The CEO of one of the nation’s largest tax representation firms, John K. Harris, has suspended all current operations at JK Harris and will reportedly file Chapter 11 bankruptcy. Since October 2011, Harris has been attempting to restructure and possibly sell the business and two affiliates under Chapter 11 bankruptcy protection.
Harris is calling the firm’s current state a “reorganization process.” By filing Chapter 11 bankruptcy, Harris is attempting to keep many of the company’s assets while reorganizing and restructuring JK Harris’ finances.
The company who made its name by marketing the slogan, “resolving taxpayer’s debt issues for pennies on the dollar,” has been in financial crisis after multiple client settlements, where plaintiffs claimed they had been misled by JK Harris. Harris’ firm has a countless number of former and current clients who claim to have paid large amounts in fees after being promised compensation and receiving little, if any, return.
To read more on this story visit: http://www.examiner.com/tax-preparation-in-national/jk-harris-to-file-bankruptcy-shutdown-fueled-by-taxpayer-complaints
If you are in a financial crisis and are considering filing Chapter 13 bankruptcy, contact an experienced attorney who can advise you of all of your options. Our bankruptcy attorneys at Kingcade & Garcia can help families and individuals get the most out of Chapter 13 bankruptcy. We fully evaluate your financial situation, debt and income to make sure that Chapter 13 is your best option. Many people who come to our firm are surprised to discover that Chapter 13 may not be the right option, and that with the assistance of an experienced and qualified lawyer, they can be better served by Chapter 7’s debt elimination strategies. You can find more useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
Credit
Study Reveals a Growing Number of College Grads filing for Bankruptcy Protection
A new study done by the Institute for Financial Literacy reveals an increasing number of college graduates are filing for bankruptcy, challenging the notions that an advanced education is almost a guarantee for economic success. In 2006, degree holders accounted for 11.2 percent of bankruptcy protection filers, the study found. By 2010, their proportion rose to 13.6 percent.
Similar trends were observed for holders of two-year associate degrees and graduate degrees. In contrast, high school diploma holders or college dropouts logged a decline in bankruptcy protection applications. Data from the Department of Education showed that before students even leave their university some of them are already defaulting on their student loans. For the fiscal year that ended on Sept 30, 2010, student loan defaults went up to 8.8 percent from 7 percent the previous year. It comes as no surprise that there is a strong link between student default rates and joblessness rates.
To read more on the story visit: http://www.allheadlinenews.com/articles/90059838?Study%3A%20Growing%20number%20of%20college%20grads%20filing%20for%20bankruptcy%20protection
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. 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, P.A. website at www.miamibankruptcy.com.
Dealing with Creditors and Debt Collectors While Filing for Bankruptcy in Florida
One of the reasons that many people file for bankruptcy is that they are being harassed by debt collectors, or are facing wage garnishment and foreclosure, and they know they cannot turn around their financial situations without help. Filing bankruptcy stops all collection actions, including home foreclosure, but while people are in the process of filing a bankruptcy petition, they are often still dealing with creditors. Following some simple steps can reduce the stress of debt collectors bothering a person filing for bankruptcy.
Bankruptcy Protections
One of the most attractive benefits of bankruptcy is the stay of all foreclosure, garnishment, repossession and utility shut-off actions by creditors. Once a person files a bankruptcy petition, all of the person’s assets become part of the bankruptcy estate for the trustee to distribute to the creditors according to their priority under the law. Creditors cannot try to take money or other assets from the bankruptcy estate because it would potentially be “cutting in line” in front other creditors who have a higher priority.
Tips for Dealing with Creditors While Filing Bankruptcy
If a creditor is harassing a debtor with phone calls and letters during the time the debtor is filing the bankruptcy petition, the best course of action for the debtor is to inform the creditor that he or she is in the process of filing bankruptcy and that any actions to collect will be in vain.
It is advisable to keep all communications with the debt collector brief and only inform them of the upcoming bankruptcy petition. Many debt collectors will say things that are upsetting to the debtor or try to get the debtor to say things contrary to his or her interest. Writing a letter to the creditor is one possible way of ensuring that the communication is limited.
However, if a creditor has already obtained a judgment against a debtor against the debtor, the creditor may be motivated to act even more aggressively upon hearing the news that the debtor is filing bankruptcy by garnishing wages or bank accounts. The creditor cannot take more than $600 or the bankruptcy court will likely call that a “preference” and make the creditor return it. However, creditors may rush to garnish wages or accounts and take just under $600, knowing that they will likely be able to keep it and that is possibly the only payment they will ever see on the debt. In such a situation, the only remedy is to file the bankruptcy petition as quickly as possible.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. 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, P.A. website at www.miamibankruptcy.com.
Economic Conditions Push U.S. Poverty Rate to New Heights
It is estimated that 46.2 million people are now considered to be living in poverty, which is 2.6 million more than last year. New census data released for 2010 show that the poverty rate has risen 15.1%. That’s up from 14.3% in 2009. With the current economic conditions and many Americans out of work, these statistics are not surprising.
The U.S. government defines the poverty line as an income of $22,314 a year for a family of 4 or $11,139 for an individual. The poverty rate for adults 18-64 rose to 13.7% and the rate for children under 18 increased to 22% in 2010. This translates to 1 in 5 children in America living in poverty. The rate for women living below the poverty line is 16.2% and for men the rate is 14%. Race was also a factor in the study. The poverty rate was lowest for non-Hispanic whites at 9.9%. Blacks had the highest rate at 27.4%, followed by people of Hispanic origin at 26.6%. Asians had a poverty rate of 12.1%.
The income used to calculate poverty status includes earnings, workman’s compensation, unemployment insurance, Social Security, veteran’s payments, pensions, interest and dividends.
To read more on this topic visit:
http://www.local10.com/money/29167705/detail.html?treets=mia&tid=2653406101813&tml=mia_12pm&tmi=mia_12pm_1_11000509132011&ts=H
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. 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. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
Thirty-Two Plaintiffs File RICO Action against JPMorgan Chase Bank and Chase Home Finance, LLC
A Complaint has recently been filed in the Circuit Court of Palm Beach County, Florida against JPMorgan Chase Bank and Chase Home Finance, LLC. The 29-page Complaint alleges several causes of action including violations of the Florida RICO Act, and requests temporary and permanent injunctive relief on a national level to halt all Chase-related foreclosure activity in the eight separate states in which the Plaintiffs reside.
The Complaint alleges a pattern of criminal activity on the part of JPMorgan Chase Bank and Chase Home Finance in connection with the institution of both judicial and non-judicial foreclosures. These include but are not limited to the filing and recording of forged and fraudulent documents, fraudulent collection activities, intentional misuse of the MERS system, and the intentional misrepresentation in foreclosures across the United States. The four counts from the complaint include:
COUNT I: COMMON LAW FRAUD
COUNT II: CONSPIRACY TO DEFRAUD
COUNT III: VIOLATIONS OF FLORIDA CIVIL REMEDIES FOR CRIMINAL
PRACTICES ACT (FLORIDA RICO ACT)
COUNT IV: TEMPORARY AND PERMANENT INJUNCTIVE RELIEF
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. Since 1996 the attorneys at Kingcade & Garcia, P.A. have been helping people from all walks of life build a better tomorrow. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
U.S. is set to Sue Big Banks over Mortgages
The Federal agency that oversees mortgage giants Fannie Mae and Freddie Mac is scheduled to file suit against more than a dozen big banks. The suit is accusing Bank of America, JPMorgan Chase, Goldman Sachs, Deutsche Bank and other banks of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and are seeking billions of dollars in compensation.
The Federal Housing Finance Agency suits are expected to be filed in the coming days and stem from subpoenas the finance agency issued to banks a year ago. The suits will argue the banks, which assembled the mortgages and marketed them as securities to investors, failed to perform the due diligence required under securities law and missed evidence that borrowers’ incomes were inflated or falsified. When many borrowers were unable to pay their mortgages, the securities backed by the mortgages quickly lost value. Fannie Mae and Freddie Mac lost more than $30 billion, in part as a result of the deals. These losses were borne mostly to tax payers.
The suits are being filed now because regulators are concerned that it will be much harder to make claims after a three-year statute of limitations expires this Wednesday, the third anniversary of the federal takeover of Fannie Mae and Freddie Mac.
To read more on the story visit:
http://www.nytimes.com/2011/09/02/business/us-is-set-to-sue-dozen-big-banks-over-mortgages.html?_r=3&ref=nelsondschwartz
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. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
Student Loans go Unpaid as Younger Workers Face Difficult Conditions in the Labor Market
According to data from the Federal Reserve Bank of New York, 11.2% of student loans were more than 90 days past due and the rate was 
steadily rising. Only credit cards had a higher rate of delinquency at 12.2%. Younger workers have continued to face the most difficult conditions in the labor market. Workers between 20 and 24 years old have a 14.6% unemployment rate, compared to the national average of 9.1% recorded in July.
Student loan debt outpaced credit card debt for the first time last year and is likely to top a trillion dollars this year as more students go to college and a growing number borrow money to do so. According to reports, two-thirds of bachelor’s degree recipients graduated with debt in 2008, compared with less than half in 1993.
Education policy experts expect that the mounting debt may have extensive implications for the current student borrower. Individuals finishing or leaving school with a lot of debt, may find their choices to be different than the generation before them. Things like buying a home, starting a family, a business, and saving for their own children’s college education may have to be put on hold for those with insurmountable student loan debt.
Students who borrow to attend for-profit colleges are especially likely to default. They make up about 12% of those enrolled in higher education, but almost half of those defaulting on student loans. According to the Department of Education, about a quarter of students at for-profit institutions defaulted on their student loans within three years of starting to repay them.
To read more on this topic visit:
http://blogs.wsj.com/economics/2011/08/16/more-student-loans-are-past-due/?KEYWORDS=student+loans
http://www.nytimes.com/2011/04/12/education/12college.html?_r=1
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. 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, P.A. website at www.miamibankruptcy.com.
Trend Alert: Decrease in Bankruptcy Filings May Signal Financial Struggles
An eight percent decline in bankruptcy filings nationwide may appear to be a positive economic sign. However, some industry experts attribute the decline to individuals not being able to afford to file for bankruptcy. The result may be a mass of pending bankruptcy filings, not unlike the shadow foreclosures feared in the real estate business. If the economy does not take a sharp turn for the better, those individuals who have been on the brink of bankruptcy will eventually be forced to file.
It is predicted that the number of bankruptcy filings will rise when the employment situation improves. When these individuals on the verge of bankruptcy return to work, they will be able to afford the filing fee and the necessary legal representation.
To read more on this topic visit:
http://articles.boston.com/2011-08-18/business/29901785_1_bankruptcy-filings-troubled-firms-berry-associates
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. 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, P.A. website at www.miamibankruptcy.com.
Five Tips to Help you get out of Debt
Between the first quarters of 2009 and 2010, consumers made $72 billion more in payments on their credit cards than in purchases. Many individuals are picking up second and third jobs to pay off surmounting debt; others are relying on balance transfers on high interest credit cards, garage sales, and even selling unused household items on Craigslist. Reducing consumer credit-card debt is a surefire way to eventually stimulate the economy.
Here are four tips to help you get out of debt:
1.) Track your income and spending: To find cash to pay down your debt, you must know exactly what’s coming in and what’s going out. Write down everything you spend for 30 to 60 days with a pen and paper, an Excel spreadsheet or online software.
2.) Get the details: Determine the difference that an extra $100 or $200 a month can make in your progress. Then focus on saving small amounts that day, week or month.
3.) Call your lenders: List your cards in order of interest rate, from highest to lowest, along with the amount of the debt and phone number of the lender. Then call and ask if they would be willing to reduce your interest rate by 10 percentage points, indicating that you’ve received more competitive offers in the mail. (Make sure the representative who answers is authorized to reduce the rate. If not, ask speak to someone who is.)
4.) Snowball it down: As soon as the card with the highest-interest rate is paid off, direct that payment to the next card until that one is paid off, and work your way down the line. Although some pundits suggest that paying off the smallest balance first will motivate you to keep paying your cards off, studies have shown that method isn’t as effective as paying in order of interest rate. You’ll get out of debt faster by paying off the highest-interest-rate debts first.
5.) Build a cushion: Once you’ve snowballed your way through the credit card debt, steer that monthly amount into a savings account until you have at least three months’ of cash to cover living expenses. That will prevent emergencies from sending you back into the debt cycle.
To read more on this topic visit:
http://www.creditandcollectionnews.com/viewer.php?url=http%3A%2F%2Fwww.dailyfinance.com%2F2011%2F08%2F17%2Fu-s-credit-card-debt-declines%2F
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. 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, P.A. website at www.miamibankruptcy.com.
What the U.S. Credit Rating Downgrade means for Consumers
The global rating agency Standards & Poor’s recently downgraded the United States esteemed “AAA” debt rating, a rating it has held since 1917. The nation’s credit rating has now been reduced to a less favorable “AA+,” after S & P said the compromise made by Congress and President Obama to cut spending and boost the debt ceiling fell short.
S&P repeatedly warned the U.S. rating was at risk if Washington did not agree to reduce deficit spending by $4 trillion over 10 years. This week’s agreement would cut spending by about $900 billion and create a joint congressional committee to find $1.5 trillion more by Thanksgiving.
The downgrade comes at a treacherous time for financial markets, which are already unnerved not only by mounting concerns about government debt and the economy in the U.S., but also in Europe. The move could undermine confidence in our country and has the potential to pull the rug from under investors who are already on the edge. Financial experts say American consumers will most likely see higher interest rates in adjustable rate mortgages, car loans, student loans, and credit cards.
To read more on this topic visit:
• http://www.wgrz.com/news/article/130177/13/What-the-US-Credit-Rating-Downgrade-Really-Means
• http://www.usatoday.com/money/economy/2011-08-05-s-and-p-downgrades-credit_n.htm
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.