Timothy Kingcade Archives - Page 20 of 53

New Survey Finds Medical Debt is the No. 1 Reason Collection Agencies Contact Consumers

Posted on February 3, 2017by Admin

Medical debt is the most common reason consumers receive calls from debt collectors, according to a first of its kind nationwide survey.

“The study by the federal Consumer Financial Protection Bureau found that 59 percent of people who reported they had been contacted by a debt collector said it was for medical services,” NPR reported. “Telecommunications bills were the second most common type of overdue bill for which debt collectors pursued payment, at 37 percent, and utilities were third, reported by 28 percent.”

The study, which examined consumer experiences with debt collectors, included more than 2,000 people and was performed between December 2014 and March 2015. The survey also found that more than one in four consumers felt threatened when a debt collector contacted them.

The study’s authors said medical debt is unique compared to other types of debt collection examined in the survey, as it was widespread across various demographic and credit-score groups.

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://lancasteronline.com/news/local/medical-bills-are-the-most-common-reason-for-debt-collector/article_384da034-e33e-11e6-a5e0-17c0fcdce41b.html

http://www.beckershospitalreview.com/finance/medical-debt-is-no-1-reason-collection-agencies-contact-consumers.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How to Tackle Long Term Credit Card Debt

Posted on February 2, 2017by Admin

It takes 13 years to pay off a $5,000 credit card bill, if you only pay the minimum each month. Florida is in the top 5 states with the highest credit card burden, according to a recent study from CreditCards.com. The study also sheds light on the effects high credit card debt has on U.S. household finances.

By allocating at least 15% of gross monthly income toward credit card debt, the typical Florida consumer’s payoff time drops to just 18 months and costs $678 in interest, in the above scenario.

Here are some other proven ways to help tackle long-term credit card debt.

Be careful how you spend that bonus check. Seasonal commissions and bonus checks can provide an added sense of confidence when it comes to spending. Not a good thing, if you are struggling to pay down credit card debt. Break this extra income up into three parts: debt reduction, major purchase and savings. Remember: paying off a large portion of credit card debt can save you thousands in interest.

Consolidate. If you have multiple unsecured loans that you would like to have lumped into one payment, debt consolidation may benefit you. This option gives you the opportunity to save hundreds of dollars with a lower interest rate and you can combine all of your payments into a single monthly payment.

Cut your budget. One of the best ways to pay down your debt is to find savings elsewhere. Cut down on your grocery bill, cancel monthly membership fees you may not be using as much as you thought you would, etc.

Define your goals. Do you want to reduce your debt or be completely debt-free? Set timelines for yourself and how much you need to pay to meet those goals each month.

Prioritize. Focus on paying off the highest-interest debt, first. This is your biggest financial drain. Another idea is the “snowball method,” which essentially means paying off the debt with the smallest balance first, continuing to the debt with the next lowest balance, etc. This strategy allows you to see immediate results in paying down debt, and builds confidence and momentum to keep you on track to pay down the rest of the debt.

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

Related Resources:

https://www.thestreet.com/story/13937063/1/how-to-tackle-the-high-costs-of-long-term-credit-card-debt.html

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Foreclosure Prevention Unknown After HAMP Expires

Posted on February 1, 2017by Admin

At the end of last month HAMP (The Home Affordable Modification Program) expired and Republican-led Washington has no intention of replacing it. So now it will be up to the private sector to address the lingering issues brought on by the financial crisis.

Banks and mortgage lenders say they are ready to step in with their own foreclosure-prevention programs, modeled on what they learned from the Obama administration’s effort. However, housing advocates are skeptical, as HAMP had its shortcomings. The program fell far short of the administration’s goals.

Specifically, banks and servicers routinely ignored the rules, consistently rejected eligible homeowners, processed applications at a snail’s pace and foreclosed on homeowners even when they made their modified payments on time, according to a series of audit reports for the Troubled Asset Relief Program.

Approximately 70 percent of those who applied for the loan modifications were turned down. Nearly 14 million homes went into foreclosure, according to ATTOM Data Solutions, which tracks foreclosure filings.

Even though the housing market has stabilized, the rate of delinquencies is at its lowest point since 2007, and home prices have risen in many places, there will always be homeowners and families in trouble because of job loss, illness and other unforeseen setbacks.

Click here to read 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, Debt Relief, Timothy Kingcade Posts

Important Tax Deductions You Probably Don’t Know About

Posted on January 31, 2017by Admin

It’s that time of year, again. With tax season officially upon us, do not miss out on some of these money-saving deductions. The most recent numbers show that more than 45 million of us itemized deductions on our 1040s—claiming $1.2 trillion dollars’ worth of tax deductions.

Most taxpayers know about mortgage expense, student loans, medical expenses, and investment expense deductions, but itemized deductions do not stop there.

Here are some of the most overlooked tax deductions:

Subscriptions. You can deduct the cost of subscriptions when it comes to professional (as long as it is related to your job in some way) or investment-type publications. This covers newspapers, magazines, newsletters, journals and do not forget your online subscriptions. Keep in mind, this deduction is subject to the 2% floor, which means that you subtract 2% of your adjusted gross income (AGI) for the year from your deduction (and all other itemized deductions with the same floor). The remainder is the amount you can claim for those deductions.
IRA Custodial Fees. You can deduct the administrative fees you pay for your IRA if these fees are billed as a separate transaction. This deduction applies to traditional and Roth IRA’s and is subject to the 2% AGI floor.
Job Search Expenses. If you looked for a new job last year, you can deduct your expenses related to job hunting (whether or not you actually got the job). This can include things like employment agency fees, preparing and sending out resumes, transportation expenses, even long-distance travel if your primary purpose in traveling was to look for a job.
Tax Expenses. You can deduct certain taxes you have paid from your taxable income. First, you can deduct any state and local taxes you pay, including real estate taxes and other property taxes, on your federal tax return. **Note that you can deduct state income taxes or state sales taxes, but not both.** You are allowed to deduct the full amount here, this is not subject to the 2% AGI floor limitation. Foreign income taxes and real estate taxes are also fully deductible. You can deduct any fees you pay to have your tax return professionally prepared. If you prepare your own taxes, you can deduct the cost of the software you use and any tax publications you purchased to help determine your return. These deductions are subject to the 2% AGI floor, and you can only deduct the expenses related to the return’s tax year. For example, in 2017 you would deduct tax preparation fees related to your 2016 tax return.

Related Resources:

http://www.foxbusiness.com/markets/2017/01/30/4-types-tax-deductions-probably-dont-know-about.html

https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Deductions-and-Credits/The-10-Most-Overlooked-Tax-Deductions/INF12062.html

Foreclosures, Timothy Kingcade Posts

Trump’s Treasury Pick Accused of Foreclosure Heartbreak Stories

Posted on January 27, 2017by Admin

After President Trump announced his Treasury Secretary nominee, Steven Mnuchin, a wave of California homeowners came forward with allegations that OneWest Bank actively steered them away from making timely mortgage payments to qualify for federal loan assistance that never came. Borrowers claim the fraudulent activity occurred under the leadership of Mnuchin.

The accusations center around the government program called the Home Affordable Modification Program (HAMP), which was launched at during the 2009 financial crisis. Under the program, eligible borrowers could receive new, lower payments and the banks that took part would also receive government incentive payments.

“They (OneWest) hired people who didn’t know what they were doing and some bad information was being given out,” a source who was familiar with OneWest’s foreclosure procedures at the time told CNN.

CNN spoke to seven OneWest borrowers who all had similar stories about being advised to purposely miss payments in order to qualify for the HAMP program.

Mnuchin testified at his confirmation hearing where he defended his time as a bank executive and his work in the private sector. However, the Democrats were not buying it, dubbing him the “Foreclosure King.”

Related Resources:

http://thehill.com/policy/finance/315143-mnuchin-emerges-from-confirmation-hearing-intact

http://money.cnn.com/2017/01/19/news/mnuchin-onewest-foreclosure/

Foreclosures, Timothy Kingcade Posts

Florida House Bill Would Expand Lienholders’ Rights in Foreclosure Cases

Posted on January 25, 2017by Admin

A bill filed this week in the Florida House, would expand the rights of lienholders in foreclosure actions. Florida H.B. 471, proposed by State Senator Jay Fant, “Authorizes certain lienholders to use certain documents as admission in action to foreclose mortgage; provides that submission of certain documents in foreclosure action creates certain presumptions; authorizes lienholder to make request for judicial notice,” according to the language of the bill.

The bill authorizes a lienholder to use any documents from the mortgagee’s bankruptcy case that indicates an intention by the defendant to surrender the property. If the defendant does not withdraw the document in question, that document submitted along with a bankruptcy discharge, “creates a rebuttable presumption that the defendant has: 1. Surrendered to the lienholder the defendant’s interest in the mortgaged property; and 2. Waived any defenses to the foreclosure.”

The defendant’s legal remedy in such a case includes: “raising a defense based upon the lienholder’s conduct subsequent to the filing of the document filed in the bankruptcy case that evidenced the defendant’s intention to surrender the mortgaged property to the lienholder.”

The bill was filed with the Florida House on January 24, and would go into effect on July 1, 2017, if it passes.

Related Resources:

http://floridapolitics.com/archives/230882-florida-house-bill-expand-bank-rights-foreclosure-cases
http://www.dsnews.com/daily-dose/01-24-2017/florida-bill-expand-lienholders-rights https://www.flsenate.gov/Session/Bill/2017/0471/BillText/Filed/PDF

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Quicken Loans Fast Becoming the New Mortgage Lending Machine

Posted on January 23, 2017by Admin

In the years since the housing market crash, many of the nation’s largest banks have strengthened their underwriting processes and become more conservative with their mortgage-lending activities. However, Quicken Loans has pushed forward, becoming the second-largest retail mortgage lender originating $96 billion in mortgages last year — an eight-fold increase from 2008.

In a federal false-claims lawsuit filed in 2015, the Department of Justice accused Quicken Loans of misrepresenting borrowers’ incomes and credit scores, in order to qualify for Federal Housing Administration insurance. As a result, when those loans defaulted, the government says the taxpayers — not Quicken loans — suffered millions of dollars in losses.

In the years since the financial crisis, Quicken has emerged as a leader in the nation’s “shadow-banking system,” a network of non-bank financial institutions that has gained significant ground against its more regulated bank counterparts in providing mortgage loans.

The increase in regulation and decreased profits forced the nation’s banks out. Non-banks, like Quicken, quickly filled the gap.

Former executives have described Quicken Loans as a technology company that sells mortgages. The 3,500 mortgage bankers who work the phones are the life-blood of the company. Many new employees come in with little to no background in financial services. According to an inside source, one employee joined after delivering pizzas to the Quicken Loans office and becoming interested in working there.

Critics say these shadow banks, by focusing on the riskier end of the mortgage market, may be reviving the same circumstances that resulted in so many defaults and foreclosures.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Debt Collection Dispute Headed to the Supreme Court

Posted on January 18, 2017by Admin

The U.S. Supreme Court will decide whether firms collecting on a debt they bought for pennies on the dollar can be held liable in lawsuits brought by consumers. The justices agreed to review a lower court’s decision to dismiss a consumer class action lawsuit against Santander Consumer USA Holdings Inc. over allegations it violated the Fair Debt Collection Practices Act– a debt collection law enacted in 1977 that prohibits collectors from using abusive, unfair or deceptive practices to collect a debt.

The current case hinges on the definition of “creditor” and “debt collector” and whether a company that purchases debt should be treated as a creditor and therefore not subject to the law.

The case (Ricky Henson et al v. Santander Consumer USA, Inc et al, in the Supreme Court of the United States, No. 16-349) involves four Maryland residents who defaulted on their auto loans, and filed a proposed class action lawsuit against Santander in 2012 in federal court alleging violations of the Fair Debt Collection Practices Act, such as misrepresenting the debt amount and bypassing debtors’ attorneys.

The debts had been sold to Santander, a Dallas-based vehicle-financing and lending company owned in part by a subsidiary of Banco Santander. Santander then tried to collect on the loans.

The 4th U.S. Circuit Court of Appeals in Richmond, Virginia threw out the lawsuit last March, saying the law applied only to debt collectors, and Santander became a creditor when it purchased the loans.

The Maryland residents told the Supreme Court the 4th Circuit’s reasoning would “hamper both government and private efforts to combat abusive debt-collection practices.” The appeal to the Supreme Court comes as the Consumer Financial Protection Bureau is considering proposals to toughen regulation of the industry.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

When Debt Collectors Call Know your Rights

Posted on January 17, 2017by Admin

When a debt collector calls, it’s important to know your rights. In July, the Consumer Financial Protection Bureau required debt collectors to do their “due diligence” to help ensure they are collecting on legitimate debt and put a cap on their weekly attempts to reach a consumer. The bureau also increased enforcement, bringing more than 25 cases on debt-collection tactics that deceive or abuse consumers.

The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers against unfair collection practices, including:

Calling you repeatedly to annoy or harass you;
Trying to collect more than you owe;
Failing to send a written notice of the debt;
Threatening violence, using profanity or offensive language;
Threatening dire consequences (i.e. – lawsuits, criminal prosecution, wage garnishment, jail time, permanently ruining your credit);
Calling you before 8 a.m. or after 9 p.m.;
Revealing debt to third parties (i.e. – family, neighbors, friends, co-workers, etc.);
Contacting you at your work, after you have requested them to stop;
Failing to verify disputed debts;
Ignoring cease communication requests.

It is important that consumers verify everything when it comes to a debt they may (or may not) owe. In a recent CFPB survey, half of Americans contacted about a debt in the past year said they were given inaccurate information about what they owed. Debt collectors are legally required to follow up their phone call with a written notice detailing the debt.

Understand that just because someone is calling to collect a debt, does not mean you should pay it right away. It is always important to verify. The collection attempt could be for a so-called zombie debt that is past the statute of limitation or a debt collection scam.

If you do in fact owe the debt, make sure and take notes. Write down every name and employee number you speak with, including the agency, the number they called, the time of the call, etc. Take notes on what was said. This detailed record keeping can prove helpful if you need to file a complaint about the debt collector’s behavior in the future.

Related Resources:

http://www.cnbc.com/2017/01/12/know-your-rights-when-a-debt-collector-calls.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

More Consumers Report Debt Collectors are Denying Requests for them to STOP Calling

Posted on January 16, 2017by Admin

A shocking three out of four consumers reported that debt collectors ignored their requests to stop calling, according to a recent survey by the Consumer Financial Protection Bureau. The survey also revealed that consumers felt threatened by debt collectors, were contacted late at night and early in the morning and the debt collectors oftentimes used false information- all violations of The Fair Debt Collection Practices Act.

The survey examined a sample of consumers drawn from credit-reporting records about their experiences with debt collectors. More than 1 in 4 consumers contacted by a creditor or debt collector felt threatened, 3 out of 4 consumers who asked collectors to stop contacting them said they refused to do so. More than a third said debt collectors called between 9 p.m. and 8 a.m., according to the survey.

In addition, more than half reported a mistake in the debt, such as an incorrect amount, a debt not owed or a debt owed by a family member. The frequency of calls was also excessive- 17% said they received eight or more calls in a single week.

Consumers are protected from these predatory and unfair practices by The Fair Debt Collection Practices Act– but only if they exercise their rights. The law’s consumer protections include:

Communication: Consumers can tell debt collectors how and when to contact them- including telling them to stop contacting them entirely.

Harassment and abuse: Debt collectors cannot use abusive language, threaten violence or repeatedly call and harass them.

Truthfulness: Debt collectors must be honest about the amount of the debt, whether it is past the statute of limitations for lawsuits and cannot misrepresent themselves.

Debt validation: Consumers must receive a validation letter within five days of the first contact with information about the amount owed, the original creditor seeking payment and their rights on disputing the debt.

Click here to read more on this story.