Bankruptcy Law, Credit, Timothy Kingcade Posts

Credit Karma expands credit-reporting access

Credit Karma has announced that it has increased users’ free access to their credit reports. The company will now offer two of the nation’s three largest credit-reporting agencies and updating them on a weekly basis. This move comes just in time for those making New Year’s resolutions to improve their personal finances this year. The new service will also be helpful for those who plan to take out a mortgage in 2015, by allowing them to closely monitor changes to their credit information.

Credit Karma has added credit reports from Equifax in addition to reports from their longstanding relationship with TransUnion. Credit Karma offers members access to the following credit information: credit card utilization, payment history, derogatory remarks, age of credit history, total accounts and credit inquiries. Access to this information is empowering for consumers, not only for financial education but offering them transparency with their credit reports and scores.

Click here to read more on this story.
http://www.bizjournals.com/sanfrancisco/blog/2014/12/credit-karma-report-score-equifax-efx-mortgage.html

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.

Bankruptcy Law, Timothy Kingcade Posts

Medical Debt Responsible for the Majority of Bankruptcy Claims in the U.S.

Consumers may be surprised to find out that it is not credit card debt that is the leading cause of bankruptcy, but medical debt. According to a recent study, Americans pay three times more in third-party collections from medical debt each year than they pay for bank and credit card debt combined. This year alone, approximately 51 million Americans will be contacted by a debt collection agency about a medical bill- that’s roughly one in five! This means more than $1 out of every $3 paid to third-party collectors is for medical debt.

The study conducted by NerdWallet Health also indicated that many of the people who are facing medical debt are being mistakenly overcharged. In fact, the study found hospital billing errors with overages of up to 26%. These billing errors were even more prominent with Medicare patients.

The study highlighted that Medicare Compliance reviews conducted by the Office of the Inspector General found that none of the hospitals they audited fully complied with Medicare billing requirements, with nearly half (49%) of the Medicare claims containing billing errors.

Considering that American households have lost $2,300 in median income, while health care expenses have increased $1,814, it would be wise for American consumers to take more initiative in understanding their health insurance packages. Out-of-pocket spending on healthcare is expected to accelerate to a 5.5% annual growth rate by 2023. That is double the growth of GDP.

While the Affordable Care Act (ACA) is a step in helping consumers avoid medical bankruptcies, by eliminating the underwriting process and subsidizing healthcare health care for those who would otherwise be uninsured- it can cause problems for individuals and families who choose the wrong plan.

According to health care experts, the average deductible for a silver plan can be upwards of $3,000 for an individual or $6,000 for a family — and that is just for in-network care. While 2015 out-of-pocket expenses are capped at $6,600 for an individual and $13,200 for a family, plans may impose separate out-of-pocket maxes — or have no max at all for out of network doctors and hospitals. Given the narrow network of approved providers within these plans, it becomes a likely scenario that an individual will at one point accidentally visit an out-of-network doctor or clinic and then be stuck with a large bill.

It is important consumers know that the ACA offers an external appeals process for health plan decisions, which provides recourse to individuals who face large medical bills after undergoing medical care that was not covered by their health insurance plan. A recent study in California even found that nearly half of such insurance denials were overturned in favor of the patient after review by an external board.

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.

Related Resources:
http://www.mainstreet.com/article/medical-debt-is-responsible-for-the-majority-of-bankruptcy-claims-in-the-us

http://www.alllaw.com/articles/nolo/bankruptcy/can-file-bankruptcy-eliminate-medical-bills.html

Bankruptcy Law, Credit, Timothy Kingcade Posts

Judge Slams “Real Housewives of New Jersey” Couple for Not Disclosing all Assets in Bankruptcy

Teresa and Giuseppe “Joe” Giudice arrived for sentencing this week at a federal courthouse in Newark facing conspiracy and bankruptcy fraud charges. U.S. District Judge Esther Salas reprimanded the couple for not disclosing all of their assets, including recreational vehicles they own.

The couple pleaded guilty in March and admitted hiding assets from bankruptcy creditors and submitting phony loan applications to receive $5 million in mortgages and construction loans.  Because of the fraud, the couple’s bankruptcy of several years ago was cancelled by the court last month and the Giudices once again owe more than $13 million to creditors.

Joe Giudice was sentenced to 41 months in prison, 2 years of supervised probation and was ordered to pay $414,588 in restitution from District Court Judge Esther Salas.  Lawyers for Teresa remain hopeful that she will be spared a prison sentence and instead be put on probation, noting the couple’s need to care for their four young daughters.

The couple pleaded guilty to conspiracy to commit mail and wire fraud and three types of bankruptcy fraud. Joe Giudice, 43, also plead guilty to failing to file a tax return for 2004, though he acknowledged he did not file taxes on income of approximately $1 million from 2004 to 2008.

Regardless of your occupation or status in life, if you attempt to cheat on your taxes or attempt to hide assets from your creditors during bankruptcy, you face real consequences, criminal prosecution and even jail time.

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:

http://pagesix.com/2014/10/02/judge-slams-teresa-and-joe-giudice-for-not-disclosing-all-assets/

http://deadline.com/2014/10/real-housewives-of-nj-stars-sentenced-prison-joe-teresa-giudice-844551/

Bankruptcy Law, Timothy Kingcade Posts

Jersey Shore Star, ‘The Situation’ Indicted for $8.9M Tax Fraud Conspiracy

Former Jersey Shore cast member, Mike Sorrentino (a.k.a. ‘The Situation’) and his brother / business manager, Marc Sorrentino appeared in a New Jersey Federal Court this week to plead not guilty to a fraud indictment claiming they did not pay taxes on $8.9 million of income. Court documents show that both Sorrentino and his brother are being charged with one count of conspiracy to defraud the U.S., and an additional two counts of filing false returns.  His brother faces three.  ‘The Situation’ is also charged with not filing a tax return in 2011, when he earned more than $1.9 million in income.

The document states, “From in or about January 2010 through in or about November 2013, in Monmouth and Ocean Counties, in the District of New Jersey and elsewhere, defendants Marc Sorrentino and Michael Sorrentino, aka ‘The Situation,’ did knowingly and intentionally conspire and agree with each other and others to defraud the United States by impeding, impairing, obstructing, and defeating, through deceitful and dishonest means, the lawful functions of the IRS, a constituent agency of the United States Department of the Treasury, to ascertain, compute, assess, and collect federal income taxes,”

“According to the indictment, Michael and Marc Sorrentino filed false tax returns that incorrectly reported millions made from promotions and appearances,” U.S. Attorney Paul J. Fishman said in a statement. “The brothers allegedly also claimed costly clothes and cars as business expenses and funneled company money into personal accounts. The law is absolutely clear: telling the truth to the IRS is not optional.”

The conspiracy and filing false tax returns each carry a maximum penalty of three years in prison and a $250,000 fine. The count charging ‘The Situation’ for failing to file a tax return carries a maximum potential penalty of one year in prison and a $100,000 fine. Regardless of your occupation or status in life, if you attempt to cheat on your taxes for personal financial gain- you face real consequences, criminal prosecution and even jail time.

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://celebrity.yahoo.com/blogs/celeb-news/mike–the-situation–sorrentino-indicted-for-tax-crimes-181532715.html

http://www.people.com/article/mike-the-situation-sorrentino-tax-evasion

Bankruptcy Law, Credit, Timothy Kingcade Posts

FICO’s New Credit Score and What it Means for Home Buyers

Following the 2008 housing crash, your credit score now plays a major role in the home buying process. Having a low credit score can result in borrowers having a higher mortgage interest rate and sometimes not qualifying for a loan at all.

FICO’s new credit score model is expected to change all that. The upgrade, called FICO 9 is likely to result in a seismic shift in credit reporting, helping those who have had less than perfect credit.

FICO 9 will be released this fall and will be less sensitive to medical collections information reported to credit bureaus. According to FICO, the median FICO score for consumers who only have medical collections on their credit report will increase by 25 points with the changes.

The new model also drops collection agency accounts that are paid off either in full or via a settlement. In addition, under FICO 9 people will be able to get a credit score even if they lack credit history.  Credit bureaus will instead be able to pull their phone bill or cable bill. This will tell lenders if the applicant is at risk of defaulting or if they have a good track record of paying their bills on time.

Mortgage experts do not anticipate FICO 9 having a dramatic increase in new home sales, but they do say, “It will help a set group of people secure a loan or get better terms.”

Under the current FICO score, a settled collection account can drop a score down low enough to not qualify for a mortgage. Under FICO 9, borrowers who could not pay their debt in the past but are now back on track, will not be penalized for past credit mistakes.

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.foxbusiness.com/personal-finance/2014/09/10/what-fico-new-credit-score-formula-means-for-home-buyers/

Bankruptcy Law, Foreclosures

Is it better to file bankruptcy BEFORE or AFTER foreclosure?

If you plan to file bankruptcy and are also facing foreclosure, the timing of your bankruptcy can make all the difference- depending on whether you want to keep your home. When you file for bankruptcy, an automatic stay immediately goes into effect. This freezes all collection activities against you, including any collection attempts from your mortgage lender. Once the automatic stay goes into effect, creditors cannot take money from you or pursue any lawsuits against you. Even collection phone calls and letters violate the automatic stay.

If you file for bankruptcy before your home is sold at foreclosure, the automatic stay will prevent the foreclosure from moving forward. This will also allow you to stay in your home longer and add to the time it takes the lender to sell your home.

If you do not want to keep your home and your bankruptcy is complete before the foreclosure, this can give you peace of mind.  You will not need to worry about any lingering deficiency balance once the foreclosure goes through. Bankruptcy will eliminate this. Even if you try and negotiate a loan modification with the bank and do not succeed, you can still walk away without owing anything.

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.thebankruptcysite.org/resources/is-it-better-file-bankruptcy-before-or-after-my-home-fore

Bankruptcy Law, Credit, Timothy Kingcade Posts

New FICO Model Could Boost Credit Scores for Millions

FICO, the company responsible for the most widely used credit score in the U.S. announced this month that its newest scoring model will differ drastically from past versions. Known as FICO 9, the new model will take effect in fall 2014. FICO 9 will differ from FICO 8 in two major ways:

1.) It will differential between medical and non-medical bills that have been turned over to collections. Medical bills will no longer carry as much weight in consumers’ credit scores. Currently, FICO 8 makes no distinction between unpaid medical and non-medical bills.

2.) It will disregard accounts in collections that consumers have already paid. Currently, FICO 8 makes no distinction between paid and unpaid accounts in collections.

Treating medical debt differently comes as a welcome change to consumers. In a May 2014 report, the Consumer Financial Protection Bureau (CFPB) said millions of Americans’ credit scores are being “overly penalized” by medical debts in collections.

So how do you know if your credit score will improve because of the new model? Basically, if your credit score is low as a result of unpaid medical bills or bills that went into collections that you later paid, you are likely to get a significant boost from FICO 9 when it takes effect.

Remember, you have the power to boost your credit score by following these “money smart” moves:
• Pay your bills on time.
• Keep your balance on credit cards below 30% of your total credit limit at ALL times.
• Using credit as early in your adult life as possible.
• Keeping a good mix of credit accounts on your credit report.
• Applying only for credit that you actually need.

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.

Related Resources:
http://www.nerdwallet.com/blog/health/2014/08/08/new-fico-score-boost-credit-medical-bills-focus/

Bankruptcy Law, Credit, Timothy Kingcade Posts

Five Store Credit Cards to Avoid

According to a survey of 61 major retail credit cards by CreditCards.com, retail credit cards are becoming debt traps for consumers. Many of these cards have an average APR of 23.23%, compared with 15.03% for other credit cards. This means a consumer who spends $1,000 on a retail card, and made only the minimum payments, would spend more than six years repaying that balance and end up paying a total of $1,840 for the $1,000 item. That is equivalent to an 84% markup!

Retail credit cards sometimes have benefits that may be worth it to consumers who frequently shop at the store and pay the balance off in full every month. Many of these cards come with perks like store discounts, special sales and rewards for cardholders. But miss one payment one month and you run into trouble on most of these credit cards.

Below are the retail credit cards to steer clear of, according to the CreditCards.com survey:

1. Zales has up to a 28.99% APR.
2. Office Depot Personal Credit Card has a 27.99% APR.
3. Staples Personal Account has a 27.99% APR.
4. My Best Buy has up to 25.24% and 27.99% APR, depending on your credit score.
5. My Best Buy Preferred has a 25.24% and 27.99% APR, depending on your credit score.

Bottom line: Retail credit cards are a bad idea for anyone who does not pay their balance off in full every month, because the interest rates are so exorbitant.

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.

Related Resources:
http://finance.yahoo.com/news/don-t-credit-cards-5-134815527.html

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Former Bank of America Mortgage Employee Facing Prison Time for Taking Bribes

A former Bank of America mortgage employee has been sentenced to 30 months in prison for pocketing $1.2 million in payoffs to approve the sale of distressed properties for far less than their actual value.

Kevin Lauricella, 29, who has been cooperating with investigators, pled guilty to accepting bribes and falsifying bank records. He was sentenced by U.S. District Judge Otis D. Wright II in Los Angeles this week and was ordered to repay Bank of America $5.7 million in losses and to forfeit a Thousand Oaks home acquired through payouts from the criminal scheme.

Lauricella worked for a Bank of America division that handled delinquent home loans in 2010 and early 2011. During this time, lenders were overwhelmed by defaults on underwater mortgages, creating opportunities for insiders to exploit flaws in bank systems.

The crimes involved short sales. Lauricella collected bribes from so-called “flippers” who bought homes with the intent of quickly reselling them, Katzenstein admitted. He then issued approvals for short sales that were beyond his authority to approve, with sales prices far below the fair market value.

Lauricella made false entries in Bank of America’s computer system to make it appear that higher-ups had approved the short sales, Katzenstein said. When he pleaded guilty, Lauricella admitted approving fraudulent short sales for at least nine properties.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

http://www.latimes.com/la-fi-mortgage-bribe-sentencing-20140721-story.html

Bankruptcy Law, Credit, Timothy Kingcade Posts

Credit Repair Company GUILTY of Deceiving Consumers and Lying to Credit Bureaus

RMCN Credit Services, Inc., one of the nation’s largest credit repair companies, has been ordered to pay $2.35 million in civil penalties after it violated federal law by deceiving consumers and lying to credit bureaus. The company reportedly would charge consumers up-front fees- as much as $2,000 before rendering services. The court order bars the defendants, Doug and Julie Parker, the owners of the company, from similar conduct in the future. The company is also required to submit reports to the Federal Trade Commission (FTC) for a decade to ensure that it is incompliance with the terms of the order.

According to the FTC, the company “continued to send deceptive dispute letters to credit bureaus even after the company received detailed billing histories or signed contracts from creditors proving the credit reports were accurate. RMCN also falsely told consumers that federal law allowed it to dispute accurate credit report information and credit bureaus must either prove it or remove it.”

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.

Related Resources:
http://bizbeatblog.dallasnews.com/2014/06/credit-repair-company-settles-with-feds.html/