Posts Tagged: ‘Chapter 11 Bankruptcy’

Former “Dance Moms” Star Abby Lee Miller Begins Prison Sentence for Bankruptcy Fraud

July 24, 2017 Posted by kingcade

Abby Lee Miller, star of the hit reality TV show “Dance Moms,” began her sentence in federal prison this month, more than a year after pleading guilty to fraud in a Pittsburg federal court.  Her sentence is 366 days in prison after pleading guilty to bankruptcy fraud and bringing in more than $120,000 worth of Australian currency into the United States, unreported.

Federal prosecutors charged that Miller was in the middle of Chapter 11 bankruptcy when she attempted to hide $775,000 in income from her Lifetime network reality show and its spinoffs.

The investigation was prompted after the bankruptcy judge in Miller’s case was channel-surfing one night and saw the reality star on TV in December 2012 and figured she had to be making more than the $8,899 in the monthly income she was claiming.

On a lighter note, Miller’s prison diet will be fruit, hot grits, whole wheat bread with jelly, and skim milk for breakfast; burgers with a choice of fries or a baked potato and fruit for lunch; and a deli sandwich or hummus wrap for dinner during her first week in prison, according to TMZ Live.

Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, 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 includes fines and imprisonment of up to five years.

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.

The “Soup Nazi” of Seinfeld Fame Files for Bankruptcy Protection

June 29, 2017 Posted by kingcade

The New York City food company, Soupman, made famous by the popular Seinfeld TV sitcom, has filed for bankruptcy protection just weeks after its CFO was indicted on federal tax evasion charges.  A Chapter 11 bankruptcy petition was filed in Delaware stating that Soupman had estimated debts ranging from just over $10 million to $50 million and assets between $1 million and $10 million.

CFO Robert Bertrand failed to pay Medicare, Social Security, and federal income taxes.  His job included collecting, accounting for and paying the taxes for Soupman’s employees. However, the indictment alleged that between 2010 and 2014 Bertrand paid employees with undocumented cash, and compensated certain workers with unreported stock awards.

As a result, the federal government lost $593,971 in total tax payments that should have been paid by the company, according to prosecutors. Bertrand, who has pleaded not guilty, was released on $50,000 bond, pending a scheduled hearing on July 18, court records show.

The Staten Island-based, Soupman company licenses the name and recipes of Al Yeganeh, the model for the gruff “Soup Nazi” character in the popular Seinfeld series.  The character focused fanatically on his culinary creations and refused to serve certain customers using the popular catchphrase: “No soup for you!”

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.

 

Darius Miles’ Bankruptcy is a Cautionary Tale for Young Athletes

December 19, 2016 Posted by kingcade

After filing for bankruptcy earlier in the year, former NBA superstar Darius Miles’ belongings were auctioned off last week in Belleville, IL. Miles reportedly made $62 million throughout his career that ended following a knee injury and two arrests between 2009 and 2011. Items that were auctioned off included: an autographed Lebron James jersey, an autographed Michael Vick jersey, a four-wheeler, a dining room set, four firearms, 10,000-plus DVDs and karaoke equipment.

According to the Belleville News-Democrat, Miles’ bankruptcy was the result of unpaid child support, tax debt, a failed real estate deal and overspending. Profits from the auction held at the Belle-Clair Fairgrounds will go to his creditors.

Miles was a first-round draft pick with the Los Angeles Clippers in the 2000 NBA draft and signed a contract worth $9 million. Miles played in Los Angeles, Cleveland, Portland and Memphis. He also starred in a movie with Scarlett Johansson and Ryan Reynolds and landed an endorsement with Michael Jordan’s athletic brand.

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.

Related Resources:

http://www.bnd.com/news/local/article102254247.html

http://www.stltoday.com/sports/columns/ben-frederickson/benfred-miles-bankruptcy-is-a-cautionary-tale-for-young-athletes/article_b29ff674-5e2a-502c-b6ae-84bc1276bde7.html

The 4 Critical Mistakes that Lead Businesses to Bankruptcy

September 29, 2016 Posted by kingcade

We have all seen the headlines of some of the largest retailers filing for bankruptcy.  From Sports Authority to popular brands like Aeropostale and Pacific Sunwear, these are just a few of the apparel players that have filed for bankruptcy this past year.

According to experts, a variety of factors have played a part in these business bankruptcies.  Here are four missteps that lead businesses to financial collapse.

  1. Failure to adapt. While e-commerce has created an exciting new environment for brands and retailers to promote and sell their apparel, difficulties with adaptation have hurt businesses that lack the support and expertise to manage change in today’s digital and mobile arena. Teens and millennials are driving a massive migration online and are also less brand-focused than previous generations.
  2. Expanding too soon and high real estate costs. There is a good reason why closing stores is often the first line of defense in a retail bankruptcy and restructuring plan. These excessive brick-and-mortar expansions can destroy profit margins across the board, and retail analysts say U.S. retail is at the peak of over-expansion. Expensive rents played a key role in the collapse of Sports Authority and Pacific Sunwear.  PacSun successfully emerged from bankruptcy this month after reducing its debt, closing some of its stores and negotiating lower rent.
  3. Outdated business concepts. Not keeping up with the times can cost a business (and a brand) dearly. A number of businesses file for Chapter 11 bankruptcy because their concept is no longer of interest or their consumers’ tastes have changed. On the other hand, there is the issue of “oversaturation,” where a marketplace becomes too competitive and there is an overabundance of similar businesses and products.
  4. Poor mergers and ownership challenges. The past year and a half has brought a strong wave of mergers-and-acquisitions, particularly in the footwear and apparel industry. Who owns the business plays a big role. Is it a family-owned business that has a vested interest in keeping the company going or is the business owned by a private equity firm, who owns a variety of other businesses? In the case of Sports Authority it was said that new ownership played a pivotal role in the company’s downfall.

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://footwearnews.com/2016/business/retail/bankruptcy-chapter-11-brands-retailers-mistakes-reasons-business-analysis-258911/

 

11 Steps to Take When Bankruptcy is Your Best Option

September 23, 2016 Posted by kingcade

Many Americans have had difficulties keeping up with their debts and credit obligations since the Recession. If you have similar difficulties, filing for bankruptcy may be your best option.

Here are 11 steps you should take if you are filing for bankruptcy.

  1. Explore your options. Before filing for bankruptcy, it is best to educate yourself on what filing for bankruptcy means. For example, you need to determine if you need to file Chapter 7 bankruptcy or Chapter 13 bankruptcy. Most individuals file Chapter 7 bankruptcy, which means that you, as the debtor are relieved from some or all of your financial obligations.
  2. Complete the means test. This is a standard test that will compare your income to your debts to determine if you are eligible to file for Chapter 7 bankruptcy.
  3. Hire an experienced bankruptcy attorney. A bankruptcy attorney is invaluable to you during the bankruptcy process. Your attorney will explain your options, answer your questions, make informed recommendations and even fill out the forms for you and make sure they are filed correctly and on time.
  4. Pay the fees. When filing for bankruptcy, you will be responsible for legal fees and application fees. The application fees alone can cost between $300-$500 and once you include your attorney fees, you may spend around $2,000 total.
  5. Assemble your information. Gather and organize all of your financial information. This includes: your income, expenses, assets, debts and property exemptions. You need to have all of your financial information ranging over the past six months for the bankruptcy procedure. You have to list this information in order to have your debts discharged.
  6. Determine which debts are excusable. Although bankruptcy is considered a clean slate, there are debts you will still be responsible for after your bankruptcy proceedings. For example, you will most likely still be responsible for: student loans, child support and tax debts.
  7. Attend a credit-counseling program. Within six months before filing your petition, you will need to attend a credit-counseling program at a court-approved agency. The counseling can usually be completed online or over the phone.
  8. File the forms. One reason it is important to hire a bankruptcy attorney is so that they can help you fill out the necessary forms and can remind you of the deadline.
  9. Automatic Stay. Once you complete all of the paperwork and file it, you will be granted an automatic stay that prohibits almost all creditors from continuing collection actions against you.
  10. Attend the meeting. Oftentimes, Chapter 7 bankruptcies do not end up in court. However, you will need to attend a mandatory meeting known as a 341 meeting with the creditors and a court-appointed trustee. The trustee will ask questions pertaining to your finances and your petition.
  11. Post-Bankruptcy Obligations. Once you have successfully filed for bankruptcy, you will need to attend a post-bankruptcy credit counseling. This will help you successfully manage your finances and proceed forward so that you do not end up in a financial crisis again.

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.