Bankruptcy Law Archives - Page 75 of 128 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Filings Drop to Eight-Year Low

Posted on February 11, 2016by Admin

The Administrative Office of the U.S. Courts (AOUSC) released statistics showing a 9.9 percent drop in bankruptcy filings in 2015. During the 12-month period, January through December, 844,495 cases were filed in federal bankruptcy courts. This is down from 936,795 bankruptcy cases filed in 2014.

This is the lowest number of bankruptcy filings within a 12-month period since 2007. Last year was the fifth consecutive year that bankruptcy filings have fallen.

Business and non-business bankruptcy filings dropped in 2015. The total business bankruptcy filings were down from 26,983 in 2014 to 24,735 in 2015. The total non-business bankruptcy filings were 819,760, down from 909,812 the previous year.

Both Chapter 7 and Chapter 13 filings dropped in 2015. Chapter 7 filings are the proceedings in which a debtor’s nonexempt assets are liquidated and the proceeds are distributed to creditors. Chapter 13 filings allow individuals to receive regular income to obtain debt relief while retaining their property by proposing a plan that uses future income to repay a portion of their debts over a three to five year period.

Chapter 11 and Chapter 12 filings both increased slightly from 2014. Chapter 11 filings are for businesses or individuals whose debts exceed the statutory thresholds for Chapter 13. Chapter 12 filings are for family farmers or fisherman.

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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Credit Card Debt on the Rise

Posted on February 10, 2016by Admin

While the economy indicated signs of financial hardship in November 2015 with low spending, consumers were spending more confidently in December and January with credit card debt increasing at its fastest pace in more than seven years. Outstanding consumer credit, which includes all credit outside of mortgages, increased by an annualized $21.27 billion in December. Economists had only predicted consumer credit would rise $16.5 billion.

Revolving credit, which is mostly credit card debt, rose by $5.84 billion after rising $6.36 billion in November. Since last year, revolving credit rose 5.1 percent. This is the fastest gain since October 2008.

So where were consumers using their credit cards in the fourth quarter? Amazon.com accounted for a vast majority of credit card use, bringing in 51 percent of the total retail sales growth in the fourth quarter. The online retail giant also accounted for 42 percent of total retail sales growth for the entire year. However, companies such as Apple iPhone indicated sales were flat worldwide in December. Apple also forecasted its first yearly decline in sales in 13 years.

Non-revolving credit, including auto and student loans, increased $15.43 billion, up from $7.66 billion in November. However, economists anticipate auto sales will plateau or fall in 2016 from fourth quarter levels.

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Does Florida Law Protect Inherited IRA’s?

Posted on February 8, 2016by Admin

In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act was enacted to protect Individual Retirement Accounts or IRA’s from being seized by bankruptcy courts. Most states’ bankruptcy courts allowed inherited IRA’s to be protected from seizure as well, until a 2014 ruling by the Supreme Court.

The 2014 case of Clark v. Rameker set a precedent when the Supreme Court ruled that federal law does not protect inherited IRA’s because the holder of the IRA cannot invest new money into the account; can withdraw the entire balance at any time and use the funds for any reason without penalty; and must take required distributions from the account no matter how far the holder is from retirement.

In addition, the ruling also means that inherited 401(k)s are not protected in bankruptcy court. IRA’s have a $1.2 million cap on the protected amount, however 401(k)s do not have a limit on account balances that are protected.

There are some circumstances where inherited IRA’s may be protected to an extent. Each state is allowed to establish individual exemptions. Florida is one of seven states where all IRA’s are considered a bankruptcy exemption. Under Florida Statute 222.21, IRAs and Roth IRAs are completely protected by debtors in bankruptcy court. Another exception in most states is if a living spouse is the beneficiary of the IRA, they are allowed to treat it as their own in bankruptcy court and it is therefore, exempt.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

12 Times You Can Sue a Debt Collector

Posted on February 4, 2016by Admin

Millions of Americans struggle with debt and in turn have to deal with collection calls. While some debt collectors abide by the legal debt collection practices, many do not. Fortunately, there are protections in place that allow consumers to fight back if debt collectors violate their rights. A strong federal law, called the Fair Debt Collection Practices Act (FDCPA) protects consumers against unfair collection practices and helps prevent creditor abuse and harassment.

Below are 12 times when you can sue a debt collector.

Calling early & calling late. Debt collectors should not be calling you before 8:00 a.m. or after 9:00 p.m. It is a violation of the Fair Debt Collection Practices Act (FDCPA) for a collector to call at a time that is known to be inconvenient. This is typically a time you are away from work, at home with your family or sleeping.
Calling at other Inconvenient Times. If you have told a collector not to call at a certain time, that is also a violation of the FDCPA. If you work nights and tell the debt collector not to call you during particular hours, they cannot do so.
Discussing with Third Parties. Debt collectors cannot call a family member and say that you owe them money. This is another violation of the FDCPA. They can call and ask how to reach you, but they cannot discuss your debts with anyone besides you. The only exception is that debt collectors can contact your spouse.
When a Lawyer’s Involved. If a debt collector knows you have hired an attorney and they contact you that is a violation of the FDCPA. The reason is that the consumer may be in the process of filing for bankruptcy.
Making False Threats. If collectors make threats and do not follow through, that is a violation of the FDCPA. This can include both legal threats such as a lawsuit, or any other type of threats.
Calling the Wrong Party. If a collector has the wrong number and continues to call you after you have told them who you are, that is grounds for a lawsuit. The collector may think that you are lying about your identity, so they keep calling, thinking that you will come clean.
Using Pre-recorded or automated voice calls. “Robocalls” are an illegal form of debt collecting. The Telephone Consumer Protection Act (TCPA) prohibits any company to use automated or pre-recorded calls to collect debts.
Using Automatic Phone Dialing Systems. Telephone systems that automatically dial numbers one after another and can contact consumers up to five times per day are illegal under the TCPA.
Misrepresenting the Nature of the Debt. Oftentimes, debt collectors pressure family members of deceased relatives to pay their debts by saying they are responsible, even if they are not. This is illegal and has severe penalties.
Threatening Violence. Under no circumstances is a debt collector permitted to threaten violence to coerce consumers to pay their debts.
Using Profanity. The FDCPA protects debtors from verbal abuse such as the use of obscene or profane language. If it is meant to cause harm, it is grounds for a lawsuit.
False Representation. If a collector does not disclose who they are or why they are calling, that is a violation of the FDCPA. Collectors must disclose to the consumer who they are and that they are attempting to collect a debt either in writing or over the phone.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

How to Resolve Your Tax Debt

Posted on February 2, 2016by Admin

Nobody wants to get behind on their taxes, but if you are unable to fulfill your tax obligation at the end of the year it’s important to know that you have options. When the Internal Revenue Service (IRS) determines you owe money, it assesses you a tax. This happens either when you file a tax return or when you do not pay your full balance.

Sometimes the IRS assesses your taxes after an audit in which it does not agree with portions of the tax return, most often because you miscalculated the amount owed. The IRS has 10 years from the date of assessment to collect the taxes owed, although you may be able to extend the statute of limitations.

If the IRS determines that you owe the government money, you will receive a notice of assessment that asks you to pay your tax bill. If you fail to pay it within 30 days, you will receive another notice. If you still do not pay, you will continue receiving these notices until you finally receive a Final Intent to Levy notice. This notice tells you that the IRS is issuing a levy against your state tax refund because you have a balance due.

If you do not immediately pay this amount or appeal the amount of taxes that you owe, the IRS will begin searching for other assets on which to place a levy. The IRS will likely place a lien against you. This means it can legally seize your property to satisfy your debt by garnishing your wages, levying your bank accounts or taking other measures.

Below are three options to resolve your tax debt and avoid a lien or levy from the IRS.

Establish an installment arrangement

The most common way to address your tax debt is to ask for an installment arrangement. This is a repayment plan for up to 72 months or until your tax debt is paid off. You can file a Form 9465 with the IRS to request an installment arrangement.

Be aware that penalties and interest accrue while you pay off the debt. It is better to take larger payments over a shorter span than 72 months to eliminate your balance.

One term of the installment arrangement is that you promise to file your tax returns and pay any associated debts on time. Failure to do so will nullify your agreement. An installment arrangement also extends the statute of limitations for the IRS to collect on your debt by two years.

Receiving ‘Currently Non-Collectible’ Status

If you are granted currently non-collectible (CNC) status, all IRS collection actions will stop. For example, the agency will not be allowed to file a lien against you.

You may qualify for CNC status if paying your tax debt would leave you with not enough money to cover your basic needs. Most often, debtors must be out of work or underemployed to be considered CNC. While you are on CNC, the statute continues to run.

CNC status is temporary and the IRS reviews your case every year. If you become ineligible, you will have to make other arrangements to satisfy your tax debt.

Providing an offer in compromise

Depending on your financial circumstances, the IRS might settle your tax debt for less than you owe. This is known as an Offer in Compromise (OIC).

To file for an Offer in Compromise, you file Form 656, which includes Form 433-A (OIC). These forms require you to list all of your assets, including: bank, retirement or brokerage accounts, your home and automobiles and any other assets. It also requires you to list all of your liabilities, income and expenses.

It takes between six months and one year for the IRS to accept OICs. If you request an OIC, your statute of limitations is extended by the amount of time the IRS considers your offer. The IRS offers an online pre-qualifier tool that can give you a better idea of whether or not your offer will be accepted.

If your OIC is accepted, you will pay the amount you proposed in a lump sum or installments. If your offer is denied, the IRS will move to forcibly collect the debt.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

U.S. Supreme Court will Hear Puerto Rico’s Appeal to Restructure $72 Billion Debt

Posted on February 1, 2016by Admin

In December, the U.S. Supreme Court agreed to hear Puerto Rico’s bid to reinstate a law that would allow restructuring of the debt burdened U.S. territory’s public agencies.

The U.S. commonwealth has nearly $72 billion in debt. Puerto Rico will get to argue before the top U.S. court that the proposed restructuring law is the best way to pull the island out of a nearly decade-long recession. The court will decide whether or not the previous ruling that the 2014 Recovery Act conflicts with U.S. federal bankruptcy law will stand.

Governor Alejandro Garcia Padilla is calling for a compromise from creditors due to the island’s “unpayable” debts. However, Puerto Rico’s creditors argue that the bankruptcy mechanism is unfair and would impose deep repayment cuts.

U.S. statutes that allow states to put cities, towns and agencies into bankruptcy, do not apply to Puerto Rico because it is a U.S. territory, not a state. The goal of the Recovery Act of 2014 was to seek similar authority to put Puerto Rico into bankruptcy agencies.

Mutual funds giants such as Franklin Advisors and OppenheimerFunds were first to challenge the law, saying that the Act contradicted the U.S. bankruptcy code even though the code excludes Puerto Rico.

A U.S. federal court in Puerto Rico nixed the law in February and an appeals court affirmed the decision in July.

The court will hear arguments in the spring and rule by the end of June. If the decision is reversed, the territory could place companies into bankruptcy agencies such as, the Puerto Rico Electric Power Authority (PREPA), and the Puerto Rico Highways & Transportation Authority (PRHTA). Together the two companies hold more than $12 billion in debt.

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First-of-its-kind Study Shows How Parental Debt Affects Children

Posted on January 29, 2016by Admin

A new study conducted by Lawrence M. Berger, a professor at the University of Wisconsin-Madison, revealed a direct correlation between certain types of parental debt and children’s social and emotional well-being. The study used data from 9,011 families from 1986 to 2008. To track behavior problems, researchers used scores from the Behavior Problems Index responses filled out by the children’s parents either every year or every two years.

The study has shed new light on the link between debt and family well-being, as previous research on debt has focused on how debt affects the mental health and well-being of adults. The findings revealed that families with large amounts of debt often have children who struggle with behavioral problems.

However, not all types of debt were linked to children with behavioral problems. For example, the data showed that parents whose debt was from a mortgage or a student loan were less likely to have children with behavioral problems than those with unsecured debt. Unsecured debt is debt such as credit card debt, medical debt or a payday loan that is not secured by assets.

Researchers said debt that can help improve your social status in life is less likely to cause parents stress and anxiety. Unsecured debt that is not tied to an investment has a greater likelihood of causing stress to parents, which in turn, can have a negative impact on their parenting.

Related Resources:

http://www.medicalnewstoday.com/articles/305439.phphttp://www.foxnews.com/health/2016/01/22/parents-debt-may-influence-childrens-emotional-wellbeing.htmlhttp://time.com/money/4190285/parental-debt-effects-children/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Lower your Credit Card Debt with One Simple Strategy

Posted on January 28, 2016by Admin

U.S. households on average carry a total of $15,355 in credit card debt. Although there is not a universal approach for lowering your debt, there’s one simple strategy that is often overlooked: Renegotiating your interest rate.

You can renegotiate your interest rate by following these three simple steps:

Find out your interest rate and current interest rates with other companies. You can locate your interest rate in the fine print on your credit card statement. If you cannot find it, call the company. When researching the rates of competitors, make sure you tell them you are planning to move your debt to the company that offers the lowest interest rate.

Call your current company and explain that it is too high and request a lower rate. If they refuse, tell them you will be closing your account and transferring your balance to a company that offers better rates. Tell them the name of a competitor to prove you are serious. Your credit card company’s goal is to retain you as a customer and many debtors have their interest rates cut in half by simply asking. If the customer service representative does not seem willing to lower your rate, ask for a supervisor.

Consolidate your debt onto one card. Once you find the company willing to offer the lowest interest rate possible, move all of your debt to that card.

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Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

State Loan Forgiveness Programs Fall Short of Addressing Student Loan Debt Crisis

Posted on January 27, 2016by Admin

Many states have developed loan debt forgiveness programs in response to the growing student loan debt crisis. But in reality, the majority of these programs benefit only a small percentage of students who accept low paying public service jobs upon graduation.

Experts believe these loan relief programs are not the answer to the student loan debt problem and are in fact; self-serving programs to entice graduates to accept low paying jobs that are not easily filled. New York recently developed a student relief program that is geared toward the graduates’ income in public service jobs rather than debt relief.

Most state-wide programs provide relief to a very narrow segment of the market. Oftentimes these are only offered to healthcare workers or lawyers who are willing to work in a federally designated area with a shortage of workers. The relief programs are essentially luring recent college graduates with high loan debts to state jobs that offer low wages and unfavorable options for career advancement.

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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

IRS Warns of Top 3 Tax Scams for 2016

Posted on January 25, 2016by Admin

The IRS anticipates tax scams to be worse than ever this year, despite enacting new anti-fraud measures. Below are the top three tax scams to watch out for in 2016.

Fraudulent Filing

A common tax scam is where scammers use taxpayers’ social security numbers to file and claim their refunds. One Ohio resident who fell victim to the scam last year said it took her four months to prove to the IRS that she had fallen victim to a tax scam and receive her refund. To avoid becoming a victim of this scam, make sure and file early before scammers can access your information.

IRS Phishing Email

Scammers are sending out phony emails claiming to have information regarding tax refunds. The email says, “Click here for the latest on your refund,” or something similar. But it’s a phishing scam designed to get you to enter your social security number. Just clicking on the link can invite malware onto your computer. The IRS will never contact you via email requesting you download files or click on links.

IRS Phone Scam

The most common tax scam in recent years is the scam where taxpayers receive a call from someone claiming to be with the IRS or the Treasury Department who tells you that you are behind on your tax bill. The scammers threaten to arrest or deport you unless you pay immediately. Hang up if you receive a call like this. The IRS would never make these type threats.

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