Miami Bankruptcy Archives - Page 12 of 15 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Credit, Debt Relief, Timothy Kingcade Posts

Read THIS before Using a Store Credit Card to Shop this Holiday Season

Posted on November 10, 2016by Admin

If you are planning to finance a portion of your holiday purchases, you may be enticed to open a store credit card. With the attractive-sounding 0% interest rates, competitive rewards programs, even a discount on your first purchase, the offer sounds too good to be true, right?

That’s because it is. Here are some important facts consumers need to know about store credit cards.

The Truth about “No Interest” Financing:

There are two kinds of no interest financing. When you sign up for a bank credit card with a 0% introductory APR, you are not charged any interest on your purchases until that time runs out. However, store credit cards typically use what’s called “deferred interest” financing. This means that during the introductory no-interest period, interest on your purchases is accumulating, but will not be charged as long as you pay the balance in full.

Here’s an example: Let’s say that you finance a $3,000 jewelry purchase using 24-month deferred interest financing, but the store’s credit card has a 27.99% standard APR. The account has minimum monthly payments of $100, so by only paying the minimum, you would have a remaining balance of $600 once the 24-month interest-free period runs out. However, you would also have approximately $1,000 in deferred interest charges added to your 25th bill because you failed to pay off the entire balance in time. Deferred interest can also be added to your bill if you make a late payment one month.

The Interest will Cost You:

When signing up for a store credit card, make sure and read the cardholder’s agreement, specifically the section that tells you the card’s interest rate. According to a recent report, the average regular APR of a store card is 26.72%, more than 11 percentage points above the overall national credit card average APR of 15.07%. You can expect store cards to have interest rates that are significantly higher than those of general-use credit cards.

A Hard Credit Inquiry Can Affect your Credit Score:

When you agree to apply at the checkout counter, your credit report will be hit with a credit inquiry. Although one inquiry is usually not a big deal, it is not something you want to do if you are thinking of purchasing a home or new car anytime soon. According to FICO, one credit inquiry can have little to no impact on some consumers’ credit scores. For others, it can take five points off your score. When applying for a mortgage, five points could put you into the next interest rate range, costing you thousands over the life of your mortgage.

Rewards are Limited:

Store credit cards usually offer excellent rewards on in-store purchases. However, these credit cards usually offer no rewards for spending out of store.

Bottom line: Beware of the higher-than-average interest rates on these store credit cards, and the consequences of carrying a balance past the end of the deferred-interest period.

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://www.fool.com/credit-cards/2016/11/06/read-this-before-using-a-store-credit-card-for-you.aspx

http://www.forbes.com/sites/nickclements/2015/11/29/store-credit-cards-can-be-dangerous/#6c1763596377

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What to do When Debt Collectors Call

Posted on August 12, 2016by Admin

According to the Consumer Financial Protection Bureau (CFPB), collectors have reached out to one-third of all consumers over the past year in an attempt to recover a debt. Although there are many laws in place to protect consumers, the CFPB reported that approximately 25 percent of all grievances the agency has received are complaints about debt collection practices. The CFPB recently proposed new rules to better protect consumers against illegal or unethical debt collection practices.

The CFPB recommends these four measures you need to take when debt collectors call:

Know your rights. Familiarize yourself with the Fair Debt Collection Practices Act (FDCPA), this will help you better understand your rights as a consumers and how you are protected by the CFPB. When a debt collector contacts you, make sure you tell them you are aware of your rights under the FDCPA.
Verify everything. Under the FDCPA, debt collectors are legally require to follow up their call with a written notice detailing your debt. Make sure you ask for that information while you have them on the phone. You also need to verify the debt and the collector. Sometimes debt collectors try to collect “zombie debt” that is past the statute of limitations in your state.
Take detailed notes. Write down every time the collector makes contact with you. In your notes include: the agency’s name, the number they called from or the email address used, the time of the call and the name of the representative you spoke with. Also write down any threats that are made or unethical tactics the collector used to get you to pay the debt.
Complain to the CFPB. If you know your rights and you are aware that a debt collector has violated the FDCPA to try to collect debts, report the encounters to the CFPB.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

New Mortgage Rules Aim to Stop Wrongful Foreclosures

Posted on August 10, 2016by Admin

Last week the Consumer Financial Protection Bureau (CFPB) approved new rules that will help prevent borrowers from being improperly foreclosed on by their mortgage lenders. The recently approved rules build on the current regulations that were created in the aftermath of the housing bust. The original rules required mortgage lenders to grant certain foreclosure protections to a struggling borrower once over the life of the loan. The new rules will require mortgage lenders to provide protections more than once, offering them to borrowers who make current payments after they have worked out an agreement to avoid foreclosure.

“This change will be particularly helpful for borrowers who obtain a permanent loan modification and later suffer an unrelated hardship – such as the loss of a job or the death of a family member – that could otherwise cause them to face foreclosure,” the CFPB said in a statement outlining the new rules.

In addition, the rules expand surviving family members’ protections and require mortgage lenders to give borrowers who have filed bankruptcy information about possible options. The rules also prohibit servicers from taking legal steps once borrowers have completed loss mitigation applications.

The rules come after a June report from the CFPB revealed that some servicers were giving homeowners wrong or outdated information or no information at all.

Click here for more on this story.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips to Quickly Pay Off Credit Card Debt

Posted on July 26, 2016by Admin

In 2015, the average American had approximately $15,762 in consumer credit card debt and the United States as a whole had more than $733 billion. Credit card debt was the fourth largest type of debt in the country, following student loans, auto loans and mortgages. However, most consumers retain this debt for many years and end up racking up thousands of dollars in interest. This typically occurs because consumers prioritize other payments such as mortgage payments, student loan payments, hospital bills and car payments, and therefore only make the minimum credit card payments each month.

Below are some tips to help you quickly pay off $10,000 in credit card debt.

• Find out your total balance. The first thing you need to do is find out your total amount of debt, totaling all of your consumer credit cards.

• Stop the interest. The next thing you need to do is look for a card that is offering a long lasting “0% intro APR balance transfer” promotion. Next, transfer your balance to this card. If you have more than one card with a balance, try to consolidate all of your credit card balances to the same card offering 0% interest. In many cases, interest accounts for as much as 75% of your monthly payment! According to NerdWallet, the average household pays $6,658 in interest per year in various debts.

• Power through the balance. After you have transferred your balance, it is important to take advantage of the interest-free period of your new card. Continue to make the same payments you made before and your balance will start shrinking much faster.

Related Resources:

https://www.lendingtree.com/info/powerful-2-step-method-pay-off-credit-cards?esourceid=6164156&cchannel=bd&csource=cnn-money&siteid=CC-pay-off-10k-hp

https://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/

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

Government Program Set to Forgive up to $131,000 in Student Loan Debt for Thousands of Doctors

Posted on July 22, 2016by Admin

A program called Public Service Loan Forgiveness was initiated to help teachers, public defenders and other modestly paid public service workers alleviate their financial stresses by forgiving a large portion of their student loans. However, the Journal of General Internal Medicine released an article stating that physicians who work for non-profit hospitals or hospitals owned by the government have been enrolling in the program and meet the qualifications to have their loans forgiven. On average, medical school students accrue up to $162,000 in student loans, according to the New America Foundation.

Congress enacted the program in 2007 to boost the economy and to entice college graduates to accept low-paid government and non-profit jobs. The Loan Forgiveness program technically applies to anyone who works for a nonprofit organization, regardless of his or her income. The way it works is that college graduates must make 120 monthly payments toward their student loans and their payments are capped at 10% of the discretionary income of the borrower. Once the payments are made, the remaining student loan debt is forgiven.

Physicians typically earn between $50,000 and $60,000 in the first few years after school. Once they complete anywhere from three to eight years of training, or “residency,” their annual income skyrockets to an average of $180,000. The government and non-profit organizations own three quarters of the hospitals in America, which means the vast majority of the high paid physicians are eligible for student loan forgiveness. Research shows that on average, each physician who applies for forgiveness will be relieved of approximately $131,000 of 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 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.

Debt Relief, Foreclosures

Florida can’t shake its High Foreclosure Ranking

Posted on May 10, 2016by Admin

Even though the numbers are shrinking, Florida can’t seem to shake its spot at the top of the nation for foreclosures. The state accounts for approximately 15 percent of all foreclosures nationwide. Mortgage lenders closed on 71,644 foreclosures in Florida during the 12-month period that ended in February, according to CoreLogic. That total was down by more than 41,000 foreclosures, or 37 percent, from 2015.

Florida’s foreclosure inventory (i.e. – mortgaged homes in some stage of the foreclosure process) was 2.2 percent in February, the fourth-highest in the nation. While that number is down from 3.4 percent over the year, it remains double the U.S. rate of 1.1 percent.

Nationwide, completed foreclosures have dropped by 10 percent and the foreclosure inventory has fallen by 24 percent. Statewide, 5.1 percent of all mortgages are considered seriously delinquent — at least 90 days past due — the third-highest level in the nation.

Click here to read more on this story.

Foreclosures, Timothy Kingcade Posts

Why more widowed homeowners are struggling to prevent foreclosure

Posted on May 5, 2016by Admin

Consumer advocates say more widows and widowers nationwide are having trouble saving their homes from foreclosure. Even though servicers will generally accept loan payments, surviving spouses who are not on the mortgage face increasing resistance when seeking loan modifications, once they have fallen behind on the mortgage payments. This is often due to the loss of their spouse’s income.

Many are being told there is nothing they can do to prevent foreclosure. Consumer advocates believe the problem dates back to practices done nearly a decade ago during the housing bubble. These include a rise in “risky” first and second mortgages, many that were taken out by older Americans who previously avoided taking on new debt- and securitization of loans, which has increasingly put servicers in control of the foreclosure process. Sometimes these servicers flat-out refuse to deal with the surviving spouse. Other times they give inaccurate information or require unnecessary documentation to prove ownership of the house, stalling a modification while the foreclosure moves forward.

Another roadblock for widowers- companies simply will not allow a modification until the surviving spouse assumes the loan, which cannot happen until the owner is current on the mortgage. This growing problem has caught the attention of federal regulators and state lawmakers. Rules are now being proposed to boost protections for surviving spouses. The Consumer Financial Protection Bureau is preparing regulations this summer that will assist surviving spouses and other so-called successors-in-interest.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief

Consumer Financial Protection Bureau Takes Action against Debt Collection Agencies Auto-Suing Borrowers

Posted on May 4, 2016by Admin

The Consumer Financial Protection Bureau (CFPB) has ordered two debt collection firms to stop an illegal collection operation that used automated lawsuit generator. The law firm- Pressler & Pressler, LLP and debt buyer- New Century Financial Services, Inc. have been harassing consumers with lawsuits often based on “flimsy or nonexistent evidence.”

“For years, Pressler & Pressler churned out one lawsuit after another to collect debts for New Century that were not verified and might not exist,” said CFPB Director Richard Cordray in a press release. “Debt collectors that file lawsuits with no regard for their validity break the law and violate the public trust. We will continue to take action to protect borrowers from abuse.”

The lawsuits were allegedly manufactured by an automated system unsupervised by a lawyer, but rather untrained support staff, which spent less than 30 seconds on some cases to verify the claims of each lawsuit.

The CFPB found that the lawsuits violated the Dodd-Frank Act on three counts: making false or empty allegations about consumer debts, filing suits with bad information, and harassment with “unsubstantiated court filings.” The civil penalties include $2.5 million to $1 million for the law firm and $1.5 million for the debt buyer.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, 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, Student Loans, Timothy Kingcade Posts

Vermont House Asks Congress to Allow Students to Discharge Student Loan Debt in Bankruptcy

Posted on May 3, 2016by Admin

With national student loan debt increasing to more than $1 trillion and Vermont’s graduates stuck with the highest debt-to-earnings ratio, state lawmakers are urging Congress to let students file for bankruptcy to discharge their student loan debt.

This week, members of the Vermont House gave preliminary approval to J.R.H. 27, a resolution that calls for “federal action to alleviate the national student loan debt crisis.” Federal bankruptcy code prohibits student loan debt from being discharged in bankruptcy, except in cases of “undue hardship.”

“The General Assembly requests Congress to amend the federal bankruptcy code to eliminate the prohibition on relief from federal or private student loan debt through the federal bankruptcy system,” the resolution states.

J.R.H. 27 illustrates the scope of the problem. Student loan debt tripled between 2005 and 2015, increasing to $1.19 trillion, according to the Federal Reserve Bank of New York’s Consumer Credit Panel. Nationwide, almost 7 million student loan borrowers, or 17 percent, are in default as of summer 2015. This is up 400,000 defaults, or 6 percent, compared to 2014.

Click here to read more on this story.

Foreclosures, Timothy Kingcade Posts

First Quarter Housing Market Trends

Posted on May 2, 2016by Admin

The housing market has continued to make improvement in the first quarter of the year. Home prices have increased, helping homeowners accumulate equity. Based on the first quarter trends of 6% home price gain, another $1.3 trillion in housing equity could be added to homeowners’ wealth this year. It has been a positive quarter for the housing sector, particularly for homeowners.

The spending growth for home improvement, including new home construction, rising brokerage commission income, more use of moving trucks and lawn care, and even increased consumer spending for many things arising from homeowner housing wealth accumulation are helping keep the economy afloat.

Another good sign- mortgage default rates are on the decline. The number of people late on their mortgage payment by only a month was 2.35% in the latest quarter, the lowest in at least 40 years when this data was first collected. In addition, the share of homes with new foreclosure proceedings fell to 0.36% of homes with mortgages – the lowest in over a decade.

The sense of stress is among renters. Rents have been outpacing income growth for the past four years. The strict credit requirements are holding many renters back from converting into homeowners. Another factor holding first-time home buyers back is student loan debt. That is a big reason why the homeownership rate remains at a near 50-year low, at 63.6% in the first quarter.

Among those under the age of 35, the ownership rate fell even more and was 34.2% in the latest quarter. Renter households in the meantime have been increasing upwards by an additional 9 million in the past decade while homeowner households have been reduced by a million.

The trend of more renters and fewer homeowners is occurring at a time of rising home values and housing equity gains. Many interpret it as a loss of The American Dream and attribute it to the rising wealth inequality.

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