Archive for: ‘February 2016’

Rapper 50 Cent Ordered to Appear in Bankruptcy Court after Instagramming Cash

February 22, 2016 Posted by kingcade

Curtis J. Jackson III better known as rapper, 50 Cent has been ordered back to bankruptcy court following a string of posts to his Instagram and Twitter accounts flaunting numerous piles of cash.

Jackson first filed for bankruptcy in July of last year. Since October, he has posted several pictures of himself with dozens of stacks of $100 bills on his Instagram account. In one post, he lined the stacks of bills up to spell out the word “broke,” seemingly to mock his bankruptcy filing.

Last Thursday, U.S. Bankruptcy Judge Ann M. Nevins told the rapper’s attorney, “I’m concerned about allegations of nondisclosure or a lack of transparency in the case.  There’s a purpose of having a bankruptcy process be transparent, and part of that purpose is to inspire confidence in the process. When that process becomes very public, the need for transparency, I believe, is even higher,” said Nevins.

Jackson’s attorney later issued a statement saying that his client would show up to court and answer all of the court’s questions. The statement also said, “Mr. Jackson has been forthcoming and transparent with all creditors.”

The issue was brought up in court papers filed in January by headphone maker Sleek Audio, SunTrust Bank and 50 Cent’s ex-girlfriend Lastonia Leviston, who claim the rapper owes them a combined $29 million. They also said he has posted videos of performances that he has probably gotten paid for and has not disclosed to the court. They also pointed out that the rapper never admitted he owned property in Africa, contrary to a post on his Twitter account.

This should come as a warning to anyone who plans to hide assets from the bankruptcy court and their attorney. Bankruptcy trustees are experts at finding undisclosed money, property, vehicles, jewelry, antiques, and collectibles. If you are caught trying to hide assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing. In addition, the potential penalty for bankruptcy crimes include fines and imprisonment of up to five years.

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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, 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 Man Arrested by U.S. Marshals for Unpaid Student Loan

February 19, 2016 Posted by kingcade

U.S. Marshals arrested Paul Aker of Texas last week for $1,500 in unpaid federal student loans. Aker borrowed the loan in 1987 and claims that he was unaware he had any outstanding debt.

“I paid two other student loans and thought I had consolidated everything and paid it all off,” Aker said. The U.S. Marshals reportedly made several attempts to serve Aker with a court order requesting that he appear in federal court. The agency said they had searched numerous known addresses before locating Aker. They also said they made contact with Aker by phone in 2012 requesting that he appear in court and he refused.

According to CNNMoney, Aker does not remember having that conversation and said he has not received any notification about the outstanding loan in a long time. A warrant was issued for his arrest soon after he failed to appear in court in 2012.

Two U.S. Marshals went to arrest Aker last Friday at his home. “I went inside to get my gun because I didn’t know who these guys were,” Aker said. The Marshals called for backup after Aker told them he was armed.

After two hours, Aker finally put down the gun and went outside to be arrested without further incident.

Although Aker’s original loan was for $1,500, he now owes approximately $5,700 including interest. He agreed to be placed on a payment plan before a judge last week.

According to CNNMoney, it is common practice for U.S. Marshals to serve summonses to people who fail to appear in court for unpaid federal student loans. However an arrest warrant is only issued after the debtor fails to appear in court.

Arrest warrants were issued for 25 people in the Houston, Texas area for failure to appear in court regarding unpaid student loans.

After 90 days, the loan becomes delinquent and damages the borrower’s credit score. However, student loans are not considered to be in default until nine months of nonpayment.

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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.

Courts Help Debt Collectors Prey on America’s Working Poor

February 18, 2016 Posted by kingcade

Even though the economy is improving, many of America’s working poor, under-employed and unemployed people continue to struggle financially. In addition to their financial troubles, many households face debt collectors who harass and sue them on incomplete or inaccurate information.

To make matters worse for struggling consumers, court judgments often favor debt collectors without determining the validity of the claims. Due to the growth of this problem, it has been the focus in recent research. Both the Human Rights Watch (HRW) and the Alliance for a Just Society recently released reports documenting this disturbing trend.

The report released by the HRW titled “Rubber Stamp Justice,” revealed that courts routinely award default judgments, without the consumer present, in tens of thousands of cases.

The Encore Capital Group, the largest debt collector in the country, has reportedly filed between 245,000 and 470,000 new lawsuits per year in recent years. The report also showed that in 2014 Encore and its competitor, Portfolio Recovery Associates, collected more than $1 billion through debt collection lawsuits.

The report stated, “Fundamental problems with debt collector lawsuits often come to light only after the companies have already won judgments they were never entitled to, in courts that never asked them to present any meaningful evidence in support of their claims.”

Several states have created “judgeless courtrooms” for such cases where consumers are forced to participate in unsupervised discussions with debt buyers and their attorneys. The intention is to provide open forums for compromise, however consumers often end up forfeiting their rights for a future court hearing.

The top consumer debt collection concerns filed with the Consumer Financial Protection Bureau between November 2013 and August 2015 are below:

  • Demands to pay a debt that affected consumer(s) believes is not owed;
  • Frequent or repeated calls about the same alleged debt;
  • Failure to provide documentation to verify the debt.

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.

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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, 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.

Florida Supreme Court to Rule on Statute of Limitations in Foreclosures

February 17, 2016 Posted by kingcade

In Florida, there is a five-year statute of limitations that prevents banks from proceeding with a foreclosure beyond that time period, even after a lengthy court process. However, some mortgage servicers are making payments on behalf of their borrowers to help keep the accounts active in an attempt to preserve their foreclosure rights.

These servicers are waiting on the Florida Supreme Court’s decision on the case U.S. Bank v. Bartram. This case will determine if servicers can restart foreclosures after five years or if they will be barred by Florida’s statute of limitations.

If the court rules that mortgage servicers cannot restart the clock, some foreclosures could be permanently barred, forcing banks to accept less, give deals or greatly lower the monthly payment, according to the article by Moody’s Investors Service. Banks may also opt for a short sale in order to get any recoveries.

According to the report, the court’s ruling will impact a minor amount of cases. “Only approximately three percent of private label loans backed by properties in Florida had a prior foreclosure dismissed and are greater than 60 days delinquent or in foreclosure.”

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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.

Americans Borrow No Matter the Economy

February 16, 2016 Posted by kingcade

The Federal Reserve recently released data that indicated that American’s borrowing habits are excessive whether the economy is booming or hurting.  Over the past decade, credit card debt has gone from $1.02 trillion in 2008, down to $835 billion in 2011 and back up to $935.6 billion by the end of last year.

Americans between the ages of 18 and 65 have an average of $4,717 in credit card debt. The average interest rate is 15 percent, according to creditcards.com. Therefore, if a credit card user makes a minimum payment of $189 per month, it will take more than ten years to pay off a debt of $4,717. Ultimately, the debtor would pay a total amount of $22,869, a cost of $18,155 for a very small loan.

A study released by the Boston Fed examined American credit card debt and found that the biggest reason Americans have such high debt is due to the availability of credit.

The study also showed that only 35 percent of credit card users do not carry a balance. This means they pay off their bill every month and only use their cards for convenience. The other 65 percent of credit card users are “revolvers,” meaning they do not pay their balance in full so the debt revolves. Revolvers tend to see credit limit increases as an invitation to spend more.

Many credit card users are reeled in when companies offer free teaser years that come with as much as $600 worth of miles or hundreds of dollars in cash back as incentives to sign-up and spend. Studies show that credit card debt typically starts in a debtor’s 20’s. Often times the debtor is not earning very much at the time and the availability of funds through credit essentially amounts to extra wealth and reduces the need to save. Although the habit typically starts early in adult life, credit card debt follows most Americans into middle, even old age.

Keep in mind; there are incentives to breaking your credit card habits. According to the Federal Reserve, paying off your credit cards comes with a return that averages 14 percent. This means simply paying off your credit card debt is the best investment you can make.

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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, 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.