Miami bankruptcy attorney Archives - Page 81 of 100

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

More Attorneys Push for Bankruptcy to Cover Student Loan Debt

Posted on June 20, 2016by Admin

St. Cloud lawyer, Wesley Scott is outraged about the mounting debts student loan borrowers are facing. The bankruptcy attorney has written at least four times to U.S. senators from Minnesota about the issue. Specifically, he wants Senators Amy Klobuchar and Al Franken to help change Chapter 13 bankruptcy rules to make student loan debt dischargeable, as with other debts in bankruptcy.

Graduates of four-year post secondary programs in Minnesota faced an average debt load of $32,000 in 2014. That number was $21,000 in 2005, according to The Institute for College Access & Success.

The bankruptcy code used to be more lenient, allowing people to discharge their student loan debt. It still does, but the deck is stacked against borrowers and it’s something that rarely happens. Debtors must show an undue hardship in court.

Bankruptcy lawyer Scott is proposing one other change to the law, an “at least” option, which would allow debtors going through Chapter 13 proceedings to make payments on their student loans designating them as a priority debt.

Under the current Chapter 13 provisions, people in bankruptcy need to first eliminate debts such as unpaid child support, taxes and mortgages. Debts from student loans, medical bills and credit cards are paid at the end.

In an emailed statement, Franken said student loan debt should be eligible for discharge in bankruptcy, but, “it’s clear we need to address this problem on several fronts.” The senator said he has introduced a bill that would allow people to discharge private student loan debt, one to address tuition costs and another allowing students to refinance their debt.

Also in an emailed statement, Klobuchar said she is supporting a bill that would allow refinancing and one that would strengthen the federal Pell Grant program, which provides payments- not loans, to students.

The total value of outstanding federal student loans was about $1.2 trillion in the first quarter of 2016, up more than 130 percent from $516 billion in 2007. From July 2006 to June 2015, interest rates for federal loans ranged from 3.4 to 8.5 percent. They now fall between 4.3 and 6.8 percent.

Those figures are affecting about 42 million Americans with federal loans, not including private student loans. With no relief in bankruptcy, some people are turning to other options.

A woman with approximately $70,000 in student loan debt went to visit a St. Cloud bankruptcy attorney with her husband. But after leaving the attorney’s office, the couple went upstairs to a divorce lawyer. It was not because they didn’t love each other anymore, the woman had to be single to qualify for an income-based repayment plan. That’s the only way they could survive.

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

Obama Administration Unveils NEW Student Loan Forgiveness Program

Posted on June 17, 2016by Admin

This week, the Obama administration announced new guidelines for the forgiveness of certain student loans. The program would forgive student loan debt for those borrowers who were the victims of scams perpetrated by for-profit colleges that used fraudulent or illegal practices to convince students to enroll. While there are already federal laws in place for this, these new guidelines would make it easier to apply for this type of forgiveness.

If finalized, the new program would go into effect in July 2017. Under the new plan, borrowers would be able to ask for debt forgiveness if they can prove one of the following:

The school had a court judgement against it;
The school breached their contract with the student;
The school made a “substantial misrepresentation” about their offerings, graduate job prospects or the debt the student would accrue.

Under the new proposal, students would be able to request debt forgiveness up to six years following their discovery of the school’s wrongdoing, an increase from the current two-year limit.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Credit Card Borrowing Surges in U.S. – More defaults to come?

Posted on June 16, 2016by Admin

The U.S. economy is growing steadily, but credit card lending is growing double that- rising more than 5% over a year earlier and accelerated to 6% in March and April, according to Federal Reserve data.

This is the fastest credit card debt has grown since card lending declined during the 2009 recession. Since Americans are not earning much more since that time- will delinquencies, charge-offs and bankruptcies begin to rise in another year or two?

Bad mortgages were at low levels in the mid-2000s, after numerous new loans were made, but before they had a chance to default, making loss measures a poor indicator of the 2008-09 credit crisis. Loan-loss rates measure the highest, not when bad loans are made, but when the loans stop getting paid. This can take a year or two from the time the bills are accrued.

Loan losses can be masked by aggressive new lending, and exaggerated at banks that stop making new loans, allowing loss rates to mount. The most aggressive and fastest growing major card lenders include Capital One, Synchrony (formerly General Electric Finance), and Wells Fargo. Citi, Chase and other bigger lenders are expanding less aggressively.

For the nine dominant U.S. credit card banks, which control 70% of the Visa-MasterCard-American Express-Discover-Chinapay market in the U.S., average charge-offs in early 2016 were 3.13% of annualized average loans.

Click here to read more on this story.

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

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

Survey Reveals Student Loan Debt Hurting the Housing Market

Posted on June 15, 2016by Admin

Approximately three-quarters of people who have student loan debt say it is hindering them from purchasing a home, according to a recent survey. Although a college degree increases a person’s chances of obtaining a good job and a secure future, the survey found that many would-be homeowners are increasingly burdened by student loan debt.

Seventy-one percent of those surveyed said their student loan debt is delaying them from buying a home. More than half said they expect that delay to last longer than five years.

With 43 million Americans carrying nearly $1.3 trillion in student debt, the burden is affecting all parts of the economy. The home ownership rate among those 35-and-younger has declined from 44 percent at the height of the housing boom to 34 percent today.

Forty-three percent of those surveyed carried between $10,001 and $40,000 in student loan debt, while 38 percent owed $50,000 or more. The most common debt range was between $20,000 and $30,000.

As a result of their student loan debt, 69 percent of borrowers said they did not feel financially secure enough to buy a home, while 80 percent said they cannot save up enough for a down payment. This is not only affecting first-time home buyers, but also “move-up” buyers. A third of those surveyed who are current homeowners said they cannot afford to sell their home and purchase another because of their student loan debt.

Among the reasons cited were the expense of moving and upgrading to a new home, credit problems caused by student loan debt and owing more than their home is worth because student loan debt has limited their ability to pay more than the minimum on their mortgage payment.

The 33-question survey was sent to 75,000 student borrowers, of which 3,230 responded. Among the respondents, 67 percent attended a four-year college and 27 percent attended a graduate/post-graduate school. Two-thirds went to a public institution. Seventy-one percent are employed full time while 14 percent are part-time but seeking full-time employment, according to the National Association of Realtors and American Student Assistance, who conducted the survey.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Miami Bankruptcy Attorney Timothy S. Kingcade Selected for Inclusion in Florida Super Lawyers 2016

Posted on June 14, 2016by Admin

Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade & Garcia, P.A. has been recognized in the area of consumer bankruptcy law in Florida Super Lawyers Magazine. This is the third year in a row Mr. Kingcade has been selected to the Florida Super Lawyers list. The prestigious honor is awarded to only five percent of lawyers in the state.

“It is a true honor to have received this award,” said Timothy S. Kingcade. “It is a testament to the commitment my firm and I make every day to each and every one of our clients.”

Attorney Kingcade practices exclusively in the field of bankruptcy law, handling Chapter 7 filings and foreclosure defense cases for the Southern District of Florida. As an experienced CPA and proven bankruptcy attorney, Timothy Kingcade knows how to help clients take full advantage of their rights under bankruptcy protection to restart, rebuild and recover.

Super Lawyers is a listing of outstanding lawyers who have attained a high degree of peer recognition and professional achievement, representing the top 5% of Florida lawyers. The goal of the Super Lawyers selection process is to create a credible, comprehensive and diverse listing of lawyers to be used as a resource to assist lawyers and sophisticated consumers in the search for legal counsel.

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Miami-based Kingcade & Garcia, P.A. was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade & Garcia, P.A. specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

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

Top 5 Bankruptcy Myths Debunked

Posted on June 13, 2016by Admin

Filing for bankruptcy is not an easy decision and many people fear a social stigma after they file. The truth is the stigma against debtors and those who file for bankruptcy has greatly decreased over the last 20 years, and there is no indication that debtors will be treated less favorably after filing for bankruptcy. In fact, it is oftentimes easier to reestablish your credit after filing for bankruptcy, because you are essentially given a “clean slate.”

To make the bankruptcy process a little easier to understand, we have dispelled the top five bankruptcy myths.

Myth 1: You will lose everything. You may think that filing for bankruptcy means you have to give up your home, your car, your flat screen TV, and all of your assets. This is simply not true. The vast majority of Chapter 7 cases are no-asset cases, meaning the debtor gives up no possessions. This happens for two reasons. First, you can allot for basic assets, called exemptions that are necessary for day-to-day living. What you can exempt varies from state to state, so be sure to discuss exemptions with an experienced bankruptcy attorney. For possessions that are not part of the exemption, creditors likely don’t want them. Under Chapter 13, you keep all of your assets, but the value of them figures into your repayment plan.

Myth 2: You will be relieved of all your debts. Both Chapter 7 and Chapter 13 bankruptcy will provide you relief from most of your debts. However, there are some exemptions. These include: recent taxes, child or spousal support, student loan debt, and debts that are the result of fraud you have committed.

Myth 3: Paying off your debt is a better option. Filing for bankruptcy is the biggest financial decision you will ever make, but it doesn’t mean it is a bad idea. If your debts are more than 50% of your annual income and you cannot pay them off in five years, bankruptcy is likely your best option.

Myth 4: Filing for bankruptcy means I have failed. Given that the number one reason for filing for bankruptcy is due to medical debt, this could not be less true. No surprise, the cost of medical deductibles has grown seven times faster than wages have risen. Many bankruptcies are likely the result of stagnant wages, not poor financial mismanagement. Whatever your reason is for filing, think of bankruptcy as a tool that can help you get a fresh start and take control of your finances.

Myth 5: Bankruptcy will ruin my financial future. A report from the Federal Reserve Bank of Philadelphia showed that those who filed for Chapter 7 bankruptcy in 2010 had an average credit score of 538.2 on Equifax’s scale of 280 to 850. But the average score jumped to 620 by the time those bankruptcies were finalized, approximately six to eight months later. There are many ways to rebuild your credit after filing for bankruptcy. There are certain limitations you will face after filing, but taking advantage of the right financial tools can go a long way in helping you get back on the right path for your financial future.

Related Resources:

http://www.csmonitor.com/Business/Saving-Money/2016/0613/Five-bankruptcy-myths-dispelled

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Late Night Comedian John Oliver Makes ‘TV History’ by forgiving $15 million in Medical Debt

Posted on June 10, 2016by Admin

Nearly 9,000 consumers were relieved of their medical bills courtesy of HBO host John Oliver. As part of a segment examining the unscrupulous practices of debt purchasers on his show, “Last Week Tonight,” he forgave nearly $15 million in medical debt for consumers.

Oliver’s show engages in a form of investigative comedy, this time examining an overlooked industry. Institutions often sell their debt for pennies on the dollar to companies who then attempt to collect on the bills. These companies operate with little regulation and sometimes employ abusive collection practices to intimidate people into paying.

The show set up its own company to acquire $15 million worth of debt owed to hospitals in Texas, paying only $60,000 for the debt. Oliver described how “disturbingly easy” it was to set up the company; they called it Central Asset Recovery Professionals, and incorporated it in Mississippi to make the purchase.

The consumer’s medical debts ranged from $50 to more than $250,000. Since the debts were incurred in Texas hospitals, most of the people who owe money are from the state, Oliver said.

Oliver went on to say, people who owe bills should pay them but should not be forced to choose between paying medical debts and paying for food and shelter. He said people should never use credit cards to pay off medical debts.

Click here read more on this story.

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

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

The Battle for Student Loan Debt Discharge

Posted on June 8, 2016by Admin

Section 523(a)(8) of the Bankruptcy Code outlines a debtor’s ability to discharge student loan obligations. Under this section, student loans are presumably nondischargeable. However, there is a narrow exception if a debtor is able to show that repayment of their student loans will cause an “undue hardship.”

Two courts recently entered decisions on this issue within the same week, using the same standard for “undue hardship.” The District Court for the Middle District of Alabama and the Bankruptcy Court for the District of Idaho issued largely opposite decisions based on similar facts.

In ECMC v. Alexandra Elizabeth Acosta-Coniff, the bankruptcy court initially held that the debtor was able to meet the undue hardship threshold and discharge her $112,000 of student loans. However, on appeal, the district court reversed the decision.

The case involved a 44-year-old single mother of two who took out more than $100,000 in student loans pursuing four degrees, including two master’s degrees and a PhD in special education. As a full-time public school teacher, the debtor argued that the student loans were an undue hardship, as she was underpaid with no prospects to increase her earnings in the near future.

The court used the test for undue hardship, where the debtor must establish:

(1) That he or she cannot maintain, based on current income and expenses, a “minimal standard of living for herself and her dependents if forced to repay the loans;

(2) that additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and

(3) that the debtor has made good faith efforts to repay the loans.”

The district court denied the debtor’s discharge of the loans based on the second factor, holding that the debtor did not satisfy the burden to show that there are additional circumstances preventing her from fulfilling her payment obligations. The court reasoned that the debtor chose to earn four degrees with a general understanding of the cost versus benefit analysis and her multiple degrees enabled her to seek employment on a larger pay scale.

It reasoned that the debtor’s future ability to earn extra income was a realistic possibility, negating the need to discharge her student loans.

In Elizabeth M. McDowell v. Education Credit Management Corporation, and U.S. Department of Education, the court reached the opposite decision under the Brunner analysis.

There are essentially three criteria a debtor must meet under the Brunner analysis.

Continuing to pay the loan must cause the borrower to be unable to sustain a minimum standard of living;
The borrower’s financial situation must be unlikely to change in the future;
The borrower must have made a good-faith effort to pay his or her loans.

The debtor, a 43-year-old single mother of two, owed $93,000 in student loan debt for both her undergraduate and graduate degrees. The debtor was steadily employed as a social worker, but had recently taken a $6,000 trip to South America to attend training for a career switch to photography. The debtor also financed the purchase of a motorcycle for her ex-husband.

At trial on the issue of undue hardship, her doctor testified that her health was deteriorating, and it was likely that she would be unable to work in the near future. Due to this fact, the court found her health condition to be an additional circumstance that would persist, or worsen, in the near future, satisfying the second requirement of the Brunner test.

The court recognized that the debtor made certain financial errors in the past, such as her trip to South America and the purchase of a motorcycle. However, the court held that she otherwise lived modestly while working full time. Ultimately, the court held that the debtor could discharge most of her loans, except for $10,000 which the court determined to be frivolous spending.

Click here to read more on this story.

Related Resources:

http://www.lexology.com/library/detail.aspx?g=8b4f44fe-0baa-4e50-b4f8-d77adda86096

http://www.usnews.com/education/blogs/student-loan-ranger/2014/08/13/debunking-the-student-loan-bankruptcy-myth

Bankruptcy Law, Credit, Debt Relief

Bankruptcy Counseling: What it is and What to Expect

Posted on June 6, 2016by Admin

Deciding to file for bankruptcy is not an easy decision, but it may be your best option if you do not see yourself paying off your debt in five years. The federal government requires two sessions of credit counseling: pre-filing counseling to start the process and pre-discharge counseling before your debts are forgiven. These sessions will help you understand how bankruptcy works and how to avoid financial devastation in the future.

The counseling sessions do not take long to complete. Here is what you can expect.

Pre-filing counseling

Pre-filing bankruptcy counseling is the first step in the bankruptcy process. If you do not go through pre-filing counseling before submitting your case to the court, it will be thrown out.

In addition to being an educational course to help you understand the advantages and disadvantages of going through bankruptcy, pre-filing counseling presents alternatives such as debt management to help you determine if bankruptcy is the best way to resolve your debt. Upon completion of the pre-filing session, you will receive a certificate of completion valid for 180 days. You will need that certificate if you decide to file for bankruptcy.

Pre-discharge counseling

Pre-discharge counseling is the final step before the court finalizes your bankruptcy and discharges your debts. This counseling offers valuable financial education to help you manage your finances in the future. It focuses on your income, expenses and strategies to help you save money.

This class covers much of the same ground as the pre-filing session but with a focus on increasing your financial literacy. You will cover topics such as understanding your credit score, living on a budget and avoiding future financial risk. You will receive a certificate upon completion that you will need to present before the court before your debts can be discharged.

Before going into either session, gather documents that outline your income, expenses and debt to expedite the process. Expect each session to take between 90 minutes and two hours.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Student Loans

Local Doral Company Sued for Running a Massive Student Loan Debt Scam

Posted on June 2, 2016by Admin

The Federal Trade Commission (FTC) and Florida Attorney General Pam Bondi are suing the Doral-based, Student Aid Center, for illegal business practices in the hopes of recouping some of consumers’ lost money.

The Student Aid Center, which claimed to help graduates relieve themselves of student loan debt, is now facing serious legal trouble of its own. The two owners filed for bankruptcy in February, stating the company had liabilities between $1 million and $10 million.

In addition to the FTC and the State of Florida complaint, Minnesota and the District of Columbia have filed lawsuits accusing Student Aid Center of “deceptive practices.” The Minnesota lawsuit alleges one of the owner’s Instagram account frequently referenced Jordan Belfort, the money-grubbing stockbroker depicted in the Leonardo DiCaprio film The Wolf of Wall Street.) The account has since been taken down.

The owners were savvy marketers, running advertisements on social media, radio spots, Google ads promoting the tagline, “Obama Loan Forgiveness,” and even in one case, an aerial banner flying over South Beach.

The complaint brought by the FTC and the State of Florida says Student Aid Center “preyed on consumers’ anxiety about student loan debt” by falsely promising to reduce or even eliminate it.

The company demanded upfront fees in five monthly installments of $199 or more, according to the complaint- even though graduates can apply for government loan forgiveness programs free of charge. Student Aid Center went as far to tell its customers to stop paying their lenders and instead pay the company directly, the lawsuit alleges.

But although the company lured in customers by promising a 100 percent money-back guarantee, Student Aid Center later deflected those who demanded refunds by either not returning the money or returning an amount much less than what had been paid, according to the FTC.

Click here read more on this story.