Archive for: ‘July 2015’

How Bankruptcy can Affect Your Debts

July 31, 2015 Posted by kingcade

Bankruptcy is a legal process, which allows an individual or company to either discharge most of their debts or pay them off through a structured repayment plan. For those who are considering filing for bankruptcy, it is natural to wonder what will become of their debts. This all depends on the type of debt that is owed and whether it is secured or unsecured. In bankruptcy, secured and unsecured debts are handled differently.

Secured debts like mortgages and car loans have collateral which serves to secure repayment. If a secured debt it not paid, the creditor may either repossess or sell the collateral to cover your debt. Unsecured debts like credit card debt and medical bills do not have collateral. If you fail to pay this type of debt, creditors may turn the debt over to a collection agency or file a lawsuit against you.

The type of bankruptcy you choose to file also makes a difference in how the debt is handled. The two most common types of bankruptcy are Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy

In a Chapter 7 bankruptcy, unsecured debts are typically discharged a few months after filing. Secured debts may be cleared as well but it will not stop the creditors from obtaining the collateral. The only way to prevent this is to keep working toward paying off the secured debt.

Chapter 13 Bankruptcy

For those who file Chapter 13, a three or five-year repayment plan will be put in place for both secured and unsecured debts. In most cases, unsecured debt may not need to be repaid and is often discharged with a Chapter 13 bankruptcy. Regarding secured debts, creditors are unable to take the collateral if you are on a repayment plan.

While these rules seem straightforward, there are exceptions. It is important to note that certain types of debt may not be discharged in bankruptcy. These debts include:

· Alimony
· Child Support
· New debts after bankruptcy has been filed
· Certain student loans
· Certain taxes
· Debts with a co-signer
· Fraudulent debts

Every case is different, so it is important to consult with a qualified and experienced bankruptcy attorney to help you through the process and find the best debt-relief solution for you.

If you are in a financial crisis and are considering filing 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.

Source:
https://www.debt.org/bankruptcy/

Partridge Family Star David Cassidy to Auction his Florida Home after Bankruptcy

July 30, 2015 Posted by kingcade

After filing for bankruptcy earlier this year, ‘The Partridge Family’ star David Cassidy is losing his South Florida home. The 7,000 square foot waterfront Fort Lauderdale mansion is to be auctioned for $1.9 million.

The 65-year-old filed for Chapter 11 bankruptcy protection this past February and in June, the court granted Cassidy permission to auction off the estate. Following his divorce, Cassidy claims he will no longer need the mansion since his work demands frequent travel, according to the Sun Sentinel.

Having accepted the situation, Cassidy plans to move on and begin the next chapter of his life. According to People Magazine, Cassidy listed assets and debts of nearly $10 million. He also owed several creditors such as CitiBank, Wells Fargo Bank and American Express over $17,000 each.

Cassidy spoke with New York Daily News about his bankruptcy proceedings. “This is necessary for practical reasons to reorganize my life as I go through divorce and to restructure my finances.”

The 70’s superstar claims that once he hands over the keys, he is not looking back. Ending a 23 year marriage and then loosing his home after nearly 15 years, Cassidy plans to take this time to overcome his personal struggles. The auction will be handled by Fisher Auction Company and is tentatively scheduled for September 9, 2015.

If you are in a financial crisis and are considering filing 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.

Sources:

http://www.newsmax.com/TheWire/david-cassidy-bankruptcy-auctioning-florida/2015/06/30/id/652813/

http://www.timesfreepress.com/news/national/entertainment/story/2015/jul/30/david-cassidy-prepares-auctifloridmansion/317324/

Consumer Victory over Seedy Debt Collectors

July 29, 2015 Posted by kingcade

Approximately $4 million worth of checks have been placed in the mail to partly compensate thousands of consumers who were scammed by a group of seedy Southern California debt collectors. The Federal Trade Commission (FTC) reports that the checks were sent out to conclude a settlement which was reached last year between the commission and the Asset and Capital Management Group.

The debt collection firm had bought the consumers’ debt from creditors for pennies on the dollar and then falsely threatened the debtors with arrest, wage garnishment, seizure of their property and lawsuits. The firm also disclosed private debt information to the victims’ employers, colleagues and family members, according to the FTC. As shocking as this case is, consumers must remember that they have rights when it comes to debt collection and should not hesitate to contact authorities if a collector violates these rights.

Under the Fair Debt Collection Practices Act (FDCPA), you are protected from these predatory debt collection practices. Federal law sets parameters for when and how a debt collector may contact you. The following is a list of protections the FDCPA provides to you:

  • Debt collectors may not call you outside the hours of 8:00 a.m. and 9:00 p.m., unless you specify that they are allowed to do so;
  • Creditors must always fully disclose their identity and never pretend to be someone they are not;
  • Debt collectors cannot inform anyone else regarding your debts;
  • Creditors are not allowed to threaten or harass you in any form.

“Consumers shouldn’t be subjected to threats and intimidation,” said Jessica Rich, director of The FTC’s Bureau of Consumer Protection. She was also pleased that the victims of the scam will receive money back from the defendants.

Defendants Thai Han, Jim Tran Phelps, Keith Hua and James Novella who operated over a dozen debt collection agencies and shell corporations, had their personal assets seized in order to compensate victims. The defendants have also been permanently banned from the debt-collection business. Officials reported that up to 95,000 people fell victim to the scam.

If you are in a financial crisis and are considering filing 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.

Source:
http://www.latimes.com/business/la-fi-lazarus-20150707-column.html

Former NBA star Antoine Walker Uses His Bankruptcy Expereince to Help Others

July 29, 2015 Posted by kingcade

Former NBA basketball star, Antoine Walker went from earning more than $108 million during his career to filing for bankruptcy, just two years after retirement. The former Miami Heat superstar believed his financial future was ensured; however, he learned otherwise after making a series of poor financial decisions. Now he hopes to help others avoid going down the same path he did.

Walker had gained early success, winning the NCAA basketball championship before he reached his twenties. After being drafted to play for the Boston Celtics 1996, Walker rose to basketball stardom. The three-time All-Star team winner and 2006 top pro player for the Miami Heat suddenly became a wealthy professional athlete, collecting over $108 million during his career.

Like many other young sports stars, Walker equated instant wealth to instant luxury.  Instead of thinking about the future, he bought fancy cars, lavish jewelry and expensive homes. Walker also helped an estimated 30 close friends and family members move to “better situations.”  He referred to it as an “open ATM throughout his career.”

In 2010, Walker filed for a Chapter 7 bankruptcy.  “I thought I was set for the rest of my life,” he stated in a CNN Money interview. “My story is sad. It’s sad to see other guys work so hard throughout their life — and then they just lose it in two or three years.”

Today, the 38-year-old is working to steer young athletes away from making the same mistakes. Teaming up with former NFL linebacker Bart Scott and Morgan Stanley Global Sports & Entertainment, Walker is sharing his life lessons with today’s young players. As Walker and Scott speak to younger athletes about these “real-life parables,” they hope to provide guidance for new generations.

Now out of bankruptcy, Walker is devoted to educating future sports stars to be financially smart. The upcoming documentary “Gone in an Instant,” focuses on his personal boom-to-bust tale. Walker’s best advice to young athletes is to get used to using the word “no” when dealing with friends and family, and focus on building for the future instead of the here and now.

If you are in a financial crisis and are considering filing 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.

 

Source:

http://www.clickorlando.com/news/money/exnba-star-went-from-108-million-to-bankruptcy/34333450

 

How Bankruptcy can affect Security Clearance

July 27, 2015 Posted by kingcade

Determining whether bankruptcy will affect your security clearance depends on the circumstances that led up to your bankruptcy. Filing for bankruptcy will not automatically stop you from obtaining a security clearance; however, your financial situation can jeopardize your security clearance. Before you file for bankruptcy, it is important to understand how your security clearance may be affected. Security clearance decisions are made on a case by case basis.

The following factors are considered when assessing you as a potential security risk:

•allegiance to the United States
•foreign influences and preferences
•drug or alcohol use
•personal conduct
•financial responsibility
•criminal conduct
•psychological disorders
•handling of protected or classified information
•use of information technology
•other outside activities

There are also financial considerations that may affect your security clearance. The military considers your financial standing as an individual when determining whether you should be granted security clearance. This reasoning is based on important factors such as financial self-control, spending judgment and ethics used to maintain financial stability. Certain financial conditions can disqualify you from obtaining a security clearance, such as:

•being unable or unwilling to pay your debts;
•having irresponsible or frivolous spending habits;
•having consistent difficulty meeting your financial obligations;
•committing illegal acts of financial misconduct;
•exhibiting financial problems such as gambling, alcoholism or drug abuse;
•spending beyond your financial means.

Certain scenarios such as a job loss, a divorce or a medical emergency may cause you to file for bankruptcy. These instances are viewed more favorably than if you had to file due to financial irresponsibility. A knowledgeable and experienced bankruptcy attorney can further advise you on how filing for bankruptcy might affect your security clearance.

If you have any questions on this topic or are in a 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.

Sources:
http://www.nolo.com/legal-encyclopedia/will-bankruptcy-affect-my-military-security-clearance.html

http://thelawdictionary.org/article/bankruptcy-and-foreclosures-impact-on-federal-security-clearance/