Miami bankruptcy attorney Archives - Page 81 of 102

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

The collapse of ITT Tech gives former students a chance to wipe out their student loan debt

Posted on September 1, 2016by Admin

Students who graduated or dropped out of ITT Technical Institute may be the biggest winners in the federal government’s aggressive actions against the for-profit school. The Education Department’s sanctions on the Carmel-based ITT Educational Services Inc. allow past students to take advantage of the “defense to repayment” rule that can wipe out their student loans.

Federal law gives the Education Department broad discretion to forgive student loans for borrowers who claim they were defrauded or that their college violated state laws. The government recently made the case that ITT has done just that and is inviting former students to request what could amount to hundreds of millions of dollars in loan forgiveness.

The “defense to repayment” rule applies to all former students with federal loans, but does not cover private loans.

Another piece of good news- The Education Department is simplifying the claim process for borrowers. The defense to repayment rule falls under the U.S. Higher Education Act. It has existed for years, but received little attention until recently.

The Education Department has already forgiven more than $4.2 million in loans from more than 2,000 Corinthian College students who claim they were defrauded by the for-profit chain. Students at other for-profit colleges, such as Brown Mackie College, which is closing most of its campuses, will likely have a strong case as well due to the precedent set by Corinthian.

ITT has been ordered to begin working with other colleges to facilitate transfers for students. Anyone already enrolled in ITT can continue to access federal loans if they want to finish their program. If ITT closes, the Education Department has said it will forgive current students’ loans.

Here are some ways you can submit a claim:

Go online: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/borrower-defense

Email your claim: FSAOperations@ed.gov

Mail your claim: U.S. Department of Education, PO Box 194407, San Francisco, CA 94119

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 Use Increasing Among Consumers with Low Credit Scores

Posted on August 30, 2016by Admin

According to the latest quarterly report on household debt, credit cards are making a comeback in a big way. In the second quarter, total household debt increased by $35 billion to $12.3 trillion. The two driving factors: auto loans and credit cards.

While auto loans have been on a steady incline for the past six years, rising credit-card balances are a new development. After the 2007 Great Recession, households cut back on credit-card use until 2014. This was also in part to financial institutions strengthening credit requirements for risky borrowers.

Since that time, card balances have risen by about $70 billion. From 2008 to 2013, total household debts dropped by more than $1.5 trillion. However, first student loan and auto loan balances began to rise, and then mortgages and finally credit cards.

The report reveals that credit cards are returning among individuals with low credit or subprime credit scores below 660. Among people with credit scores between 620 and 660, the share that had a credit card increased to 58.8% in 2015 from a low of 54.3% in 2013. Among those with scores below 620, the number of people with a credit card increased to 50% from a low of 45.6% two years ago. Both figures for 2015 are the highest since 2008.

These figures were generated from the New York Fed’s Consumer Credit Panel that analyzed millions of consumer credit reports from Equifax.

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 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

5 Times you should Never Use a Credit Card

Posted on August 29, 2016by Admin

Using a credit card responsibly is an excellent way to boost your credit score, build your credit history, track spending, even take advantage of cash-back and other reward programs. However, if you are unable to pay your bill off every month the high interest rates will cost you.

Here are five times you may want to put the credit card away and opt for another method of payment:

Paying for a BIG expense– Moving to a new city, remodeling your home or going on a vacation are all purchases you will want to save up for ahead of time. Using more than a third of your available credit on a card can have a negative effect on your credit score.

To consolidate credit card debt– If you are trying to consolidate all of your consumer debts into one payment, the best option depends on your credit score, how much debt you have and, most importantly, your ability to pay down the debt. If you cannot reasonably pay off your consumer debt in five years, most experts advise debt reorganization or bankruptcy. If your credit score is average, you can tap into your home equity or take a loan against your retirement account or life insurance policy. However, the consequences of defaulting on these loans come with severe penalties.

To fund emergencies– In an emergency situation, a credit card should be your last resort. If you do not have an emergency fund, start one today. Budget to have the money automatically transferred from your checking account into a savings account- even if it is only $50 a month. This can add up over a year.

To pay for your wedding– Do not start your married life in debt. Taking out a personal loan to help pay for a portion of the wedding expenses is a smarter option because these come with fixed interest rates, making it easier for the payments to be factored into your monthly budget. Depending on your credit, these can come with lower interest rates and allow you to pay overtime.

To pay your taxes– Avoid using a credit card to pay your taxes. It is better to take from savings or utilize the IRS installment plan option to avoid paying a fee on top of your tax bill. Vendors that the IRS authorizes to accept card payments charge a convenience fee of 1.87% to 2.25% of the amount you owe. E-filing software companies charge even higher rates for credit card payments.

Related Resources:

http://www.usatoday.com/story/money/personalfinance/2016/08/20/5-times-you-shouldnt-use-credit-card/88945872/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Business Owners Convicted of Bankruptcy Fraud

Posted on August 26, 2016by Admin

Two Louisiana business owners were convicted by a federal jury of concealing assets during their bankruptcy and making false statements under penalty of perjury. According to the testimony, Brian and Debra Spurin filed for Chapter 7 bankruptcy in September 2005 and submitted various bankruptcy schedules and a statement of financial affairs, all signed as true and correct under penalty of perjury.

However, they failed to disclose real property as required, nor did they list all of the businesses they established and had an interest in, which included Golden Choice Financial, LLC; Golden Athletics Financial Services, LLC; J&S Management and Marketing, Inc.; and International Oil, Gas and Mineral Management, Inc. The assets of these companies were never listed, including the home in which the couple lived in and the vehicles they used.

In total, the couple fraudulently concealed approximately $400,000 worth of assets from the bankruptcy proceeding.

The defendants each face a fine of $250,000, imprisonment for not more than five years, or both, for each count of concealment of bankruptcy estate assets and making a false statement under penalty of perjury.

Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to hide assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing. In addition, you can face serious fines, even jail time.

Click here to read more on this story.

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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.

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, 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.

Click here to read more on this story.

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.

Click here to read more on this story.

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.

Click here to read more on this story.

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.

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

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