Bankruptcy Law

Bankruptcy Law, Credit, Timothy Kingcade Posts

Many Americans Using their Tax Refund to Pay for Bankruptcy Protection

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Many Americans are finding it difficult to come up with the money to file for bankruptcy protection. As a result, more than 200,000 families used their tax refunds in 2011 to pay for bankruptcy filing and legal fees, according to the National Bureau of Economic Research (NBER). Each year, personal bankruptcy filing rates spike in the first part of the year after Americans receive their tax refunds. The cost of filing for bankruptcy has jumped in recent years due to a reform in bankruptcy laws, just before the Recession. In 2005, the average cost of legal and administrative fees was $921 compared with the 2007 average of $1,477, according to reports from the U.S. Government Accountability Office.

Attorney fees make up the largest portion of the costs associated with filing for bankruptcy. Since the reform, attorneys are required to verify more information in a bankruptcy case than they did before 2005, which had a direct impact on the increase in attorney fees. The increase in bankruptcy filing fees has made it much harder for those who actually need to file for bankruptcy protection to afford it. Many who are in dire need of relief from their debt use their entire wages just to live and have little leftover for legal fees. The average tax refund is approximately $2,913 according to NBER, which is enough for many Americans to file for bankruptcy protection. The bankruptcy reform was initiated to deter abuse of the system. Since the laws have changed, fewer people have filed for bankruptcy. However, experts say that does not necessarily mean that the change has “curtailed abuse of the system.”

Click here to read more about using your tax refund to pay for your bankruptcy filing.

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, Timothy Kingcade Posts

7 IMPORTANT Items to Check before Filing your Taxes

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Even if you have hired a “tax pro” to file your tax return this year, it is important that you double or even triple-check your tax return before sending it in. If there are errors on your tax return, you will be held responsible by the IRS. When you sign your tax return, there are words over your signature stating that by signing, you declare to have examined the return and that all facts on the return are true. Therefore, you are responsible for what is on those pages, even if your tax preparer has committed fraud on your behalf; you will be the one to pay for it.

Below are 7 items to mark off your checklist before filing your tax return:

1. Names: Be sure that all names listed on your tax return match those on the Social Security cards. The IRS cross-references all names on tax returns. In some cases, the name on your social security card might actually be wrong or misspelled. If this has happened to you, you still need to match the name you file with to the one on your Social Security card.

2. ID Numbers: Verify any persons’ Social Security number with those on their Social Security cards. It is best not to rely on your memory when filing your tax return, particularly when filling out your spouse or child’s number. You also need to verify taxpayer ID numbers used on any business schedules.

3. Form 1040: If you are filing a 1040, make sure you look over the bottom area of page one. There may be numbers you do not understand or contributions that you know you did not make. Make sure that there is no amount listed under the alimony section unless you make alimony payments.

4. Deductions: If you are over the age of 65 or blind, make sure you have checked those boxes on your tax return. These steps will increase your standard deductions. Also, double-check your medical or business expenses. Some fraudsters use the national averages the IRS publishes each year to make up false amounts on your behalf.

5. Credits: Refundable tax credits are common areas of tax abuse and fraud. This can be done using Child Tax Credits, Earned Income Credits or Education credits. These are credits for which the IRS refunds you, although you have not actually paid any taxes. Some tax preparers make up false information to get refunds, even if you do not have children.

6. Withholding: Make sure this section of your tax return shows the correct amount. A common mistake for tax preparers is to enter the Social Security withheld into this field.

7. Refunds: If you make a mistake on your routing number or account number for a direct deposit, you are out of luck. If someone else gets your refund due to your mistake, the IRS can do nothing to help you. Experts say you should triple check this information before filing.

Click here to read more on the 7 items to mark off your checklist before filing your tax return.

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, Timothy Kingcade Posts

Five Great Deals Not to Pass Up in April

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Many Americans are frugal with their spending during the month of April if they have recently paid a lot in taxes. However, if you budget properly, you can find some of the best deals during the month of April.

1. Wedding Registry Items: Summer is wedding season for many. If you have any weddings to attend this summer, April is a great month to begin shopping for wedding gifts. Appliances, cookware and linens go on sale in early spring. According to TheKnot.com, the top three stores where couples register are at Bed Bath & Beyond, Target and Macy’s. You can start by collecting coupons for these retailers and sign up for their email lists to find additional savings.

2. Cruises: Spring is a great time to start making travel plans for the following year. If you are planning a cruise, particularly during a peak season, you will find the best cruise deals during the month of April. CruiseCritic.com states you will find the best deals for European cruises. Cruise prices have also dropped for Australia, Hawaii and Mexico.

3. Roof: Summer is the best time for any roof repairs your home may need due to milder temperatures. If you are considering installing a cool roof, which reflects the sun and keeps the roof temperature down, it can help cut your air conditioning and energy bill costs. You can get great deals on cool roofs during the month of April.

4. Office Furniture: Office furniture tends to go on sale just after tax season. Another way to get great deals on office furniture is check for county auctions. Sometimes county schools and government agencies will begin Spring-cleaning and sell off their surplus office goods.

5. Tax Day Freebies: On April 15, many retailers offer discounts and special promotions to celebrate the end of tax season. For instance, Cinnabon offers two free Cinnabon Bites at certain locations. Arby’s will also be offering certain free foods.

Click here to read more on some of the great deals you can find during the month of April.

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, Timothy Kingcade Posts

When Should I File my Tax Return if I plan to File Bankruptcy and Anticipate a Tax Refund?

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Oftentimes, bankruptcy filers worry that if they file their taxes before their bankruptcy petition, they will be forced to forfeit their tax refund to the bankruptcy court or creditors. According to bankruptcy laws, debtors must be current on all tax filing obligations to federal and state taxing authorities in order to file for bankruptcy. This rule applies to income taxes, personal property taxes, real property taxes and all other forms of taxes. The best course of action for potential bankruptcy filers is to file their taxes as far in advance of the bankruptcy filing as possible. As long as you obtain your tax refund and spend it on household expenses, car or home repairs, medical expenses, etc. prior to filing for bankruptcy, the court cannot require you to forfeit the refund. This is true regardless of the amount you receive in your refund.

In the event that your refund is due after bankruptcy has been filed, your refund is subject to state or federal exemption limits. If the debtor elects to use federal exemption amounts or the state’s exemption schedules, the refund may be retained by the debtor and is outside the grasp of the bankruptcy court and creditors. It might also be within partial or total reach of creditors if exemptions are exhausted by the debtor’s other claimed property. The most common occurrence is one where the debtor would retain part of the refund and part of it would go to the creditors because the exemption amount is exceeded by the size of the refund. Again, the best thing to do is file your tax return as quickly as possible to avoid losing any of it. A debtor can also apply part or all of the refund to next year’s tax liability to avoid losing it to creditors.

Click here to read more about the best time to file your tax return if you are considering filing for bankruptcy protection.

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, Timothy Kingcade Posts

Forbes’ Ten Easy Steps to Achieve Financial Success

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Many Americans have struggled to regain control of their finances and subsequently, their life. Take these ten easy steps to achieve financial success!

1. Spend less than you earn. One problem in America is that many people spend more than they make and live beyond their means. A simple solution to this is to live within your means.

2. Pay yourself first. Each month, remember to pay yourself first. This can be in the form of a savings account, a retirement plan, an investment account, etc. Many Americans pay their bills first and save what is “leftover.” The problem with this is there is little or nothing leftover.

3. Insure big risks. Think about your own unique situation in life and the biggest financial risk that is posed. If you are a single parent, life insurance is the best thing for you to consider. Consult with a financial advisor to measure the risk and pricing options.

4. Know your numbers. Many Americans are disconnected from their finances. It is not uncommon for people to pay their bills and not pay attention to anything beyond that or simply gather data for their CPA’s. It is better to know where you stand, what you make, what you spend, your debts and your net worth and monitor all of these things closely.

5. Understand your money attitude. Your attitude about money determines your behavior with money. Whether you are a spender, saver or an avoider, it is better to know how you act with money. Think about your history with money, this can help you succeed and avoid financial failures.

6. Discuss your musts. Many people choose not to talk about money and their views regarding money. However, it is in your best interest to discuss your life and what is most important to you. You can decide what is a financial MUST for you and the best way to get there.

7. Invest. Most Americans are scared to invest in stocks because the media portrays this as a surefire way of losing all of your money. This is simply not true. Educate yourself on stocks, speak with a financial advisor (whom you trust) and invest in stocks. If you can live without immediate gratification, it will payoff for you big time in the future.

8. Be willing to give up potential return for short-term needs. Short-term money and emergency funds should not be invested in the stock market. While it is good to invest, you should be rational and always have an emergency fund available for the unexpected.

9. Protect yourself from the stupidity of others. Everyone has known of someone who has had a “get rich quick scheme” or at least been victim to one. Do not allow yourself to be fooled into these types of schemes. If it sounds too good to be true, it usually is.

10. Goals are important. Everyone needs to set goals for themselves. Think about your goals both long-term and short-term. Think of where you want to be in five years and ten years. This will enable you to set personal and financial goals for yourself.

Click here to read more about Forbes’ ten easy steps to financial success.

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, Timothy Kingcade Posts

What’s Not on Your Credit Report May Hurt You

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Everyone worries about their credit score and what’s on their credit report, particularly when they are about to make a big purchase such as a car or a home. However, the things that are not on your credit report can be just as harmful as what is. There are several ways that good credit references, such as secured cards and bank loans paid on time, can help your credit:

Accentuate the positive. Positive payment history can be the best thing for your credit score. However, many people do not realize that one of the things credit scores take into account is the proportion of positive and negative items. For example, even if you have negative information on your report, having more positive information can offset the negative.

Length of credit history. Your credit score considers the age of all of your accounts. Even older accounts such as a paid-off mortgage can help your credit score for years to come.

Credit mix. Credit scores also take into account the different types of credit you have. It is best to have both installment and revolving accounts listed on your report.

Missing the good stuff. Not all lenders report their customers’ payment histories to credit-reporting agencies. This can be harmful to your credit score, because many report only negative information. Unfortunately, there is nothing you can do to force a lender to report your account, you just have to continue good bill-paying habits until they begin showing up on your credit report.

Click here to read more about the missing information on your credit report and how it may hurt your credit score.

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

How to Choose A Mortgage Lender

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There has been a lot of buyer concern the past few years in the real estate market. Even those who have not been greatly affected by the Recession and have the means to buy a house may be stalling due to a lack of trust in mortgage lenders. Now that the housing market is stabilizing and lenders are being monitored more closely, buyer confidence is on the rise. The latest question for those looking to buy is, “How do I choose a mortgage lender?”

Here are a few things to remember when choosing your mortgage lender:

Beware – Mortgage people are salespeople. Following the housing market crash, homebuyers are looking for the most skilled financial mortgage experts out there. However, you have to understand that many representatives you will speak with are not qualified to answer the questions you may ask. You cannot assume that all of the loan officers have proper training and credentials, just because you chose a well-known institution. Work with the most knowledgeable loan officer, not the best salesperson.

Beware of the “In-House” Lender. Many real estate companies have “in-house” lenders that work out of the real estate office. This is mutually beneficial for the real estate company and the lender because of the convenience factor. The “in-house” lenders can be a great choice; however, it is best to do your homework. Make sure the “in-house” lender and the officer have the expertise and credentials to properly handle your mortgage.

Beware of Online Discount Mortgage Financing Options. Although it may be advertised that discounted options are available online that leave out the “brick and mortar” costs associated with traditional lenders, this is not always true. Even if you close online or over the phone, the brick and mortar costs are still a part of the income statement. These “discounts” are simply advertisements and tend to be very misleading.

Word of Mouth Trumps All. A general rule of thumb with any choice in services or goods is to ask those around you about their experience with the product or service. If you know of anyone who has recently purchased a home, ask about their experience. With all of the recent changes to the market, it is best to ask more than one recent buyer. Other great sources of information include: financial advisors, accountants, attorneys or realtors.

Click here to read more on this topic and find out which mortgage lender is right for you:

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 website, Kingcade & Garcia, P.A.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Trends in Credit Card News- How New Legislation is Keeping Consumers Safe

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Congress is taking steps to limit checking account overdraft fees that continue to charge consumers billions of dollars every year. Reps. Carolyn Maloney and Maxine Waters have introduced a bill that limits the cost of overdraft fees and prohibits practices that increase the likelihood accounts will be overdrawn. Also known as the Overdraft Protection Act, it limits overdraft coverage fees in many ways. It would prohibit financial institutions from charging more than one overdraft fee per month or more than six per year; it would require overdraft fees to be “reasonable and proportional” to the amount of the overdraft; and it would prohibit a fee if the overdraft results solely from a hold placed on an account that exceeds the amount of the transaction. Many merchants, such as hotels and gas stations, automatically place a hold on the money in your checking account when you pay with a debit card. The bill also addresses the practice of posting checking account transactions in a way that maximizes overdraft fees.

In other credit card news, a Massachusetts court ruled that zip codes could no longer be required at a check out. The Supreme Court unanimously ruled that zip codes are private information and consumers should not be prompted for a zip code when using a credit card. The decision came from a lawsuit where a merchant was prompted for her name and zip code, after which the retailer used this information to find her address and send her junk mail. The collection of personal information violates state law.

Richard Cordray was again nominated to head the Consumer Financial Protection Bureau (CFPB) last week. The decision came following a 12-10 vote by the U.S. Senate Banking Committee. Every Democrat approved Cordray, while every Republican opposed him. However, his approval will be stalled due to a deadlock preventing his vote. The CFPB is a federal consumer watchdog group that monitors and tracks the complaints on credit cards, mortgages, student loans, bank accounts, services and other consumer loans.

Click here to read more of the latest credit card news.

Click here to find out more about the Consumer Financial Protection Bureau.

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, Timothy Kingcade Posts

5 Steps to Rebuilding your Life after Bankruptcy

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It can be overwhelming trying to re-build your credit score, finances and emotional well being after filing for bankruptcy. However, it is important to realize that there is life after bankruptcy. In fact, if you strategize and take the necessary steps, bankruptcy protection can be extremely rewarding. Your life after bankruptcy depends on your recovery process. See below the five steps you can take to recover quickly from bankruptcy.

1. Let go of the guilt and shame. In 2010, there were 1.53 million personal bankruptcy filings; therefore, you must realize that you are not alone. Millions of Americans are battling the after effects of the Great Recession, just as you are. Rather than beating yourself up with shame and guilt, make peace with yourself, knowing that you made the best decision for your family and your finances.

2. Reflect and Regroup. One of the best things you can do to recover from bankruptcy is to reflect on where your financial situation went wrong. Whether it was something you did or something beyond your control, such as losing your job, finding the cause of your bankruptcy can help you move forward and prevent financial problems in the future.

3. Create a Budget and Pay Your Existing Bills on Time. After you have filed for bankruptcy protection, you must create and stick to a budget. Your budget will help you manage your money and help you avoid racking up more debt. Within your budget, you should create an emergency fund. This fund will help you if something comes up in the future. You should also set up automatic payment for your current bills, so that you can build your credit score and avoid delinquent bills.

4. Pick a Credit Card that will help you Rebuild your Credit Score. You may be wary of any kind of debt such as credit card debt; however, applying for a credit card can be the key strategy to rebuilding your credit score after bankruptcy. The best cards for bankruptcy filers to apply for are secured credit cards. These credit cards allow you to deposit money into a bank account, which becomes the amount you can spend on your credit card.
5. Educate Yourself on Bankruptcy. There are many myths and misconceptions about bankruptcy. For example, it is widely believed that bankruptcy will keep you from getting a mortgage for ten years. In reality, many bankruptcy filers are able to get a mortgage just two years after filing for bankruptcy. Myths such as these can deter those who really need it from filing for bankruptcy.

Click here to read more about the steps you can take to rebuild your life after bankruptcy.

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, Timothy Kingcade Posts

Bankruptcy Dispute Results in $6 Million Settlement for Florida Businessman

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A jury in the U.S. District Court in Miami recently awarded a Miami businessman $6 million after finding that U.S. Bank acted in bad faith when they forced Maury Rosenberg into involuntary bankruptcy. The settlement included $5 million in punitive damages, which is the largest amount awarded in history for such a case. Rosenberg claimed that U.S. Bank, the no. 5 bank in the country, was using involuntary bankruptcy as a collection tool. Federal law prohibits banks from such actions. U.S. Bank has refused to back down, after losing two appeals and bankruptcy petitions were tossed out. Rosenberg said the process has since ruined his life.

U.S. Bank claims that it has done nothing wrong and that all of its actions were legal while pursuing Rosenberg for his debts. The bank disagrees with the verdict and plans to file post-trial motions and possibly an appeal. The bank is also pursuing Rosenberg for breach of contract in U.S. District Court in Pennsylvania for $4.9 million on a personal guaranty. Rosenberg claimed he approached the bank in 2008 to restructure his debts but was unable to get the bank to talk to him. He said he stopped making payments in order to get the bank to respond. After being forced into bankruptcy, Rosenberg lost everything, including his son’s $50 million trust fund.

Click here to read more about Rosenburg’s $6 million settlement following a bankruptcy dispute.

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.