Bankruptcy Law Archives - Page 106 of 128

Bankruptcy Law, Credit, Timothy Kingcade Posts

Bankruptcy Fraud and its Consequences: Don’t Let this Happen to You

Posted on October 23, 2013by Admin

A 55 year old woman from Barron, Wis., has been charged with bankruptcy fraud. The indictment alleged that in December 2008, she concealed $18,977 in U.S. currency. The indictment also charged her with making material false declaration in a bankruptcy proceeding, by stating that she had only $100 cash on hand and fraudulently omitting a $12,000 transfer of U.S. currency to relatives and a $3,650 payment to a creditor. She is also charged with falsely testifying under oath in a bankruptcy proceeding on February 3, 2009, about the concealed currency and the transfer of currency to relatives.

If convicted, Cynthia Barlow faces a maximum penalty of five years in federal prison on each count. The charges against her are the result of an investigation by the FBI. If you are considering filing bankruptcy, do not attempt to hide money or assets. This can include transferring money to a family member or opening a hidden bank account to conceal funds. Do not attempt to hide or destroy property from a creditor. These actions can greatly affect the outcome of your case and land you in jail.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

The Dangers of Medical Credit Cards

Posted on October 22, 2013by Admin

We all know that medical bills can be costly, especially when insurance only covers a small portion of the procedure. But recently, some doctors have been offering a solution to this problem- a special line of credit to help cover your bill. What seems like a perfect solution is becoming a credit nightmare for many. This “buy now pay later” option comes at a cost- high interest rates and severe penalties if payments are late or missed.

A growing number of health care professionals are urging patients to pay for treatment not covered by their insurance plans with credit cards and lines of credit that can be arranged quickly in the provider’s office. The cards and loans, which were first marketed about a decade ago for cosmetic surgery and other elective procedures, not typically covered by insurance, are now victimizing older Americans.

Patrcia Gannon, 78, learned the hard way when she signed up for Dr. Knelinnger’s medical credit card to cover her partial denture. The cost for the procedure was more than $5,700. She pays roughly $214 a month, which eats up about a third of her Social Security check. If she is late, she faces a penalty of $50. The interest rate for the card is 23 percent and she receives a 33 percent penalty rate if a payment is missed or late.

Doctors, dentists and other medical professionals have a financial incentive to recommend the financing because it encourages patients to opt for procedures and products that they might otherwise forgo because they are not covered by insurance. It also ensures that providers are paid upfront — a fact that financial services companies promote in marketing material to providers.

While medical credit cards resemble other credit cards, there is a critical difference: they are marketed by caregivers to patients, often at vulnerable times, such as when those patients are in pain or when their providers have recommended care they cannot afford or insurance will not pay for.

The problem has become so severe that attorneys in several states have filed lawsuits claiming that certain dental practices and other medical professionals have misled patients about the financial terms of the cards, employed high-pressure sales tactics and overcharged for treatments and billed unauthorized work.

The New York attorney general’s office found that health care providers had pressured patients into getting credit cards from one company, CareCredit, a unit of General Electric, which gave some providers discounts based on the volume of transactions. The investigation found that patients were misled about the terms of the credit cards, and in some instances, tricked into believing that they were agreeing to a payment plan with the medical provider when, in fact, they were being pushed into high-cost credit.

Click here to read more on this story and the dangers of medical credit cards.

Bankruptcy Law, Credit, Timothy Kingcade Posts

TODAY marks the eight year anniversary date! Many consumers eligible to file Bankruptcy, again.

Posted on October 18, 2013by Admin

Today, October 18, 2013, marks eight years since the country’s bankruptcy laws received a huge makeover, in an attempt to reduce the abuses of the system and shift more debtors into repayment plans, rather than have their slate wiped clean. The timeline is significant because when the Bankruptcy Abuse Prevention and Consumer Protection Act took effect on Oct. 17, 2005, it changed the countdown clock to eight years — from six years previously — before a debtor is eligible to file bankruptcy again. Now, anyone that filed under the old law is eligible to file, again.

The Bankruptcy Abuse Prevention and Consumer Protection Act changed far more than just the waiting period to re-file. It also established a “means test” to determine whether a debtor had the ability to repay. It also required that filers take pre-bankruptcy credit counseling and post-bankruptcy money-management courses. It also required lengthier documentation and increased fact verification by bankruptcy attorneys.

The goal of the reform law was “to prevent abuse and make the bankruptcy act fair.” Some experts contend that the reforms were partly intended to decrease bankruptcy filings, and as predicted, filings have dropped. In 2004, the year before the reforms were enacted, annual business and consumer filings totaled nearly 1.6 million. Other than 2005, when there was a rush to beat the Oct. 17 deadline, filings have not topped that 2004 figure and in 2012 totaled 1.2 million cases. Others attribute the decline in filings to the pullback by the credit markets to extend credit to risky clients, giving fewer people credit to default on.

Many people who filed before the law changed in October 2005, may have suffered a job loss, foreclosure or another economic hardship that has put them in the position to file, again. Back in 2005, the economy was much different than it is today. Due to their previous filing, they have been unable to file- until now!

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, Timothy Kingcade Posts

Federal Courts Continue Facing Delays during Government Shutdown

Posted on October 15, 2013by Admin

The government shutdown has delayed civil cases and continues to raise uncertainty about the federal courts immediate future. If the shutdown continues past Thursday, reserve funds that the federal courts have been using since the October 1st start of the shutdown will run out. Criminal cases, bankruptcy cases and most appeals continue to move forward in the system. However, civil cases and those in immigration court are feeling the greatest impact from the shutdown.

Immigration court proceedings are largely shutdown. Rafael Sanchez has been waiting two years to make his case for a green card after he and his family from Bogota, Colombia, overstayed their U.S. tourist visa in 1997. Their New Hampshire court hearing scheduled for October 9th was canceled because of the shutdown. Sanchez’s daughter, a high school senior, is not sure if she will be able to attend college now, as she will not qualify for financial aid without her green card. If the shutdown continues into the second half of October, juror reimbursement funds could run out as well – which would force courts to issue IOUs to jurors for their service.

Click here to read more about the Federal courts’ continued delays during the government shutdown.

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.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

U.S. Federal Courts Remain Open Amid Government Shut Down

Posted on October 11, 2013by Admin

Federal courts will continue to hear and decide cases amid the U.S. government shutdown. Federal courthouses will remain open under the terms of the Anti-Deficiency Act, the federal law that calls for “essential” work to continue in the event that federal funding is frozen. Most judicial services are considered essential- so judges will keep working, legal filings will continue to be processed and federal defenders will continue to be assigned indigent defendants.

However, courts have been encouraged to conserve as much as possible by deferring non-crucial expenses. The first two weeks following the shutdown, the courts will use revenue from filing fees and long-term appropriations that are not part of the annual budget to pay its staffers as normal.

Once those funds are exhausted, employees deemed non-essential would be furloughed without pay. Those considered essential would continue to work without pay, though they would be entitled to retroactive money after the government resumes business. Jurors will also be forced to wait until after the shutdown ends to receive payment for their service.

A memo from the courts’ central administrative office said judges should not prioritize between criminal and civil cases. During a shutdown, courts will eschew non-essential expenses, such as training, purchasing equipment and supplies and paying for travel.

While judges will continue to hear cases, the Justice Department said it will ask to postpone appearances in civil and bankruptcy cases as long as it did not compromise the safety of human life or the protection of property under the terms of the Anti-Deficiency Act. The Justice Department has said that criminal cases would continue to be heard without delay or interruption.

Click here to read more on the effects the government shutdown has on U.S. Federal Courts.

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Credit Mistakes that Can Wreck your Retirement

Posted on October 10, 2013by Admin

A recent University study found that elderly people are more likely than any other age group to file for bankruptcy. The “boomer generation,” now thinking about retirement can learn from the seven credit mistakes below:

1.) Assuming that you are nearing the end of the road. According to the Social Security Administration, the average life expectancy is 84 for men and 86 for women. Keeping that in mind, treat credit as a long-term asset accompanied with risks, responsibilities and important benefits.

2.) Avoiding Credit. Many seniors are proud of their financial accomplishments. Whether they have finally paid off their mortgage, payed off their credit cards or car. But if you ever need a loan and you have little credit in your name, your credit score could have dropped. This means you will likely have to pay higher interest rates if you ever need credit for a life emergency. Instead, get a credit card. But use it only as you would a debit card, charging only what you can afford to pay at the end of each month. This will help rebuild your score.

3.) Taking on too much debt. A recent study by Demos found that Americans aged 50 and over have an average credit card balance of $8,278, compared to $6,258 for people under 50. Senior debt has many causes. More than a third of people over the age of 50 with credit card debt use their credit cards to cover basic living expenses, which is a big mistake. This makes them vulnerable to debt collection scams and withdrawing money from retirement accounts to pay off credit card debt.

4.) Student Loans. Think twice before signing for any student loans. The average borrower over age 60 owes $19,521 in student loan debt, and 12.5 percent of them are delinquent on their payments. Some took college classes later in life. Others have debt leftover from school days long past or cosigned on student loans for their children and grandchildren.

5.) Co-Signing. To help their children or grandchildren purchase a car, new home or pay for college, many seniors have co-signed loans. Oftentimes, not realizing that lenders and credit reporting agencies do not distinguish between borrowers and co-signers. Instead, lend money directly. This will help your loved one establish credit of their own without endangering your financial future.

6.) Failing to check your credit score. Check your credit score for free once a year with each of the three major credit bureaus and sign up for tools such as Credit.com’s free Credit Report Card, which allows you to see your credit profile and provides free scores that update monthly. 36 percent of seniors who did this found errors which severely damaged their credit scores.

7.) Failing to understand reverse mortgage risks. A reverse mortgage can provide seniors extra money during retirement by tapping all the equity they have built up in their home. The loan is repaid only when they die, sell or move out of the home. It is important that you do your homework. Meet with a certified financial advisor to see whether a short- or mid-term reverse mortgage is right for you.

Click here to read more on credit mistakes that can wreck your retirement.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Protecting your Credit Score when Canceling a Credit Card

Posted on October 4, 2013by Admin

Your credit score can vary from day to day and it is not an exact science. There are dozens of different models out there, the most popular being the FICO score- ranging from 300 to 850. When you need a good credit score, for example, when purchasing your dream home, your credit score becomes very important. If you have a credit score of 730, many mortgage brokers will give you their best rates. If you have a credit score over 740, it’s not going to make much difference- you are already getting the best rates available.

If you are applying for a mortgage, hold off on closing the credit card, until after your loan closes. Closing an account does not only affects your debt-to-credit-limit ratio; it can also adversely affect your credit score if the card you close is your oldest card, because length of credit history is seen as a good thing. The best way to permanently improve both your finances and your credit score is to get the debt-to-credit ratio to zero.

Click here to read more on protecting your credit score when canceling a credit card.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Creditor Harassment- Know your Legal Rights

Posted on October 1, 2013by Admin

The following tips can help you maintain your sanity when it comes to dealing with debt collectors. The first step is to try and address the issue before it becomes a problem. While paying bills on time is ideal, it is not always possible. Sometimes the unforeseen can occur- the loss of a job or an unexpected health problem can cause you to fall behind on bills and accumulate a great deal of debt. It is important that you do not ignore the issue. First, contact your creditors and explain the situation, attempt to work out a payment plan before the bill is turned over to collections.

If this is not possible and the debt gets turned over to a harassing debt collection agency, you have options. Write a letter requesting that the collector stop contacting you. Under the Fair Debt Collection Practices Act (FDCPA), debt collection agencies and attorneys must stop contacting you after receiving a letter requesting that they stop calling. You should also indicate any illegal actions committed by the collector in this letter. Keep a copy of this letter for your records.

After you send this letter, collectors may only contact you to acknowledge receipt of the request, to tell you their efforts have ended or to tell you that they are suing you. However, you should note that the FDCPA only applies to collection agencies and attorneys – it does not apply to in-house collection departments, although many creditors will honor the request. If your letter fails to end the harassment, a letter from a lawyer usually will. Additionally, once you have hired a lawyer, the collection agency or creditor’s attorney must only communicate to you through your lawyer. The other benefit of retaining an attorney is that they can help you raise legal claims under the FDCPA.

Under the Fair Debt Collections Practices Act, it is illegal for debt collectors to do the following:

• Contact your employer or neighbors about your debt
• Call you late at night or at unreasonable hours
• Call you at work
• Call you repeatedly
• Engage in deceptive conduct
• Calling you without disclosing the collector’s identity
• Use obscene, derogatory, or insulting remarks
• Threaten arrest or loss of child custody or welfare benefits
• Publish your name
• Use any communication, language or symbols on envelopes or postcards that indicate that the sender is in the debt collection business
• Threaten self-help repossession without legal right or present intent to do so

If the collection agency is in violation of any of these laws, you may be able to sue them for damages, your attorney fees, plus an additional $1,000.00.

Bankruptcy Law, Timothy Kingcade Posts

U.S. Dept. of Education to Contact Borrowers with NEW Options for Repaying Student Loans

Posted on September 26, 2013by Admin

Starting next month, the U.S. Department of Education will contact borrowers who are struggling to repay their federal loans to make sure they know of all the options available to them. The challenge will be getting the word out as there are many people who can benefit from the income-based repayment programs being offered. To accomplish this, the department is planning to send e-mails to those who seem most likely to benefit from the programs, explaining debt-relief plans based on the borrower’s income.

Efforts to help alleviate student debt, now at more than $1.1 trillion, and make college more affordable have been central issues for the Obama administration. It has expanded debt relief for low-income borrowers with a Pay as You Earn program for recent graduates, and simplified enrollment by putting the application online and allowing applicants to import information from their tax return.

Once enrolled in a program, low-income borrowers with high debt will pay a percentage of their discretionary income every month, and after a certain time period — 20 years in the new program, 25 years in older plans and 10 years for those in public service jobs — the remaining federal debt is forgiven.

Of course, income-based programs have a downside: because the repayment period is longer than the standard 10 years, except for those in public service jobs, interest costs are higher. The U.S. Dept of Education stresses that the programs are not meant for all borrowers, but as a safety net for those struggling with their student loan debt.

Click here to read more on the new options available for repaying student loans.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Parents on the Hook for Child’s Student Loans

Posted on September 25, 2013by Admin

American student loan debt tops $1 trillion, according to the Consumer Financial Protection Bureau. But with many recent graduates facing a tough job market and limited employment opportunities, what happens when they cannot afford their monthly student loan payments? If a parent co-signed the loan, the burden shifts to them.

Bankruptcy attorneys are seeing an increasing trend with parents struggling to pay off their child’s student loans. Unfortunately, even bankruptcy cannot wipe the slate clean- unless of course undue hardship can be proven. Al Franken, on the Senate Education Committee, said that he has backed several pieces of legislation he thinks could help. One example is the Fairness for Struggling Students Act, which, if passed, would make it possible to eliminate private student loan debt in bankruptcy. Franken has also backed legislation that aims to help students receive better counseling when taking out a loan.

Experts say parents can and should co-sign their child’s student loans, but must be “informed borrowers,” meaning they need to closely scrutinize the terms of the loan. Many banks are getting out of the student loan business, largely because of the increased scrutiny from lawmakers. JPMorgan Chase announced its departure just a couple of weeks ago. Bank of America, Citigroup, and U.S. Bank have already done the same. So for future borrowers, it means more student loans will come from the federal government.

Click here to read more on the story.