Timothy Kingcade Archives - Page 41 of 54 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Foreclosure Filings Fall in South Florida

Posted on December 10, 2015by Admin

South Florida had a sharp decrease in foreclosure filings in November, losing its spot on the “Top 10 states with the highest number of foreclosures,” according to RealtyTrac’s foreclosure report. There was one foreclosure filing per 645 homes in South Florida, ranking 12^th among metro areas. The region once had the highest foreclosure rate in the nation. However, with property values rising, homeowners who were previously underwater have been able to refinance or sell their homes.

Banks are continuing to work through the backlog of foreclosures. The recent numbers mean the share of active foreclosures tied to the housing bubble burst are shrinking, with 59 percent of all loans in foreclosure originated between 2004 and 2008. It continues to decrease from 61 percent earlier this year and 75 percent two years ago, according to Daren Blomquist, VP of RealtyTrac.

There were 3,824 South Florida foreclosure filings in November, down 38.9 percent from the same month a year ago. This total includes new lawsuits, judgments and repossessions. Repossessions accounted for the largest amount at 1,845, as most of the foreclosures are in their final stages.

Atlantic City, New Jersey led the nation in foreclosure filings with one foreclosure every 307 homes.

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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 website at www.miamibankruptcy.com.

South Florida Still in Need of Mortgage Debt Forgiveness

Posted on December 9, 2015by Admin

South Florida was hit harder by the 2008 mortgage, housing, banking and economic crises than any other region in the U.S. and continues to lag behind the nation as a whole in the housing market recovery. We continue to hear stories of families who are struggling to piece their financial lives back together after this seven year ordeal. To make matters worse, without the re-authorization of the Mortgage Debt Relief Act, a number of South Florida homeowners will continue to be unjustly burdened.

The Mortgage Forgiveness Debt Relief Act eliminates the income tax on forgiven mortgage debt, eliminating a particularly punitive burden resulting from plummeting home values. In the aftermath of the housing crisis, many homeowners found that their homes were underwater- worth far less than their outstanding mortgage balance.

The most recent foreclosure statistics reveal that Florida’s foreclosure activity remains the nation’s second highest. Five Florida cities were among the 10 highest foreclosure rates for metro areas in the U.S. in the third quarter, including Jacksonville (No. 2), Deltona-Daytona Beach-Ormond Beach (No. 3) Tampa (No. 4), Miami (No. 5), Lakeland (No. 7) and Ocala (No. 8).

Without the re-authorization of the Mortgage Forgiveness Debt Relief Act, any forgiven principal reduction is currently taxable in 2015. This means struggling homeowners, who have already faced job loss and sought loan modifications, will be left owing thousands of dollars in taxes this year on top of the loss of their home and its equity.

Banks and investment firms in the mortgage industry have received numerous breaks throughout the recovery. South Florida homeowners, who have been hit particularly hard by the crisis, have earned the right to this temporary tax break. We urge the Florida congressional delegation to pass the Mortgage Forgiveness Debt Relief Act.

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Bankruptcy Law, Student Loans, Timothy Kingcade Posts

More Student Loan Debt Forgiven for Corinthian College Students

Posted on December 7, 2015by Admin

The government is erasing student loan debt for more than 7,000 former students of the now-defunct Corinthian Colleges- totaling over $100 million. According to a recent report, the Education Department has approved a second wave of loan forgiveness for students who attended this college and took out loans. This one is for students who filed “borrower’s defense” claims with the government, alleging they were lied to or mislead. At one time, Corinthian was one of the largest chains of for-profit colleges, but filed for bankruptcy protection in May 2015 after allegations of fraud surfaced.

The department’s undersecretary, Ted Mitchell said, “We will continue to provide forgiveness to every student who has been similarly mistreated.”

In a progress report released by the department, Joseph Smith, who is overseeing the debt relief, said his team has approved relief for 1,300 former Heald College students, totaling nearly $28 million in loans that now will not have to be repaid to the government.

Heald, which had campuses in California, Hawaii and Oregon, was one of three schools under the Corinthian umbrella. The other two were Everest (with 10 Florida campuses) and WyoTech.

Another 5,800 former students from Heald, Everest and WyoTech who filed “closed-school” claims with the government will see their debt discharged, totaling $75 million. It is expected that tens of millions of dollars of additional relief will be granted in the coming months under the closed-school claims.

Education officials have predicted that if all Corinthian students who borrowed government money (dating back to 2010) would seek relief, the total cost would be $3.2 billion in student loan debt relief.

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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, 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, Student Loans, Timothy Kingcade Posts

Student Debt in America: Extend with a Smile, Collect with a Fist

Posted on December 4, 2015by Admin

The student loan debt crisis is nothing new, but the interest accruing on these loans represents a new threat. Of the 43.3 million borrowers with outstanding federal student loans, 1.8 percent, or 779,000 people, owes $150,000 or more. And 346,000 owe more than $200,000. A Missouri high school teacher and mother of four owes the federal government a staggering $410,000! She took out loans for her undergraduate education, but also for law school, which she was unable to complete after becoming ill with a life-threatening autoimmune disease that required a lengthy hospitalization. Today, the interest has accumulated to twice the original principal. The monthly loan payments of $2,750 will stretch for 30 years.

With her forbearance options exhausted, the loan servicer has threatened to “come after her,” garnishing her wages and eventually her social security. This woman’s story reveals the deep contradictions in the federal government’s approach to student loans. People have always struggled with debt and access to capital is what fuels the modern economy. Borrowing for college is often seen as a good idea because it represents an investment in a person’s future potential. However, borrowing is risky and people often do a poor job- particularly young people- of properly weighing the interests of their present and future selves.

The private enterprise system is built to limit over-borrowing by sharing risk between lenders and borrowers. Lenders examine credit and income histories and ask for collateral that can be repossessed in case of default. Because most loans can be discharged in bankruptcy, lenders share on the cost of default. But federal student loans do not work that way. “No Cash? No Credit? No Problem!” is essentially the Department of Education’s policy on student loans.

The number of active borrowers enrolled in college has declined roughly nine million today from about 12 million in 2010, according to the Federal Reserve Bank of New York. But the total amount of outstanding student loan debt continues to increase, because many borrowers are struggling to pay back their older loans.

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

Student Loan Debt- Not just a burden to the student

Posted on December 3, 2015by Admin

Ninety-four percent of parents of college students are increasingly feeling the burden of student loan debt, according to a 2014 survey by Citizens Financial Group. More than half of those parents are worried that the cost of college will impact their ability to retire. Parents who cosign on their child’s student loan debt assume equal responsibility for repaying the loan. That means any late payments not only hurt the child’s credit, but the parents as well.

The problem is wide-reaching, but the middle class seems to have been hit the hardest. In many instances, the debt is held by private lenders because federal loans have been maxed out. Those taking out the loans oftentimes do not qualify for need-based aid since their parents make “too much” money.

Parents who are shouldering the burden of student loan debt are encouraged to look for ways to improve their cash flow by reducing monthly expenses like cable bills, refinancing mortgages to lower interest rates and shopping around for the best insurance coverage.

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

What happens to your debts when you die?

Posted on December 1, 2015by Admin

Your debts become the responsibility of your estate. When you pass away, any debts you leave behind could take from the assets you had hoped to leave your loved ones. In some cases, family members can even be responsible for your debts. This is the reason many people purchase life insurance- not only to leave their loved ones something when they pass, but also to take care of any outstanding debt and final expenses.

Mortgages and home-equity loans

If the property has a mortgage, the lender does have some protection, at least up to the value of the property. However, federal law states that lenders cannot force the joint owner to pay off the mortgage immediately after the co-owner dies. This also applies to any relative who inherits the home and lives in it. This means the family member or co-owner can simply take over the monthly mortgage payments. If there is an outstanding home-equity loan, a lender can force the person who inherits the home to repay the loan immediately, which could result in the home being sold.

Auto loans

If the vehicle is not paid in full, the lender has the right to repossess the car. But typically, whoever inherits the car can just take over the payments. It is unlikely the lender will take action.

Credit cards

When the estate runs out of assets, the credit card companies are out of luck. This is due to the fact that credit card debt is not secured by assets the way mortgages and car loans are. Any joint account holder would be responsible for the bill, but people who are simply authorized users of the card would not be.

Student loans

Lenders do not have any recourse if the estate does not have assets to repay other unsecured obligations, like student loans. Even if your relatives are not responsible for your debts, collection companies can still legally call to discuss the debts to find someone who is authorized to pay them, according to the FTC. It is important to know, debt collectors cannot mislead family members into thinking they are responsible for the debts.

Caveats

These are the circumstances in which spouses or other people would be responsible for your debts. These include:

They co-signed on a loan;
Are joint account holders;
Are spouses in community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

What is protected?

Creditors typically cannot go after your retirement accounts or life insurance proceeds. However, if the life insurance beneficiaries you named are no longer living, your death benefit may go into your estate and then be subject to creditors. That is one reason why it is important to make sure your policy names the proper beneficiaries.

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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 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 atwww.miamibankruptcy.com.

Foreclosures, Timothy Kingcade Posts

A WIN for Florida Foreclosure Plaintiffs!

Posted on November 27, 2015by Admin

Florida homeowners succeeded in getting a judgment in favor of Wells Fargo dismissed, allowing them to reverse a foreclosure action previously in favor of the bank. The case, Hicks v. Wells Fargo, reached the Fifth District Court of Appeals in the State of Florida. According to the complaint, the issue turned on the statute of limitations, with the Fifth District holding that the bank’s foreclosure claim was time barred by Florida’s five-year statute of limitations for foreclosure.

The homeowners claim it all began when an initial default occurred on June 1, 2006. At some point, a prior holder of the note sued to foreclose on Sept. 8, 2006, but the case was voluntarily dismissed in 2008. Then, in 2011, the current note holder (Wells Fargo) sent a notice to accelerate to the borrowers. The second foreclosure action did not occur until 2013, which is seven years past the original default date.

The appellate court agreed with the borrowers that the 2013 foreclosure action by Wells Fargo is “time-barred” by the state’s five-year statute of limitations; however, the bank is not barred from pursuing new or remaining foreclosure claims that fall within the statute of limitations period.

“Despite the previous acceleration of the balance owed in both the instant suit and prior suit, the bank is not precluded from filing a new foreclosure action based on different acts or dates of default not previously alleged, provided that the subsequent foreclosure action on the subsequent defaults is brought within the statute of limitations period,” the court wrote.

So what can be taken away from this case? Florida’s statute of limitations period is sensitive and acceleration actions cannot suffice without a timely foreclosure action. However, not all is lost if a bank fails to file on time, as long as there is a new valid claim to bring forth.

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

Law School Grad Tries to Discharge Student Loan Debt in Bankruptcy

Posted on November 26, 2015by Admin

A recent law school graduate with close to $300,000 in student loan debt is asking for the U.S. Supreme Court’s help in getting it discharged in bankruptcy. Courts including the U.S. Courts of Appeals for the Seventh and Eighth circuits are split on what constitutes “undue hardship,” the determining factor as to whether a debtor is eligible for a bankruptcy discharge. The U.S. Court of Appeals for the First Circuit is also on the fence with the issue.

Law school debt has been getting more attention recently. Lawmakers on both sides have “sharply criticized U.S. law schools” for burdening students with crushing debt and non-marketable degrees, according to Bloomberg Business.

This particular student’s alma mater – Florida Coastal School of Law in Jacksonville, FL – has received some negative press about its graduates’ debt. Those in the 2015 graduating class that had debt (93 percent) carried a balance of almost $163,000. In addition, the median Law School Admission Test (LSAT) score for Florida Coastal students was in the bottom 25%.

This student has failed the bar exam for the third time and is living at home with his parents below the poverty line. According to the debtor’s petition, he has struggled with depression and misdemeanor convictions, which make it difficult to find work in the legal field.

It is extremely difficult to prove undue hardship in the Seventh Circuit, without the presence of a serious medical condition, like Alzheimer’s disease or being paralyzed in a car accident. The bankruptcy laws are supposed to be uniform, but there is a split on what the courts consider undue hardship.

The Eight Circuit uses a “totality of the circumstances test,” which is a more flexible standard. It allows bankruptcy courts to consider a variety of factors when determining undue hardship. As a result, if a debtor lives in Arkansas – in the Eight Circuit – like in this case, there is a good chance the high court will grant the certiorari.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tax Scams on the Rise

Posted on November 25, 2015by Admin

Tax scams are on the rise and small businesses are just as vulnerable as consumers. Authorities report that there have been a rise in calls across the country from scammers claiming to be affiliated with the Internal Revenue Service. In case you are not aware of how the tax scam works, criminals use fear and intimidation practices to coerce victims into sending them money. They basically call victims and leave a threatening voicemail message stating you have a warrant out for your arrest because of a tax violation.

Here is what you need to know to protect yourself and your business from falling prey to this scam.

Get armed with the facts. Remember that these types of scams work on fear and the victims lack of information. Verifying facts is the greatest weapon against these criminals.

Don’t be fooled by professionalism. The scammers sound professional, going as far as to provide phony IRS badge numbers and altering the caller ID numbers to appear as if the calls are coming in from an agency. They also have personal information on their victims to make the scam sound more legitimate.

These tax scams have cost around 4,550 victims more than $23 million since October 2013. And these are just the ones who report it, many victims of scams are afraid to report the crime, which means the loss is likely much higher.

The IRS has released the following facts regarding how the agency contacts individuals.

1. The IRS does not call and demand immediate payment. The agency only calls after first sending you a bill in the mail.
2. The IRS does not demand you pay taxes without letting you question or appeal the amount you owe.
3. The IRS does not require you pay in a specified way, such as a prepaid debit card.
4. The IRS does not ask for your credit or debit card numbers over the phone.
5. The IRS does not threaten arrest for not paying.

If you receive calls for these types of tax scams, hang up and report it to your local law enforcement agency immediately. You can visit “Tax Scams and Consumer Alerts” on IRS.gov to get additional information.

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

‘Doctors’ Loophole’ in Student Loan Debt-Forgiveness Helps more Americans than Intended

Posted on November 24, 2015by Admin

The federal government is getting ready to forgive billions of dollars in student loan debt for doctors and other professionals with expensive educations, under a law designed to help “modestly paid” workers in public service.

At issue is the 2007 student loan forgiveness program that allows borrowers who have made a decade of payments and work for government or nonprofit entities, have the rest of their debt forgiven. The program was designed to encourage young Americans to pursue traditionally hard-to-fill positions, such as: public defenders, social workers, teachers and modestly paid doctors in underprivileged areas.

However, the program is helping far more than intended, many of the borrowers being well-paid. Thousands of workers with expensive graduate degrees are set to discharge five- and six-figure student debt amounts as they approach typically lucrative careers.

The biggest beneficiaries will be med school students, who owe an average of $180,000 upon graduation and are increasingly working for nonprofit hospitals to qualify for the program. What is being called the “doctor’s loophole,” financial advisors estimate that many will have 80% or more of their original balances forgiven.

The government will not start forgiving loans under the program until 2017, a decade after it was signed into law. But the estimated tab is growing quickly as enrollment surges. As of September, about 295,000 borrowers in all fields had submitted paperwork and were on track to have debt forgiven under the program, according to the Education Department. That is an increase of 368% from two years prior, likely reflecting growing awareness of the program and a boom in higher-education attainment during the recession. The agency projects a total 600,000 borrowers will have loans forgiven over the next decade.

Supporters of the program note it is achieving the goal of increasing interest in jobs that are tough to fill, like public defender positions. A surge has been reported in applications for legal positions, partly linked to lawyers hoping to shed their law school debt.

The typical borrower in the program owes between $60,000 and $70,000 in student debt, with 1 in 4 owing more than $100,000, according to a Government Accountability Office report. This suggests most enrollees are workers with postgraduate degrees. Critics say the program does little to help the millions of Americans who truly need the relief from student loan debt, like those borrowers who did not complete college and have much smaller loan balances or who graduated with degrees that pay far less in today’s economy.

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