Timothy Kingcade Archives - Page 4 of 53

Debt Relief, Foreclosures, Timothy Kingcade Posts

Clarifying Contested Foreclosures After Bankruptcy – Florida Governor Rick Scott Signs off on New Law

Posted on April 9, 2018by Admin

When going through the bankruptcy process, filers must declare their intentions toward any property securing their debt, which can include their home. This can involve surrendering the property to the lender or retaining it and making payments to reduce the debt. If you agree to surrender the property in order to clear the mortgage debt, can you contest the foreclosure to try and delay the process while remaining in the home?

Senate Bill 220, a new law addressing the property rights of defendants pertaining to bankruptcy and foreclosure proceedings, recently signed by Florida Governor Rick Scott says no. The bill is consistent with the ruling in the Florida Middle District Case In re Metzler, a 2015 case that ruled debtors cannot raise defenses once a subject property has been surrendered in bankruptcy. However, the law does allow defenses to be made based on the conduct of the lender after surrendering the property.

Florida has one of the most generous homestead exemptions in the country. To use Florida’s bankruptcy exemptions, you must have resided in Florida for at least 730 days before filing your bankruptcy petition. To claim the full value of the homestead exemption in Florida, you must have owned the property for at least 1,215 days before the bankruptcy filing.

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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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Divorce & Bankruptcy – How They Are Connected

Posted on April 5, 2018by Admin

Medical bills, job loss and divorce are some of the main reasons people file for bankruptcy today. Financial problems can sometimes lead to divorce and as a result it is not uncommon for couples to decide to file bankruptcy right after they get divorced. Here are some things to consider.

Whether or not you decide to file for bankruptcy before or after your divorce depends on the following:

Which type of bankruptcy you file– If you file together, both of your incomes are used to qualify you for a Chapter 7, which may make you ineligible for this type of bankruptcy. An experienced bankruptcy attorney will help you determine which type of bankruptcy to file, a Chapter 7 or Chapter 13.
State exemption laws– All property you own is declared either exempt or non-exempt during a bankruptcy. Exempt property may be kept after the bankruptcy case has concluded. Florida has one of the most generous homestead exemptions in the country. Here are some of the most common bankruptcy exemptions in Florida.
State laws concerning division of property during a divorce could be at odds with what property is exempt in a bankruptcy. The items you fought to keep after your marriage comes to an end could be in jeopardy, again in subsequent bankruptcy proceedings.
The cost for filing a joint bankruptcy is the same as filing an individual one. This means you can save hundreds of dollars by filing together.
Work together if possible. Filing bankruptcy jointly implies that you can work together, something that may be difficult to do, but worth it in the end.

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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 McMaken 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 McMaken website at www.miamibankruptcy.com.

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

Dept. of Education’s Announcement Gives Hope to those struggling with Student Loan Debt

Posted on April 4, 2018by Admin

With student loan debt at nearly $1.5 trillion, 40 percent of borrowers will default on their student loans by 2023, according to a recent study by Brookings Institute. The staggering numbers have caused the Department of Education to take action and announce that it will review and potentially alter policies that make it exceedingly difficult for student loan debt to be discharged in bankruptcy.

The problem is that ‘undue hardship’ was never defined and the case law has never led to a standardized definition. Courts often use the “Brunner Test,” which requires you must show that you cannot maintain a basic standard of living while paying the student loans and that this difficulty would last throughout the majority of the repayment period. You also must prove that you made a good showing of trying to repay your student loan debt.

The Department of Education’s latest actions indicate that they will broaden the “undue hardship” current definition – which is good news for student loan borrowers. This change could also help streamline the bankruptcy process and help borrowers struggling with massive student loan debt rebuild their lives.

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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 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Florida Ranks in the Top 5 States for Invalid and Illegal Debt Collection

Posted on April 3, 2018by Admin

Invalid and illegal debt collection practices are at an all-time high across the country, and Florida is no exception. Data was analyzed from the Consumer Finance Protection Bureau (CFPB) to identify the states that engaged in these deceptive and illegal practices. ‘Zombie’ debt collections are rampant in South Florida and involve attempts to collect debts not owed, those that were already paid or discharged in bankruptcy, debts owed by someone else, or are a result of identity theft. Typically, this debt collection practice is done by third-parties, who have collected these debts written off by the original creditor.

The five states in which zombie debt collection is most prevalent are:

Delaware– Delaware leads the nation when it comes to the likelihood of having to deal with a collection agency trying to collect a debt you do not owe. With a total of 422 complaints in the Consumer Complaint Database, Delaware has a per-capita rate of 44.72 complaints per 100,000 residents.
Florida– Florida comes in at number two with 42.43 complaints per 100,000 residents (a total of 8,314 complaints in all).
Georgia– Georgia trails Florida by two hundredths in its per capita incidence rate of reports of zombie debt collection attempts, with 4,258 complaints registered and a population of almost exactly 10 million residents.
Nevada– Like Florida, Nevada has incidence rates of illegal debt collection attempts well above the national average of 25.84 per 100,000.
Maryland– Maryland has 38.65 complaints per 100,000 residents. The affluent and suburban Prince George’s County has an incidence rate of 66.6 per 100,000 residents.

Knowing which debt collection agencies have a history of practicing zombie debt collection in your state can help you avoid being a victim. The three debt collection agencies most likely to engage in invalid and illegal debt collection practices in the country are:

Encore Capital Group
Enhanced Recovery Company (ERC)
Portfolio Recovery Associates

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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 McMaken, 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 McMaken website at www.miamibankruptcy.com.

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

The Truth about Student Loan Debt Bankruptcies

Posted on March 30, 2018by Admin

When it comes to bankruptcy and student loan debt, there are some common misconceptions. One being, that student loans are never dischargeable in bankruptcy. In fact, there are ways to file for bankruptcy with student loan debt. Congress has yet to establish what “undue hardship” means with regard to students’ having their loans forgiven in bankruptcy; still, courts have set legal standards for proving it. In a new paper, Professor Jason Iuliano argues that bankruptcy courts have interpreted the discharge exception ‘too broadly,’ applying it to loans for unaccredited schools, loans for tutoring services, and loans beyond the cost of attendance for college.

The Bankruptcy Court for the Southern District of Texas recently adopted the narrow reading of §523(a)(8)(A)(ii) in Crocker v. Navient Solutions, LLC, Adv. 16-3175 (Bankr. S.D. Tx Mar. 26, 2018). The court denied Navient’s motion for summary judgment, finding that the bar exam study loan at issue was not within the discharge exception for qualified student loans or educational benefit repayments.

In another class action complaint filed against Navient and Sallie Mae, plaintiffs claim that servicers are defrauding student loan debtors of their bankruptcy discharge rights. Servicers illegally continued collecting private student loans that were fully discharged in bankruptcies because they were not qualified educational loans, according to the complaint in Homaidan v. Sallie Mae, Inc. (17-ap-01085 Bankr. EDNY),

There has been talk about potential changes coming to bankrupt borrowers’ ability to discharge student loan debt. Even student loans covered in the bankruptcy discharge exception can still be discharged based on showing “undue hardship” and courts are more likely to approve undue hardship discharges than many debtors and some lawyers realize.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What happens if I ignore a debt collector?

Posted on March 29, 2018by Admin

If you are unable to make payments on a debt, you may be tempted to turn a blind eye until you are able to come up with the money. But this is one of the worst things you can do. You always have the right to ignore a debt collector, but it will not make the debt go away. Here are some possible scenarios that can occur if you ignore a debt collector:

They leave you alone. You might think this is a good thing and perhaps the debt collector has forgotten about your debt. But this is unfortunately not the case.

Your credit score suffers. A past due debt will appear on your credit report regardless of whether you respond to debt collection attempts or not.

Your debt is transferred to another company. If the first collector is unable to reach you after repeated attempts, your account can wind up with a different agency. This can happen a number of times if the balance remains unpaid.

The debt continues to grow. Just because you stop paying your debt, does not mean the interest stops growing. Add on collection costs and this can cause the debt to double over time.

They reach out to people you know. Debt collectors can reach out to people who know you to try and locate you, especially if you have changed your phone number or address to avoid collection attempts. They are not allowed to tell them about your debt. Revealing debt to third parties (i.e. – family, neighbors, friends, co-workers, etc.) is a violation of the Fair Debt Collection Practices Act (FDCPA).

A lawsuit is filed against you. Ignoring a debt and failing to communicate with a debt collector can result in you being sued. You can try your best to defend yourself, but if a judgment is entered against you it can result in wage garnishment and even funds being withdrawn from your bank account to pay off the debt.

Stress mounts. The stress of debt can cause anxiety, sleepless nights, even marital problems. Avoiding debt collectors can leave you on the edge, wondering when the next phone call will be or collection letter will arrive in the mail.

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If you have any questions on this topic or are struggling with out of control credit card debt, 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

‘Zombie’ Debt Collections Plague South Florida

Posted on March 28, 2018by Admin

According to a recent study, invalid and illegal debt collections are at a record high in the Sunshine State. The practice also referred to as ‘zombie debt collections’ is defined as attempts to collect debts not owed, those that were already paid or discharged in bankruptcy, debts owed by someone else, or are a result of identity theft. Typically, this debt collection practice is done by third-parties, who have collected these debts written off by the original creditor.

If you feel you have been a victim of zombie debt collection, first request that the debt collector provide you written documentation verifying the debt and check for any discrepancies. It is important that you respond to all court summonses to ensure that a debt collector does not win a court case by default.

Last week, the Federal Trade Commission declared in a new report that Florida is the scam capital of the nation, with nearly 2.7 million consumer complaints made to the agency in 2017. The top categories included: debt collection, impostor scams, identity theft, phone and mobile, and banks and lenders.

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Credit, Debt Relief, Timothy Kingcade Posts

Are you paying off your credit cards the right way?

Posted on March 26, 2018by Admin

If you have multiple credit cards you are making payments toward, paying off the cards in the right order can make all the difference in how quickly you get out of debt. Turns out most consumers are using a repayment strategy that takes longer and costs more than it has to.

Here are some quick tips to help you tackle credit card debt the right way:

Go above the minimum. When you receive your credit card statement, it will include the minimum monthly payment you are required to make. This is typically 2 to 5 percent of your entire balance. Paying only the minimum will have you avoid late fees and keep you from being reported to the credit agencies, but that is about it. Depending on the interest rate of your credit cards, paying only the minimum could keep you in debt for 30+ years!

Avoid balance-matching. According to a recent study, many consumers are allocating their credit card payments in proportion to the balances on each account. For example, bigger payments are going towards cards with bigger balances, while smaller payments are going towards cards with smaller balances, also known as “balance-matching.” The problem with this strategy is it avoids the interest rate entirely, which is a determining factor in how long it will take you to pay off the debt.

Utilize the debt avalanche method. This is the optimal payment method and requires making additional payments to your highest-interest cards, first while making only the minimum payments to your lower interest credit cards. Once your highest-interest credit card is paid off, move to the next highest-interest card, and so on, until your debt is eliminated. This debt elimination strategy ignores the balances and uses only the interest rate to determine how to allocate payments.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Myths about bankruptcy and your credit score debunked

Posted on March 22, 2018by Admin

There are many misconceptions surrounding the amount of time it takes to rebuild your credit after bankruptcy. We are clearing up some of the common misconceptions about how bankruptcy affects your credit score.

Myth #1: All bankruptcy information stays on your credit report for ten years.

The Truth: Only the public record of a Chapter 7 bankruptcy lasts for ten years. All other bankruptcy references remain on your credit report for seven years, including: Line items stating “account included in bankruptcy;” Third-party collection debts, judgments and tax liens discharged in bankruptcy and Chapter 13 public record items. Once these items begin to disappear, you will see a bigger boost to your credit score.

Myth #2: You will have poor credit as long as the bankruptcy information stays on your credit report.

The Truth: This is one of the biggest misconceptions and one that our clients can tell you is a complete myth.

My credit score said on all three reports 775, I couldn’t believe that I had such a great score before 10 years. Tim for me was the best move I have made for my situation. I have no regrets, I am glad the past is the past. – Bill T.

Hi Tim- I just wanted to send a quick note and thank you and your team for handling my bankruptcy case. It is only a month or two after discharge, and my credit scores are already in the upper 600’s. I’ve sent a screenshot in the event that you would like to use this to show prospective clients. – C.S.

You can begin to build your credit back with smart credit management. Within a few years, you can obtain a “good” credit score ranging from 700 – 749 by doing the following:

Adding new credit, such as secured credit cards or small installment loans, to offset the negative information on your credit report;
Making on-time payments for all debt, new and old;
Keeping your credit card balances under 30% utilization.

Myth #3: Bankruptcy affects the credit of all filers equally, regardless of the amount of debt.

The Truth: Your credit score will factor in details such as the amount of debt discharged and the proportion of negative to positive accounts on your credit report. If you have a low amount of debt and only a few accounts included in your bankruptcy, your credit score will be higher than someone with a more severe bankruptcy case.

Myth #4: You cannot get a credit card or loan after filing for bankruptcy.

The Truth: Credit cards are one of the best ways to begin rebuilding your credit and you will be surprised how quickly offers for them will appear in your mailbox after filing for bankruptcy. Secured credit cards, which require an upfront security deposit, allow you to spend and build credit easily and safely.

Myth #5: Bankruptcy will ruin your credit forever.

The Truth: Bankruptcy will damage your credit in the short term, but practicing good financial habits, can rebuild your credit to be stronger than ever. A report from the Federal Reserve Bank of Philadelphia showed that those who filed for Chapter 7 bankruptcy in 2010 had an average credit score of 538.2 on Equifax’s scale of 280 to 850. But the average score jumped to 620 by the time those bankruptcies were finalized, approximately six to eight months later. There are many ways to rebuild your credit after filing for bankruptcy. There are certain limitations you will face after filing, but taking advantage of the right financial tools can go a long way in helping you get back on the right path for your financial future.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Steps to Take if You Want to Buy a Home after Bankruptcy

Posted on March 21, 2018by Admin

After filing for bankruptcy, you are going to want to begin rebuilding your credit as soon as possible. You can start by checking your FREE annual credit report on AnnualCreditReport.com to get reports from the three major credit bureaus: Equifax, TransUnion and Experian.

Your report may show late and missed payments on credit cards, mortgages and credit accounts you may have opened or closed. Bankruptcy provides you with a clean slate, which means you have a second chance to pay your bills on-time and in full.

If your credit score is in the low 600s, your credit is still too low for most decent loans with good terms, but you can work quickly to get it back up in the mid-700s.

After bankruptcy, when accessing and utilizing credit again, keep your credit card balances relatively low compared to the card’s limit. For example, less than 30% is typically advised while using just 10% of the available credit is even better.

Once your credit score improves, you can then find the right mortgage lender, real estate agent, and the right attorney to move forward with the purchase of your new home.

Still not convinced? A testimonial from one of our clients in regards to their credit score after filing for bankruptcy.