Miami bankruptcy attorney Archives - Page 79 of 105 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Qualifying for a loan is getting harder for some consumers

Posted on February 15, 2017by Admin

Banks are becoming more selective when it comes to approving loans for those with less than perfect credit. The data is surprising as many consumers seem to be benefiting from job growth and lower debt levels. However, 11.7% of banks have tightened their standards for auto loans in the first quarter, from 3.3% last year, according to the Federal Reserve and Deutsche Bank.

Credit card standards were strengthened by 8.3% of banks, compared to none in the fourth quarter. With the economy in its eighth year of recovery, lenders are extending their reach to those with cash flow pressures, borrowers at low – and middle class income levels to increase revenue.

The share of delinquent personal loans and credit card debt increased in the third quarter to 3.53% and 1.33% respectively, according to TransUnion and UBS. Out of those consumers surveyed, 18% said they expected to default on a loan payment in the next 12 months, up from 12% in December.

The number of subprime auto loans (those requiring a FICO score of 600 or lower) that were at least 90 days delinquent reached the highest level since 2010 in the third quarter at 6 million. The number of bad loans were by auto finance companies, not banks.

Two-thirds of the households who earn less than $40,000 say financial concerns have increased over the past six months for them. The latest numbers reflect the incomes of many low- to moderate-income working families are not keeping up with the costs of rising health insurance deductibles and monthly expenses.

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, Credit, Debt Relief, Timothy Kingcade Posts

6 Credit Score Killers and How to Avoid Them

Posted on February 14, 2017by Admin

There are financial missteps you can make that are guaranteed to lower your credit score. One of the biggest factors in determining your credit score is your past payment history, but there are other things you may be doing that can affect your score in a negative way.

A first missed payment. Per a FICO study, a single 30-day late payment can cause a good credit score of 780 to fall 90 to 110 points. An average score of 680, can fall by 60 to 80 points. You can avoid missing payments by setting up auto-pay from a linked checking account every month. If auto pay makes you uneasy, you can set up automatic alerts that will remind you when your bill is due.
A maxed out credit card. Credit utilization is the second most important factor of credit scores, so reaching your card’s credit limit can be problematic. What’s worse, is if you have multiple cards you are doing this with. Remember, for optimal credit score results, it is recommended you keep the amount of debt you owe collectively and on individual cards below 30%, and ideally 10% of your credit limit.
An error. This happens more often than you might think. A report from the Federal Trade Commission discovered that one in five Americans had an error on their credit reports. Staying on top of your credit score and monitoring it for mistakes can help.
An account in collections. That medical bill you thought insurance covered or a utility bill you forgot to pay in college can drop your score 50 to 100 points (if it winds up on your credit report). That account can legally stay there for up to seven years, plus 180 days from the date of your first missed payment. Keep an eye on your mail for any outstanding debts and resist the urge to ignore a call from a debt collector.
Applying for several credit cards or loans at a time. These credit inquiries account for 10% of your credit score. Keep credit applications to a minimum. Making several requests in a short period of time can cause your credit score to dip.
Closing out your old credit cards. Another component of your credit score, 15%, is the length of your credit history. Closing old credit cards, especially your oldest card, makes your credit history seem shorter than it really is.

Related Resources:

http://finance.yahoo.com/news/5-big-credit-score-killers-110000016.html

https://www.thebalance.com/things-that-hurt-credit-score-960510

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What Happens to Your Home When You File for Bankruptcy?

Posted on February 13, 2017by Admin

Bankruptcy gives people a chance for a fresh start and to have their debts forgiven. Through Chapter 7 bankruptcy, filers are essentially saying they do not have the money to make payments on their debt and want to have their debt eliminated. As part of the process, consumers may have their assets seized to pay off a portion of their debt.

However, not all assets can be seized. These exemptions include: retirement accounts and pensions, your home and your car, based on how much they are worth. So, it is possible to file bankruptcy and keep your home and your car. Exemption amounts vary from state to state. But generally, any assets with equity lower than the exemption amount cannot be seized.

Chapter 13 bankruptcy is a process where consumers can work out a payment plan over three to five years to pay off their debt. Consumers who file Chapter 13 will not lose their property as long as they keep making payments on time. And consumers who start off filing Chapter 7 bankruptcy but then realize that their property may be seized may be able to switch to Chapter 13 bankruptcy, which would allow them to keep their assets and get current on payments.

Consumers who are thinking about filing for bankruptcy should speak to an attorney and research the bankruptcy exemptions in their state to know exactly how much of their property is at stake. It is important to know that certain debts, such as student loans, tax debts and child support obligations, cannot typically be discharged in bankruptcy.

Related Resources:

https://www.washingtonpost.com/news/get-there/wp/2016/07/26/what-happens-to-your-property-when-you-file-for-bankruptcy/?utm_term=.26292275820e

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Credit Card Fraud on the Rise despite New Security Chips

Posted on February 10, 2017by Admin

Even though the new security chip technology has made it more difficult for criminals to counterfeit credit and debit cards, fraud has actually risen over the last year, according to a recent study.

The new study from research firm Javelin Strategy & Research found that incidents of identify fraud rose 16% in 2016, costing consumers $16 billion in losses. In total, 15.4 million victims were affected, 2 million more than in 2015, representing 6.15% of all consumers.

Many thought the use of electronic chips on credit cards would help curb this criminal activity. However, the new security chips seem to be causing more fraud than they prevent, as numbers are at an all time high. Even though the chips have made it harder for thieves to walk into stores and purchase goods with a counterfeit card, more criminals are keeping their activity strictly online, bypassing the security chips all together.

Account takeovers have increased 61% over 2015, totaling 1.4 million incidents. Account takeovers occur when thieves gain access to someone else’s account and change the password and security information on that account. The criminals are then free to make charges without the victim’s knowledge since any warnings or notifications are sent back to the thieves themselves. Incidents where new accounts were opened in consumers’ names without their knowledge increased 40%. This has accounted for 1.8 million victims.

As evidenced by the latest numbers, it shows thieves’ ability to adapt to changing security measures, no matter the number of safeguards put in place. Banks, credit card companies, and retailers will need to keep being vigilant in order to keep fraud under control. But consumers also must take preventative measures, like installing anti-virus and anti-malware software on their computers, guarding their credit cards and account numbers, and paying close attention to the security on any website that credit card information is being accessed. Taking these simple precautions can help safeguard your finances.

Related Resources:

http://fortune.com/2017/02/01/credit-card-chips-fraud/

https://www.wsj.com/articles/credit-card-fraud-keeps-rising-despite-new-security-chipsstudy-1485954000

https://www.consumerprotect.com/consumer-safety-fraud-guide/

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

Phone Scam Targeting Student Loan Borrowers

Posted on February 9, 2017by Admin

A phone scam promising to forgive borrowers’ student loans is making the rounds, again. The scammer asks for an upfront fee to negotiate with the loan lender on your behalf, then takes the money and runs.

The best thing you can do if you are contacted, is to hang up the phone. Student loans can be forgiven, but only under certain circumstances. Here are some tips from the Consumer Financial Protection Bureau (CFPB) to help spot a student loan debt relief scam:

1.) Upfront fees. No upfront fees should ever be charged by a student loan debt relief company. In addition, you should not be required to sign a contract with the company. The CFPB notes that free assistance is available through your student loan servicer and advises that oftentimes taking upfront payment before debt relief services have been provided is illegal.

2.) Promises. Fraudulent student loan debt relief companies will promise borrowers loan forgiveness or even complete cancellation. The false promise of negotiating with your lender under federal student loan programs is a flat out lie.

3.) Signing documents. Student loan debt relief companies should not require that you sign a “third party authorization” or a “power of attorney.”

4.) Requests for your Federal Student Aid PIN: Borrowers should be extremely cautious of any student loan debt relief company that asks for this information. The CFPB states that, “honest companies will work with you to come up with a plan and will never use your PIN to access your student loan information.”

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.

http://www.consumerfinancialserviceslawmonitor.com/2014/12/cfpb-issues-warning-to-consumers-and-springs-into-action-against-student-debt-relief-scams/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips to Improve your Credit Score

Posted on February 8, 2017by Admin

Having a low credit score can cost you. If you have a credit score of 620 or below, this is considered to be “bad credit.” Lenders or credit card issuers, if they are willing to extend you credit at all, are likely to charge you a higher interest rate. You may also have to pay a utility deposit when starting or renewing service, something people with good credit do not have to pay. Having a bad credit score can even effect how much you pay for car insurance.

Now onto the good news- there are things you can do to improve your credit score. Following these easy steps will help push your score in the right direction.

Watch your credit card balances. A major factor in your credit score is how much revolving credit you have versus how much you are using. The smaller the percentage, the better your credit rating. The ideal amount is 30 percent or lower.
Eliminate small credit card balances. When you have small balances on credit cards, pay them off. Charging $50 on one card and $100 on another instead of using the same card (preferably one with a good interest rate) can hurt your credit score.
Leave “old debt” on your report. Some people believe that old debt on their credit report is a bad thing. Good debt- such as a home or car you recently paid off – is actually good for your credit. Do not close out old accounts where you have had a solid repayment history.
Use your calendar. If you are shopping for a home, car or student loan, it pays to do your rate shopping within a short period of time. Every time you apply for new credit, it can cause a small dip in your credit score, which can last up to a year.
Pay your bills on time. If you are planning a major purchase (like a home or car), one of the biggest factors in having a good credit score is simply making on-time payments month after month. Saving up money for a major purchase is smart; just don’t neglect your bills. This can even extend to outstanding library books. If the original creditor, such as the library, does not report it to the bureaus, they may eventually call in a collections agency to recoup the unpaid bill.
Avoid risk. One of the best ways to improve your credit score it to avoid purchases that might lower it. This could include taking out cash advances, using cards at businesses that could cause future money stress, etc.
Do not obsess. If you are getting ready to make a big purchase, pull a copy of your credit report. You are entitled to one of each of your three credit bureau reports (Equifax, Experian and TransUnion) for FREE every year through AnnualCreditReport.com. While the score you receive may not be the exact one the lender uses, it will grade you on many of the same criteria. If you are denied credit, the lender has to show you the credit score used in their decision making, thanks to the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Bankruptcy Law, Credit, Timothy Kingcade Posts

IRS Warns Consumers of Tax Refund Phone Scam

Posted on February 7, 2017by Admin

Tax time often brings with it a series of scams, and this year is no different. Thousands of consumers have already received phone calls from scammers trying to take their tax refund money.

“Before there is an arrest warrant issued, I want you or your attorney to give us a call back,” the scam caller says.

Since 2013, scams like this have conned more than 10,000 victims out of $54 million. Know that the IRS will never call and demand immediate payment using a specific payment method such as a prepaid debit card or wire transfer. The IRS will first mail you a bill if you owe any taxes. You will also be given the opportunity to question or appeal the amount they say you owe.

REMEMBER: The IRS does not initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. In addition, the IRS does not threaten taxpayers with lawsuits, imprisonment, calling the police or other enforcement action. Being able to recognize these signs of a phishing or tax scam could save you from becoming a victim.

Here is more information on Scams Targeting Taxpayers directly from the IRS website.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How to Tackle Long Term Credit Card Debt

Posted on February 2, 2017by Admin

It takes 13 years to pay off a $5,000 credit card bill, if you only pay the minimum each month. Florida is in the top 5 states with the highest credit card burden, according to a recent study from CreditCards.com. The study also sheds light on the effects high credit card debt has on U.S. household finances.

By allocating at least 15% of gross monthly income toward credit card debt, the typical Florida consumer’s payoff time drops to just 18 months and costs $678 in interest, in the above scenario.

Here are some other proven ways to help tackle long-term credit card debt.

Be careful how you spend that bonus check. Seasonal commissions and bonus checks can provide an added sense of confidence when it comes to spending. Not a good thing, if you are struggling to pay down credit card debt. Break this extra income up into three parts: debt reduction, major purchase and savings. Remember: paying off a large portion of credit card debt can save you thousands in interest.

Consolidate. If you have multiple unsecured loans that you would like to have lumped into one payment, debt consolidation may benefit you. This option gives you the opportunity to save hundreds of dollars with a lower interest rate and you can combine all of your payments into a single monthly payment.

Cut your budget. One of the best ways to pay down your debt is to find savings elsewhere. Cut down on your grocery bill, cancel monthly membership fees you may not be using as much as you thought you would, etc.

Define your goals. Do you want to reduce your debt or be completely debt-free? Set timelines for yourself and how much you need to pay to meet those goals each month.

Prioritize. Focus on paying off the highest-interest debt, first. This is your biggest financial drain. Another idea is the “snowball method,” which essentially means paying off the debt with the smallest balance first, continuing to the debt with the next lowest balance, etc. This strategy allows you to see immediate results in paying down debt, and builds confidence and momentum to keep you on track to pay down the rest of the debt.

Click here to read more on this story.

Related Resources:

https://www.thestreet.com/story/13937063/1/how-to-tackle-the-high-costs-of-long-term-credit-card-debt.html

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Important Tax Deductions You Probably Don’t Know About

Posted on January 31, 2017by Admin

It’s that time of year, again. With tax season officially upon us, do not miss out on some of these money-saving deductions. The most recent numbers show that more than 45 million of us itemized deductions on our 1040s—claiming $1.2 trillion dollars’ worth of tax deductions.

Most taxpayers know about mortgage expense, student loans, medical expenses, and investment expense deductions, but itemized deductions do not stop there.

Here are some of the most overlooked tax deductions:

Subscriptions. You can deduct the cost of subscriptions when it comes to professional (as long as it is related to your job in some way) or investment-type publications. This covers newspapers, magazines, newsletters, journals and do not forget your online subscriptions. Keep in mind, this deduction is subject to the 2% floor, which means that you subtract 2% of your adjusted gross income (AGI) for the year from your deduction (and all other itemized deductions with the same floor). The remainder is the amount you can claim for those deductions.
IRA Custodial Fees. You can deduct the administrative fees you pay for your IRA if these fees are billed as a separate transaction. This deduction applies to traditional and Roth IRA’s and is subject to the 2% AGI floor.
Job Search Expenses. If you looked for a new job last year, you can deduct your expenses related to job hunting (whether or not you actually got the job). This can include things like employment agency fees, preparing and sending out resumes, transportation expenses, even long-distance travel if your primary purpose in traveling was to look for a job.
Tax Expenses. You can deduct certain taxes you have paid from your taxable income. First, you can deduct any state and local taxes you pay, including real estate taxes and other property taxes, on your federal tax return. **Note that you can deduct state income taxes or state sales taxes, but not both.** You are allowed to deduct the full amount here, this is not subject to the 2% AGI floor limitation. Foreign income taxes and real estate taxes are also fully deductible. You can deduct any fees you pay to have your tax return professionally prepared. If you prepare your own taxes, you can deduct the cost of the software you use and any tax publications you purchased to help determine your return. These deductions are subject to the 2% AGI floor, and you can only deduct the expenses related to the return’s tax year. For example, in 2017 you would deduct tax preparation fees related to your 2016 tax return.

Related Resources:

http://www.foxbusiness.com/markets/2017/01/30/4-types-tax-deductions-probably-dont-know-about.html

https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Deductions-and-Credits/The-10-Most-Overlooked-Tax-Deductions/INF12062.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

FTC Cracks Down on Dishonest Payday Lenders

Posted on January 30, 2017by Admin

The FTC has been targeting fraudulent payday lending companies, headquartered in Missouri and Kansas, with consumer settlements reaching as high as $1.266 billion. The FTC recently announced charges against Joel Jerome Tucker, and his companies, SQ Capital LLC, JT Holding Inc., and HPD LLC, for selling portfolios made up of phony payday loans.

The loans listed in the portfolios named fake lenders and debtors, including their social security and bank account numbers, and led to collection activities against consumers who had not taken out loans, according to the FTC.

In another case, a settlement was reached between the FTC and payday lenders, Tim Coppinger and Ted Rowland, and their companies.

Under the terms of the agreement, the lenders paid nearly $1 million with the threat of substantially greater judgments (up to $32 million) should they fail to abide by the terms of the settlement agreement. The fraudulent activity included debiting money from the accounts of people who never requested loans, but for whom the payday lender had obtained personal information. They would then charge interest and fees on the unauthorized loans.

Click here to read more on this story.