Miami Bankruptcy Archives - Page 12 of 14

Bankruptcy Law, Credit, Timothy Kingcade Posts

New FICO Model Could Boost Credit Scores for Millions

Posted on August 19, 2014by Admin

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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Five Store Credit Cards to Avoid

Posted on August 8, 2014by Admin

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.

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

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

Posted on July 24, 2014by Admin

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

Posted on July 8, 2014by Admin

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.”

Bankruptcy Law, Credit, Timothy Kingcade Posts

Best Credit Cards of 2014

Posted on March 4, 2014by Admin

The list is finally here! After an in-depth, independent investigation NextAdvisor.com has revealed its Best Credit Cards of 2014 list. This list can help you determine the best credit card for your financial situation and spending habits.

Best Travel & Rewards Card: Barclay Arrival World Mastercard. If you like to travel, this card is for you. This travel credit card earns 2 miles per dollar (equivalent to 2% cash back) spent on all purchases with no mileage caps or foreign transaction fees. In addition, consumers will earn 40,000 bonus miles after spending $3,000 in the first 90 days- equal to $400 worth of travel. The points are easy to redeem. Simply use the credit card to book the travel and then redeem your miles for a statement credit against the cost.

Lowest APR Card: Citi Simplicity Card. This card allows you to pay 0% interest for 18 months- the longest interest-free period for both purchases and balance transfers available. Think about using this card if you are looking to make a big purchase soon and plan on carrying the balance for a while or if you are looking to transfer a balance from another credit card. There are no late fees or penalty fees associated with this car.

Best Cash Back Card. BankAmericard Cash Rewards TM Credit Card. If you are looking for the best money-making cash back credit card, look no further. This card offers consumers 2% cash back at grocery stores and 3% on gas (for up to $1,500 in combined gas and grocery purchases each quarter) and 1% cash back on everything else. In addition, there is a $100 online cash rewards bonus after spending $500 in the first 3 months, and a 12-month 0% intro APR on purchases and balance transfers.

Best Balance Transfer Card: Slate from Chase. If you have been stuck paying high interest rates on your credit card balances this card is for you. You can transfer your balances from other credit cards free of charge and start enjoying 15-month 0% intro APR on all purchases and balance transfers. This will allow you time to pay down the balances and will save you money on interest charges in the interim.

Best Card to Help Rebuild your Credit: Capital One Secured Mastercard. If your credit rating has taken a hit recently or you are simply trying to rebuild your credit following bankruptcy, the Capital One Secured Mastercard is a smart choice. This card is available to those with poor or no credit and can help consumers rebuild their credit history, if they use the card responsibly.The Capital One Secured Mastercard requires that you provide a cash collateral deposit to help secure the account. This deposit is usually equal to the line of credit on the card, and will help pay the balance in case of default. By making timely payments each month you can help boost your credit history. This card also reports to all three major credit bureaus on a monthly basis.

Best Student Credit Card. Citi Dividend Card for College Students. This card offers 5% cash back in quarterly rotating categories, 1% cash back on everything else and no annual fee. There is a 0% intro APR for 7 months, allowing you to use the card to purchase books tuition costs and pay no interest for 7 months.

Best Business Credit Card: Chase Ink Cash Business Card. Business credit cards are a great way to fund your business and keep your personal and business expenses separate. This card is oriented more towards business spending. You will earn 5% cash back on office supplies, on mobile phones, landline, Internet and cable TV expenses. You will also earn 2% cash back on the first $25,000 spent each year at restaurants and gas stations. This card also has 0% APR for 12 months on balance transfers and purchases and no annual fee.

Click here to read more.

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.

Bankruptcy Law, Credit

Hospital Bankruptcies the Result of a Downward Trend

Posted on February 28, 2014by Admin

A recent study by the Department of Health Services Administration at the University of Alabama, reveals that it is not simply a “bad year” but a downward trend over time, decreasing volumes, reimbursement changes and deteriorating physician relationships that results in a hospital filing for bankruptcy.

While 67 percent of hospitals that filed for bankruptcy eventually closed, one-third completed a re-organization. The study examined a six-year period from 2000 to 2006, during which 42 hospitals across the nation filed for bankruptcy. Data was compiled from the American Hospital Association and trade publications to get detailed information on these organizations.

The study revealed that filing hospitals tend to be smaller and many factors were involved, including: poor financial management, changes in pay, reimbursement reductions, overzealous construction, purchasing of physician practices, decrease in volume and demographic shifts.

Many organizations often overlook the signs and wait until they are in a very poor financial condition before filing. If the hospital starts pursuing strategies to change earlier, they have a better chance at restructuring afterward. Hospitals need to look at the issue from a positive perspective. First, bankruptcy can be a good way for hospitals to get debt relief and be purchased by a system or other hospital. It also gives time to pause and think about how they will move forward in the future.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Mel Gibson’s Ex Files for Bankruptcy

Posted on February 21, 2014by Admin

Oksana Grigorieva, Mel Gibson’s ex has filed for bankruptcy over her legal debts just years after turning down a $15 million custody settlement. The legal debts are said to be in the range of $250,000. In legal documents obtained by TMZ, Oksana has just $10 in cash to her name. The musician, who is the mother to Mel’s four-year-old daughter Lucia, has $48,000 in assets and $438,000 in debts.

During her custody battle with Mel, Oksana used more than 40 lawyers. At the end of it all, Mel was ordered to pay $750,000 to Grigorieva, which he is paying in installments. According to legal documents, she is receiving $20,000 a month in child support for Lucia, while Timothy Dalton pays her $2,500 for their son Alexander.

Click here to read more on this story.

Bankruptcy Law, Credit

Is Bankruptcy Right for you? Review our 5-point Checklist

Posted on February 6, 2014by Admin

1.) You must be eligible to file. The “means test” will determine this. If you have enough money to pay your creditors, you will likely be ineligible to file Chapter 7 bankruptcy. If you make less than the median income for your state, you are fine. If your income exceeds that figure and you have enough money to pay for your necessary expenses and part of your debts, you will not be eligible to file.

2.) You do not see your financial situation improving in the near future. If your financial hardship is only temporary and you are due money with a gift, inheritance or better paying job, you may want to wait it out. However, if debt collectors are constantly calling you and you see no end in sight, it may be time to sit down with an experienced Miami bankruptcy attorney to discuss your options.

3.) Most of your debts are unsecured. Not all debts are discharged in bankruptcy. Unsecured debt- including credit cards, medical bills, collection accounts are dischargeable in bankruptcy. However, student loans, recent tax debt, legal bills and child support payments are not. Asses your liabilities. If the bulk of them are dischargeable debts, bankruptcy may be a good option.

4.) You are comfortable walking away from your financial obligations. Filing for bankruptcy is a big decision, and for many, it can be an emotional process. Take plenty of time to project how you will feel after filing. Many feel a sense of relief, and looking back, wish they had filed sooner.

5.) You will be in a better place. The big advantage to filing for bankruptcy is that it allows you to start over, wipe the slate clean and gain a fresh financial start. Immediately after you file for bankruptcy, an automatic stay is created which stops future collection attempts against you. This includes debt collector calls, wage garnishments, foreclosure proceedings, repossessions, etc. Bankruptcy can provide you time to catch up on your mortgage payments, and save your home from foreclosure. It can also lower your monthly car payments and eliminate second mortgages.

Before filing Chapter 7, it is important that you consult an experienced Miami bankruptcy attorney to determine if bankruptcy is the right option for you. 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

Three Potential Student Loan Changes to Watch for in 2014

Posted on February 3, 2014by Admin

Student loan debt and borrower default rates continue to capture headlines. Federal student loan programs and interest rates for 2014-2015 are expected to change- and not for the better. Below are three potential student loan changes borrowers should watch out for in 2014.

1.) PLUS loans: Unlike Stafford loans, approval of PLUS loans and graduate PLUS loans are subject to credit history. Borrowers that have either filed for bankruptcy, foreclosure or have loan default within the last five years are not eligible for a PLUS loan. Congress is set to tackle this issue next month. Adjustments being proposed would help reduce default rates, but could also shut out a larger portion of students and parents.

2.) Interest rates: Congress battled student loan interest rates throughout 2013, finally agreeing on market-based rates. While the agreement lowered student loan interest rates- this was only a temporary fix. Experts predict the Treasury rate will rise as high as 3.75 percent, while others have a more conservative forecast of 2.96 percent. Either way, students taking out federal loans for the upcoming year should expect to pay more.

3.) Student loan counseling. The Smarter Borrowing Act could make student loan counseling more comprehensive by requiring colleges and universities to send students annual updates on their balance, interest rates and repayment options. The bill would also require colleges with higher default rates to include financial literacy and budgeting to their student loan counseling sessions.

Click here to read more on this story.

Bankruptcy Law, Timothy Kingcade Posts

Trending Now: Consumer Spending on the Rise, Personal Incomes Remain Flat

Posted on January 31, 2014by Admin

The Commerce Department has reported that consumer spending increased 0.4 percent after rising by a revised 0.6 percent in November. Consumer spending recorded its strongest gain in three years in the fourth quarter, helping lift the economy to a 3.2 percent annual growth rate.

However, income was unchanged last month after rising 0.2 percent in November. This is a possible reflection of the end of jobless benefits for approximately 1.3 million long-term unemployed last month. Weak income growth combined with strong spending means less savings for Americans. The saving rate – the percentage of disposable income households are saving – fell to an 11-month low of 3.9 percent in December.

Both inflation measures remain stuck below the Federal Reserve’s 2 percent target. That suggests that the Federal Reserve, which is gradually reducing the amount of money it is supplying the economy, will hold interest rates near zero for a while.

Click here to read more on this story.