Miami bankruptcy attorney Archives - Page 97 of 101

Bankruptcy Law, Credit, Timothy Kingcade Posts

Consumer Protections: Fair Debt Collection Practices Act & Florida’s Wage Garnishment Exemptions

Posted on November 17, 2014by Admin

When you are struggling to make ends meet financially, it can be frustrating to have debt collectors calling you or even worse, having your wages garnished. A strong federal law, called the Fair Debt Collection Practices Act, protects consumers against certain unfair collection practices, which include:

• Calling you repeatedly to annoy or harass you.
• Trying to collect more than you owe.
• Fail to send a written notice of the debt.
• Threatening violence.
• Threatening dire consequences (i.e. – lawsuits, criminal prosecution, wage garnishment, jail time, permanently ruining your credit).
• Using profanity and abusive language.
• Calling before 8 a.m. or after 9 p.m.
• Revealing debt to third parties (i.e. – family, neighbors, friends, co-workers, etc.).
• Contacting you at your work, after you have requested them to stop.
• Failing to verify disputed debts.
• Ignoring cease communication requests.

Following the 2008 recession, Florida legislatures have made changes in the laws to help individuals and families struggling to keep their homes and stay out of debt. Under Florida Statutes Section 222.11, there are specific exemptions laid out for those who are having their wages garnished by creditors, the IRS and hospitals.

Section 222.11 provides exemptions from wage garnishments if:

• You are the head of the household and earn more than $750 a week in disposable income (unless the person agrees to this in writing).
• If you are exempt from wage garnishments, your accumulated income deposited in a financial institution is also exempt for six months after the deposit.
• Any persons not considered “head of the household” are also exempt from having 75 percent of their earning garnished (over six-month period).
• If the head of the household does earn more than $750 a week in disposable income, creditors cannot garnish wages unless they receive written permission specified under the statute.

If you have any questions on the topic of wage garnishment 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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Financial Planners warn about “prepaying” Student Loan Debt over Retirement Savings

Posted on October 14, 2014by Admin

National student loan debt has been increasing at a rapid pace over the past two decades. The total now tops $1.2 trillion, surpassing auto and credit card debt. It’s hampered many young people’s ability to purchase a home and even keep current on monthly bills.

However, financial planners are warning borrowers to not be in such a hurry to pay off this debt. In fact, young borrowers could wind up being poorer if they accelerate student loan debt repayment over saving for retirement.

Here’s why: Retirement contributions typically offer tax breaks, company matches and future compounding that are worth far more than the interest saved by accelerated loan repayment. Many young borrowers focus on the now, putting retirement savings on the back burner, which can be a costly mistake.

A $1,000 contribution made at age 25 would typically be worth $20,000 or more at retirement age, while the same contribution would be worth about $10,000 when made at age 35, assuming 8 percent average annual returns. Even if participants do not achieve 8 percent, which is the historical stock market average for periods over 30 years, the math still holds: contributions made earlier return dramatically more.

Thanks to compounding, contributions made when workers are in their 20s can be worth twice as contributions made later. That’s because the money has longer to grow.

A recent TransUnion study of “credit active” consumers — people with at least one credit account or loan — found that 51 percent of those aged 20 to 29 have student loan debt, compared to 31 percent in 2005. Balances have soared as well, the study found. The average balance for a 20-something borrower in 2014 was $25,525, compared to $15,853 in 2007. That’s a 60 percent increase.

An Experian study found an even greater rise in student loan debt when the rest of the population was counted in. The study found that student loan debt had risen 84 percent between 2008 and 2014 and that the average balance for borrowers of all ages was $29,000.

Some good advice… Student loan borrowers should always make the required payments on their federal education loans, since the penalties for default are severe. But do not postpone saving for retirement. Make sure your employer is matching you on your retirement contributions, since that money is essentially free, before using any extra money to pay down student loan debt.

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 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 http://www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Credit Card Debt or Student Loan Debt: Which to pay off first?

Posted on September 23, 2014by Admin

It is important to first realize, that all debt is not created equal. Some debt can actually work for you. For example, debt that is tax deductible, such as mortgage and student loan debt falls into the category of “good” debt. On the other hand, debts like credit card debt and car loans fall into the “bad” debt category.

Student loans offer fixed rates and tax deductible interest. You should not be in a rush to pay these off, particularly if you are not already saving adequately for retirement and other emergencies. Federal student loans offer the opportunity to reduce or even suspend payment without damaging your credit scores if you face financial difficulty and have the possibility of forgiveness. Those options are not available for credit card debt.

If your student loan payments exceed 10% of your income when you enter into repayment, the federal government has a “Pay as you Earn” program, which offers more manageable payments for borrowers, especially those with large amounts of debt.

Bankruptcy Law, Credit, Timothy Kingcade Posts

New Study Reveals Surprising Impact Student Loan Debt has on the Housing Market

Posted on September 22, 2014by Admin

A new study reveals the impact of student loan debt on home ownership. The impact is 414,000. That is how many home sales will not happen this year as a result of high levels of student loan debt, according to a report from John Burns Consulting, a firm that advises home builders. This number is the equivalent of about 8% of all home sales, enough to dent the housing industry by $83 billion a year!

The report estimates that the number of borrowers under the age of 40 that owe $250 or more each month in student loans has nearly tripled since 2005, to 5.9 million. And it projects that every $250 in monthly student loan payments decreases home borrowing and purchasing power by $44,000. With the typical sale price of a home being $200,000, you get $83 billion in lost sales.

The Federal Reserve Bank of New York has found that young people with student loan debt are now less likely to own a home than people who never attended college, a reversal of the long-standing trend linking higher education to home ownership and higher earnings. Student debt has been a key factor in the lower-than-normal rates, particularly for first-time home buyers, according to the National Association of Realtors.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Debt Collectors Come under Fire in Recent Lawsuit

Posted on September 2, 2014by Admin

The U.S. Consumer Financial Protection Bureau (CFPB) filed its first lawsuit against Frederick J. Hanna & Associates, a debt-collection firm, based in Marietta, GA. The firm is accused of violating federal consumer protection laws, processing more than 350,000 credit card collection complaints against consumers, some of whom may owe nothing or owed less than was claimed.

These collection practices are widespread. Roughly 77 million Americans have debt in collections, according to a recent study published by Urban Institute. CFPB officials say the regulator may sue law firms if they operate as debt-collection businesses rather than legal advisers.

The vast majority of borrowers sued in these cases do not appear in court and as a result, many of the cases end in a default judgment allowing the collector to garnish wages, freeze bank accounts or put a lien on property. These judgments can be difficult to correct.

CFPB officials are weighing regulations that would impose tougher requirements on debt collectors to establish they have the right to collect on a debt and ensure the amount is accurate. These rules would also impact banks and debt buyers as well.

Legal experts say the suit could signal the regulator’s intent to target similar high-volume law firms, and potentially banks and debt buyers, over allegations that debt collection claims can be out of date, incorrect in their amounts, lacking in documentary support or overlapping with claims filed against the same debtors.

If you are in a 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, Timothy Kingcade Posts

Grieving parents hit with $200,000 in student loans

Posted on August 12, 2014by Admin

Losing their 27-year old daughter, Lisa, to liver failure was devastating enough, but then the student loan bills started coming. Steve Mason and his wife Darnell immediately took in their daughter’s three children- ages 4, 7 and 9 following her death. The family had co-signed on $100,000 in private student loans that his daughter took out for nursing school. Unable to keep up with the payments and mounting expenses, the $100,000 debt ballooned to $200,000 as a result of late fees and interest rates as high as 12%.

Steve called the lenders to explain he could not afford the $2,000 a month payments, but unfortunately private lenders are not bound by any federal requirements to help borrowers or co-signers. Loan forgiveness is up to the discretion of the individual lender. Navient Corp., which manages several of the loans said they reduced the balance owed to $27,000 from nearly $35,000 and lowered the interest rate to 0% on three of four loans. The family was less fortunate with American Education Services, which handled the bulk of Lisa’s student loans. The lender refused to provide the family with any relief.

Dreams for retirement have been shattered for the Masons. The family has considered filing bankruptcy, but student loans are the only type of debt that generally cannot be discharged through bankruptcy. Legislation aiming to help families in similar situations, including recent bills that would allow student loan debt to be discharged in bankruptcy, have been introduced over the years but have yet to pass in Congress.

“People with other debt from splurging — they can discharge that,” Mason said. “Student loans should really be the one type of debt they do discharge because it’s done to further an education and career. But somehow getting [my daughter] an education has encumbered me for the rest of my life.”

The Masons are not alone. Similar financial nightmares are facing families throughout the country. For now, the only option parents have is to negotiate a payment plan with the lender or try to prove undue financial hardship to the courts in order to get the debts discharged in bankruptcy.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Beware of Filing Bankruptcy Pro Se

Posted on July 10, 2014by Admin

The Internet has given average consumers the ability to Google everything from how to change a flat tire to how to replace a kitchen sink. However, there are certain tasks that should be left to the professionals. Filing for bankruptcy is one of them.

Bankruptcy laws significantly changed in 2005, making it more difficult to file. There are also crucial steps in the bankruptcy process, including appearing before a bankruptcy trustee and a meeting of creditors. These two steps can be intimidating for individuals not familiar with the process. Not to mention the complex legal forms involved with filing bankruptcy. A single mistake or oversight on one of these forms can cause you to lose your property and assets or your case to be dismissed.

Consulting with an experienced bankruptcy attorney will help you fully understand your legal options and avoid these pitfalls. The court in the 1973 case of The Florida Bar v. American Legal & Business Forms, Inc. ruled that non-attorneys selling package forms or “kits” for performing legal services as the unauthorized practice of law if any instructions or advice on their preparation is included.

The recent case, In re Falck reveals how some predatory individuals have taken advantage of consumers who are struggling to manage their debt and stay in their homes. The defendants solicited debtors through the mail pitching their mortgage foreclosure defense scheme. They charged debtors monthly payments, along with illegal and excessive fees, and then later claimed the debtor never paid. These individuals were not licensed attorneys in Florida or in any other state and did not file the proper disclosures. The court noted there were hundreds of debtors victimized by this mortgage foreclosure protection scheme.

Bankruptcy Law, Credit, Timothy Kingcade Posts

$8.25 Million Bonus Not Enough for Ex-Goldman Trader

Posted on July 2, 2014by Admin

Deeb Salem, an ex-Goldman Sachs mortgage trader is asking for more from the company he claims did him wrong. According to a transcript from the arbitration hearing, Salem told his mother three years ago that he expected $13 million for his “heroic efforts” to bring in $7 billion for the bank that year. The bonus he thought was owed to him was slightly down from the $15 million he received in 2009 and more than the $9 million bonus Goldman chief, Lloyd Blankfein took home that same year.

Salem claimed a Goldman credit trading executive said he was a “steal” at $15 million at a cocktail party. The reason for the reduced bonus was Salem’s “extremely poor judgment” in detailing his skillful manipulation of the market leading up to the housing crisis in a 2007 employee self-evaluation. In the evaluation, he described Goldman’s plan to “short squeeze” the mortgage market- what the Senate panel later viewed as “intentional market manipulation.”

Salem now wants Goldman to pay him $16 million. He is appealing to the New York State Supreme Court after being turned down by an industry arbitrator. The case is scheduled for September.

Click here to read more on this story.
http://www.washingtonpost.com/news/morning-mix/wp/2014/06/20/ex-goldman-trader-furious-over-paltry-8-25-million-bonus/?tid=hp_mm

Bankruptcy Law, Credit, Timothy Kingcade Posts

Debt Collectors Paying the Price for Every Time They Call

Posted on June 30, 2014by Admin

Thanks to a new ruling, consumers who have requested debt collectors not call their cell phones are entitled to collect damages of up to $1,500 per call. In the recent 11th Circuit case, Osorio v. State Farm Bank, the court reinforced restrictions under the Telephone Consumer Protection Act that prohibits debt collectors from using automated dialing systems (i.e. – “robocalls”) to contact consumers on their cell phones without their permission.

The Telephone Consumer Protection Act has been federal law since 1991. However, this ruling is significant because in the past, courts have been divided as to whether consumers who have given their cell phone number to a creditor or collector can revoke that privilege, and if so, whether they can do so verbally. In this case, the court ruled in favor of consumers, giving them permission to revoke their consent verbally.

For consumers who are receiving calls for the wrong person, for debts they believe are not owed or for debts that are too old, this ruling proves extremely helpful. However, it important to remember that ignoring collection calls is not a good strategy. Keep accurate records of the collection calls and consider speaking with an experienced bankruptcy attorney who can guide you in the right direction and determine whether you qualify for bankruptcy protection.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Personal Bankruptcy Filings Down

Posted on June 25, 2014by Admin

Bankruptcy filings are down 11 percent compared to the 12-month period ending March 31, 2014, according to statistics released by the Administrative Office of the U.S. Courts. March 2013 bankruptcy filings totaled 1,170,324 compared to 1,038,280 bankruptcy filings in the 12-month period ending March 31, 2014.

However, filings in April and May of this year have been most similar to the number of filings in April and May of 2013. The May 2014 daily bankruptcy filing rate was 4,079, which was a 7.0% decline on a year-over-year basis. There have been just over 405,500 bankruptcy filings in the first five months of 2014. With these latest numbers, the year-over-year bankruptcy filing rate has declined for forty-three straight months.

Some financial experts attribute the decline in consumer filings to “a low-interest rate environment” and consumers utilizing more government assistance programs, such as the Home Affordable Refinance Program (HARP), which has helped many underwater homeowners.

Related Resources:

http://news.uscourts.gov/bankruptcy-filings-down-11-percent-march-2014

http://www.creditslips.org/creditslips/2014/06/900000-bankruptcy-filings-this-year-maybe.html