Bankruptcy Law

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Protect Yourself: Top Unlawful Tactics Debt Collectors May Try Use Against You

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Dealing with debt is difficult enough without having to be harassed by insistent debt collectors. Unfortunately, many of the strategies used by collection agencies are illegal. According to the Federal Trade Commission (FTC), an estimated 30 million Americans have accounts in collection. Consumers should be aware of the scheming tactics collection agencies may use because your rights are being violated.

In recent years, the FTC has targeted collection agencies that practice unlawful strategies in order to collect debt. Several lawsuits have been filed against the companies for violating the Fair Debt Collection Practices Act. This federal law was created to protect your rights, by preventing third-party debt collection agencies from harassment, threats, unwanted contact and disclosure of your personal information to others.

The following is a list of the most common unlawful tactics used by debt collectors:

• Dishonesty. Collection agencies are not allowed to tell a consumer that they will be arrested or face other false consequences, if they do not pay immediately.

• False Representation. It is illegal for debtors to pose as a government agent or law enforcement official, in order to collect a payment.

• Threats. Collection agencies cannot threaten violence against you. They also cannot threaten a lawsuit if they are not truly filing one.

• Illicit Disclosure. It is prohibited for debtors to share or divulge any of your personal information about your debts to friends, family, co-workers or otherwise.

• Inopportune Contact. Collection agencies may only contact you between the hours of 8 a.m. and 9 p.m., local time. Contact outside of this time frame is harassment.

• Indecency. By law, debtors must treat you with respect and professionalism. Use of profanity and obscenities is strictly prohibited.

• False Documentation. Collection agencies may not forward any kind of documentation resembling an official government notification to you. Pretending to work with a government agency is illegal.

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.

Source:
http://www.cbsnews.com/news/7-things-debt-collectors-arent-allowed-to-do/

Bankruptcy Law, Timothy Kingcade Posts

Fraudulent Debt Collectors Targeting Spanish-Speaking Consumers Banned by FTC

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A recent announcement by the Federal Trade Commission (FTC) reveals that the operators of a fraudulent debt collection scheme have agreed to be banned from the debt collection and telemarketing business. The agreement was met to settle FTC charges of false demands for fake debts, targeting Spanish-speaking consumers. Defendants Centro Natural Corp., Sumore LLC, Jessica Anzola, Damian Biondi, Carolina Orellana, Javier Sumbre, and Susana Sumbre, were smacked with a hefty fine of almost $7 million for the scam.

The FTC’s vote to initiate a permanent injunction against the defendants was unanimous, and the decision was filed with the U.S. District Court for the Southern District of Florida. The FTC first filed the complaint last year, alleging that the defendants threatened consumers with arrest, immigration status investigations and even lawsuits, if they did not pay the phony debts.

The settlement order’s ruling to ban all defendants from telemarketing and debt collection activities means that they are permanently prohibited from making further misrepresentations about any product or service, as alleged in the complaint. Bionore Inc., Jager International Inc., Allianza Inmobiliaria Corp. and Jorge Sumbre were also named as defendants who stood to gain from the con.  The defendants are also forbidden from selling or benefitting from customers’ personal information.

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.

Source:
http://www.insidearm.com/daily/debt-collection-news/debt-collection/ftc-bans-fraudulent-debt-collectors-who-targeted-spanish-speaking-consumers/

Bankruptcy Law, Timothy Kingcade Posts

Rapper 50 Cent Files for Bankruptcy

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Last week, Curtis Jackson, better known as rapper 50 Cent, filed for Chapter 11 bankruptcy protection, only days after a messy lawsuit forced him to pay out $5 million to his rival Rick Ross’ ex-girlfriend. Both fans of the rapper and the media were surprised to learn of the filing, especially since Jackson was regarded as a man of “exceptional business instincts,” by The New York Times. He was also ranked No. 4 on Forbes’ May list of the wealthiest hip-hop artists, for his net worth of $155 million.

Jackson’s attorneys stated that the filing will allow the rapper to reorganize his financial affairs. However, others believe he is filing for bankruptcy as a way to protect himself following his lawsuit. In a recent late night appearance on TBS’ The Conan O’brien Show, Jackson addressed his decision to file for bankruptcy. “I need protection,” Jackson claimed. He also stated that success often makes people a target for lawsuits.

Prior to his filing for bankruptcy, Jackson did little to hide the extravagant lifestyle he was leading. He was often seen seated in the front row at fashion shows, catching frequent private flights, flashing expensive jewelry and clothing, and driving luxurious cars. The rapper’s Instagram is full of images supporting this, as he constantly posted updates for his 5.4 million followers. Despite this, Jackson said in his interview with Conan, “Times are hard out here, for real.”

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.

Sources:
http://www.businessinsider.com/50-cent-bankruptcy-to-conan-i-needed-protection-2015-7
http://www.businessinsider.com/50-cent-biography-pictures-of-luxury-2015-7

Bankruptcy Law, Timothy Kingcade Posts

Benefits of Bankruptcy Receives Praise from Donald Trump

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For those uncertain as to whether or not they should file for bankruptcy, Donald Trump appears to have stepped up as a spokesperson on why filing for bankruptcy is a wise move. Although the multi-million dollar real estate investor claims to have never filed for bankruptcy personally, he fully supports how bankruptcy can be a smart and legal move when needed.

Last month on Twitter, Trump stated, “Out of hundreds of deals & transactions, I have used the bankruptcy law a few times to make deals better. Nothing personal, just business.” He also stated that nearly every major dealmaker has used bankruptcy laws as a business tool. According to Trump, buying deals and then immediately placing them into bankruptcy for a better deal is effective and commonly used.

Despite his positive reviews of utilizing bankruptcy for better business deals, Trump is deeply irritated by others thinking that he has personally filed for bankruptcy. In 2013, Trump vehemently denied this in an angry post directed at the journalist, Touré Neblett.

In the past, Trump’s corporations have filed for bankruptcy, if the enterprise was failing or struggling. It seems that if business tycoons can use bankruptcy laws to their advantage, so can the average consumer. While bankruptcy may help in business transactions, there is still a negative stigma attached for some individuals.

Bankruptcy continues to provide a fresh start for struggling consumers buried in debilitating debt. According to the Federal Reserve Bank of New York, those who file for bankruptcy are better off financially than those who do not. Keeping this in mind, some of the common myths of filing for bankruptcy are simply not true.  It is important consumers keep an open mind.  Whether it is business or personal, filing for bankruptcy is indeed a smart and useful tool for people to consider.

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.

Source:
http://www.huffingtonpost.com/steve-rhode/donald-trump-praises-beneficial-power-of-bankruptcy_b_7746322.html

Bankruptcy Law, Timothy Kingcade Posts

Bankruptcy Checklist: What to Bring when Meeting with your Lawyer

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Are you considering filing for bankruptcy? Before you sit down with an experienced and qualified bankruptcy attorney, there are several important documents you need to bring with you. If you decide bankruptcy is the best option for you, your attorney will thoroughly review your financial background. Additional documentation will be required by your attorney to determine the type of bankruptcy you should file.

The following documents are needed when you first meet with your bankruptcy attorney:

• Financial Documentation. Wage statements, tax returns, bank account statements and large purchase receipts.

• Creditor Information. A list of credit accounts, account numbers, the amounts you owe and their contact information.

• Loan documentation. Any mortgages and outstanding loans you may have, such as: car loans, business loans, etc.

• Real Estate documentation. Forms and information pertaining to any property you may own or rent.

• Personal Property Documentation. Any major personal property items like vehicles, boats, valuable jewelry, electronic items, appliances or other items that could be repossessed.

• A list of any personal questions you may have for your attorney.

If you are a business filing for bankruptcy, additional documentation will be required such as company reports, financial statements, budget reports, and company property information.

While it is best to be as prepared as possible, if you are unable to obtain all of these documents, do not worry. You will be provided with adequate time to contact your banks, lenders and creditors to obtain the necessary documentation for your bankruptcy proceeding.  It is important to be open and honest with your bankruptcy attorney to prevent possible fraud or being accused of “hiding” assets.  By providing all necessary documentation and working closely with your attorney, you will help ensure that the bankruptcy process runs as smoothly as possible.

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.

Source:
http://www.legalmatch.com/law-library/article/bankruptcy-checklist-what-to-bring-when-meeting-your-lawyer.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How Puerto Rico’s Bankruptcy Crisis Could Affect Florida

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Puerto Rico’s recent financial crisis has sparked a heated debate among Congress. More than $72 billion in debt, the island territory is ready to declare bankruptcy. However, our nation’s bankruptcy code currently does not allow Puerto Rico access to do so. In a recent statement, Puerto Rico’s governor Garcia Padilla stated that the commonwealth’s debt is far too much for them to handle and now Congress is under pressure to make a decision.

Lawmakers have been considering whether they should implement a legislative solution to allow Puerto Rico to declare bankruptcy. If Congress passes a new law to remedy this, advocates believe it will finally resolve a technical oversight from a 1984 update to the nation’s bankruptcy law. Apparently the update inadvertently excluded Puerto Rico. Since the law says nothing about Puerto Rico, it is currently unable to receive aid. Even though Puerto Rico is supposed to have the same ability as the states, lawmakers called it an “error.”

Puerto Rico’s Resident Commissioner Pedro Pierluisi (D), is working to build support for legislation, as well as Senators Chuck Schumer (D-N.Y.) and Richard Blumenthal (D-Conn.), who are also working to build support for similar legislation in the Senate. Former Florida Governor Jeb Bush (R) expressed support for the bankruptcy proposal when he visited Puerto Rico in April. Hillary Clinton also expressed her support for allowing Puerto Rico to declare bankruptcy. At this time, the path ahead is unclear but Pierluisi states that he hopes to see the bill move before Sept. 1, 2015.

Meanwhile, many investors oppose the possible change, fearing that they too might go bankrupt if the law does pass. Skeptics say that the law would put billions of investors’ dollars at risk across the country. Even with a granted bankruptcy, many feel this will not solve all of Puerto Rico’s financial problems. Puerto Rico’s financial troubles have been long standing, since the territory was hit hard by the global financial collapse of 2007. Since then, many Puerto Ricans have moved to the U.S. mainland, namely Florida, to seek better opportunities.

More than 2 million Puerto Ricans reside in Florida. These numbers continue to grow as Puerto Rico looses approximately 1% of its population every year as thousands migrate to Florida’s more robust economy. South Florida is one of Puerto Rico’s largest trade partners. As a result, millions of Puerto Ricans living and working in Florida are an important part of the economy on the island. Unfortunately, if Puerto Rico defaults, Florida’s economy will certainly be affected.

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.

Sources:

http://thehill.com/policy/finance/246820-puerto-rican-debt-crisis-hits-congress

http://www.miaminewtimes.com/news/puerto-rico-is-broke-what-you-need-to-know-about-looming-bankruptcy-7718094

Bankruptcy Law, Timothy Kingcade Posts

Bankruptcy is an Option to Consider for Some Retirees

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Many retirees might not consider bankruptcy as a viable option to help their financial situation. However, if you are struggling financially, bankruptcy may be the best way to protect your retirement assets from creditors. Today, more seniors are considering bankruptcy as an option in retirement.

A Chapter 7 bankruptcy requires at least $10,000 of outstanding unsecured debt (such as credit cards, taxes, medical bills, and court ordered money judgments) in order to file.  Filing for bankruptcy can significantly help you get rid of unwanted debt in your golden years. For retirees with a second mortgage, they may want to consider a Chapter 13 bankruptcy. In a recent U.S. Supreme court ruling, it was decided that filing for a Chapter 7 bankruptcy will not allow homeowners to cancel a second mortgage if their homes are not worth the value of their first mortgage.

Retirees would likely be able to qualify for bankruptcy, regardless of their retirement savings, because filings are based on a six-month average of income. Even if you receive more income from Social Security, a Chapter 7 bankruptcy would consider it protected. Other protected assets include 401(k) plans, IRAs, and public retirement pensions. While a bankruptcy filing will remain on your credit report for 10 years, the benefits of filing for bankruptcy often outweigh the cost.

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.

Source:
http://www.thestreet.com/story/13177003/1/why-some-retired-people-might-consider-filing-for-bankruptcy.html
http://www.wsj.com/article_email/supreme-court-underwater-homeowners-cant-void-second-mortgages-in-bankruptcy-1433173699-lMyQjAxMTA1MDA0MTIwMjEyWj

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

Bankruptcy’s “Undue Hardship” Requirement Increasingly Difficult for Students to Meet

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For many consumers, student loan debt has become a major financial burden. When it becomes too difficult to afford basic living expenses, some turn to bankruptcy as an option. However, if you do not meet the undue hardship requirements, your student loan debt cannot be discharged.

This is exactly what happened to a 45-year-old Maryland woman who was struggling with growing student loan debt. Despite being unemployed, disabled and living far below the poverty line, the court did not allow her to discharge over $37,000 in student loan debt. The reason behind why the judge declined the request was because she had not made any good-faith attempts to repay her loans.

If you have student loan debt that you would like discharged in bankruptcy, an “undue hardship” test is required by the bankruptcy code. This is where you must be able to prove that repaying your student loans would cause “undue hardship” on your life. Unlike credit card debt, the only way to remove student loan debt when filing for bankruptcy is through the undue hardship test. Since the test is not regulated by any law, the courts must determine the severity of the debtor’s circumstances to qualify them for relief.

A three-pronged test can be used to decide whether paying back a student loan would be too difficult for you. The following three items must be proven in order to qualify:

• You must prove that you are unable to maintain a minimal standard of living, while repaying the debt;
• You must prove that your current destitute circumstances will last for a long time;
• You must show that you have made “good-faith efforts” to repay your loan in the past.

Should you fail to adequately prove these three items, you could be denied the option of discharging your student loan debt in bankruptcy. If this occurs, you may also seek help from a federal loan-consolidation program. While a consolidation program would not completely discharge your student loan debt, it could offer a repayment plan that might be more manageable for you.

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 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.

Source:
http://www.bloomberg.com/news/articles/2015-06-22/courts-rule-that-disabled-woman-living-below-the-poverty-line-must-repay-student-loans

Bankruptcy Law, Timothy Kingcade Posts

Is Bankruptcy An Option for Those With Good Credit but Mounting Hospital Bills?

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Several factors come into play when deciding whether or not you should file for bankruptcy because of looming medical bills. If you have good credit, you may want to handle the issue outside of bankruptcy. It is true that filing for bankruptcy will affect your credit, but making late payments or missing them altogether would be more harmful to your credit. Also, there is the possibility of your medical provider suing you, followed by wage garnishment. If you are unsure of how to handle medical bills with good credit, now is the time to review all of your options before it is too late.

Bankruptcy Options

If your medical provider is unable to work with you regarding your medical bills, creditors will likely pursue you for payment, and their collection actions will begin to appear on your credit. If the provider sues you and receives a judgment, they could garnish your wages, which can put even more financial stress on you. By filing for bankruptcy, you can stop further collection attempts and prevent wage garnishment from happening.

For those who do not earn a lot of money and have assets with little or no equity, filing for Chapter 7 bankruptcy may be the best option. Not only will this cease collection attempts, it can result in your medical debt being wiped away completely.  Many consumers believe that they should only file for bankruptcy if they have bad credit. This is not true. Many debtors file Chapter 7 on a single, but substantial debt. Medical debt is an unsecured debt and can be easily discharged in a Chapter 7 bankruptcy.

Non-bankruptcy Options

You may try to negotiate a settlement with your medical provider directly. If all insurance payments have been made, and your bill was for uninsured medical costs, the medical provider may waive a part of your bill. If you qualify for the Hospital Care Assurance Program (HCAP), you may be able to receive free or reduced hospital care, based on your income. Your hospital’s financial aid counselor can help you with this option. Under the Affordable Care Act (ACA), non-profit hospitals must provide free or low-cost coverage for low-income individuals.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney 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.

Source:
http://www.nolo.com/legal-encyclopedia/i-great-credit-huge-medical-bill-should-i-file-bankruptcy.html

Bankruptcy Law, Timothy Kingcade Posts

Florida Music Producer Files for Chapter 7 Bankruptcy as His $70 Million Fortune Dwindles

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Music Producer Scott Storch recently filed for bankruptcy in Florida, after allowing his once $70 million fortune to dwindle down to just $3,600 in assets. The hip hop prodigy had once been highly successful, producing popular hits for Snoop Dogg, Justin Timberlake, Christina Aguilera, and Beyonce. At 41 years old, Storch has managed to land himself $4.4 million in debt, according to the Daily News.

Exotic cars, prime real estate, jets, and lavish jewelry were among the items Storch spent his millions on, prior to his bankruptcy. Now, Storch has only $100 in cash, $500 in clothing and a $3,000 watch to his name. The court filing reveals that Storch valued his corporations, Tuff Jew Productions and Storch Music at $0. This comes as a shock, for a millionaire who once held night-long parties at his exclusive Palm Island 10-bedroom mansion in Miami and owned a luxury 117-foot yacht.

This is not the first time Storch has suffered financial woes due to his extravagant lifestyle. In 2009, he was reported to have blown an estimated $30 million in just three years. That same year, he filed for Chapter 13 bankruptcy and his $10 million waterfront mansion was foreclosed on.

In an interview with MTV, Storch acknowledged that his poor decisions had caused him to become poor financially. He also referred to his lavish expenditures as, “ego investments,” which have now forced the producer to change his entire lifestyle.

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.

Source:
http://www.nydailynews.com/entertainment/gossip/scott-storch-files-bankruptcy-100-cash-report-article-1.2269224
http://www.huffingtonpost.com/2015/06/25/scott-storch-bankruptcy_n_7661638.html