Month: December 2016

Bankruptcy Law, Credit, Debt Relief

Congress May End Tax Benefits on Inherited IRA’s in the New Year

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Retirement accounts may soon be taking a major hit from the IRS, if Congress decides to change the rules on a tax strategy involving inherited IRAs.

Under the current rules, people who contribute to an IRA and do not end up needing the money for retirement are able to pass the account to their heirs.  The money is then allowed to keep growing tax-deferred throughout the heir’s lifetime, with minimal taxes due on withdrawals.

However, the Senate Committee on Finance voted 26-0 to put an end to the ability to stretch an IRA across generations, putting trillions of dollars of legacy wealth in danger of being taxed.

Second to the home, retirement accounts are a household’s greatest source of wealth.  Individuals who inherited traditional IRAs have been able to profit from one of the biggest benefits of the tax code, allowing the tax-deferred balance to continue compounding for years.  The ability to transfer that wealth to second and third generations will be put in jeopardy with this legislation.

The proposed legislation comes after the Supreme Court ruled unanimously that inherited IRAs are not “retirement funds” under the bankruptcy code and are not entitled to exemption from a debtor’s bankruptcy estate.

The proposed law does not apply to surviving spouses.  Surviving spouses may either roll the money over into another retirement account or spread the taxes due on the account across their lifespan.

The proposed rule would not affect Roth IRAs because taxes on those accounts have already been paid with after-tax income by the account owner. Taxes on traditional IRAs are deferred until the account owner begins making withdrawals to cover living expenses during retirement. Heirs are required to continue making annual withdrawals from the inherited account and pay taxes on those withdrawals. The new rule would dramatically speed up the pace of those withdrawals.

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 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, Debt Relief, Student Loans, Timothy Kingcade Posts

Social Security Checks Being Garnished for Unpaid Student Loan Debt

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In an effort to recoup millions of dollars in unpaid student loan debt, the government has resorted to taking money from borrowers’ social security checks.  Since 2001, the government has collected about $1.1 billion from recipients of all ages.  In 2015 alone they collected $171 million. This has left thousands of retired or disabled Americans with below-poverty incomes, according to a recent report from the Government Accountability Office.

As of September 2015, 114,000 Americans who were 50 and older had their Social Security benefits reduced to offset defaulted student loans, according to the report. Since 2002, the figure has increased by 440%.

The report identifies an increasing trend of baby boomers entering retirement with student loan debt. According to the report, approximately 43% of people whose Social Security checks were decreased have held their student loans 20 years or more.

Borrowers who are determined to be permanently and totally disabled are entitled to have their student loan debt forgiven, though many are unaware of the option, according to the Wall Street Journal. Currently, the government’s student-loan portfolio is $1.26 trillion, with an increasing number of people continuing to fall behind on their payments.

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.

Related Resources:

http://www.wsj.com/articles/social-security-checks-are-being-reduced-for-unpaid-student-debt-1482253337

http://fortune.com/2016/12/20/social-security-checks-garnished/

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Sycamore Attorney Charged with Bankruptcy Fraud

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Kevin O. Johnson, also known as “K.O. Johnson,” was indicted by a federal grand jury on charges of bankruptcy fraud.  He is charged with four counts of bankruptcy fraud and four counts of making a false oath in a bankruptcy case under penalty of perjury, fraudulently withholding information pertinent to the case and concealing assets.

Johnson, whose practice included bankruptcy law, filed a Chapter 7 Bankruptcy Petition on Dec. 31, 2011.  The indictment alleges that Johnson fraudulently concealed property from the bankruptcy trustee, creditors, and the United States Trustee, including complete information of about $1,790,000 of account receivables owed to Johnson by his present and former clients.

The indictment also charges Johnson with the following:

  • Failing to comply with a court order requiring him to turn over all proceeds from the collection of account receivables;
  • Having directed clients not to send any payments to the Bankruptcy Trustee and asking clients to sign misleading documents about the nature of payments they made, despite Johnson knowing that all future account receivable payments were required to be made to the Trustee;
  • Making false statements concerning his security interests and liens on the $1,790,000 of account receivables;
  • Removing invoices and fee agreements from client files;
  • Obstructing the Bankruptcy Trustee by omitting a bank account used to deposit a check received in payment of an account receivable owed to Johnson at the time he filed for bankruptcy.

Each charge in this case carries a maximum penalty of up to five years in prison, and a fine of up to $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.  The Court may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years.

Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to conceal assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you list in a subsequent bankruptcy filing.  In addition, you can face serious fines, even jail time.

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 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, Debt Relief, Student Loans, Timothy Kingcade Posts

The U.S. Government is Collecting Student Loans it Promised to Forgive

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In recent years, the U.S. Department of Education has taken on two different roles in the lives of indebted former college students. The same bureaucracy must collect on the $1.1 trillion in student loans in an attempt to protect taxpayer dollars and it also oversees the nation’s largest-ever effort to forgive student loan debt.

The government’s dual roles have since caused problems for former Corinthian Colleges Inc. students. Tens of thousands of these former students had their student loans cancelled and according to the Obama administration they were supposed to be reimbursed in full. However, the Department of Education has been actively collecting on federal student debt owed by the former students.

Corinthian Colleges Inc. filed for bankruptcy in 2015 under a cloud of fraud investigations. As a result, government officials had reason to believe that some of these students’ debts should be forgiven. However, former students have come forward saying that they are still being approached for payment on their loans. When companies have made similar attempts at collecting on debt that is not actually owed in the past, they have been charged by federal and state regulators with violating the law.

According to the former director of the Federal Trade Commission’s consumer protection division, David Vladeck, “There’s no clear-cut reason why there shouldn’t be automatic loan forgiveness for people who otherwise would have a legal claim for deceptive conduct against this now-bankrupt company.” He went on to say, “These kids by and large have been scammed, and the Department of Education in some sense is continuing that harm by making them jump through hoops to get the relief to which they are entitled.”

Click here to read more on this story.

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, Debt Relief, Timothy Kingcade Posts

What to Consider Before Paying Christmas Bills with a Tax Refund Loan

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If you are planning on paying off your Christmas debt with your tax refund check, you may want to think again. The Internal Revenue Service (IRS) announced that some taxpayers will experience delays at the beginning of tax season in 2017 due to a new law that requires the IRS to hold refund checks until February 15th. There may also be delays due to weekends and the President’s Day holiday. As a result, the IRS cautions taxpayers not to count on their refund checks until the week of February 27th.

However, some taxpayers are planning to use tax Refund Anticipation Loans (RALs) or Refund Anticipation Checks (RACs) to tide them over between the holidays and tax season. If you are planning to do so, here are a few things to keep in mind:

  • Interest Rates: In most RAL agreements, the taxpayer agrees to repay the RAL at tax time, plus interest. Some states limit the amount of interest that a lender can charge, however, in some instances, the annual percentage rate (APR) of an RAL can exceed triple-digits.
  • Fees: In addition to high interest rates, RALs oftentimes come with hefty fees that can diminish the remainder of your refund check. According to the National Consumer Law Center, some add-on fees they observed in a 2013 report included application fees; data and document storage fees; document processing fees; e-filing fees; service bureau fees; transmission/software fees; and technology fees.
  • Uncertainty: Keep in mind that you have to repay the entire amount of the loan even if you receive less than you anticipated. This means that you have to estimate the amount you will receive back on your taxes when taking out a loan.

 

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 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, Debt Relief, Timothy Kingcade Posts

How to Buy Your Kids Gifts that Keep on Giving

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According to Personal Capital, Americans plan to spend an average of $936 shopping for friends and family this holiday season. However, parents can ensure their children’s gifts are long-lasting by gifting in these four unique ways this holiday season.

  1. The Gift of Experience: One of the best investments you can make for your children is giving them the gift of experience. A recent study conducted at San Francisco State University analyzed information from 154 students at the university who recently purchased items and experiences. The study found that the happiness from purchasing an item faded over time, but the happiness and memories from an experience lasted longer and contributed to more happiness.
  2. The Gift of Health: Whether you buy a bike, skateboard, kayak, snow board, running shoes or anything else that can keep your child active, you are making a good investment. According to the CDC, there are over 12 million children who are obese in America. One of the best things you can do for your child is encourage them to exercise.
  3. The Gift of Responsibility: Teaching your child to be responsible can be a challenge. If your child has been asking for a pet, this is a good way to teach them responsibility. If your child is interested in cooking, you can gift some kitchen gadgets so that they can start helping out in the kitchen.
  4. The Gift of Compound Interest: It is never too early to start thinking about your child’s future. Investing on your child’s behalf is a great way to do so. Look into different ways you can invest on your child’s behalf. This is a great way to give a gift that is long lasting and will help them down the road when they are going to college or buying a house.

 

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 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, Debt Relief, Timothy Kingcade Posts

Miami-based Catholic School Ordered to Release Student Transcripts

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Emergency Motion Granted for Kingcade & Garcia Clients after School Violates the Bankruptcy Automatic Stay

On December 21, 2016, Miami bankruptcy attorney Timothy S. Kingcade of Kingcade & Garcia, P.A. (www.miamibankruptcy.com) obtained an Order from the Bankruptcy Court compelling Belen Jesuit Preparatory School, a Miami-based Catholic school, to release educational transcripts in compliance with the automatic stay and to pay his clients’ legal fees.  Mr. Kingcade filed an emergency motion arguing the school willfully and intentionally violated the automatic stay by refusing to release the transcripts.

“Bankruptcy has its origins in the Old Testament and while the school may ignore the edicts of its own teachings, it may not ignore the bankruptcy law inspired by those philosophies,” said Kingcade. “The school evidenced no intention to abide by the automatic stay and as a result, my clients have been forced to seek relief from the court,” he continued.

Mr. Kingcade’s clients filed for Chapter 7 bankruptcy relief on December 12, 2016. On December 13, 2016, a notice of the filing and a request for the release of transcripts for their two children was sent to Belen Jesuit Preparatory School. The school had actual knowledge of their bankruptcy filing and refused to release the requested transcripts. The older of his clients’ children is in the process of applying for college and the withholding of the transcripts could result in his college application being deemed incomplete for consideration.

The school hired counsel and sought to mitigate the exposure for the school’s violation of the federal bankruptcy laws. Mr. Kingcade ultimately persuaded the school to release the transcript. The parties agreed to an order granting the emergency motion. The order requires Belen Jesuit Preparatory School to immediately release transcripts and / or final grade reports for the two children and for it to continue to cooperate with his clients and release future transcripts upon request. The school is also required to pay Mr. Kingcade’s legal fees.

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Miami-based Kingcade & Garcia, P.A. was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade & Garcia, P.A. specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Take These Steps to Prepare for Tax Filing Season

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With tax season right around the corner, the IRS recommends taxpayers take the following steps to prepare.

Individual Tax Identification Number: Filers who have expired Individual Tax Identification Numbers (ITIN) are likely to experience processing delays. If your ITIN expires on December 31st, 2016, you can renew your ITIN at any time by submitting the accurate documentation such as a W-7 and valid ID. The requirements needed to renew your ITIN are listed at www.IRS.gov/ITIN.

Refunds: According to a new tax law, the IRS cannot issue refunds before February 15th. Taxpayers should be advised not to count on receiving their refunds any earlier. However, you can file your tax return before February 15th. You can also check the progress of your return by visiting the Where’s My Refund page.

Adjusted Gross Income: If you are preparing your own taxes this year and plan to file electronically, you will need to know your Adjusted Gross Income (AGI) from the previous year or your prior-year Self-Select PIN. You can no longer use an electronic filing PIN when filing electronically. You can find your AGI from your 2015 federal income tax return on line 37 of the form 1040; line 21 of the form 1040-A; or line 4 of the form 1040-EZ.

Protection: The IRS has upgraded its identity verification process in order to protect taxpayers from impersonations and account takeovers. As a result, it is better if you prepare to register early on the Secure Access page in advance.

Click here to read more on the steps to prepare for tax filing season.

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 at www.miamibankruptcy.com.

Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Why You Shouldn’t Panic about Rising Mortgage Rates

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Although mortgage rates have been on a steady rise in recent months, buyers should not panic because rates are still historically low. According to Freddie Mac, the average rate for a 30-year fixed-rate mortgage rose to 4.16 percent, up from 4.13 percent last week. This is up from 3.97 percent last year. This means buyers will pay approximately $21 more per month compared to a year ago on a $241,000 mortgage with a 20 percent down payment.

According to economists, the rise in interest rates should not deter potential buyers. In 1996, the average rate was 5.67 percent and in 1990 it was 10.13 percent. However, for the past ten years rates have been under five percent.

Mortgage rates are forecasted to gradually increase throughout 2017. As a result, home prices are also expected to rise.

“The era of ultra-low interest rates is over,” said Lawrence Yun, chief economist of the National Association of Realtors. “The short-term rate hike will be followed by several additional rounds of increases in 2017 and 2018. Despite these moves, mortgage rates will not rise alarmingly.”

Click here to read more on this story.

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.

 

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Darius Miles’ Bankruptcy is a Cautionary Tale for Young Athletes

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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