Tag: Miami bankruptcy attorney

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

For-Profit College Debt Strikers Plead with Obama to Discharge their Loans before Trump’s Inauguration

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More than 1,000 students (calling themselves the Debt Collective) from for-profit schools are protesting, claiming their colleges used manipulative financial tactics while providing them with a subpar education.

They released a statement and video on Monday, pleading with President Obama to discharge their student loans before President-elect Trump’s inauguration.  The Debt Collective claims that the Obama Administration has yet to provide the relief it promised.  One former Corinthian student said she had $32,000 of student loan debt and was unemployed, despite having applied to about 300 jobs in the criminal justice field.  She said she had either received no response or had been told she did not qualify.

The Department of Education refunds federal loans to students enrolled in the last 120 days before a college closes in what is called a closed school discharge.  ITT Tech closed its doors in September.  But students who left the school before that 120-day time frame or who graduated but still feel they were defrauded by their college must instead file a “borrower’s defense to repayment” claim.

The Obama Administration had planned to resolve back-logged relief claims from Corinthian and ITT Tech students by the spring of 2017, but will likely now be under additional pressure to speed resolution of the claims.

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, Student Loans, Timothy Kingcade Posts

Bankrupt Student Can Discharge Debt because it “Technically” Was Not a Loan

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A financial agreement between a student and an educational institution is not considered a student loan and as a result in the bankruptcy case ( D’Youville Coll. v. Tucker (In re Tucker), the borrower was able to discharge her debt.

Judge Michael J. Kaplan of the U.S. Bankruptcy Court for the Western District of New York concluded that because the debt was not “an education benefit overpayment or a loan,” the exception to discharge under Bankruptcy Code Section 523(a)(8)(A)(ii) does not apply.

The financial agreement entered into between both parties was “no more than an agreement to pay for tuition, fees and other registration costs (whatever they turn out to be), at some unspecified future time, and not for an ‘educational benefit overpayment or loan’ as contemplated in §523(a)(8)(A)(i), the court said.

This case is similar to two other recent cases in the Western District of New York, with the exception that in this one, there was no promissory note signed by the debtor.

Exceptions to discharge under the Bankruptcy Code are construed narrowly and a creditor must prove by a preponderance of the evidence that its claim falls within one of those exceptions.

The court sided with the borrower in this case because it did not find a specific amount due in the financial agreement. The agreement contained a monthly interest provision and indicated that an adjustment would be made for financial aid received at a later time.

The financial agreement between the parties was “nothing more than a running account,” the court said.

Click here to read more on this story.

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

 

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

Xerox Ordered to Pay $2.4 Million to Settle Illegal Debt Collection Charges

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Many of us know Xerox as the company that handles office supplies, printers and similar products.  However, back in 2009 the company acquired ACS and has been operating as a lender of student loans through Xerox Education Services (XES).

The division has come under much scrutiny in the past year for allegedly violating debt collection laws and overcharging borrowers.  Now the company has decided to settle the charges by paying a $2.4 million settlement.

The initial investigation began in December of 2015. After analyzing the company’s loan servicing practices, officials found that XES had failed to properly process applications for federal loan relief associated with the Income-Based Repayment Plan under the Higher Education Act.  This forced student loan borrowers to pay more than they needed on their debt.  They were also hit with more late fees when they could not afford to make their payments.

The company was charged with violating debt collection regulations by making frequent and repeated phone calls to borrowers and not investigating credit reporting disputes. This led to false information being reported to credit agencies.

Under the settlement, XES will pay $2.4 million, which will be be used as restitution for borrowers who tried to apply for relief but were not able to enroll. The company has also agreed to credit late fee overcharges, reform service members’ accounts, stop its illegal debt collection practices, and establish a “Borrower Advocacy Group” that will help loan recipients apply for income-based repayment plans.

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

Florida Debt Counselor Filing Bankruptcy, Owes More Than $100 Million

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A Florida businessman who made his fortune as a debt counselor during the Great Recession has filed for Chapter 7 bankruptcy.   Timothy McCallan, of Melbourne, is listing more than $100 million in liabilities.  He was hit with a judgment for $107 million in an Alabama bankruptcy for Allegra Law, a large debt settlement law firm that was shut down for massive fraud.

Court investigators in the Allegro case have been pursuing McCallan, because his companies, Americorp and Seton Inc., provided record-keeping and data services to Allegro.

Now the businessman is telling a Florida court he needs protection from that claim among others in his bankruptcy filing.  An Alabama bankruptcy judge had McCallan arrested and jailed for a time, and declared that McCallan had committed a fraud on the court.

“Thousands of customers signed up for debt settlement services offered by McCallan and paid him more than $100,000,000. Almost none of the money was paid to creditors of the customers as promised by McCallan,” U.S. Bankruptcy Judge William R. Sawyer wrote in an opinion entered in February.

McCallan, who owns a $1.5 million home on the Florida coast, has been ordered to turn over records related to the Allegro Firm. Most recently, McCallan told the court he had been delayed because of damage to his home during Hurricane Matthew, which side-swiped the Florida coastline in early October. But investigators in the Allegro case  later learned McCallan’s home suffered no damage.

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.

Related Resources:

http://www.orlandosentinel.com/business/brinkmann-on-business/os-timothy-mccallan-bankruptcy-20161121-story.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How Trump’s Presidency Will Affect Consumers

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The battle for consumer rights against powerful corporate and special interests has always been an uphill battle, but the road ahead just got considerably more difficult with this month’s election results.  President-Elect Donald Trump released a statement on his website saying that he plans to “dismantle” the Dodd-Frank Act, which would be detrimental for consumers’ protection rights.

The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law by President Obama in 2010 in order to protect consumers from irresponsible lenders who used hidden fees and fine print to take advantage of them. The purpose of the Dodd-Frank Act is to prevent the excessive risk-taking that led to the Great Recession and the housing bubble burst in the mid-2000’s.

One of the greatest threats consumers’ face during Trump’s presidency is the fate of the Consumer Financial Protection Bureau (CFPB). The CFPB was one of the most significant outcomes of the Dodd-Frank Act. The Bureau is a consumer watchdog that protects American families from unfair and abusive financial practices. It sets clear rules and ensures that the highest financial standards are met. The CFPB monitors the actions of mortgage lenders, banks, credit unions and other financial companies.

Unfortunately for consumers, the future of the CFPB during Trump’s administration is unclear. While he spoke out against the Dodd-Frank Act, saying that it “has made it impossible for banks to function,” he has not mentioned his plans for the Consumer Financial Protection Bureau. However, the Republican Party has called for repeal of the Dodd-Frank Act and abolishment of the CFPB. Opponents of consumer protections clearly feel empowered to push the agenda of predatory lenders, abusive debt collectors and others who target struggling individuals and low-income families.

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

Related Resources:

https://consumerist.com/2016/11/09/from-healthcare-to-financial-protection-how-will-the-trump-white-house-affect-consumers/

https://www.greatagain.gov/policy/financial-services.html

https://www.whitehouse.gov/economy/middle-class/dodd-frank-wall-street-reform

 

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Credit Card Companies want you to give up Your Right to Sue. Here’s how to protect your Rights

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Before signing up for a new credit card, scan through the fine print and search for the word “arbitration.”  What you will find is that the company requires you to resolve all conflicts through a binding dispute resolutions process, rather than going to court.

These clauses are common among cell phone carriers, financial institutions and online service providers such as Netflix and Amazon.  Some companies provide the option to opt-out of mandatory arbitration, if you act quickly enough.  In fact, more than a quarter of the more than 400 credit card contracts analyzed by the Consumer Financial Protection Bureau included an opt-out provision.

For Citi Card customers, you may even have gotten a chance for a do-over.  This past year, the issuer revised its customer agreements, giving them a new opportunity to opt-out of the company’s standard arbitration agreement.

As with many opt-out notices, instructions can be vague and time is of the essence.   Here are some guidelines consumers should follow when requesting an opt-out.

  • Follow instructions. Read the opt-out provision carefully and follow the instructions exactly. It is necessary to include enough information to identify the person and convey their intent to opt-out.
  • Identify yourself. If the directions are vague, use a standard business letter format, with the date and address at the top.  Include all pertinent details such as your account number, customer ID and your contact information.
  • Be direct. Be as clear and concise as possible in your writing. If you go to court, the lawyers for the company will try and argue that you were not clear or did not mean what you said.
  • Keep records. If an email option is given, use that.  An email automatically generates a time stamp.  If you do not need to send a physical letter, keep a copy for your records.  Save any responses you receive and send the letter certified mail, so you receive confirmation of its receipt.

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 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.

Debt Relief, Student Loans

Four Ways President Trump Could Affect Your Student Loans

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President-elect Donald Trump has plans to address student debt and college affordability, but many of the details remain unclear.  Trump and the Republican Party did not emphasize higher education in their campaign platforms and any changes to the current federal student loan system would require congressional backing.

Here’s what we may be able to expect:

  1. Income-driven repayment changes are likely. According to Trump’s proposed student loan program, he would cap repayment at 12.5% of a borrower’s income. He did not indicate whether this repayment cap would apply to all federal loan borrowers or only for those who apply for income-driven repayment, as is the current standard.
  2. Private Banks may begin issuing federal student loans. Trump wants to restore a system where private banks issue federal student loans as opposed to the government.  This was a process that occurred up until 2010, when the federal government revamped the program and began originating all federal student loans through its Direct Loan program.  The Obama administration cited billions of dollars in cost savings as a result of the switch, and used the savings to offer more Pell Grants for low-income students.
  3. Students’ prospective earnings could dictate their ‘loan worthiness.’ Trump wants to let colleges have a say in lending decisions and make them share the risk of student borrowing with lenders.  It would be up to colleges and banks to decide together which students could take out student loans.
  4. College costs could be reduced by limiting the ‘administrative bloat.’ Trump said in an October speech that he would take steps to cut tuition costs.  In that same speech he said he planned to reduce the tremendous ‘bloat’ in college administration.  By reducing the unnecessary costs of compliance with federal regulations, colleges would be able to pass the savings along to their students.

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.

Related Resources:

http://www.latimes.com/business/la-fi-trump-student-loans-20161111-story.html

 

Bankruptcy Law, Credit, Debt Relief

How to Avoid the Pitfalls of Personal Bankruptcy

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If you are facing financial trouble, it can feel like the end of the world. People do not realize that filing for bankruptcy is a viable solution to their problems, can alleviate the financial stress, put an end to collection calls and even raise your credit score.

Here are some tips to remember along the way:

Do not be afraid of filing bankruptcy.  Debt can be overwhelming and sometimes instead of facing it head-on, people bury their heads in the sand.  This is the worst thing you can possibly do.  This approach could result in you facing numerous lawsuits, automatic judgments against you even wage garnishment.  By filing for bankruptcy protection you are getting a second chance and taking control over your finances once and for all.

Avoid running up new debt prior to filing. Do not make the mistake of running up a lot of new debt before filing for bankruptcy.  The court will take all of your spending into account, including recent debts incurred, and the judge may not be willing to waive debts if it appears that you are trying to “game the system.” Make sure that your spending habits reflect a true desire to change.

Be aware of ALL of your options. For example, you may want to consider credit counseling. There are some reputable non-profit organizations that can help. With their assistance, you can reduce the payments you have to make and even get some of the interest removed from your debts.

Hire an experienced bankruptcy attorney. The laws surrounding personal bankruptcy are complex. If you feel unsure about the steps to take moving forward, consulting with an attorney may be your best option. Many offer FREE consultations. An attorney can be the guiding hand you need to make the process go as smooth as possible. When meeting with your bankruptcy attorney, make sure you have all of the necessary paperwork with you (i.e. – loan documents, credit card bills and any other relevant financial documents).

Create a post-bankruptcy budget. When you file bankruptcy, you want to avoid finding yourself in the same financial predicament that got you there.  Planning for and making a post-bankruptcy budget is a smart idea. When you can create such a budget and stick to it after bankruptcy, you are far less likely to find yourself in the same position in the future.

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

Related Resources:

http://techfeatured.com/automotive/1198/how-to-avoid-the-pitfalls-of-personal-bankruptcy

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips to Avoid Credit Card Debt this Holiday

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The holiday season is one of the busiest and most expensive times of the year for consumers.  Sometimes it is easier to just swipe a credit card at the register and deal with the bills after the holidays.  However, this approach can make for an unpleasant start to the New Year.

Here are some important tips to avoid going into credit card debt this holiday season.

  • Plan your holiday shopping list. Plan your gift purchases in advance and limit the cost by only purchasing items from the designated list and not adding extras.
  • Space out your purchases. Space your purchases out over the coming weeks.  You will have more time to find the best deals and not get stuck paying last minute high priced mark-ups.
  • Secret Santa. Gift exchanges are a great way to cut costs on what seems like an endless list of purchases. Have family and friends choose a name out of a hat, and then buy a gift for the person selected.
  • Set a price limit. Gifts, décor and party hosting are all part of the fun of the holiday season! But remember to limit your spending to a specific dollar amount so you do not go overboard.
  • Shop online. If you are planning to make the most of your gift purchases online, wait until Free Shipping Day. This year it falls on Dec. 16, 2016, when all participating online retailers promise to deliver your gifts by Christmas Eve.
  • Never pay full price. Avoid paying full retail price whenever possible. Follow your favorite store on social media, sign up to receive their email blasts as they will often share exclusive discounts and coupons with followers. Sign up for price alerts and use shopping comparison apps to ensure you never overpay for any items.

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

Related Resources:

http://www.popsugar.com/career/How-Can-I-Avoid-Credit-Card-Debt-Over-Holidays-42656636

Credit, Debt Relief, Timothy Kingcade Posts

Read THIS before Using a Store Credit Card to Shop this Holiday Season

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If you are planning to finance a portion of your holiday purchases, you may be enticed to open a store credit card.  With the attractive-sounding 0% interest rates, competitive rewards programs, even a discount on your first purchase, the offer sounds too good to be true, right?

That’s because it is.  Here are some important facts consumers need to know about store credit cards.

The Truth about “No Interest” Financing:

There are two kinds of no interest financing. When you sign up for a bank credit card with a 0% introductory APR, you are not charged any interest on your purchases until that time runs out.  However, store credit cards typically use what’s called “deferred interest” financing. This means that during the introductory no-interest period, interest on your purchases is accumulating, but will not be charged as long as you pay the balance in full.

Here’s an example:  Let’s say that you finance a $3,000 jewelry purchase using 24-month deferred interest financing, but the store’s credit card has a 27.99% standard APR. The account has minimum monthly payments of $100, so by only paying the minimum, you would have a remaining balance of $600 once the 24-month interest-free period runs out. However, you would also have approximately $1,000 in deferred interest charges added to your 25th bill because you failed to pay off the entire balance in time. Deferred interest can also be added to your bill if you make a late payment one month.

The Interest will Cost You:

When signing up for a store credit card, make sure and read the cardholder’s agreement, specifically the section that tells you the card’s interest rate. According to a recent report, the average regular APR of a store card is 26.72%, more than 11 percentage points above the overall national credit card average APR of 15.07%.  You can expect store cards to have interest rates that are significantly higher than those of general-use credit cards.

A Hard Credit Inquiry Can Affect your Credit Score:

When you agree to apply at the checkout counter, your credit report will be hit with a credit inquiry. Although one inquiry is usually not a big deal, it is not something you want to do if you are thinking of purchasing a home or new car anytime soon. According to FICO, one credit inquiry can have little to no impact on some consumers’ credit scores.  For others, it can take five points off your score. When applying for a mortgage, five points could put you into the next interest rate range, costing you thousands over the life of your mortgage.

Rewards are Limited:

Store credit cards usually offer excellent rewards on in-store purchases. However, these credit cards usually offer no rewards for spending out of store.

Bottom line: Beware of the higher-than-average interest rates on these store credit cards, and the consequences of carrying a balance past the end of the deferred-interest period.

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

Related Resources:

https://www.fool.com/credit-cards/2016/11/06/read-this-before-using-a-store-credit-card-for-you.aspx

http://www.forbes.com/sites/nickclements/2015/11/29/store-credit-cards-can-be-dangerous/#6c1763596377