Tag: Timothy Kingcade

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

One Wrong Move Can Bring your ‘Zombie’ Debt Back to Life

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In the spirit of Halloween, we want to warn you about zombie debt.  As the name suggests, zombie debt is a debt that you thought was dead but has come back to life.  This could be a debt you already paid off, a debt you settled with a creditor, a debt where the statute of limitations has expired, a debt that was wiped out in bankruptcy, or a debt that was never yours to begin with.

Zombie debts are old debts.  That in itself is what makes them so dangerous to consumers, especially when debt collectors apply high-pressure tactics to have you pay up.

Another downside, these debts are oftentimes hard to verify. As debts are sold and resold, information can vanish, leading collectors to seek payment on erroneous debt.  Making even a single payment on an old debt can reset the statute of limitations, leaving you vulnerable to a lawsuit.

Debt collection is the largest source of consumer complaints to the Consumer Financial Protection Bureau, with more than 85,000 complaints filed in 2015.  The leading complaint: Consumers being harassed for debts they did not owe.

Here are some steps you can take to avoid becoming a victim and put zombie debt to rest for good:

  • Request a validation letter.  This will outline details, including the original creditor, the amount of the debt and how you can challenge it. This will help you verify that it is your debt and has not already been paid.
  • If you already paid the debt: Write a letter to the collections agency demanding that it cease contact. The Fair Debt Collections Practices Act requires them to do so. Remember: You cannot legally be sued for a debt that is past the statute of limitations, even though collectors may still try.
  • Pull your credit report to determine whether it is being reported to the credit bureau.  You can do so for free at www.annualcreditreport.com.
  • Know your rights. Do not let a debt collector bully you.  The Fair Debt Collection Practices Act protects you against abusive collection tactics.
  • If the debt is not yours, it is otherwise invalid: Write a letter challenging the debt within 30 days of the initial contact.
  • If you do owe the debt and can pay, resolving an unpaid account can end the collection calls and improve your credit score. Get any payment agreement in writing before sending money.
  • If you do owe the debt and cannot pay: Tell the creditor you cannot afford to pay. Never give your credit card information or bank account information to a creditor.  Instead, pursue debt relief through credit counseling or bankruptcy.

No matter what, be proactive. Do not ignore anything you receive in the mail from a debt collector and make sure and keep all of your correspondence in writing.

At the law firm of Kingcade & Garcia we want you to have a safe and Happy Halloween this year!   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.usatoday.com/story/money/personalfinance/2016/10/31/debt-collectors-zombie-debt-payment/92666504/

http://detroit.cbslocal.com/2016/10/31/dont-get-bit-by-zombie-debt-this-halloween/

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What kind of credit counseling is required when you file for bankruptcy?

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For many people, filing for bankruptcy is a last resort to end the challenges they face struggling with insurmountable debt.  If you decide to file bankruptcy you will need to work with an experienced bankruptcy attorney and complete mandatory credit counseling through a government-approved agency.

In accordance with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, anyone filing for bankruptcy must receive two certificates: one for pre-filing bankruptcy counseling and one for a pre-discharge education course.

This counseling typically includes a complete review of your financial situation, including current income, household budget and a list of all unsecured debt. Counselors will discuss alternatives to bankruptcy, such as consolidation, debt management, and direct negotiation with your creditors.  The entire process takes up to one hour.

After filing for bankruptcy, you also must take a pre-discharge education course. This course lasts two hours and is evaluated by the Justice Department to ensure the topics are in compliance.  Topics oftentimes include: budgeting, financial products and tools, credit scores, contracts and consumer protection laws.

It can also include interactive tools, including pre- and post-tests, to measure the level of knowledge about these topics, which are important to understand in order to re-establish personal finances, rebuild credit and avoid getting back in debt.  These courses are available online and allow filers to meet the necessary requirements to earn their bankruptcy pre-discharge education certificate.

Here are some ways to get the most out of your bankruptcy counseling:

  • Make sure you receive counseling from a reputable agency (one that is not only approved by the government, but a member of the National Foundation for Credit Counseling and in good standing with the Better Business Bureau);
  • Commit to your credit counseling. Set aside a block of time dedicated to these sessions.
  • Ask the counselors to explain anything you do not understand. They will answer any questions you have, as long as they are not legal-related.  These should be directed to your bankruptcy attorney.

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.nerdwallet.com/blog/finance/know-credit-counseling-bankruptcy/

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Mortgage Fraud on the Rise- Florida Remaining the State with the Highest Risk

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Fraud is on the rise in the mortgage industry, with Florida remaining the state most at risk, according to new data from CoreLogic. More than 12,000 mortgage applications were estimated to have fraud associated with them, according to the company’s 2016 Mortgage Fraud Report.

The mortgage application fraud risk index was up 3.9% year over year from the second quarter of 2015, continuing an upward trend in fraud since 2010.

“This is consistent with the loosening of credit policy after historically tight credit policies post-crisis,” CoreLogic stated in its report. CoreLogic cited a number of factors contributing to the increase in fraud risk, including an increased share of purchase loans, the availability of higher loan-to-value mortgages and the loosening of GSE credit policies.

Florida had the highest application fraud risk, followed by New York, New Jersey, Hawaii and Washington, D.C.

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, Student Loans, Timothy Kingcade Posts

Government Likely to Forgive Billions in Student Loan Debt – but only if you qualify

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Student borrowers who have been working since 2007 in public service are looking forward to next year.  This will be the first time the government will forgive debt under the Public Service Loan Forgiveness (PSLF) program. The program states that individuals who work for ten years in specific careers are eligible to have the remaining balance of their loans forgiven.

These areas include working for:

  • Non-profit organizations;
  • Libraries;
  • Schools;
  • Certain government jobs.

To qualify, borrowers must make on-time payments on their student loans during the ten years they work in public service. The payments can be made under an income-based repayment plan if the borrower qualifies.

With as many as 25% of working individuals qualifying, the government may have to forgive more than anticipated. More borrowers took advantage of the program than the government had expected.  The average amount of loans carried by those in the program is $60,000. About 30% have debt over $100,000. This means the government will have to forgive more than $12 billion in student loans between 2017 and 2027.

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.

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What consumers need to know about FICO 9

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If you do not already know, there is a new credit score called FICO 9.  The new score comes with some important changes in the way people who have medical debt and other consumer debt are scored.  So with all of the different credit scoring models out there- what makes FICO 9 so different?

First, FICO is the most widely used credit score in the country. In fact, 90% of all credit lenders (whether they are offering you a mortgage, car, or personal loan) use the FICO score in some way to determine your credit-worthiness.

More than 64 million Americans have some kind of medical collection record on their credit reports, according to Experian. A staggering 99.4% of medical debts are reported to credit bureaus by collection agencies, damaging consumers’ credit scores in the process. Consumer advocates have long been pushing to make credit scoring models more lenient on people who have medical debt.

With FICO 9, medical collections will be treated differently from non-medical collections, like credit cards.  Your credit score will be less damaged by a medical bill you cannot afford to pay as opposed to a department store credit card you ran up the balance on.

This is a big win for consumers. Many people who struggle with medical debt get that way through no fault of their own.  Whether you get sick or there is an accident that causes you to miss work, even with health insurance you cannot always control how high your medical bills become.

Click here to read more on this story.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Pensions SAVED as court rules retirement funds protected in bankruptcy

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In the case Horton v. Henry, the court was recently asked whether savers subject to an Income Payments Order (IPO) would have to surrender their undrawn pension funds in bankruptcy.  Normally, under IPO people are forced to give up a proportion of their salary or wages to pay the bankruptcy trustee, but this landmark case may set a precedent.

The High Court initially rejected the argument in 2014, but the decision went to the Court of Appeal. However, the appeal was dismissed on October 7. The case is in strong contrast to the 2012 Raithatha v Williamson verdict, when the judge said savers could be forced to withdraw their 25% tax-free lump sum to pay creditors.

Bankrupt savers can breathe a little easier now. The ruling follows a similar conclusion reached in Hinton v Wotherspoon in May, which said retirees not taking any income could not be forced to withdraw savings to pay any debts.

Congress updated the bankruptcy laws in 2005. Under the current law, virtually all retirement account and pension plan funds are exempt from creditors, meaning you get to keep them if you file for Chapter 7 bankruptcy.  With a few exceptions to the rule, the exemption amounts are unlimited, so the entire amount of the retirement account is protected.

Plans subject to this exemption include any ERISA-qualified pension plan, such as:

  • 401(k)s
  • 403(b)s
  • IRAs (Roth, SEP, and SIMPLE)
  • Keoghs
  • Profit-sharing plans
  • Money purchase plans, and
  • Defined-benefit plans.

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 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.nolo.com/legal-encyclopedia/retirement-plan-bankruptcy-chapter-7-13-32410.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The 4 Critical Mistakes that Lead Businesses to Bankruptcy

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We have all seen the headlines of some of the largest retailers filing for bankruptcy.  From Sports Authority to popular brands like Aeropostale and Pacific Sunwear, these are just a few of the apparel players that have filed for bankruptcy this past year.

According to experts, a variety of factors have played a part in these business bankruptcies.  Here are four missteps that lead businesses to financial collapse.

  1. Failure to adapt. While e-commerce has created an exciting new environment for brands and retailers to promote and sell their apparel, difficulties with adaptation have hurt businesses that lack the support and expertise to manage change in today’s digital and mobile arena. Teens and millennials are driving a massive migration online and are also less brand-focused than previous generations.
  2. Expanding too soon and high real estate costs. There is a good reason why closing stores is often the first line of defense in a retail bankruptcy and restructuring plan. These excessive brick-and-mortar expansions can destroy profit margins across the board, and retail analysts say U.S. retail is at the peak of over-expansion. Expensive rents played a key role in the collapse of Sports Authority and Pacific Sunwear.  PacSun successfully emerged from bankruptcy this month after reducing its debt, closing some of its stores and negotiating lower rent.
  3. Outdated business concepts. Not keeping up with the times can cost a business (and a brand) dearly. A number of businesses file for Chapter 11 bankruptcy because their concept is no longer of interest or their consumers’ tastes have changed. On the other hand, there is the issue of “oversaturation,” where a marketplace becomes too competitive and there is an overabundance of similar businesses and products.
  4. Poor mergers and ownership challenges. The past year and a half has brought a strong wave of mergers-and-acquisitions, particularly in the footwear and apparel industry. Who owns the business plays a big role. Is it a family-owned business that has a vested interest in keeping the company going or is the business owned by a private equity firm, who owns a variety of other businesses? In the case of Sports Authority it was said that new ownership played a pivotal role in the company’s downfall.

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://footwearnews.com/2016/business/retail/bankruptcy-chapter-11-brands-retailers-mistakes-reasons-business-analysis-258911/

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What happens to my car when I file for Chapter 7 bankruptcy?

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In most cases, when you file Chapter 7 bankruptcy you have the option to either keep your vehicle or surrender it to the lender.  If your vehicle is paid off, you will likely be able to keep it after filing for bankruptcy- as long as its value is below your state’s vehicle inspection amount.

If you are still making payments on the vehicle, you have two options: (1) you can return the car to the lender and assume no liability, or (2) you can keep the vehicle and continue making payments on it.

If you choose to keep your vehicle, you will have to prove to the court that it is in your best interest to do so.  Probably the easiest way to keep a vehicle that you still owe money on during in bankruptcy is through redemption.

With redemption, you pay the trustee the current value of the vehicle in one lump sum. This is a beneficial option for those who are underwater, because the filer only has to pay the current value of the car, even if the loan amount is greater.

For example, if you still owe $10,000 on your car loan, but the vehicle is only worth $6,000, if you pay $6,000 to redeem the car, you will not be responsible for the remaining loan balance.

If you are current on your payments, but cannot afford to redeem your vehicle, you can continue to make payments by entering into a reaffirmation agreement. The lender will then send you an agreement that may be similar to the original loan contract.

At this time, with the help of an experienced bankruptcy attorney, you may be able to negotiate a better deal. The lender knows that you have the option to surrender the car and assume zero liability. This usually gives them an incentive to at least get some money out of the car.

A hearing will then be scheduled to determine whether or not the reaffirmation agreement is in your best interest.  In making the decision, the judge will consider your income, the value of the car and the amount you still owe on the loan. This is important, because the whole point of filing for Chapter 7 bankruptcy is to eliminate the burden of debt.

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.autocreditexpress.com/blog/your-car-in-chapter-7-bankruptcy/

Foreclosures, Timothy Kingcade Posts

Seasonality Plays a Part in the Increase in U.S. Foreclosure Starts

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Total U.S. foreclosure starts numbered 68,800 for the month of August with a 12.23 percent increase from July. While this may seem like a large increase, the 12 percent rise in foreclosure starts in August is actually more a product of just how low starts were in July, which saw the second lowest volume of foreclosure starts in over 10 years, according the Data & Analytics division of Black Knight Financial Services, Inc.

August still remains the fifth lowest month for foreclosure starts in 10 years.  90-day defaults tend to rise in the summer months, showing the effect seasonality has on foreclosure starts.

The report states that inventory of loans in foreclosure has been on the decline for 19 consecutive months and in 51 of the past 52 months with total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure) currently sitting at 4.24 percent. This is a decrease of 6.04 percent from the previous month as well as a 11.41 percent increase from the past year.

Finally, the report states that the number of properties that are 30 or more days past due or in foreclosure sat at 2,678,000. This was a decrease of 158,000 properties in July and 483,000 properties in August of 2015.

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, Credit, Debt Relief, Timothy Kingcade Posts

How to deal with ‘old’ debt

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When a debt exceeds the statute of limitations, it is referred to as “time-barred debt.” That means creditors cannot legally sue you.  But they may still try.  They may continue contacting you. It is important you proceed with caution, because the practice of debt collection has many pitfalls.

Perhaps you never took out the debt, that the collector has the wrong amount or that you already paid and the collection attempt is a mistake.

A debt collector should send you a validation notice within five days of first contacting you. This notice should include the debt owed, the amount, date of last payment, who the collector is and how to request information on the original creditor. If you do not receive this notice within 10 days after the debt collector first contacts you, ask for it.

Challenge it!

If you are being asked to pay a time-barred debt that is not yours, that was already paid off or invalid, you can write the creditor to dispute the debt.

You have 30 days from first contact to challenge the debt before it is deemed accepted by default. If you dispute the debt within this window, debt collection efforts must stop until the issue is resolved.

Be as specific as possible in your letter. Say why the debt collection attempt is invalid, including information about payment history or why the debt may not be yours and any other relevant information. Send the letter by certified mail so you get confirmation of receipt.

If for any reason you feel the debt collector has violated your consumer rights, file a complaint with the Consumer Financial Protection Bureau or the Federal Trade Commission.

The Fair Debt Collections Practices Act (FDCPA) originally enacted in 1978 requires that debt collectors provide consumers with certain basic information such as the amount of debt owed and the name of the creditor to whom the debt is owed. A lesser-known requirement of the FDCPA says debt collectors must give consumers a 30-day notice to dispute the debt before it is assumed as valid.

Pay it off- but proceed with caution.

Although you may think paying a little bit of the debt owed will get the creditor off your back, it can make things much worse. Making even a single payment on time-barred debt can bring it back from the dead and reset the statute of limitations.  In some states, even if you pay as little as a $1, you will reactivate the entire debt and you can be sued for the original debt plus fees.

If you want to pay off the debt, you have several options:

  • Pay in full with a lump sum;
  • Work with the creditor to set up a payment plan;
  • Make an agreement to settle the debt by paying a portion.

If you pay the debt in full, make sure the collector sends you a confirmation in writing.  Hold onto this in case the payment is not properly recorded or the debt gets sold, again.

Discharge the debt through bankruptcy.

If you feel the debt is just too much to pay off or you want to rid yourself of the debt for good, you could file for Chapter 7 bankruptcy.  After filing, you are likely to see your credit scores improve.

Steps to take if you are sued.

Creditors may sue you even though a debt is past its statute of limitations.

The most important thing: DO NOT ignore the lawsuit. Ignoring it will likely lead to an automatic judgment against you and result in wage garnishment. Consider talking with an attorney about how to proceed, and gather all documents you have proving that the debt is time-barred.

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://www.latimes.com/business/la-fi-expired-debt-20160917-snap-story.html