In the past, bankruptcy courts have found gambling debts as non-dischargeable. However, due to recent changes in the law, gambling debts owed to a casino can be eligible for debt discharge through bankruptcy. Gamblers often get trapped in a vicious cycle, taking cash advances in the hope that future earnings will pay them off. Gambling can be a slippery slope and can lead to addiction and financial devastation. However, gamblers have some luck on their side if they take advantage of the current bankruptcy laws, as a Chapter 7 bankruptcy filing can eliminate gambling debts.
At Kingcade & Garcia, we understand the need for a legal means of escaping overwhelming debt. What if you could eliminate your gambling debts and take a huge step toward taking control of your finances and your life? By taking advantage of our free consultations and speaking with our experienced team of bankruptcy attorneys, you can.
If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy attorneys at (305) 285-9100. 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, P.A. website at www.miamibankruptcy.com.
Bankruptcy Law
Kingcade & Garcia, P.A. Helps Small Businesses take the right action when filing for Bankruptcy
Many business owners assume that when financial challenges strike their business the only option is to file under business bankruptcy protections such as Chapter 11 – a process that can be highly complex and exceedingly costly. In reality, small businesses have a range of options, including filing under Chapter 7, which can provide a broader range of benefits and protections for individuals.
Chapter 7 can be a powerful tool for business owners who wish to:
• Put an immediate end to creditor harassment
• Eliminate credit card debts
• Stop creditor judgment proceedings
• Stop wage garnishment and repossession
Whether you run a retail business, restaurant or a web-based business from your home, in many cases you can handle your issues through traditional consumer bankruptcy protections. Many of our clients are professionals who provide services, such as accountants, architects, lawyers, real estate brokers, electricians and plumbers. With no hard assets, it can be difficult to keep a business running as lines of credit, loans and other forms of debt begin to accumulate. Our goal is get you back to selling services and not paying overhead costs. While you may be hesitant to file bankruptcy with an SBA loan, don’t be.
Before you are up-sold into an expensive and time-consuming Chapter 11 bankruptcy, make sure that there isn’t an easier and smarter way to resolve your problems. If you are a small business owner, there may be a real opportunity to pursue your debt relief through the Chapter 7 process.
Contact Kingcade & Garcia, P.A. at 305-285-9100 to arrange a free consultation if you have any questions on this topic or are in need of filing a Chapter 7 bankruptcy for your business. It is extremely important that you hire an attorney who is experienced in the field of bankruptcy and focuses exclusively on representing the interests of individuals and their businesses in bankruptcy matters. 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, P.A. website at www.miamibankruptcy.com.
Is converting your Chapter 13 Bankruptcy to a Chapter 7 the right option for you?
There are two main forms of bankruptcy. In a Chapter 7, all or most of your consumer debt is eliminated, but some of your assets could be repossessed, including your car. In Chapter 13 bankruptcy, you set up a three- to five-year repayment plan that is based on your income and ability to pay.
Are you struggling to keep up with your Chapter 13 payments? If you have recently lost your job or become ill, Chapter 13 Bankruptcy may no longer be the right option for you. You have the right to convert a Chapter 13 bankruptcy to a Chapter 7 bankruptcy at any time if you become eligible. Many of our clients are surprised to discover they never have to go to court or see a judge in order to convert their Chapter 13 filings to Chapter 7.
Contact Kingcade & Garcia, P.A. at 305-285-9100 to arrange a free consultation if you have any questions on this topic or are in need of converting your Chapter 13 bankruptcy to a Chapter 7. It is extremely important that you hire an attorney who is experienced in the field of bankruptcy and focuses exclusively on representing the interests of individuals and families in bankruptcy matters. 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, P.A. website at www.miamibankruptcy.com.
How Filing Bankruptcy Can Help you Avoid Foreclosure
If you are facing foreclosure, bankruptcy can be a powerful alternative to saving your home. Filing Chapter 7 or a Chapter 13 bankruptcy automatically places a stay on foreclosure of your property; provided that you include the house as part of your bankruptcy and that your home is your personal residence.
Upon filing a Chapter 7 or Chapter 13, the bankruptcy court automatically sends all of your creditors an order directing them to cease collection activity on your property. The “Order for Relief” legally postpones the foreclosure while the bankruptcy is pending, which can last approximately three to four months.
However, it’s important to remember that timing is everything. If you allow your foreclosure proceedings to continue beyond the point of no return and the foreclosure notice is already filed with the courts, the automatic stay means nothing and foreclosure will continue. You have to make sure that you file the bankruptcy before the foreclosure is filed and your auction date set. This is best accomplished by filing the bankruptcy after your first missed mortgage payment.
While the bankruptcy is pending, and the weight of paying other creditors is lifted, this is your opportunity to take your resources that do not go directly to immediate living expenses (i.e. – food, utilities, gas and transportation) and channel that money directly into a lump sum payment to satisfy the mortgage company. If you head into bankruptcy court with the resources to reinstate your loan, you will have avoided foreclosure.
To read more on this story, visit:
http://www.associatedcontent.com/article/8037099/how_bankruptcy_can_help_with_foreclosure.html?cat=3
If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy attorneys at (305) 285-9100. 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, P.A. website at www.miamibankruptcy.com.
Filing for Bankruptcy Could Save your Home
By the time a foreclosure notice arrives, many struggling homeowners figure they are out of options. However, there is one step many often overlook: filing for bankruptcy. The impact of filing for bankruptcy- especially on your chances of getting a loan- may not be as dire as many consumers assume. In fact, homeowners facing foreclosure may be able to improve their credit by filing for bankruptcy.
In the eyes of lenders, by filing for bankruptcy, you are making an attempt to pay back what is owed and keeping up with your payments. That help can make a big difference for homeowners struggling to deal with a lending industry which is overwhelmed by the mortgage mess.
Bankruptcy automatically stops the foreclosure process, giving the struggling homeowner and the court time to try and get back on track with your mortgage payments. Even if you fail to save your home, the consequences of a bankruptcy filing may be less severe than foreclosure. In fact, bankruptcy laws were established to provide an orderly process for people in financial trouble to reorganize their debts, start fresh and rebuild their lives.
Many of the individuals that come into my office are not living extravagant lifestyles; instead, they are forced to take drastic steps because of a change in circumstances, whether it’s the loss of a job or a divorce. A bankruptcy filing will not guarantee that you will be able to keep your home. However, it does stop the foreclosure process and will buy you time while the court reviews your finances and attempts to work out a payment plan with lenders.
To read more on this story, visit:
http://www.msnbc.msn.com/id/41787682/ns/business-personal_finance/
If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy attorneys at (305) 285-9100. 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, P.A. website at www.miamibankruptcy.com.
Bookstore mega chain Borders files for chapter 11 bankruptcy
Borders Group Inc. has recently filed for chapter 11 bankruptcy. The filing comes after months of failed maneuvers aimed at avoiding bankruptcy. The group, which operates Borders and Waldenbooks bookstores, finally announced that it does not have the necessary capital to meet its financial obligations.
As the country’s second largest “brick and mortar” book seller, Borders has faced many challenges in recent years. This announcement was not unexpected, and bankruptcy protection may help Borders come back stronger than before.
Borders’ biggest unsecured creditors are five book publishing houses: Penguin Putnam Inc., Hachette Book Group, Simon & Schuster Inc., Random House and Harper Collins Publishers. The companies stand to lose the most if Borders is unable to pay back the money they owe.
Chapter 11 bankruptcy reorganization is not the best way for all companies to resolve debt issues. In fact, for small businesses, chapter 7 or 13 may be a better option. However, for companies of Borders’ size, chapter 11 offers many opportunities. First and foremost, chapter 11 bankruptcy gives Borders the chance to close stores, reorganize its internal operating structure and access new capital.
The company will continue to operate in bankruptcy. However, the company president said today that Borders plans to close about 30 percent of the 644 stores they currently operate.
To make ends meet during this time, GE Capital has agreed to loan Borders $505 million. That loan is subject to the bankruptcy court’s approval. If approved, it will help ensure that the stores Borders chooses to keep open will be able to continue operating.
As you can see, chapter 11 bankruptcy is not an easy solution to Borders’ debt. But it may be the best way for the company to reorganize and get back to business.
Source: Wall Street Journal, “Borders Files for Chapter 11 Bankruptcy Protection,” Joseph Checkler and Eric Morath, 16 Feb 2011
If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy and foreclosure defense attorneys at (305) 285-9100. 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, P.A. website at www.miamibankruptcy.com.
PERSONAL BANKRUPTCY FILINGS AMONG YOUNG WOMEN ON THE RISE
A recent study from Insolvency Service Statistics has revealed an alarming trend in bankruptcy filings among women under the age of 24 has risen 10% in the past five years. The report states that the increase in the number of women declaring bankruptcy can largely be attributed to credit card debt and mounting mortgage or rent payments.
“This has been a big trend I’ve been seeing in my practice. Many of the young women that come into my office are not living extravagant lifestyles, they are having to take drastic steps because of a change in circumstances, whether it’s the loss of a job or a divorce,” says Timothy S. Kingcade.
As a single mom living in Miami, Frances Gonzalez knows just how quickly debt can pile up and become unmanageable. “By the time I was 18 I had five credit cards open. It adds up really quickly- having to put food on the table, buying things for my child, while at the same time I was going to school and working as a paralegal,” says Frances.
It wasn’t long before bills began to go unpaid and Frances began receiving harassing calls from debt collection agencies at home, at work, and on her cell phone. “The collection agencies even called my mom and dad. That’s when I knew I had to get help,” she said.
A friend at Frances’ work had referred her to Miami bankruptcy attorney, Timothy Kingcade. “Upon my initial meeting with Mr. Kingcade, he made me feel like I was his only client, going as far as to give me his personal cell phone number. Working in the legal profession myself, I don’t know of many attorneys that would do that. He put my mind at ease, and the creditor harassment stopped, immediately,” says Frances.
However, not everything went smoothly. After Frances received her bankruptcy case number, she had her car re-possessed three days later, which is illegal to do once the bankruptcy is filed. Within an hour she was on the phone with Mr. Kingcade and just two days later Frances was driving her car. This was a result of Timothy filing an emergency motion to retrieve her car. Mr. Kingcade held the car lender liable for damages, which included lost wages, bus fare from Homestead to Frances’ job in downtown Miami, and attorney’s fees. Mr. Kingcade even had a special clause put in the new auto agreement where they cannot repossess Frances’ car unless she is 3 months late, instead of just 1 month. The case was settled and Frances ended up being able to keep her car, with her payments cut nearly in half. Frances says she now has a fresh financial start and can’t believe how her life has changed as a result of Kingcade & Garcia, P.A.
Miami-based Kingcade & Garcia, P.A. was established by managing partner and bankruptcy attorney, Timothy Kingcade in 1996. The firm represents clients throughout 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.
Florida consumers carry 3rd highest debt in country
Over the past few months, we have heard a lot about Americans tightening their financial belts and using extra income to pay down debts. And for some, the post-holiday period is about paying off those Christmas bills. However, new numbers released by Equifax show that many consumers, especially those in Florida, are still carrying high credit card balances.
Equifax monitors credit throughout the country. The group’s recently released numbers indicate that consumers in Florida, California and Texas are maintaining higher credit card debt levels and people in other parts of the country. While these states face some of the toughest budget issues in the nation, so do their individual residents.
According to Equifax, Florida residents have $47.6 billion of collective credit card debt. This is the third highest total in the country. California ranks highest with $90.6 billion in debt, and Texas is number two with $48.8 billion in credit card debt. These states still have “a lot of debt to tackle,” as one senior vice president at Equifax put it.
Many individuals would like to pay down their credit card debt, but it seems that each month brings new financial challenges that stand in the day of reducing debt. When credit card debt becomes overwhelming, chapter 7 bankruptcy may be a good debt relief option. In this form of debt, consumers who cannot meet their financial obligations have an opportunity to discharge unsecured debt such as credit card bills.
CreditNet, “Many Americans still face serious credit card debt problems,” Thomas Astery, 28 Jan 2011
Old Video Rental Late Fees Could Impact Credit Scores
Hollywood Video and Movie Gallery filed for bankruptcy nearly a year ago. At the time, thousands of movie renters owed the company a few dollars here or there for late fees. Now, the collections company working for the video chain has begun filing negative reports to credit agencies regarding these “outstanding debts.”
There are many things people expect to impact their credit scores one way or another, but video late fees are not one of them. At a time when many people are starting to get back on their feet, a black mark on their credit score could be very problematic. That ding to the credit report could prevent them from refinancing or getting other necessary credit.
So what is really going on in this situation? Creditors and their collections agencies do have the power to report loans that have been defaulted on, but they are generally required to notify the consumer before they do so. Many question whether or not video renters were notified before the collections company reported the debt to credit agencies.
The managing member of National Credit Solutions – the debt collection agency working with Movie Gallery and Hollywood Video – says that Movie Gallery said the company notified customers with outstanding fees before National Credit Solutions was told to report the debts. But customers say they were not notified of the situation.
Now that customers across the country have complained, Movie Gallery has asked the collections company to withdraw the negative credit reports and notify customers of the debt by mail. However, National Credit Solutions says it will be re-filing the negative credit reports if customers do not respond to the new notification.
Source: NPR, “Montana Files Lawsuit Over Video Late Fees,” Associated Press, 26 Jan 2011
Credit card company tries to collect on old debts
For people struggling with debt, receiving letters demanding payment is a frequent occurrence. But for individuals who believed their debt was “charged-off,” receiving such a letter can be a shock, especially if the creditor is now demanding payment of many years of interest.
This is the situation one couple found themselves in recently. After working hard to pay off outstanding debt, the couple thought they were positioning themselves to rebuild their credit score. Then they received a letter from Capital One requesting payment for a $2,000 credit card debt from ten years ago. The company also added interest for the past decade, and they are claiming the couple now owes more than $5,000 for that debt.
The couple has not received bills or requests for payment since 2000, and their financial counselor did not see any outstanding debt with Capital One. The couple reasonably believed that the company had written the debt off, and they no longer owed anything.
In fact, that’s true. The outstanding $2,000 plus interest is not collectible. The state in which the couple lives has a statute of limitations for collecting debts, so Capital One cannot sue the couple over this debt. But the letter demanding payment nearly tricked them into paying money they do not technically owe anymore.
According to Capital One, the company sent out this kind of demand letter to comply with a new federal regulation. Technically, creditors must send out notifications if they are still charging interest on old debts. However, the company is likely using this as an opportunity to try to convince debtors to pay back money that they no longer owe.
It is important for individuals who have received similar letters to know that they are not in danger of facing a lawsuit to collect that payment. The company can send demand letters, but they cannot legally take any action other than asking for payment.
Source: LA Times, “Capital One dredges up decade-old, charged-off debt,” David Lazarus, 1 Feb 2011
If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy and foreclosure defense attorneys at (305) 285-9100. 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, P.A. website at www.miamibankruptcy.com.