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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.

Foreclosures, Timothy Kingcade Posts

Foreclosure Rate on the Decline in U.S., Florida

Posted on April 24, 2014by Admin

According to a recent report by Black Knight Financial Services, the share of loans in foreclosure is down nearly 37 percent year-over-year, dropping to rates not seen since 2008. In Florida, 12 percent of homeowners with mortgages are not current with their payments, the third largest percentage in the nation of those behind on mortgage payments.

Less than 4 million people are not current on their mortgage payments- the lowest amount since November 2007. The report said Florida has had the second biggest improvement in the past six months, with a 20 percent reduction in delinquency. These levels have not been seen since October 2007, with foreclosures at a 7.5 year low. In addition, pre-payment rates have increased from last month to eight-tenth of a percentage point- not seen since 2008.

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http://www.bizjournals.com/jacksonville/news/2014/04/23/black-knight-report-foreclosure-rate-sinking-in-u.html

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, Timothy Kingcade Posts

An Increasing Number of Borrowers Seek Student Loan Debt Forgiveness

Posted on April 23, 2014by Admin

As education costs continue to increase, so do the number of borrowers enrolling in federal student loan debt forgiveness programs. The U.S. Education Department reports a 40% increase in the just the last six months. The cost of education has increased in recent years- up 6% in 2014 alone. The Obama administration recently proposed capping debt forgiveness at $57,500 per student.

The programs—especially the one revamped by President Barack Obama in 2011, Pay As You Go—forgives federal student loans after borrowers have paid a certain percentage of their income for a certain number of years. These programs aim to make sure borrowers are not prohibited from working in public sector jobs as a result of having to make astronomical student loan debt payments or pay their loans into retirement. These programs could reportedly cost the federal government as much as $14 billion a year.

Students have argued that these programs are necessary- particularly for those who want to take lower-paying jobs in the public sector. These programs are notably one of very few ways to get out of student loan debt. Unlike consumer debt, not even declaring bankruptcy or death can remove these debts. Private student debt is even harder to eliminate; A New York Times report on Tuesday found that when a cosigner dies, many private student lenders are now demanding early repayment for their student loans.

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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, Credit, Timothy Kingcade Posts

Bankruptcy linked to GM’s faulty ignition switch recall?

Posted on April 9, 2014by Admin

Federal authorities are investigating whether GM committed bankruptcy fraud by concealing its ignition switch defect when it filed for bankruptcy back in 2009. The ignition switch problems led to the recall of 1.6 million vehicles last month.

GM is a different legal entity than the one that filed for bankruptcy in 2009. The “new” GM is not responsible under the terms of its bankruptcy exit for legal claims relating to incidents that took place before July 2009. Those claims must be brought against the “old” pre-bankruptcy GM.

The class action lawsuit said plaintiffs should be allowed to sue over the pre-bankruptcy actions “because of the active concealment by the Old GM and GM.” The lawsuit has also said that GM is responsible for reporting to the federal government any safety-related problems for cars made before its bankruptcy.

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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.

Foreclosures, Timothy Kingcade Posts

Foreclosures and Short Sales Decline in South Florida

Posted on March 31, 2014by Admin

Distressed home sales have accounted for a smaller portion of the market across South Florida in 2013. Palm Beach County posted 3,598 transactions involving a short sale or foreclosure last year, representing 23 percent of all single-family home sales, according to data from the Realtors Association of the Palm Beaches.

Distressed home sales have been slowly shrinking over the past three years. In the condominium sector, 20 percent of sales involved a troubled mortgage in 2013, compared with 24 percent in 2012. Rising home prices have turned South Florida back into a seller’s market. Short sales and foreclosures are now selling for the list price and above.

With less distress in the market, thousands of underwater homeowners are now beginning to have equity. Federal lawmakers have even allowed the Mortgage Forgiveness Debt Relief Act to expire this year, meaning the amount of debt forgiven in the short sale or primary residence is considered income and taxable.

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Foreclosures, Timothy Kingcade Posts

Big banks meet obligations of robo-signing settlement, Homeowner relief falls short

Posted on March 20, 2014by Admin

Big banks are cheering now that they have fulfilled their obligations under the National Mortgage Settlement. However, new reports reveal the $20 billion “robo signing” deal has fallen short, leaving many struggling borrowers underwhelmed.

While the U.S. Department of Housing and Urban Development said in 2012 that a million homeowners would see reduced mortgage principals or refinanced loans, data show only 630,000 homeowners across the country have seen any sort of relief.

In Florida, approximately 120,000 homeowners were offered $9.2 billion in relief, the nation’s second-highest level of assistance behind California. However, much of this money went toward short sales or second-mortgage forgiveness- relief, which did not help distressed borrowers stay in their homes.

Nearly $3.5 billion went toward eliminating second-loan debt that the lenders likely would have never collected. Banks earned another $3.5 billion in credit though short sales, by approving sales of distressed homes for less than the homeowners owed. Investors are the ones who largely benefited from banks’ focus on short sales. Approximately 11,000 of the 120,000 Florida homeowners offered settlement aid were allowed principal forgiveness.

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Bankruptcy Law, Credit, Timothy Kingcade Posts

Avoid Getting Audited this Year: 10 Tax Audit Red Flags

Posted on March 18, 2014by Admin

1.) You’re “very” charitable. Be careful not to exaggerate your good deeds. The IRS has pre-calculated a donation level for each income range, so anything that exceeds those amounts could cause the IRS to take a second look at your return. Keep in mind- you are required to keep receipts for any donations exceeding $250 and to fill out form 8283 for any non-cash donations exceeding $500. Non-cash donations are where a lot of people end up exaggerating and get into trouble. So remember, items that you are giving to Goodwill should be valued at the price someone would actually pay for them today- not the amount you purchased them for 10 years ago.

2.) You deduct your home office. The home office deduction is one of the most complicated and abused deductions in the tax code. Starting this year, you can claim $5 per square foot of workspace, up to 300 square feet. The deduction will be capped at $1,500 per year. The IRS’s definition of a home office remains the same. Your home office must be your primary place of business and used exclusively for work. So if you check your emails from the kitchen or work from home a couple times a week, this does not constitute a home office.

3.) You claim bizarre deductions. These can spark suspicion with the IRS. When in doubt, ask a tax professional before claiming these deductions.

4.) You’re a millionaire. Being rich has its benefits, but not during tax time. The more income you report, the higher the likelihood you will get audited. Be sure and keep up-to-date records of all income, donations and other transactions. The better documentation you have and the more organized you are, the less headaches you will have down the road.

5.) You claim the same child someone else does. If your ex files taxes before you do and claims your child as a dependent, the IRS is going to be very suspicious if you claim the same child as a dependent. This often happens when a couple gets divorced and one parent has primary custody, but the other still tries to claim the child as their dependent. Even if you are in the right, the IRS may force you to provide extensive documentation proving this.

6.) You have money abroad. The IRS has made it a mission to retrieve money that is illegally being stashed in overseas accounts. So even if you have money in a perfectly legal account abroad, you better report it. Failing to disclose this can result in penalties, including a fine of up to $100,000 or 50% of the account balance- whichever is greater.

7.) You claim the earned income tax credit. This refundable credit can be as much as $6,000 depending on your income and how many children you have. That’s why the IRS tries to make sure that this credit is only given to those who truly deserve it. If you claim this credit, make sure and have documentation including the Social Security numbers of all of your children and proof that they live with you (i.e. – letters from their schools or doctors that were sent to your address).

8.) You deduct gas costs. Most employers reimburse you for driving-related costs like gas and mileage. So if you are deducting hundreds or thousands of dollars of automobile costs as a business expense that is going to raise suspicion from the IRS. If you own a business, you can only deduct business-related costs. The gas you purchase for personal trips cannot be combined with that.

9.) Your “business” is really just a hobby. The general rule of thumb is that if the venture has not earned a profit in three out of the last five years, it’s usually not a legitimate business.

10.) You fail to report income. For those who earn money from a variety of different sources, it can be easy to forget an account. Some clients forget about small brokerage accounts they have and since the IRS receives information from brokerage firms directly as well, there is a good chance you will be contacted if your records do not match up with what the IRS receives. If you worked side jobs and earned more than $600 at any one of them in a year, those employers should send you a Form 1099 so you can report that income on your taxes as well.

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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, Timothy Kingcade Posts

Quiznos Files for Bankruptcy

Posted on March 17, 2014by Admin

First Sbarro now Quiznos- it’s been a tough week for fast food chains. Executives at the chain restaurant, known for its toasted sandwiches, agreed to a restructuring plan that will reduce its debt by more than $400 million.

The company has lined up $15 million from investors to help keep the business running during the bankruptcy. All but seven of Quizno’s 2,100 restaurants in the U.S. and 30 other countries are independently owned by franchises, will remain open and operating as usual.

Quiznos once had more than 5,000 stores and was a competitive player in the sub market. But now, Subway has nearly 20 times the number of stores. Quizno’s CEO, Stuart Mathis has devised a plan of action that will help increase sales for its franchise owners moving forward. This strategy will look to reduce food costs, invest in local advertising, and in some circumstances, make loans available for restaurant improvements.

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Foreclosures, Timothy Kingcade Posts

Florida still No. 1 in Foreclosure Activity

Posted on March 14, 2014by Admin

The most recent data from RealtyTrac reveals that Florida remains the No. 1 state in the nation in foreclosure activity for the month of February. This activity includes initial filings, auction notices and lender repossessions. The number has dropped 24 percent from a year earlier.

One in every 372 residences in Florida received some sort of filing during the month of February; a rate more than three times the national average. In Miami, Fort Lauderdale and Pompano Beach, foreclosure activity fell 33 percent in February compared with a year earlier and was down 27 percent from the previous month.

Nine of the 10 major U.S. metro cities with the highest rate of foreclosure were in Florida. At the top of the list was Palm Bay-Melbourne-Titusville. Tampa ranked No. 2; Jacksonville, No. 3, and Miami, No. 4-with one in every 328 residences seeing some type of foreclosure activity during the month. Port St. Lucie was No. 5.

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Foreclosures, Timothy Kingcade Posts

Wells Fargo Pays the Consequences in “Shocking” Foreclosure Case

Posted on March 10, 2014by Admin

A New Mexico judge issued a $3.2 million judgment against Wells Fargo & Co. for foreclosing on a man’s home after his death, even though he had a purchased insurance policy through the bank that would have covered the remaining balance on the mortgage. The judge called the bank’s conduct “shocking” and so reprehensible that in addition to damages, attorney’s fees and court costs; she awarded James Dollens’s estate $2.7 million in punitive damages.

Dollens had purchased an accidental death mortgage insurance policy for his Rio Rancho home that was marketed by Wells Fargo and issued by Minnesota Life. His death was reported immediately to Minnesota Life and to Wells Fargo to make a claim under the insurance policy.

However, instead of collecting funds from the insurance policy, Wells Fargo sent notices about the loan being in default and sent the loan to foreclosure. There was $125,000 owed on the mortgage.

When the bank received a $133,559 check from the insurance company in May 2011, it collected delinquent payments, late fees, and fees for lawyers and for 18 property inspections, leaving only $4,400 for Dollens’s estate ‘‘because of misapplication of the insurance proceeds,’’ the judge said.

Wells Fargo argues the family should have continued making payments regardless of the insurance policy. The judge called this case “a breach of the covenant of good faith and fair dealing- The bank’s unwillingness and failure to hold off on the foreclosure even when requested to do so by the insurance company was shocking.”

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