Archive for: ‘January 2015’

Get your tax refund EARLY! E-filing for Taxes begins TODAY

January 20, 2015 Posted by kingcade

Looking to receive the fastest tax refund possible? You can prepare and e-file your 2014 tax return on efile.com. This will ensure you receive the fastest tax refund the IRS allows; you can even have the funds directly deposited into your bank account. Electronic filing is the safest way to file a tax return and the fastest way to get your refund. Seventy-two hours after your tax return is accepted by the IRS, you can track your tax refund.

As many Americans use their refunds to purchase expensive electronics or long-awaited vacations, the National Bureau of Economic Research (NBER) found that more than 200,000 households use their tax refunds to file bankruptcy. This spike in bankruptcy filings towards the first part of the year has been attributed to the increased cost of filing, after U.S. bankruptcy laws changed in 2005. Families have been forced to delay filing until they can afford to pay the fees, according to the NBER.

Since changes to the law in 2005, the average cost of legal and administrative fees jumped from $921 in 2005 to $1,477 just two years later, according to the U.S. Government Accountability Office. The law was changed to prevent bankruptcy abuse. It was thought that too many people who could afford to pay their debts were taking advantage of the system. Since then, fewer people have filed for bankruptcy, but that does not mean these changes have reduced abuse of the system. The people who really need bankruptcy are the ones who are unable to afford the filing fees.

Last year the average tax refund was $3,096, enough for many distressed Americans to file for bankruptcy and get the necessary help they need.

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.efile.com/tax-day-deadlines/
http://usatoday30.usatoday.com/money/perfi/taxes/story/2012-04-12/tax-refund-filing-for-bankruptcy/54227664/1

Stricter Penalties for Federal Employees who do not pay their taxes

January 19, 2015 Posted by kingcade

Just in time for tax season- the new chairman of the House Oversight and Government Reform Committee has said that Federal employees who refuse to pay their federal taxes should face stricter penalties for their actions. According to Rep. Jason Chaffetz, R-Utah, 100,000 federal employees do not pay their federal taxes every year, and one of his priorities as a newly elected government official is to strengthen the penalties they will face.

So how big is the problem? According to Chaffetz, this loss accounts for roughly $1 billion a year that is not collected from federal employees because they choose not to pay their federal taxes.

For the last several years Chaffetz has pushed legislation that would allow agencies to fire or prohibit them from hiring people who owe federal taxes. Chaffetz said while the IRS has the ability to fire employees who owe federal taxes other agencies do not. He wants to expand that power to all agencies.

Click here to read more on this story.
http://www.federaltimes.com/story/government/management/oversight/2015/01/09/chaffetz-chair-tax-delinquent-feds/21494577/

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.

Debt Collection Agency held accountable for improper collection practices in NY

January 16, 2015 Posted by kingcade

Encore Capital Group Inc., a buyer of consumer debt, recently agreed to settle claims that it used improper collection methods in New York. According to Attorney General Eric Schneiderman, the company obtained judgments against New York consumers for debts that were too old to collect.

Under the settlement, Encore will have to throw out more than 4,500 improperly obtained judgments totaling almost $18 million. In addition, the company will be required to reform its practices and pay civil penalties of $675,000.

Encore is a debt buyer that purchases unpaid consumer debts, such as credit card debts from the original creditor or from other debt buyers at deeply discounted prices.

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.

Credit Karma expands credit-reporting access

January 14, 2015 Posted by kingcade

Credit Karma has announced that it has increased users’ free access to their credit reports. The company will now offer two of the nation’s three largest credit-reporting agencies and updating them on a weekly basis. This move comes just in time for those making New Year’s resolutions to improve their personal finances this year. The new service will also be helpful for those who plan to take out a mortgage in 2015, by allowing them to closely monitor changes to their credit information.

Credit Karma has added credit reports from Equifax in addition to reports from their longstanding relationship with TransUnion. Credit Karma offers members access to the following credit information: credit card utilization, payment history, derogatory remarks, age of credit history, total accounts and credit inquiries. Access to this information is empowering for consumers, not only for financial education but offering them transparency with their credit reports and scores.

Click here to read more on this story.
http://www.bizjournals.com/sanfrancisco/blog/2014/12/credit-karma-report-score-equifax-efx-mortgage.html

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.

Texas Borrowers Jailed for failing to pay back Predatory Loans

January 13, 2015 Posted by kingcade

At least six people have been jailed in Texas for defaulting on their payday loans, according to public court records. Texas Appleseed, an economic advocacy group, found that more than 1,500 debtors face criminal charges in the state- even though Texas enacted a law in 2012 prohibiting lenders from using criminal charges to collect debts.

According to documents, 1,576 criminal complaints were issued against debtors in eight Texas counties between 2012 and 2014. These complaints were often filed by courts with minimal review and based solely on the payday lender’s word and inconclusive evidence. As a result, borrowers have been forced to repay at least $166,000, to the group found.

In 2012 the Texas legislature passed a law explicitly describing the circumstances under which lenders are prohibited from pursuing criminal charges against borrowers. In Texas, failure to repay a loan is a civil, not a criminal, matter. Payday lenders cannot pursue criminal charges against borrowers unless fraud or another crime is clearly established.

However, according to Texas Appleseed’s new analysis, payday lenders continue to routinely press questionable criminal charges against borrowers. In response to these findings, Consumer Financial Protection Bureau spokesman Sam Gilford said, “Consumers should not be subjected to illegal threats when they are struggling to pay their bills, and lenders should not expect to break the law without consequences.”

Despite being against state law, the data show that criminal complaints are an effective way for payday lenders to get borrowers to pay. Of the 1,576 criminal complaints Appleseed analyzed, 385 resulted in the borrower making a repayment on their loan. This deceitful strategy in using criminal charges to coerce money from borrowers means that payday lenders have a financial incentive to file criminal charges against debtors with alarming regularity — even if those charges are eventually and rightfully dismissed.

Texas is not alone in taking this approach. In 2011, The Wall Street Journal discovered that more than a third of states allow borrowers to be jailed, even though federal law mandates that loan repayment be treated as a civil issue rather than a criminal one.

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.creditandcollectionnews.com/viewer.php?url=http%3A%2F%2Fwww.huffingtonpost.com%2F2014%2F12%2F29%2Ftexas-payday-lending_n_6355602.html