Credit Archives - Page 42 of 82 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tax Scams on the Rise

Posted on November 25, 2015by Admin

Tax scams are on the rise and small businesses are just as vulnerable as consumers. Authorities report that there have been a rise in calls across the country from scammers claiming to be affiliated with the Internal Revenue Service. In case you are not aware of how the tax scam works, criminals use fear and intimidation practices to coerce victims into sending them money. They basically call victims and leave a threatening voicemail message stating you have a warrant out for your arrest because of a tax violation.

Here is what you need to know to protect yourself and your business from falling prey to this scam.

Get armed with the facts. Remember that these types of scams work on fear and the victims lack of information. Verifying facts is the greatest weapon against these criminals.

Don’t be fooled by professionalism. The scammers sound professional, going as far as to provide phony IRS badge numbers and altering the caller ID numbers to appear as if the calls are coming in from an agency. They also have personal information on their victims to make the scam sound more legitimate.

These tax scams have cost around 4,550 victims more than $23 million since October 2013. And these are just the ones who report it, many victims of scams are afraid to report the crime, which means the loss is likely much higher.

The IRS has released the following facts regarding how the agency contacts individuals.

1. The IRS does not call and demand immediate payment. The agency only calls after first sending you a bill in the mail.
2. The IRS does not demand you pay taxes without letting you question or appeal the amount you owe.
3. The IRS does not require you pay in a specified way, such as a prepaid debit card.
4. The IRS does not ask for your credit or debit card numbers over the phone.
5. The IRS does not threaten arrest for not paying.

If you receive calls for these types of tax scams, hang up and report it to your local law enforcement agency immediately. You can visit “Tax Scams and Consumer Alerts” on IRS.gov to get additional information.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, 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

New Bankruptcy Paperwork May Result in More Inaccurate Filings

Posted on November 23, 2015by Admin

As we discussed in an earlier blog, the paperwork that people and businesses have used to file for bankruptcy protection since the 1980s is being replaced effective December 1, 2015. Perhaps the biggest change with the new forms is that people and business owners will use two different sets of paperwork to file for bankruptcy. Historically, they have used the same three-page petition.

Bankruptcy experts have expressed concern that the new forms with clearer and more concise instructions (free of legalese) will encourage more people to file for bankruptcy without the help of an attorney. This could lead to people making BIG mistakes.

It is estimated that approximately 10% of bankruptcy filers nationally file without an attorney. While you may think you are saving money, the results can be devastating- jeopardizing your chances of a successful bankruptcy discharge. Studies have shown that filers who hire an attorney to file their Chapter 7 bankruptcy obtained a discharge 95% of the time. By contrast, those debtors who filed “pro se” only received their discharge in 61% of cases.

There are other benefits to hiring an attorney when filing for bankruptcy. A bankruptcy petition incorrectly or untimely filed can negatively affect a debtor’s future, rather than provide them with a much-needed financial fresh start. Bankruptcy is not about filling out forms, it is about understanding the rules, statutes and case law that determine how these forms are completed.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Three Times Bankruptcy is the Right Decision

Posted on November 17, 2015by Admin

Bankruptcy can have significant consequences to your credit score, but sometimes the hit can be worth it if it means getting out from under a mountain of debt and gaining a fresh financial start. Filing for bankruptcy should not be taken lightly, but if paying down the debt would leave you with no money to put food on the table and pay the mortgage, filing for bankruptcy makes sense.

Here are some additional circumstances when it makes sense to file for bankruptcy.

Your liabilities are more than your assets. Bankruptcy is often the best option when debtors owe so much that their liabilities far outweigh the value of their assets. In such cases, it’s often impossible to ever get caught up.

Negotiations didn’t work. Before filing for bankruptcy, it’s a good idea to try and negotiate with your creditors. There is a possibility they will settle the debt for less money than you owe if you can prove that you are struggling financially. But if your creditors are unwilling to negotiate with you, the only other option may be to file for bankruptcy protection.

A job loss, medical emergency or other financial disaster has eliminated your ability to generate monthly income. Medical bills are the number one cause of U.S. bankruptcy filings. Even having health insurance does not shield consumers from overwhelming medical debt. Bills and debt can pile up quickly without the monthly income, leaving consumers with no way out.

Related Resources:

http://www.csmonitor.com/Business/Saving-Money/2015/1116/Three-times-bankruptcy-is-the-right-decision

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Five Things to do after Bankruptcy

Posted on November 12, 2015by Admin

So you recently filed for bankruptcy and received your discharge, what should you do next? Whether you filed for Chapter 7 (a simple and straightforward elimination of debt bankruptcy) or a Chapter 13 (a debt repayment bankruptcy), there are certain things you should do once your case is finalized.

Collect and preserve all paperwork from your case. You should have received a full copy of your bankruptcy petition from your attorney, which is 40-50 pages of detailed financial information – including the facts about the debts and assets involved in your case. You should have also received a notice of bankruptcy filing directly from the court, which shows the deadlines that affected your case. The court should have also sent you a copy of your discharge order entered by the bankruptcy judge. It is important to have these because some lenders want to see a copy of the bankruptcy papers when considering you for new credit. This is especially true for mortgage loans.

Monitor your credit reports regularly. Credit reports from the three major credit reporting agencies can be obtained for free once a year- and it’s important to know what your creditors are saying about you. Wait approximately three to six months after your bankruptcy has been discharged to do so. It may take several billing periods for creditors to update their accounts, and many creditors and lenders will stop reporting to the credit bureaus altogether after a bankruptcy. It is important to do this because you want to make sure all of your discharged debts from the bankruptcy are being reported to the credit bureaus with a zero balance, so it does not count against you as outstanding debt, which can hurt you if you are applying for new credit.

Start a budget and review it regularly. A main focus after bankruptcy is rebuilding your credit and your budget. Create a basic budget to understand your expenses and take some time every week to see where you are at. Remember the Means Test from your bankruptcy paperwork that compared your income and expenses over a six-month period to standards set by the Census Bureau and the IRS. This test was meant to ‘filter out’ those who had the means to pay their debts, but who were living an extravagant lifestyle financed on credit cards. This is often considered an urban myth, as statistics reveal that a very small percentage fit into “the extravagant lifestyle” category. Most bankruptcies are the result of unforeseen medical expenses, a job loss, divorce or birth of a child.

Start an emergency fund. This goes hand in hand with putting together a realistic budget. When creating your budget, a small part of your income should be set aside for the unexpected. You can begin saving for an emergency fund in less than one month. If you do this every month, you will be amazed at how much it grows. You can start putting a portion of it aside for retirement or your child’s college fund. This is important to do because it will prevent you from obtaining new debt and repeating the cycle.

Consider new credit. Don’t let yourself get carried away with this one. Start with a small credit limit; monitor your charges and budget so you can pay the balance in full each month. There is a world of difference between having good credit and a heavy debt load.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What’s Considered Bankruptcy Fraud? The Supreme Court will decide in New Case

Posted on November 11, 2015by Admin

Bankruptcy relief is not available to those who defraud their creditors, but what is the definition of fraud? The Supreme Court is getting ready to decide this in a new case. Bankruptcy laws require debtors pay back the money they owe if it was obtained by “false pretenses,” “false representation” or “actual fraud.”

Two circuits have broadly interpreted “actual fraud” as when a debtor obtains money through a scheme that is intended to cheat creditors. However, another appellate court, ruled that it is not “actual fraud” unless a debtor actually lies to the creditor. As a result, the Supreme Court will have to decide between the narrow and broad definitions of “actual fraud” to determine when certain debts will be discharged or must be dealt with in bankruptcy.

The case involves business owner Daniel Lee Ritz Jr., whose company, Chrysalis Manufacturing Corp., purchased $164,000 worth of goods from Husky International Electronics Inc. between 2003 and 2007. During the four-year period, Chrysalis never paid for the goods, and Ritz funneled more than $1 million of Chrysalis’s funds to other companies under his control.

Husky later sued Ritz to hold him personally liable for Chrysalis’s debt, but before a judge could rule on the suit, Ritz filed for Chapter 7 bankruptcy protection. Husky countered and sued Ritz in bankruptcy court, arguing that he should pay the debt because he defrauded Husky by moving Chrysalis’s funds out of its reach. A bankruptcy court found in 2011 that although Chrysalis did not benefit from the transfer of its funds, and although Ritz was not a “credible witness,” his conduct did not meet the definition of “actual fraud” for one reason: He did not lie to Husky.

A lack of misrepresentation from Ritz to Husky is what also caused a district court and appellate court to each conclude that there was no “actual fraud” and therefore Ritz could be set free from the debt he owed Husky. Husky has requested the Supreme Court take the case, which they agreed to last week.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Bankruptcy Filers Targeted by Scammers

Posted on November 10, 2015by Admin

Bankruptcy Filers Beware: Telephone Scam Soliciting Wire Transfers

The National Association of Consumer Bankruptcy Attorneys (NACBA) is warning its members to remain in contact with current and past clients regarding “scammers” posing as bankruptcy attorneys. The elaborate scam targets people who have filed for bankruptcy and those who are just starting the process. The scammers use software that “spoofs” the caller ID system to appear that it is coming from the phone line of a consumer bankruptcy attorney.

Victims of the scam are being instructed to wire funds to satisfy a debt, supposedly outside of the bankruptcy proceeding. Some consumers have even been threatened with arrest if they do not wire the money. These calls come in after business hours, making it hard for consumers to verify their authenticity. In addition, to make themselves sound even more legitimate, these scammers are pulling consumers’ personal information from public records.

NACBA has been in contact with the courts and media regarding this complex scam. Warnings have been issued by the Office of the Attorney General in New Hampshire and by Virginia Eastern District bankruptcy clerk William C. Redden. However, despite these warnings, incidents continue to be reported- one coming from a client of ours last week!

It is important for consumers to know that under no circumstances would a bankruptcy attorney or staff member ask a client for an immediate wire transfer to satisfy a debt nor would they threaten arrest if the debt is not paid.

Members of the NACBA Legislative Committee will soon approach the Department of Justice to not only request a more thorough investigation into how consumer information is being compromised but also recommend steps that can be taken to further protect the identity of those going through the bankruptcy process.

You can click here to learn more about the consumer bulletin sent out by NACBA.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

A WIN for Consumers! FTC Announces Major Enforcement Action against Debt Collectors

Posted on November 5, 2015by Admin

The Federal Trade Commission and other law enforcement authorities around the country have announced the first coordinated federal-state enforcement initiative targeting deceptive and abusive debt collection practices. This nationwide crackdown encompasses 30 new law enforcement actions by federal, state and local law enforcement authorities against debt collectors who use illegal tactics. These tactics include, but are not limited to: harassing phone calls, phony impersonations, false threats of litigation, wage garnishment – even arrest.

It has been documented that collectors even tried to collect on so-called phantom debts – phony debts that consumers do not actually owe. The illegal practices also included the failure to give consumers legally required disclosures and notices, or to follow state and local licensing requirements.

“Being in debt is stressful enough for many Americans without also being subjected to intimidation and false threats,” FTC Chairwoman Edith Ramirez said. “Debtors have certain rights and rogue collectors that step outside the law will face the consequences of illegal behavior.”

According to the complaint, the defendants also failed to identify themselves to consumers as debt collectors, falsely portrayed themselves as process servers or attorneys, and falsely threatened arrest or litigation. The defendants unlawfully disclosed consumers’ debts to third parties in an attempt to embarrass the consumers into paying them. All of these are in violation of the Fair Debt Collection Practices Act (FDCPA), which was designed to help prevent creditor abuse and harassment.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Can you spot the signs of a Debt-Relief Scam?

Posted on November 3, 2015by Admin

When bills begin to pile up and collection calls start coming in, people can become so desperate to get out of debt they will believe anything. Some turn to ‘quick-fix’ debt relief companies that promise to solve their financial problems. But for many, not only does the relief never come but it puts them even more in debt- sometimes out thousands of dollars.

The Federal Trade Commission announced a $7.9 million settlement with DebtPro 123, a debt-relief agency that scammed people by making false promises. Here is the anatomy of how the scam worked:

Promotion: DebtPro 123 is not alone. Look for company names intended to lure vulnerable debtors. These agencies will make you think they feel your pain and promise to eliminate your debt easily in just a couple of years.

Pitch: According to the FTC’s complaint, DebtPro 123 told consumers that its “debt resolution program would completely resolve consumers’ credit card and other unsecured debts (including department store accounts, personal loans, medical bills, student loans, and accounts with collection agencies).”

It also boasted: “DebtPro will reduce a client’s total debt by 70 to 80 percent on average including all fees” and “With settlements as low as 10 percent, this means when all is said and done, a client’s savings could be as much as 20 cents on the dollar including our fees.”

Remember the old adage- When it sounds too good to be true, it usually is.

Two-phased program: In the first phase, customers put money in a “Creditor Fund/Settlement Account.” They were told they needed this money for negotiations with their creditors. In phase two, customers were promised that the company was working on their case to settle with creditors and get rid of their debt.

During this time, customers were advised to stop paying their bills and to cease all communication with their creditors. Consumers later found out that nothing had been done on their case. Instead, interest, penalties and fees began to pile up.

Strategy: The real plan was to make money off desperate people. “For many consumers, more than half of their monthly payment went towards defendants’ fees,” said the FTC. “For consumers who were in the program longer than 18 months, defendants also charged a $49 monthly ‘maintenance fee.’ ”

More failed promises: Debts were not reduced quickly. In fact, many times, the debt-relief company did not start settlement negotiations until after the client had received letters from creditors warning of an impending lawsuit for failure to make debt payments.

In the end, people ended up more in debt, some lost their homes, and others had their wages garnished.

Click here to read more on this story.

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

Discharging Student Loans in Bankruptcy May Soon Become Easier

Posted on October 26, 2015by Admin

A report by the Department of Education has identified solutions it believes will lead to better outcomes for those struggling with student loan debt. The biggest relief being extended to borrowers is the ability to discharge private student loans in bankruptcy. The Obama administration’s proposal will also extend enhanced borrower protections found in federal loans to private loans.

It seems the Department of Education is ready to strike a balance between collecting on their loans and removing unreasonable hardships on struggling borrowers. “Other types of consumer debt – mortgages, credit cards and auto loans – are dischargeable in bankruptcy, and student loans shouldn’t be an exception,” said Under Secretary of Education, Ted Mitchell.

“We feel strongly that while there are protections built into the (Federal) Direct Loan program that are important for borrowers, there aren’t parallel protections for borrowers in the private student loan market,” Mitchell said. “We think it’s important to do what we can to create those protections, and we think starting with a (new) bankruptcy provision is the way to go.”

The Department of Education is also reconsidering what constitutes as “undue hardship,” which could also affect Federal student loans. Currently, undue hardship is the only out for borrowers trying to get their student loans discharged in bankruptcy. Earlier this year, the Obama administration indicated that it would broaden the definition to increase the likelihood of more discharges.

Click here to read more on this story.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Obama Administration asks Congress to grant bankruptcy protection to Puerto Rico

Posted on October 22, 2015by Admin

The Obama administration has asked Congress to grant bankruptcy protection to Puerto Rico in an attempt to restructure its $72 billion debt. The proposal would allow Puerto Rico and other territories to seek financial restructuring under the supervision of a federal bankruptcy court.

The administration went a step further by asking for new oversight of Puerto Rico’s finances, restructuring the territories Medicaid funding system and extending the earned income tax credit to Puerto Rican taxpayers.

“The administration has no plans to provide a bailout to Puerto Rico,” White House press secretary Josh Earnest said.

“What we have said is that the administration has an interest in working with officials inside Puerto Rico to help them deal with the significant financial challenges that are facing the government there,” he continued.

Governor Alejandro Garcia Padilla has been trying to slash expenditures and restructure Puerto Rico’s debt since taking office three years ago. However, in July he was forced to announce that it was not enough and the government would begin defaulting on its massive debt.

The inability to repay that debt is a big threat to American investors, who may not realize how much money they have tied up in the island’s economy.

Click here to read more on this story.

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.