signing.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Debt Collector on Trial for Targeting Financially-Struggling Consumers

Posted on July 7, 2016by Admin

A Georgia man who prosecutors say organized a scheme that victimized more than 6,000 consumers nationwide is set to go to trial. Prosecutors say John Williams spearheaded efforts to defraud at-risk consumers from 2009 to 2014 into paying approximately $4.1 million by misrepresenting the status of their debts and consequences of not paying. John Williams’ debt collection agency Williams, Scott & Associates LLC was shut down in 2014.

The trial comes when there is a time of heightened regulatory attention toward debt collection, which the Consumer Financial Protection Bureau (CFPB) considers the No. 1 most-complained about area of consumer financial services.

Debt collection firms, like the one in this case, purchase delinquent debts, oftentimes for pennies on the dollar, then attempt to collect the full amount the original lender claimed. These firms claim they are simply seeking recovery on a rightfully-owed debt. However, regulators say many of these firms engage in abusive tactics while targeting financially-struggling individuals.

Prosecutors at Williams, Scott & Associates contacted consumers and falsely referred to themselves as “detective” or “investigator,” claimed to be tied to government agencies and even threatened arrest.

Scripts employees read on the calls included legal-sounding language, like the “statute of limitations” on the consumers’ “civil legal rights” had expired, according to prosecutors. The six employees arrested with Williams have pleaded guilty. Williams has pleaded not guilty to the charge of conspiracy to commit wire fraud. He has been held without bail since his arrest and faces up to 20 years in prison.

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

Even Death does not Meet Threshold for Student Loan Debt Forgiveness

Posted on July 6, 2016by Admin

Grief stricken after her son’s unsolved murder, a New Jersey mother faced an endless list of tasks- helping the police track down his killer, cancelling his credit cards, bank accounts, cell phone and planning a funeral.

And then there were his college student loans she co-signed.

When she called about his federal loans, an administrator offered condolences and assured her the balance would be written off. However, she received a far different response from a New Jersey state agency that had also lent her son money.

“Please accept our condolences on your loss,” explained a letter from the Higher Education Student Assistance Authority of New Jersey. “After careful consideration of the information you provided, the authority has determined that your request does not meet the threshold for loan forgiveness. Monthly bill statements will continue to be sent to you.”

These loans also carry higher interest rates than similar federal programs. Most significant, New Jersey’s loans come with a hurdle that even the most predatory for-profit players cannot avoid: the power of the state.

New Jersey can garnish wages, rescind state income tax refunds, revoke professional licenses, and even confiscate lottery winnings— all without having to get court approval.

Some consumer attorneys compare it to “state-sanctioned loan-sharking, a program that is set up so that you fail.”

Like many states, New Jersey administers a student loan program designed to help students further their education in order to be competitive in today’s workforce. Where New Jersey differs with other states is the degree of difficulty in getting out from under burdensome loan payments despite extreme poverty, illness and even death.

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