Miami bankruptcy attorney Archives - Page 88 of 99

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

New York State Accepting Applications for Student Loan Debt Relief

Posted on January 8, 2016by Admin

In an effort to help ease the burden of student loan debt on its residents, New York has started accepting student loan forgiveness applications from borrowers who attended college in the state this past year.

Governor Andrew Cuomo announced the state’s “Get On Your Feet” loan forgiveness program, which allows for up to 24 months of student loan debt relief to recent college graduates. The Get On Your Feet program supplements the federal Pay As You Earn repayment program, and allows college graduates living in New York to pay nothing on their student loans the first two years out of school. The program even goes a step further by paying its residents’ student loans for a maximum of 24 payments, equal to their monthly student loan payment amount.

“With this program, we are telling recent graduates: if you invest in New York’s future, we will invest in yours,” Cuomo stated. Helping students pay for college is critical to ensuring their future success. Students struggling with student loan debt are less likely to start a small business or buy a home, and the consequences of defaulting on these loans can be devastating.

To qualify, applicants must have earned their degree from a college or university in New York no earlier than December 2014, have an adjusted gross income of less than $50,000 a year, and be enrolled in the Federal Income Based Repayment plan, Pay As You Earn.

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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

Study reveals even those who are Insured can Face Crushing Medical Debt

Posted on January 7, 2016by Admin

According to a new study, the only way to have peace of mind when it comes to having health insurance is: Don’t get sick.

Even though the number of uninsured Americans has dropped an estimated 15 million since 2013, thanks to the Affordable Care Act, it has hardly been a safety net to millions of Americans struggling with medical debt. The new plans offered by Obamacare often require hundreds of thousands of dollars out-of-pocket, not only in the form of higher deductibles- but additional costs, like co-pays. It has caused unimaginable hardship for those living paycheck to paycheck.

Data reflects that roughly 20 percent of people under the age of 65 with health insurance reported having problems paying their medical bills over the last year. By comparison, 53 percent of people without insurance said the same. These financial vulnerabilities reflect the high costs of health care in the U.S. – the most expensive place in the world to get sick.

This shift has happened over time. Since the late 1990’s, insurance plans have been asking customers to pay more of their share of the bill, through rising deductibles and co-pays. The Affordable Care Act, signed by President Obama in 2010, protected many Americans from high health care costs by being more comprehensive, but at the same time it allowed, and even encouraged, an increase in deductibles.

Experts attribute this to “a gradual shift in the norms about the generosity of health insurance.” In more recent years, health plans have come with growing deductibles and a limited network of providers- all provisions that were devised to lower the cost of premiums. These features have made health insurance accessible to a larger share of the population, but in turn, are leaving more insured Americans vulnerable and at-risk.

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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

At Capital One, easy credit comes with numerous lawsuits

Posted on January 5, 2016by Admin

No lender sues more of its customers than Capital One, according to ProPublica’s review of state court data. The debt collection lawsuits target workers who earn below $40,000 a year. Unfortunately, state laws offer little protection- even workers near the minimum wage could have a quarter of their take-home pay taken or their bank accounts completely cleaned out.

ProPublica obtained and analyzed court data from 11 states, including Florida. Capital One stood out in every state for having the most number of lawsuits against its customers. For example, in Indiana counties for which court data is available — home to about two-thirds of the state’s population — the bank filed about 3,360 suits in 2014. That’s about a quarter of the suits Capital One filed in 2010, but still more suits than all other national banks combined in 2014. In Clark County, Nevada, which includes Las Vegas, Capital One’s suits comprised about 40 percent of all suits by major banks. In Miami-Dade County, Florida, the total was about the same.

The lawsuits were often over debts as small as $1,000, which reveals a hidden side of Capital One’s business. The bank has only the fourth-largest credit card portfolio, but such a large portion of its cards are held by those with poor credit that it is the country’s largest subprime lender. With those loans comes a high risk of default, and the company is particularly aggressive at recouping its losses.

Experts agree, the “disturbing” volume of lawsuits filed by Capital One should prompt regulators to investigate whether the perils of subprime credit cards outweigh the benefits. The federal Consumer Financial Protection Bureau is in the process of writing new rules for debt collection that are expected to cover a wide range of activities, including the filing of lawsuits.

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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, Student Loans, Timothy Kingcade Posts

Bankruptcy Court Determines “Income Based Repayment” Unrealistic

Posted on January 4, 2016by Admin

Another borrower has triumphed over his student loan debt, after he filed his own adversary proceeding with the U.S. Bankruptcy Court of the Western District of Missouri. The judge in this case decided the borrower’s federal student loans should be discharged tax free in bankruptcy, allowing him to save for the future and have a better life.

In his decision, the judge looked at the “totality of the circumstances” the debtor was facing and criticized the income based repayment programs offered by the Department of Education.

The struggling borrower in this case was a truck driver who had maximized his earning potential. The public records summarized his situation by saying, “The Debtor (who represented himself) is forty years old and is unmarried. He is currently employed as a delivery driver, but at times in the past, he has worked as an over-the-road truck driver. He currently earns gross regular income of $2,420 per month, plus overtime in the approximate amount of $643 per month, for a total gross monthly income of approximately $3,063 per month. After payroll deductions for taxes, a modest retirement contribution, insurance, and child support, his net take-home pay is approximately $1,183. The Debtor testified that, due to Department of Transportation limitations on hours of service, he is unable to earn any more than what he is currently earning with the overtime, even if he took a second driving job. He also testified without contradiction that he has no job skills other than as a driver.”

Chief Bankruptcy Judge Arthur Federman noted in his opinion that Income Based Repayment Programs (IBRP) are “not the magic answer to federal student loan debt.” He further went on to say, a court, “must be mindful of both the likelihood of a debtor making significant payments under the IBRP, and also of the additional hardships which may be imposed by these programs. As stated, interest and other charges would continue to accrue while the Debtor participated in IBRP, meaning that the total debt would be increasing. The overhang of such debt could well impact not only the Debtor’s access to credit over the 25-year IBRP period, but could also affect future employment opportunities and access to housing.”

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Bankruptcy or Divorce: Which should you file first?

Posted on January 1, 2016by Admin

Filing for bankruptcy can be further complicated when the parties involved are in the middle of a divorce or considering divorce. Clients in this situation wonder whether they should file for divorce or bankruptcy, first. Unfortunately, there is not a clear-cut answer, as every divorce and every bankruptcy filing is unique. However, there are a variety of factors one should consider when making this decision.

Income of the parties. If one party has significantly more debt, and the other party makes a substantial income, it will be difficult to file a joint Chapter 7 bankruptcy. This is due to the fact the court will have to consider the total household income when determining whether or not to grant the bankruptcy petition. In this case, it is likely more beneficial to file for divorce before filing bankruptcy so the household income is not considered in bankruptcy.

Both parties must agree to file bankruptcy. Filing a joint bankruptcy requires both parties consent to the filing. One spouse cannot force the other to file, even during a divorce proceeding. The party who wants to file for bankruptcy may be eligible to do so individually, but filing individually will not discharge the other spouse’s debt. Therefore, in this case it may be advisable to file for bankruptcy before the divorce so both parties’ debt can be discharged before the divorce proceedings begin.

How has the debt been distributed? In certain instances, one of the parties may have substantial property and assets, separate from the spouse, possibly received through a gift or inheritance or acquired before the marriage. In this situation, the party wanting to file bankruptcy should do so individually, since the spouse’s assets (if filed jointly) could prevent a bankruptcy discharge.

Property of the estate during a divorce. After a bankruptcy petition is filed, all of the debtor’s property becomes the property of the bankruptcy estate. This means the property cannot be divided in a property settlement agreement during a divorce unless permission is received from the bankruptcy judge or if the bankruptcy is over. This can delay a divorce proceeding significantly.

Considering the variety of factors involved , it is very important that anyone with questions about bankruptcy who is also going through a divorce be able to provide complete and accurate information about their assets and liabilities, so your attorney can best assess your situation.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

5 Financial Lies that keep you in Debt

Posted on December 31, 2015by Admin

To get out of debt and start planning for the future, you need to take an honest look at your financial situation. Start by owning up to these five common financial lies in the New Year.

I’ll put back the money I took out of savings. If you have to tap into to your savings to afford a new pair of shoes, a TV or other item- you probably can’t afford it. It’s even more unlikely you will put the money back into your savings account. Avoid impulse purchases and save for the future, instead.

I still have time to save for retirement. When it comes to retirement, the earlier you start the better. Timing is key. For example, if you’re 30, and save 10 percent of your $50,000 salary in a tax-deferred account, you will have $1.1 million by age 67, assuming a 6 percent rate of return and salary growth of 1.5 percent and including Social Security. However, if you start at age 35, you will only have $717,021 by age 67.

I don’t need to worry about my credit score. While you shouldn’t obsess about your credit score on a daily basis, you should check it once a year. Look for any discrepancies, like suspicious activity or inaccurate reports of late payments. Fixing these issues can make a BIG difference when it comes to the interest rate you’re offered on a mortgage, car loan, or even on a washer and dryer you choose to finance.

The bank is the best place to keep my money. Having a savings account set aside for emergencies is a sound choice. However, many people put far too much money into these low-interest savings accounts. With these type accounts, when you take into consideration inflation, you’re actually losing money. Consider alternatives such as money market accounts that yield higher interest rates.

I will never be able to pay off my debt. As you consider your budget, put additional money toward paying down your loans and debts. Consider alternatives like transferring your current credit card debt to a zero percent introductory interest rate.

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

Student Loan Debt Discharge- Another WIN for Consumers in Bankruptcy Court

Posted on December 30, 2015by Admin

Another consumer has successfully had their federal student loans discharged in bankruptcy court. The topic of student loans and bankruptcy is gaining more attention and although not every court district offers the same considerations as this one- it should not be assumed that discharging your student loan debt in bankruptcy is impossible.

Bankruptcy can help mitigate your student loans in a variety of ways, including a full discharge of the debt owed. There are even private student loans that can be easily discharged in bankruptcy; for example, loans for schools or education that was obtained at an “ineligible education institution.”

In this specific case, the debtor was an unmarried woman in her mid-thirties with no dependents. She had suffered a variety of mental issues since her mid-teens, including eating disorders, anxiety, depression and self-harm (i.e. – cutting), which had adversely affected both her academic endeavors and her ability to maintain employment. She obtained educational loans totaling approximately $204,525.00, which included $57,489.11 owed to the U.S. Dept. of Education, $47,900.00 owed to Educational Credit Management Corporation, and $99,136.00 owed to Iowa Student Loan.

She filed for Chapter 7 bankruptcy on April 15, 2010. On July 23, 2010, she filed a complaint to determine whether her student loans could be discharged. The matter was tried, and on December 1, 2010, the bankruptcy court entered a memorandum decision in which it concluded, “excepting the educational loan debts Debtor owed to the United States Department of Education, Iowa Student Loan, and Educational Credit Management Corporation from discharge would impose an undue hardship on Debtor and a judgment determining those debts were discharged.”

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How to Get Rid of Holiday Debt FAST

Posted on December 29, 2015by Admin

We all have a vision of what constitutes “the perfect holiday.” For many of us, it means countless presents under the tree, our children’s smiling faces on Christmas morning and that perfect meal with our family and loved ones all gathered around the table. For some of us, making that vision a reality means putting it on credit cards.

If that was you this year, you’re probably wondering the next steps to take before the bills arrive and the interest starts mounting.

Here are some immediate steps you can take to help manage holiday debt in the New Year:

Make January and February lean months for spending. With the plentiful holiday season behind us, it’s a good idea to start reeling in the spending and extravagance. That doesn’t mean starve yourself, but it does mean sacrificing on splurges you would normally enjoy (i.e. – dinners out, visits to the salon, shopping, vacations, etc.)

Channel savings directly into those big credit card payments. Take a look at all of your credit card bills and determine which one has the highest interest rate. Make the biggest payment you possibly can afford towards that card, while still allotting enough money to pay your other bills and cover monthly expenses.

Look for zero-interest balance transfers. BEFORE you send off that big payment, research credit card offers for balance transfers that allow you to pay 0 percent interest on the transferred balance for a certain period of time. Just make sure you get the transferred balance paid off before the zero interest offer expires.

Sell unwanted items. You will likely find that after the dust settles, you have some unwanted items and gifts around the house you no longer use or want. Utilize Craigslist and eBay to sell these items and earn some extra cash. This money can go towards making bigger payments towards your high-interest credit cards.

Start a savings plan for next holiday season. The best time to start saving for the next holiday season is right now! If you save just $10 a week (the equivalent of a lunch out or a week’s worth of Starbucks runs) for 50 weeks, you will have more than $500 saved for next year’s shopping. If you save $20 a week, you will have over $1,000 set aside for holiday shopping next year. The easiest and most effective way to do this is by setting up weekly automatic transfers through your bank.

Make the holidays more realistic. Discuss sensible downsizing when it comes to purchasing gifts next year. Have a budget for gifts and stick to it. Move to drawing names with family members for gift giving purposes (i.e. – Secret Santa) and discuss arrangements that reduce the challenges on travel for everyone. The spirit of the holiday season should be about togetherness and giving thanks for all of the blessings we have- not something that causes you to go into debt.

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

The Jury is still out on the New Student Loan Repayment Solution REPAYE

Posted on December 28, 2015by Admin

The new federal student loan pay-off solution known as REPAYE (Revised Pay As You Earn) is supposed to fix the shortcomings its predecessor, PAYE (Pay As You Earn) failed to do. The new program allows borrowers to cap their monthly payments at 10% their discretionary income regardless of when they borrowed or how much they owe. Another benefit is that after making 20 years of payment- 25 years for graduate students- any outstanding loan balance will be forgiven under the program.

The goal is to ease financial stress and subsequent loan default. The effect of defaulting on student loans can last long after graduation. It can impact a borrower’s credit history; make qualifying for any new loan (for example, a mortgage or car loan) more expensive or flat out impossible.

But like all new plans, just because it’s new does not mean it’s a perfect fit for all borrowers. The downside to this repayment option is that for some borrowers, the monthly payment may not cover both interest and principal payments, which mean the loan balance, could keep growing. That makes it harder to obtain other personal credit (i.e. – credit cards, mortgages, etc.) because the borrower’s credit capacity is exhausted.

Another risk is that the lower monthly payments will lead the borrower to pay substantially more over the life of the loan when compared to a standard repayment plan. Borrowers must also be aware of the consequences of REPAYE if their salary eventually increases. With REPAYE, payment will always be 10% of your monthly discretionary income, even if it amounts to more than the original payment under the ten-year plan as income rises.

There are now a total of eight income driven repayment plans to choose from. The key is to select the one that’s best for your situation and know the pros and cons of each.

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Bankruptcy Law, Debt Relief, Student Loans

Three Questions to Ask about the New Student Loan Repayment Program

Posted on December 24, 2015by Admin

Some financial counselors are advising caution when it comes to the federal government’s new income-based student loan repayment program. If you do not plan ahead, the lower monthly payments under this option could have long-term financial consequences.

The REPAYE program (Revised Pay As You Earn), which launched December 16, gives those Americans with Federal student loans the option of capping monthly payments at 10% of disposable income. For example, someone earning $30,000 a year would see payment capped at around $103 a month. It also includes a forgiveness feature- Any loan balance remaining after 20 years of payments will be wiped away for undergraduate loans. If you have loans from graduate school, the forgiveness comes after 25 years.

To make sure you weigh all the costs and benefits of the new plan, here are three questions to ask before you sign up for REPAYE:

Will your monthly payment reduce your balance? Check to see whether your monthly payment will cover both the principal and interest due on the loan. If it does not, your balance will keep growing, which can mean financial trouble in the long run.

How much more in interest will you pay? By stretching out your loan, you inevitably pay more in interest, which is money that could have been saved for your financial goals. This can also hurt your credit score if the loan balance keeps growing.

Will you be able to handle a large tax bill? Under current law the loan amount that is wiped out will be treated as taxable income. If the forgiven debt is a large amount, wiping it out may push you into a higher tax bracket, so you could end up paying the tax at an increased rate.

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