Miami bankruptcy attorney Archives - Page 97 of 100

Bankruptcy Law, Credit, Timothy Kingcade Posts

Dept. of Education Urged to Clarify Policy on Student Loan Bankruptcies

Posted on June 3, 2014by Admin

Democratic members of Congress are urging for clarity and leniency when it comes to how the Department of Education forgives student loan borrowers who are bankrupt and unable to pay back their student loan debt. Federal law treats student loan debt as being non-dischargeable in bankruptcy unless “undue hardship” can be proven.

Oftentimes, attempts to prove undue hardship are “aggressively challenged” by the loan service provider and the Department of Education. According to the letter, the department needs to create clear standards for borrowers to qualify for discharging their student loan debt.

“While we recognize the department’s prerogative to fairly collect on student-loan debts owed to it, we do not find it sensible or cost-effective for the department or its contractors to engage in lengthy legal challenges and appeals against bankrupt student-loan borrowers who have demonstrated a clear and legitimate inability to repay their loans,” the letter says.

Other recommendations in the letter include:

• Clarifying the criteria for “undue hardship” to include borrowers who receive disability benefits under the Social Securtity Act;

• If the secretary of veterans affairs has determined the borrower is unable to work because of disability connected with military service;

• If the borrower’s household income has been less than 175 percent of the official poverty guidelines during the five-year period before filing a bankruptcy petition.

The letter states the urgency for action when it comes to the student loan debt crisis. This new guidance would bring consistency to the application of the undue-hardship standard.

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 www.miamibankruptcy.com.

Bankruptcy Law, Timothy Kingcade Posts

Prescription Costs Fuel Medical Debt and Rise in Bankruptcy Filings

Posted on May 30, 2014by Admin

Last year, the federal government reported that Americans had $41 billion in out-of-pocket costs associated with prescription drugs. Experts agree that those prescription drug costs will continue to play a key role in medical related debt and bankruptcies despite the expansion of insurance for millions under the Affordable Care Act.

Even though more people will be getting their medications covered by insurance, there is a growing trend in both the individual insurance market and the employer-provided insurance market toward having insured people pay an increasing share of medical costs, including their prescriptions.

For many Americans, their individual monthly premiums can total a couple hundred dollars a month, combined with annual deductibles ranging in the thousands, out-of-pocket expenses can add up quickly. Yet many people, particularly those with low incomes are unfamiliar with the myriad of health insurance plans that can play a role in how much they pay for their prescriptions. Their lack of knowledge increases the likelihood they will fall into the medical debt trap.

A report from NerdWallet last year found that medical debt was the single leading cause of bankruptcy in the U.S. and that 56 million Americans had problems paying their medical bills. A new report last week by the Consumer Financial Protection Bureau found that 52 percent of accounts sent to collections and placed on people’s credit reports stemmed from medical debt.

If you are in a financial crisis and are considering filing 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.cnbc.com/id/101686432

Bankruptcy Law, Timothy Kingcade Posts

Hiring the Right Bankruptcy Attorney

Posted on May 27, 2014by Admin

After struggling with unmanageable debt and harassing collection calls for too long, you have finally considered bankruptcy as an option. But what should you look for in a bankruptcy attorney? Do not simply choose your attorney from an advertisement. Filing for bankruptcy is a serious decision and should not be entered into lightly.

Make sure your bankruptcy attorney possesses the following qualities:

1. Experience matters. Do your research. Visit your state bar’s website and see how many years the attorney has been practicing bankruptcy law, how much of their business is devoted to this practice area and whether or not the attorney has been peer reviewed by Martindale-Hubbell. These types of credentials provide you with assurance that the attorney has practical knowledge and experience in the area of bankruptcy law.
2. Passion and professionalism. Find out why your attorney chose to practice in this area of law. Many lawyers find this work especially rewarding and this should be apparent in your initial consultation with the attorney. If you feel like “just another number” at the firm, keep looking.
3. They listen to you. For most people, filing for bankruptcy is oftentimes an emotional and sometimes painful process. You will not only want your attorney to have the proper credentials, but also be empathetic to your situation and take the time to listen and address all of your concerns throughout the process.
4. Cheaper is not always better. Would you have a medical procedure done by the cheapest doctor? Probably not. You would likely want the most experienced doctor. Take this same approach when it comes to hiring a bankruptcy attorney. Avoid ultra-low-cost bankruptcy mills that advertise heavily. These type firms usually have a small number of attorneys and a large number of legal assistants. If unforeseen problems arise in your case, you could be in trouble. There can be serious consequences for hiring the wrong attorney and it can cost you far more than what you thought you could save in the first place.
5. Discuss alternatives. Bankruptcy is not for everyone. A complete cancellation of eligible debts may not be the best option. An ethical attorney will present you with all of your options and help you determine whether bankruptcy is the right option for you.

Bankruptcy Law, Credit, Timothy Kingcade Posts

The WRONG ways to eliminate Student Loan Debt

Posted on May 22, 2014by Admin

This month thousands of graduates will be tossing their caps in the air with the excitement and hope of a prosperous future. But upon entering the “real world,” many of these graduates will soon be faced with a monthly burden: student loan debt. For many graduates, the first dose of reality begins with the first job; a job they estimated would pay more when they were taking out their student loans.

Do not make these mistakes when it comes to paying off your student loan debt.

1. Not paying. Many borrowers have tried this tactic, which seems simple enough. The student loan lenders are hoping you will make this mistake. With penalties and interest accruing, this is simply making a bad situation worse. In addition, this approach will hurt you when you try to get a mortgage or even lease an apartment, as these student loan payments tend to be some of the first credit accounts new graduates have in their name.

2. Making payments with credit cards and then declaring bankruptcy. This approach will end up costing you big time. The rates on credit cards are much higher than those on student loans. Not to mention, the bankruptcy court will see right through this scheme and it is unlikely the debt will be discharged.

3. Using home equity to pay off student loans. For borrowers who have returned to school later in life and are homeowners, they may think that using the equity in their home will help them consolidate their student loans and lower their monthly payments. The drawback here is that most student loans have comparable interest rates to what banks are charging homeowners right now. You are not paying off debt, just trading it in for some new debt, which is tied to your home. You can also be putting your house on the line. Missing a student loan payment can result in a late fee, but missing several mortgage payments can put you at risk of foreclosure.

If you’re having trouble meeting your obligations on federal student loan debt there are options out there ranging from Income-Based Repayment and Pay as You Earn plans to Income-Contingent Repayment. There are ways to legitimately satisfy student loan debt.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Sallie Mae Faces Nearly $200 Million in Penalties for Cheating Active Duty Troops

Posted on May 14, 2014by Admin

Sallie Mae and its former loan unit, Navient have struck a deal with federal authorities to resolve allegations that it cheated active duty troops and other borrowers who were being charged late fees.

According to the Consumer Financial Protection Bureau (CFPB), service members have complained that companies such as Sallie Mae and Navient have told them they could not receive protections under the law unless their loans were in forbearance or deferment.

Sallie Mae and Navient more than doubled to $173 million- the amount they have set aside to cover settlements resolving these allegations brought by the Federal Deposit Insurance Corp. (FDIC) and the Dept. of Justice. Navient has acknowledged the federal government’s investigation into allegations the company cheated active-duty troops in violation of the Service Members Civil Relief Act from November 28, 2005 to present day.

Under the Service Members Civil Relief Act, loan companies must reduce the interest rate on student loans to no more than 6 percent upon request by active duty troops. As of 2008, the law extended beyond private student loans to include federal student loans.

In addition, troops have told the CFPB that their servicers wrongly told them the 6 percent interest-rate cap expired annually, and they were required to submit additional paperwork to retain it. Others were discouraged from applying for the protections contained in the service members’ law, while some were mistakenly told that the benefits are only available to those in combat zones.

Furthermore, some service members told the CFPB that they were told to provide end dates for their tours on active duty, a requirement that is virtually impossible to meet, since officers in the armed forces are usually not told when their tours will end.

Rohit Chopra, the consumer bureau’s top student loan expert, told the Senate “that companies that fail to comply with the service members’ law may be cheating borrowers in other ways.”

A settlement resolving the service members’ allegations would need to be approved by the Education Department and require the companies to establish a $60 million fund to compensate troops for violating the service members’ law when it comes to student loans.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Think Cash is King? Not according to a recent study

Posted on May 13, 2014by Admin

A new report from Bankrate shows credit card debt is on the rise. Nearly 8 out of 10 Americans carry less than $50 in cash on a daily basis and nearly 1 in 10 customers do not carry cash at all. This study comes at the same time the New York Federal Reserve is saying U.S. household debt rose by $129 billion in the first quarter, totaling $11.65 trillion.

Many agree that paying with cash makes consumers more conscious of their spending. We are quickly moving to an all-digital age, subject to hackers. But not everyone is seeing the death of paper money as a bad thing. A Chief Risk Strategist for Chapwood Funds says, “Carrying cash guarantees that you are losing money over time with interest and inflation.”

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Seven Mistakes your Credit Card Company WANTS you to Make

Posted on May 9, 2014by Admin

1.) Letting your rewards or miles expire. Letting your credit card rewards points or miles expire is a common mistake. Make sure you read the fine print and know the rules of redemption or you could lose out big time.

2.) Paying only the minimum each month. You know you should pay more than the minimum and cut down on the interest you are paying for “borrowing” the balance. Thanks to the Credit CARD Act of 2009, your bill tells you how much it is going to cost you to pay off the balance over time.

3.) Paying late now and then. The credit card company wants you to pay, but doesn’t mind if you pay late. The credit card company can raise the interest rate on your new purchases as long as they give you 45 days’ notice. Not to mention the late fees of $29 to $39 you can incur.

4.) Ignore the mail. Not paying attention to your statement is a mistake the credit card companies hope you will make. These statements can contain valuable information such as fraudulent charges, which you will not have to pay- as long as you inform the credit card company right away- or notifications that your interest rate has increased.

5.) Using a balance transfer to rack up more debt. You transfer your outstanding balance to a card with a low or zero percent interest rate thinking you will save money. Shifting your debt around does not mean you are debt free. If you decide on a balance transfer, make sure you pay off your balance before the end of the promotional period and avoid adding additional charges to the card. Also be aware of balance transfer fees associated with these cards.

6.) Opting to go over your credit limit. Under the new law, if you do not opt in and you attempt to buy something that will put your balance over your credit limit, the transaction could be declined at checkout. If you opt in to this trap, it can cost you. You can face over-limit fees and higher interest rates on your credit card balances.

7.) Paying more fees than you earn in rewards. The goal is to maximize the rewards offered by your credit card company. If you do not travel, why sign up for an airline credit card? It is best to choose a card with no annual fee even if it has no rewards points program. Keep in mind, if you carry a balance even for one month beyond any promotional interest period, the interest you will pay can quickly diminish any rewards points you may have earned.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Actor Mekhi Phifer Files for Bankruptcy

Posted on May 7, 2014by Admin

Actor Mekhi Phifer has filed for bankruptcy, TMZ reports. The 39-year-old actor, best known for his role as Dr. Greg Pratt on NBC’s “ER” has racked up approximately $1.2 million in back taxes, $50,000 in lawyer fees and $4,500 in back child support, according to legal documents obtained by TMZ.

Legal documents reveal he spends around $11,600 in monthly expenses, but only brings in $7,500. In addition to his role on “ER,” from 2002-2008 he is also well known for his role opposite Eminem in the movie “8 Mile.”

According to TMZ, Mekhi’s list of assets include: a leather bed, a 12-year-old Segway (valued at $1,500) and a large collection of firearms.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

New Rules Bring Fairness to Debt Cases

Posted on May 2, 2014by Admin

A New York judge has proposed new filing requirements for debt collectors that will bring fairness to state consumer cases and put them in line with due process. Judge Jonathan Lippman says many debtors discover they have been sued only after their bank accounts are frozen or their wages are garnished. Others are never served a notice of a lawsuit and lose the case simply by default.

More than 100,000 consumer credit card lawsuits are filed in state courts annually, most from third party buyers of delinquent credit card debt. Some of this debt, which is referred to as “zombie” debt, is several years old. The new rules would be implemented by June 15th and are intended to stop default judgments based on what the judge refers to as “robosigned” affidavits, “containing few if any facts relating to the history of the debt at issue.”

Instead, plaintiff creditors would have to file detailed court affidavits identifying the specific content at issue, the credit agreement, the complete chain of debt ownership, an itemized list of the principle interest and other charges. Default judgments would be prohibited where notices are returned because of an unknown or wrong address.

Click here to read more on this story.

If you have any questions on this topic or are in a financial crisis and are considering filing 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

Five Ways to Handle an Unexpected Medical Bill

Posted on May 1, 2014by Admin

If you are involved in an accident or suffer an unexpected illness, getting well and your recovery can be just part of the battle. According to a recent study done by Clear Point Credit Counseling Solutions and the Kaiser Foundation, 1 in 3 Americans report having difficulty paying their medical bills.

Medical debt can often lead to other financial problems. Some consumers are on the verge of foreclosure because they have opted to pay their medical bills instead of their mortgage, others are pulling from retirement accounts and facing tax consequences in order to cover medical debt.

Below are 5 tips to help you handle an unexpected medical bill.

1.) Negotiate. If you can afford to pay a portion of the bill, you may be able to negotiate with your medical provider to settle the debt for less than the amount owed. Make sure and get the terms of the settlement in writing and keep a copy for your records.

2.) Request a payment plan. Ask to be put on a payment plan. This is one of the cheapest ways to pay off the debt over time, without accruing any interest.

3.) Use credit with caution. If you have a low-interest or 0% interest credit card, you may want to charge your procedure and pay it off completely before the interest accrues. Beware of “medical credit cards.” Most of these cards carry very high interest rates and if you happen to miss a payment or do not pay off the balance in full by the time the no-interest promotional period ends, you could wind of paying interest on the entire balance, not just the amount you have remaining.

4.) Use a personal loan. This is often a more attractive option than a credit card and is better for your credit score than maxing out a credit card. Come up with a budget and know exactly how much you need to pay until the debt is paid off.

5.) Ask for help. If you are dealing with insurmountable medical debt, request a copy of the hospital’s financial assistance policy. If you are eligible, programs like this may be able to significantly reduce your bill. If your medical bills are so large that you cannot possibly pay them off and you have exhausted all other options, you may want to speak with 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.