Timothy Kingcade Posts Archives - Page 107 of 155

Five Common Debt Traps and how to avoid them

Posted on January 29, 2014by Admin

Consumer debt stands at more than $3 trillion, according to the Federal Reserve. Below are five of the top debt traps Americans face and how you can avoid them.

1.) Job loss.Unemployment is steadily improving; but the level still remains above 7 percent. Unemployment or underemployment is the number one reason people seek financial counseling. Having an emergency savings fund totaling three to six months’ living expenses can help bridge the gap between jobs, if necessary.

2.) Medical costs. An unexpected illness can be emotionally and financially devastating, even for those with health insurance. It’s tempting to choose lower healthcare coverage to bring down a monthly premium. But those who forgo needed medication to mediate costs can face substantially higher emergency and ambulatory costs. Those with chronic health conditions or medication needs should consider a plan that’s more all-inclusive.

3.) Credit card overuse. When expenses increase and income decreases, many turn to credit cards to cover the difference. When managing credit card debt, pay off the cards with the highest interest rates first.

4.) Loss of a partner. Whether going through a divorce or losing a spouse to an illness, the loss of a partner can be financially devastating. Many times, this loss cannot be predicted. Paying down debt and building savings can provide a cushion if tragedy strikes.

5.) Student loans. The average student loan balance among borrowers is more than $24,000 and 66 percent of all bachelor’s degree recipients incur student loan debt. In some circumstances, student loan payments can be postponed through deferment or forbearance- sometimes these can even be forgiven. Federal lenders also offer extended payment and loan consolidation programs, which can extend the term of the loan and lower your monthly payments.

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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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Toni Braxton Bounces Back after Bankruptcy

Posted on January 28, 2014by Admin

Just months after resolving her bankruptcy troubles, R&B singer Toni Braxton has purchased a $3 million home, according to TMZ.com. She landed in financial trouble, again in 2010 when she filed for bankruptcy a second time listing debts of between $10 million and $50 million. She settled the case by paying $150,000 last July and now appears to be back on track financially.
Braxton’s recently purchased home has four bedrooms and five bathrooms and is in the same region as pop star Justin Bieber’s home in Calabasas, California.

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Bankruptcy Law, Timothy Kingcade Posts

NFL Quarterback Vince Young Files for Bankruptcy

Posted on January 22, 2014by Admin

Former NFL and University of Texas quarterback Vince Young has recently filed for Chapter 11 bankruptcy protection. The Houston federal bankruptcy court listed Young had estimated assets between $500,001 and $1 million and liabilities between $1,001,000 and $10 million. The 30-year-old is fighting two lawsuits stemming from a $1.8 million loan obtained in his name during the 2011 NFL lockout. The original loan amount has grown to $2.5 million with interest. A court has granted a judgment against Young to Pro Player Funding, the company that made the loan. Pro Player Funding has made several attempts to enforce the collection of the judgment, but those efforts remain pending.

Young was a first-round pick by Tennessee in 2006, and he reportedly signed a five-year deal with $25.7 million guaranteed. He reportedly signed a one-year deal with the Philadelphia Eagles that was worth up to $5 million in 2011. Young was on Green Bay’s pre-season roster in 2013, but did not make the team.

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Foreclosures, Timothy Kingcade Posts

Homes in Foreclosure Hit 6-year Low

Posted on January 21, 2014by Admin

Foreclosures are on the decline, according to the latest evidence from RealtyTrac. The U.S. housing market continues to emerge from a deep slump, aided by rising home prices, steady job growth and fewer bad loans. More homeowners are keeping up with their mortgage payments, leading fewer homes to enter the foreclosure pipeline.

Foreclosures totaled 747,728 last year, which is down 33 percent from a year earlier and is the lowest annual level since 2006. As of December, more than 1.2 million properties nationwide were in some stage of the foreclosure process or owned by banks, but not yet sold. That is a decline of 19 percent from a year earlier and 44 percent below their peak of more than 2.2 million homes in December 2010, Realty Trac said.

Florida continues to remain the nation’s foreclosure hotbed and had 306,018 homes in some stage of foreclosure or owned by banks in December. That amounts to a quarter of the national total.

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Timothy Kingcade Posts

When Can I File my 2013 Taxes?

Posted on January 15, 2014by Admin

Due to the government shutdown, the filing date has been pushed back to file your 2013 tax returns. The IRS has announced plans to open the 2014 filing season on January 31, 2014, as opposed to the January 21st date. The government shutdown and the extensive set of ATRA tax changes affected many 2012 tax returns, which led to the late January opening.

The IRS noted several options available to help taxpayers prepare and receive their refunds as quickly as possible.

• Many software companies are expected to begin accepting tax returns in January and hold those returns until the IRS systems open on January 31.

• Taxpayers are encouraged to file their tax returns using e-file or Free File with the direct deposit option to receive their refunds the fastest.

• The April 15 tax deadline is set by statute and will remain in place. To receive an automatic six month extension, you will need to file Form 4868, electronically or through the mail.

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Bankruptcy Law, Credit, Timothy Kingcade Posts

“Dance Mom’s” Star Emerges from Bankruptcy

Posted on January 13, 2014by Admin

It turns out that even celebrities can find themselves facing financial trouble. The popular “Dance Mom’s” star, Abby Lee Miller recently emerged from bankruptcy. The dance instructor, who owns a studio in Pittsburg, filed for bankruptcy on December 3, 2010, claiming assets of about $325,000, but owed more than $400,000.

According to legal documents, Miller got into financial trouble when she fell behind in real estate taxes and her property was nearing foreclosure. She also claimed that business had slowed down at her dance studio. Shortly after filing bankruptcy, the reality show “Dance Moms” which debuted in July, 2011, became her saving grace. Her case was officially discharged on New Year’s Eve and her lawyer confirms that all creditors were paid in full.

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Bankruptcy Law, Timothy Kingcade Posts

IRS Announces Changes for Taxpayers in 2014

Posted on January 9, 2014by Admin

The IRS has announced it will stop providing a number of taxpayer assistance services in person or over the phone and will instead shift to serving customers online. According to the IRS, the move is designed to free up employees to help taxpayers deal with issues, such as identity theft, that cannot be resolved through over avenues.

Changes are being made in the following areas:

1.) Tax Return Preparation. The IRS has always provided limited tax return preparation services at its walk-in offices, but beginning in 2014 this help will be further reduced, as taxpayers will be directed to the more than 13,000 volunteer tax preparation sites instead of the 250 IRS walk-in offices.

2.) Transcript Delivery. Beginning in 2014, the IRS will debut its “Get Transcript” service, which will allow individual taxpayers to use their Social Security numbers to view and print a copy of their tax transcript. Get Transcript will be available for the following types of transcripts: tax account, tax return, record of account, wage and income and verification of non-filing.

3.) Tax Law Assistance. The IRS will continue to answer basic questions, such as who qualifies as a dependent, who can take an exemption, etc., but will refer more complex questions to resources found on the IRS website.

4.) Refund inquiries. The most common question taxpayers ask according to the IRS are questions related to the status of a refund. This year, taxpayers will be able to check the status of their refund using the IRS’s online tool, “Where’s My Refund?”

5.) EIN’s: Beginning with the 2014 filing season, the IRS will handle all EIN requests using the Online Assistant, with only those with a previously assigned EIN being referred to an IRS representative.

6.) Practitioner Priority Service: Starting in January, the use of the Practitioner Priority Service will no longer be available to taxpayers; it will be restricted to tax practitioners who are trying to resolve issues for their clients.

7.) Filing season for business tax returns. The IRS announced that the filing season for individual returns will begin January 31. This is later than the originally planned start date of January 21 due to the government shutdown in October. Filing season for business tax returns, however, will not be similarly delayed. The IRS announced that on January 13, 2014, it will begin accepting both paper and electronically filed business and excise tax returns.

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Bankruptcy Law, Timothy Kingcade Posts

Beware of Credit Repair Companies

Posted on January 8, 2014by Admin

We are bombarded with ads for credit repair companies, claiming to “Erase your bad credit history simple, fast and easy- Guaranteed!” Others promise to “Boost your credit score to 750 in just one week.” Consumer credit counselors are warning consumers to take caution when it comes to these type offers because it is likely a scam. In reality, there is no quick fix for credit problems; improving your credit score takes time and effort on your part. No one can remove accurate negative information from your credit report.

Here are some tips from the FTC on how to evaluate the trustworthiness of credit repair companies. Proceed with caution if…

• The company wants you to pay for credit repair services before they provide any services.

• The company does not explain to you your rights and ways you can fix your credit score for free.

• The company recommends that you do not contact any of the three major national credit reporting agencies.

• The company tells you it can get rid of negative credit information on your credit report, even if that information is accurate and current.

• The company suggests you invent a “new” credit identity and a new credit report by applying for an Employer Identification Number, instead of using your Social Security number.

• The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.

Know that if you follow illegal advice and commit fraud, you can land up in hot water. It is a federal crime to lie on a loan or credit application, to misrepresent your social security number and obtain an Employer Identification Number from the IRS under false pretenses. Even if a credit repair agency advises you to do this, you yourself will be held accountable.

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Bankruptcy Law, Timothy Kingcade Posts

Debtor Beware: Bankruptcy Fraud has Steep Consequences

Posted on January 7, 2014by Admin

Darren David Chacker, 41, of Beverly Hills, California and Las Vegas, Nevada learned the hard way after lying under oath during his bankruptcy hearing. According to evidence, Chaker filed for Chapter 13 bankruptcy on March 6, 2007. During his bankruptcy hearing that same month, while he was under oath, Chaker falsely and fraudulently represented to the court that his property was never leased out prior to January 2007, when in fact he had previously contracted with a realtor who secured at least two rental contracts with Chaker personally. In addition, he failed to disclose income and the existence of past and present residential leases of a property facing foreclosure in Houston to his creditor, Saxon Mortgage in the hearing and to the court.

Chaker was found guilty on April 4, 2013, after a five-day bench trial. U.S. District Judge Nancy Atlas sentenced him to a term of 15 months in prison to be immediately followed by a three year term of supervised release. He has also been ordered to pay a $2,000 fine. The sentencing also included special conditions that he not stalk or harass anyone and obtain mental health and anger management counseling.

It is imperative that the debtor be 100 percent truthful and forthright in all aspects of the bankruptcy process. The bankruptcy system is based on an honor system, which must be followed in order for all parties to benefit. The debtor must provide all of the necessary information requested by the trustee and be in compliance with the court’s orders to obtain the debt relief desired. We have created a website to help you better understand Florida bankruptcy laws and answer all of your questions relating to bankruptcy! Visit www.timothykingcade.net.

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Bankruptcy Law, Credit, Timothy Kingcade Posts

Income Inequality: Credit Card Debt threatens African American Middle Class

Posted on January 6, 2014by Admin

According to a recent report by the NAACP and the public policy research organization, Demos, middleclass African Americans are using credit to help cover basic living expenses, when income and savings fall short. According to the report, 79 percent of African Americans carry credit card debt and 80 percent have taken out loans for their education.

Interestingly, Black and White households reported different reasons for poor credit: 44 percent of White respondents cited late mortgage payments and using all or nearly all of their credit lines, while 40 percent of Black households cited late student loan payments and credit report errors.

Middle class credit use and debt levels are similar across race. The consequences are what raise eyebrows. The report found that African Americans and Whites had similar rates of card default, late payments, bankruptcy, eviction and repossession. However, indebted African American households face higher interest rates, reporting an average APR of 17.7 percent on the card where they carry the greatest balance, compared to 15.8 percent for White households.

Economic experts point out the problem is not about spending, but about income inequality and the decline in opportunity for middle class African Americans.

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