Bankruptcy Law

Bankruptcy Law, Credit, Timothy Kingcade Posts

Chicago Bankruptcy Scam to Free Impounded Vehicles

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A Chicago man was arrested last week for soliciting payoffs from drivers whose vehicles had been impounded by the city. Daniel Rankins was allegedly approaching people whose vehicle had been impounded by the city and offering to help them get their vehicle back for a fraction of the price. Rankins would file phony bankruptcy petitions, which placed an automatic hold on fines and released the vehicle. A spike in the number of motorists claiming bankruptcy to circumvent the process raised questions among city officials. Soon after, the FBI began investigating the scam.

Since May of last year, more than 1,000 bankruptcy cases had been filed with the Revenue Department and the city’s auto pounds as the only listed creditors. An individual at the Revenue Department Office approached an undercover officer posing as a motorist, whose car had been impounded. The individual put him in touch with Rankins, who provided him with bankruptcy paperwork that was already completed except for personal and vehicle information. After the paperwork was complete, Rankins drove the officer to federal bankruptcy court to file. The officer later paid Rankins $600 for his services. Rankins told authorities he learned of the scam when his own car was impounded a few months prior. After Rankins recovered his own vehicle, he began working with the other two individuals to recruit motorists with impounded cars.

Click here to read more on the Chicago Bankruptcy Scam to Free Impounded Vehicles.

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

Six Ways to Control Your Spending Habits

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Debt is often thought of in a negative light. However, when it is used wisely, it can provide you with an education, a home, a car and a better life. South Floridians have struggled with some of the most substantial debt in the country throughout the Recession. According to Experian, South Florida’s average credit card debt is the nation’s highest, approximately $4,555 per person.

Below are six ways to better control your spending habits:

1. Determine what you owe and the interest rate each creditor is charging you. After you get a clear picture of what you owe, you should pay off the largest debt or the highest interest rate debts first.
2. Avoid spending money on things you really want. Frequently monitor where your money is going. There is a free website called DoughHound.com you can use to help control your spending.
3. Set a debt-reduction goal. When you are able to reduce your debt, reward yourself. After, you can set a new, higher goal for yourself with a bigger reward.
4. Don’t tempt yourself. Try to avoid leaving an excess of money in your checking account. Instead, you should use your extra cash to pay down your debt.
5. Get support from your family and friends. It is best to look for support from others who share your debt reduction goals. Keep a distance from your friends and family who are big spenders.
6. Beware of debt settlement organizations that offer a lot of promises. Typically, they charge you a lot and deliver less than they promise. Also, stay away from debt consolidation loans.

Click here to read more about the 6 best ways to control your spending habits and reduce your debt.

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

House Passes Bill to Protect Kids from Identity Theft

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Last week, the house passed a bill 116-0 that will require the nation’s three consumer-reporting agencies to allow Florida parents to open and freeze their child’s credit record. Doing so would prevent scammers from using children’s personal information or opening fraudulent accounts on their behalf. Such scams are a growing problem in Florida. Recently, a Broward County teacher was convicted of stealing children’s information from their student IDs. The bill, HB493, will protect the identity of every child in the State of Florida. Florida, particularly South Florida, is number one in the nation when it comes to identity theft.

In 2011, nearly 1,800 children’s identities were stolen in Broward, Miami-Dade and Palm Beach counties alone. Since then, the Federal Trade Commission has found that cases of identity theft have more than doubled in South Florida. There have even been cases where infants’ identities have been stolen and their families did not realize it until many years later. Scammers would steal a child’s identity and begin applying for credit cards on their behalf, according to IDChildNow.com. Sen. Nancy Detert has introduced a similar bill to the Senate. If the bill is passed it will be the second bill of this nature in the nation. Maryland adopted a similar law last year. Experts say that the current policies make it extremely easy for scammers to steal children’s identities.

Click here to read more on the House Bill to Protect Kids from Identity Theft.

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

Top 10 Misconceptions About Bankruptcy

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There are many laws within the Bankruptcy Code that are often misunderstood. Below are the top ten misconceptions about bankruptcy.

1. You must be completely broke to file for bankruptcy. Filing for bankruptcy protection does not necessarily mean that you are broke; it can mean that you cannot pay your bills as they come due. However, many debtors wait until they are flat broke to file for bankruptcy protection. This delay limits your options of reorganizing your finances and being able to keep part or all of your property. It is better to file before you are “flat broke.”
2. If you file for bankruptcy protection, you will not qualify for credit in the future. Your bankruptcy will appear on your credit report for up to 10 years. Chances are, if you have filed for bankruptcy, your credit score has already suffered. Therefore, filing for bankruptcy may be the best way to raise your credit score, again. Once you file for Chapter 7 bankruptcy, you will receive a discharge on most debts. Once your debts are discharged, you can start working to raise your credit score, again.
3. If you file for bankruptcy, you cannot buy a house. Mortgage lenders may be hesitant to loan you money to buy a house within the first couple of years after filing. However, if you work to raise your credit score and practice good bill paying habits, you are likely to be approved. Your lender may charge you higher interest rates and require personal guarantees. If you can fund a sufficient down payment, you are likely to be approved for a mortgage loan.
4. If you file for bankruptcy, you will lose your house. Whether or not you are able to keep your home will be determined by the amount of equity you have in your home. When you file for bankruptcy, you are allowed to keep some property, called exempt property. Your home will be exempt from liquidation if it does not have any non-exempt equity.
5. Taxes cannot be discharged in bankruptcy. Some taxes are dischargeable in bankruptcy, such as personal income taxes that are more than three years old.
6. Student loans are nondischargeable. In most bankruptcy cases, student loans cannot be discharged. However, if the debtor can prove certain hardship, student loans can be discharged.
7. If you file for bankruptcy, you can leave out certain creditors. The Bankruptcy Code serves the purpose to treat similarly situated creditors equally. If you do not list a creditor in bankruptcy and decide to pay the creditor, you are technically prejudicing the other creditors. The court considers this fraud and you are at risk of losing the discharge and possibly facing jail time and fines.
8. Family members who loaned the debtor money will lose out. You must list all creditors in the bankruptcy; however, you can repay certain creditors after bankruptcy is filed. This practice is referred to as a reaffirmation agreement. All reaffirmations are subject to court approval. In most cases, debtors agree to pay back a debt they have no legal obligation to pay in order to maintain an existing relationship.
9. Signing an agreement stating that a debt cannot be discharged in bankruptcy makes the debt nondischargeable. These bankruptcy clauses are unenforceable and are used as a scare tactic.
10. You may lose your job if you file for bankruptcy. If an employee can prove they were fired solely because he or she filed for bankruptcy, the employee can sue the employer.

Click here to read more about the top ten misconceptions about bankruptcy.
http://www.nysscpa.org/cpajournal/2005/505/perspectives/p18.htm

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

Beware the Dangers of Payday Loans

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Financial mistakes can have lasting effects that may take you years to recover from. Overspending on shopping trips, overusing credit cards and taking out payday loans are a few of the most common mistakes Americans make with their finances.

What is a Payday Loan?

Payday loans are also known as cash advances or paycheck advances. They are usually short-term loans that you must repay by the time you get your next paycheck. The lender charges you a fee, plus interest on the amount you borrow. Lenders do not typically run a full credit check for payday loans; another reason why they are becoming popular. Since the lender is taking a very large risk by loaning you the money, payday loans tend to have extremely high interest rates.

Disadvantages of Payday Loans

Some states do not allow payday loans at all. Of those that do, these states limit how high the annual percentage rate (APR) can be. Other states do not set restrictions on payday loan APRs. In these states, the APR can be anywhere from 300% to 900%. Although it is a very easy and fast way to get cash, you should be very careful when taking out a payday loan because you might end up paying more in interest than you originally borrowed.

When you take out a payday loan, you write a check for the amount borrowed plus a fee that will be cashed by the lender on your next payday. If you cannot repay it on that day, it rolls over to the following payday. Many borrowers get into trouble this way. If you continue to let the loan rollover, your debt substantially grows due to your inflated APR.

Alternatives to Payday Loans

Credit union loans – your local credit union may offer small, short-term loans to members.

Small bank loans – many small banks offer alternatives to those looking into payday loans.

Advances from employers – it may serve your best interest to ask for an advance from your employer instead of getting a loan that will accrue interest.

Borrow from family or friends – although it may put a strain on your relationship, this can be your best option because they will likely be lenient on the repayment date.

Click here to read more about the dangers of payday loans.

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

Credit Card Delinquencies Reach 18-Year Low

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Credit card users are using some of the best bill paying practices in nearly two decades. In the fourth quarter of 2012, delinquencies on bank-issued credit cards sank to 2.47%. This is the lowest level of delinquencies since 1994, according to an American Bankers Association report. It was significantly down from the previous quarter, which was 2.75%. The record high was set in 2009 at 5.01%. According to ABA Chief Economist James Chessen, credit card delinquencies fell throughout most of 2012.

In addition to consumers being more careful about paying their bills on time, banks are also being more conservative when approving people for credit cards. Banks are taking steps to ensure the consumer has the capacity to repay their debts. Delinquencies in three real estate related categories also fell in the fourth quarter: home equity loans, home equity lines of credit and property improvement loans. These declines reflect another sign of the housing market recovery. Auto loan delinquencies arranged through third parties, such as car dealers, also dropped in the fourth quarter to 1.85%, down from 2.08% in the previous quarter. However, credit card delinquencies on mobile homes and boats both increased at the end of 2012. Student loan 90-day delinquencies also increased during the fourth quarter of 2012 to 11.7%, up from 8.69% at the end of the first quarter of the year.

Click here to read more about the 18-year low on credit card delinquencies.

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

Job Growth Significantly Slows During March

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The job market has remained steady through most of 2012 and the beginning of 2013. However, during the month of March employers added fewer jobs than any other month in almost a year. The numbers are discouraging because job growth is one of the greatest indicators of economic recovery. In February, 268,000 jobs were added to the market and in March, only 88,000 jobs were created. The unemployment rate dropped to a four-year low of 7.6% during March. Experts say the decline in unemployment was prompted by nearly a half-million workers leaving the job market and not by growth. This decline was the result of layoffs, retirements and other reasons.

The decline in job growth is not a new trend; it’s also referred to as a “springtime swoon.” It is not uncommon for hiring to start strong early in the year and wilt away as the weather warms. Some economists believe that March’s report may represent a payback for the significant growths during January and February. Others attributed the decline to budget turmoil in Washington or unusually cold weather in parts of the country. No matter the reason, analysts cautioned against reading too much into the rates from only one month. During March, employers added 20,000 temporary workers and 18,000 construction workers, which reflects the recovery of the real estate market. Sectors such as transportation lost jobs during the month of March.

Click here to read more about the decline in job growth during March.

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

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.