Miami bankruptcy attorney Archives - Page 83 of 106 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Credit, Debt Relief, Timothy Kingcade Posts

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

Posted on November 10, 2016by Admin

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

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Capital One Faces Lawsuit over Unfair Debt Collection Practices

Posted on November 7, 2016by Admin

A Florida woman is suing Northland Group Inc. and Capital One Bank (USA) NA, creditor, citing violation of the Fair Debt Collection Practices Act (FDCPA). The complaint was filed in the U.S. District Court for the Middle District of Florida against the defendants alleging that they violated FDCPA through abusive, deceptive and unfair debt collection practices.

According to the complaint, the plaintiff alleged that in 2014 her attorney informed Capital One that she was being represented and to direct all communications regarding the debt to her legal counsel. However, on October 31, 2015, Northland sent the plaintiff an initial communication and did not go through her counsel.

The plaintiff holds Northland Group Inc. and Capital One Bank (USA) NA responsible because the defendants allegedly caused confusion through its written correspondence with her, failed to disclose the identity of the original and current creditor, and failed to follow demands not to contact the plaintiff.

She is requesting a trial by jury and seeks judgment against the defendants, attorneys’ fees, costs of action, interest and further relief as the court determines.

Click here to read more on this story.

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

Banks Revise Student Loan Contracts to Help Borrowers Avoid Automatic Default

Posted on November 2, 2016by Admin

Private lenders are revising student loan contracts to ensure borrowers are not placed in default when the co-signer of their loan dies or declares bankruptcy. In a letter obtained by The Washington Post, Consumer Bankers Association President Richard Hunt informed Consumer Financial Protection Bureau (CFPB) director Richard Cordray that the 10 member banks who offer student loans, including Wells Fargo, PNC Bank, Discover and Sallie Mae, have changed their policy on these type auto defaults.

The banks will no longer trigger a default when a co-signer dies, while most will do the same in the event of a bankruptcy. The same policy will apply with existing loans.

Earlier this year, the CFPB warned bankers that they were at risk of breaking the law by automatically placing people who were current on their loans in default. The practice occurs in the private student loan market, where banks and other financial firms provide education financing with loan contracts that give them the right to trigger a default, even if the loan is being paid on time. Auto defaults leave borrowers with no choice but to repay the entire balance of the loan or ruin their credit, making it difficult to purchase a home or car.

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

Student Loan Debt Hits another Record High

Posted on November 1, 2016by Admin

Student loan debt has reached another record high, according to the annual report of The Institute for College Access and Success (TICAS). In fact, 68% of graduating seniors had student loans, and their average debt increased 4% from the previous year’s record to $30,100.

This means college graduates will face student loan payments exceeding $300 a month over the next 10 years. What is more disturbing is that 19% of those loans are private student loans, which are loans issued by banks instead of the federal government.

Private student loans tend to come with higher interest rates, non-flexible repayment plans and oftentimes do not offer loan forgiveness. Compared to federal loans, private student loans can be much harder to repay, especially if the borrower falls on hard times.

The high level of private debt is concerning because much of this debt is avoidable. Nearly half of students who take out private loans have not maximized all of the federal student loans they are eligible for. The U.S. Department of Education will lend almost any undergraduate anywhere from $5,500 to $12,500 a year, depending on their age and year in school.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

One Wrong Move Can Bring your ‘Zombie’ Debt Back to Life

Posted on October 31, 2016by Admin

In the spirit of Halloween, we want to warn you about zombie debt. As the name suggests, zombie debt is a debt that you thought was dead but has come back to life. This could be a debt you already paid off, a debt you settled with a creditor, a debt where the statute of limitations has expired, a debt that was wiped out in bankruptcy, or a debt that was never yours to begin with.

Zombie debts are old debts. That in itself is what makes them so dangerous to consumers, especially when debt collectors apply high-pressure tactics to have you pay up.

Another downside, these debts are oftentimes hard to verify. As debts are sold and resold, information can vanish, leading collectors to seek payment on erroneous debt. Making even a single payment on an old debt can reset the statute of limitations, leaving you vulnerable to a lawsuit.

Debt collection is the largest source of consumer complaints to the Consumer Financial Protection Bureau, with more than 85,000 complaints filed in 2015. The leading complaint: Consumers being harassed for debts they did not owe.

Here are some steps you can take to avoid becoming a victim and put zombie debt to rest for good:

Request a validation letter. This will outline details, including the original creditor, the amount of the debt and how you can challenge it. This will help you verify that it is your debt and has not already been paid.
If you already paid the debt: Write a letter to the collections agency demanding that it cease contact. The Fair Debt Collections Practices Act requires them to do so. Remember: You cannot legally be sued for a debt that is past the statute of limitations, even though collectors may still try.
Pull your credit report to determine whether it is being reported to the credit bureau. You can do so for free at www.annualcreditreport.com.
Know your rights. Do not let a debt collector bully you. The Fair Debt Collection Practices Act protects you against abusive collection tactics.
If the debt is not yours, it is otherwise invalid: Write a letter challenging the debt within 30 days of the initial contact.
If you do owe the debt and can pay, resolving an unpaid account can end the collection calls and improve your credit score. Get any payment agreement in writing before sending money.
If you do owe the debt and cannot pay: Tell the creditor you cannot afford to pay. Never give your credit card information or bank account information to a creditor. Instead, pursue debt relief through credit counseling or bankruptcy.

No matter what, be proactive. Do not ignore anything you receive in the mail from a debt collector and make sure and keep all of your correspondence in writing.

At the law firm of Kingcade & Garcia we want you to have a safe and Happy Halloween this year! 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://www.usatoday.com/story/money/personalfinance/2016/10/31/debt-collectors-zombie-debt-payment/92666504/

http://detroit.cbslocal.com/2016/10/31/dont-get-bit-by-zombie-debt-this-halloween/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What kind of credit counseling is required when you file for bankruptcy?

Posted on October 20, 2016by Admin

For many people, filing for bankruptcy is a last resort to end the challenges they face struggling with insurmountable debt. If you decide to file bankruptcy you will need to work with an experienced bankruptcy attorney and complete mandatory credit counseling through a government-approved agency.

In accordance with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, anyone filing for bankruptcy must receive two certificates: one for pre-filing bankruptcy counseling and one for a pre-discharge education course.

This counseling typically includes a complete review of your financial situation, including current income, household budget and a list of all unsecured debt. Counselors will discuss alternatives to bankruptcy, such as consolidation, debt management, and direct negotiation with your creditors. The entire process takes up to one hour.

After filing for bankruptcy, you also must take a pre-discharge education course. This course lasts two hours and is evaluated by the Justice Department to ensure the topics are in compliance. Topics oftentimes include: budgeting, financial products and tools, credit scores, contracts and consumer protection laws.

It can also include interactive tools, including pre- and post-tests, to measure the level of knowledge about these topics, which are important to understand in order to re-establish personal finances, rebuild credit and avoid getting back in debt. These courses are available online and allow filers to meet the necessary requirements to earn their bankruptcy pre-discharge education certificate.

Here are some ways to get the most out of your bankruptcy counseling:

Make sure you receive counseling from a reputable agency (one that is not only approved by the government, but a member of the National Foundation for Credit Counseling and in good standing with the Better Business Bureau);
Commit to your credit counseling. Set aside a block of time dedicated to these sessions.
Ask the counselors to explain anything you do not understand. They will answer any questions you have, as long as they are not legal-related. These should be directed to your bankruptcy attorney.

Bankruptcy Law, Credit, Debt Relief

Global Debt Exceeds Levels of 2008

Posted on October 18, 2016by Admin

A recent study by the International Monetary Fund (IMF) found that global debt, which includes the debts of governments, households and non-financial businesses, reached a record $152 trillion in 2015 – an amount much higher than before the 2008-2009 Great Recession.

While it seems everyone is fixated on the election, developments in the world economy threaten to create serious problems for the next presidential candidate. What is most concerning about this is that the global economic recovery has assumed widespread “deleveraging” – the repayment of debt by businesses and households.

It was assumed that these repayments would slow the economy. To reduce their debts, households would cut consumption and companies would cut investment. But once debts had receded to manageable levels, consumer and business spending would bounce back. The economy would accelerate.

Leading up to the Great Recession, the economy relied on debt-driven growth. People and firms could spend more, because they would borrow more. This was not only indicative in the United States with its housing bubble. Borrowing financed housing booms in Europe (Spain and the United Kingdom), consumer goods and investments in factories and machinery.

The IMF study fears “a vicious feedback loop”: High debts discourage more borrowing. A slowing economy then makes it harder to repay debts. The more that is borrowed, the more likely that borrowers, lenders – or both – will revert, further having a negative impact on economic growth and development.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What consumers need to know about FICO 9

Posted on October 11, 2016by Admin

If you do not already know, there is a new credit score called FICO 9. The new score comes with some important changes in the way people who have medical debt and other consumer debt are scored. So with all of the different credit scoring models out there- what makes FICO 9 so different?

First, FICO is the most widely used credit score in the country. In fact, 90% of all credit lenders (whether they are offering you a mortgage, car, or personal loan) use the FICO score in some way to determine your credit-worthiness.

More than 64 million Americans have some kind of medical collection record on their credit reports, according to Experian. A staggering 99.4% of medical debts are reported to credit bureaus by collection agencies, damaging consumers’ credit scores in the process. Consumer advocates have long been pushing to make credit scoring models more lenient on people who have medical debt.

With FICO 9, medical collections will be treated differently from non-medical collections, like credit cards. Your credit score will be less damaged by a medical bill you cannot afford to pay as opposed to a department store credit card you ran up the balance on.

This is a big win for consumers. Many people who struggle with medical debt get that way through no fault of their own. Whether you get sick or there is an accident that causes you to miss work, even with health insurance you cannot always control how high your medical bills become.

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, Credit, Debt Relief, Timothy Kingcade Posts

Pensions SAVED as court rules retirement funds protected in bankruptcy

Posted on October 10, 2016by Admin

In the case Horton v. Henry, the court was recently asked whether savers subject to an Income Payments Order (IPO) would have to surrender their undrawn pension funds in bankruptcy. Normally, under IPO people are forced to give up a proportion of their salary or wages to pay the bankruptcy trustee, but this landmark case may set a precedent.

The High Court initially rejected the argument in 2014, but the decision went to the Court of Appeal. However, the appeal was dismissed on October 7. The case is in strong contrast to the 2012 Raithatha v Williamson verdict, when the judge said savers could be forced to withdraw their 25% tax-free lump sum to pay creditors.

Bankrupt savers can breathe a little easier now. The ruling follows a similar conclusion reached in Hinton v Wotherspoon in May, which said retirees not taking any income could not be forced to withdraw savings to pay any debts.

Congress updated the bankruptcy laws in 2005. Under the current law, virtually all retirement account and pension plan funds are exempt from creditors, meaning you get to keep them if you file for Chapter 7 bankruptcy. With a few exceptions to the rule, the exemption amounts are unlimited, so the entire amount of the retirement account is protected.

Plans subject to this exemption include any ERISA-qualified pension plan, such as:

401(k)s
403(b)s
IRAs (Roth, SEP, and SIMPLE)
Keoghs
Profit-sharing plans
Money purchase plans, and
Defined-benefit plans.

Click here to read more on this story.

Related Resources:

http://www.nolo.com/legal-encyclopedia/retirement-plan-bankruptcy-chapter-7-13-32410.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The 4 Critical Mistakes that Lead Businesses to Bankruptcy

Posted on September 29, 2016by Admin

We have all seen the headlines of some of the largest retailers filing for bankruptcy. From Sports Authority to popular brands like Aeropostale and Pacific Sunwear, these are just a few of the apparel players that have filed for bankruptcy this past year.

According to experts, a variety of factors have played a part in these business bankruptcies. Here are four missteps that lead businesses to financial collapse.

Failure to adapt. While e-commerce has created an exciting new environment for brands and retailers to promote and sell their apparel, difficulties with adaptation have hurt businesses that lack the support and expertise to manage change in today’s digital and mobile arena. Teens and millennials are driving a massive migration online and are also less brand-focused than previous generations.
Expanding too soon and high real estate costs. There is a good reason why closing stores is often the first line of defense in a retail bankruptcy and restructuring plan. These excessive brick-and-mortar expansions can destroy profit margins across the board, and retail analysts say U.S. retail is at the peak of over-expansion. Expensive rents played a key role in the collapse of Sports Authority and Pacific Sunwear. PacSun successfully emerged from bankruptcy this month after reducing its debt, closing some of its stores and negotiating lower rent.
Outdated business concepts. Not keeping up with the times can cost a business (and a brand) dearly. A number of businesses file for Chapter 11 bankruptcy because their concept is no longer of interest or their consumers’ tastes have changed. On the other hand, there is the issue of “oversaturation,” where a marketplace becomes too competitive and there is an overabundance of similar businesses and products.
Poor mergers and ownership challenges. The past year and a half has brought a strong wave of mergers-and-acquisitions, particularly in the footwear and apparel industry. Who owns the business plays a big role. Is it a family-owned business that has a vested interest in keeping the company going or is the business owned by a private equity firm, who owns a variety of other businesses? In the case of Sports Authority it was said that new ownership played a pivotal role in the company’s downfall.

Related Resources:

http://footwearnews.com/2016/business/retail/bankruptcy-chapter-11-brands-retailers-mistakes-reasons-business-analysis-258911/