Timothy Kingcade Posts Archives - Page 13 of 155

Bankruptcy Attorney Timothy S. Kingcade Obtains Successful Order Requiring Miami Regional University to Release Client’s Diploma and Transcripts

Posted on August 27, 2018by Admin

MIAMI – (August 27, 2018) Bankruptcy Attorney Timothy S. Kingcade, founding partner of Miami-based Kingcade Garcia McMaken successfully obtained an Order for his client in a Chapter 7 case (In re: Adriana Gonzalez Case No. 18-15980-RAM), requiring Miami Regional University to immediately release client’s education transcripts and diploma, and make no further attempts to collect on the discharged debt, in compliance with the bankruptcy automatic stay.

“Justice was served today for our client, who prior to this Order was being denied the basic protections of the bankruptcy automatic stay. The creditor in this case (Management Resources Institute, which operates a for-profit school, Miami Regional University) has willfully and intentionally violated the automatic stay by refusing to release our client’s diploma and transcripts. After the bankruptcy case is over, our client will need certified copies of her transcripts, which would have been continually denied by the creditor in this case,” Kingcade said.

Our client filed for Chapter 7 bankruptcy on May 18, 2018. The problems as described in the motion started on June 6, 2018 and have continued through the date of the amended motion. The creditor, Management Resources, Inc. d/b/a Management Resources Institute, which operates a for-profit school known as Miami Regional University was listed on the bankruptcy petition. The creditor in this case was verbally advised of our client’s status in bankruptcy and the pending automatic stay. Our client returned at least twice to the school seeking her transcripts and diploma.

Henry Babani, Vice President of Corporate Finance for the Creditor in the case confirmed to our client that the underlying debt would be discharged in the bankruptcy, but unless she paid what was due, the Creditor would not release her diploma or her transcripts.

The stay violation has continued since our client’s first visit and since the filing of this motion. Even though the Creditor operates a nursing school (Miami Regional University) where this situation is likely to recur, the Creditor’s position is the automatic stay and/or a discharge in bankruptcy is irrelevant to our client’s right to receive a current copy of her transcript, her diploma or future certified copies of her transcripts.

Our client who is currently applying for jobs, which require these documents for employment, is in jeopardy of losing job opportunities because of the Creditor’s willful violation.

Given the continuing nature of the stay violation and Creditor’s untenable position regarding our ability to receive her transcripts and diploma (and the future right to receive certified copies of her transcripts) an award of punitive damages is warranted against Creditor as a coercive sanction to compel Creditor’s future compliance with this court’s automatic stay and/or discharge injunction.

This is not the first time our firm has obtained justice for a client in a similar circumstance, where a school willfully and intentionally violated the automatic stay by refusing to release student transcripts. On December 21, 2016, a successful Order was obtained requiring Belen Jesuit Preparatory School, a Miami-based Catholic school, to release education transcripts in compliance with the bankruptcy automatic stay and to pay our clients’ legal fees.

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Miami-based Kingcade Garcia McMaken was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade Garcia McMaken specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

For more information visit, https://www.miamibankruptcy.com/.

Homeowners Fight Unnecessary Foreclosure Fees

Posted on August 24, 2018by Admin

Facing a foreclosure can be stressful enough but for a number of homeowners the banks where these loans originated added hidden fees on top of mortgages, after their cases were dismissed.

As a result, a class action lawsuit has been brought against the offending banks for these fees.

Zacarias Cabrera is one individual who is fighting several different banks over the past decade to keep his home from foreclosure. He is now a part of the class action suit. His troubles started in 2008 as he took care of his mother diagnosed with terminal cancer. He missed work due to having to his obligations and reached out to his bank after struggling to pay his mortgage. He was refused a loan modification, and the bank soon tried to foreclose on his home. The bank ended up dismissing the foreclosure case, but then it tried to foreclose again three years later. Again, the bank attempted to dismiss the case.

The problem came up when Cabrera noticed his monthly balance on his mortgage statements was much higher. After investigating further, he noticed the bank’s attorney fees were on the bill even though the case was dismissed on the bank’s motion. He is now facing a third foreclosure and has countersued for attorney fees that were added previously.

According to Florida law, to collect attorney’s fees, the individual must win the lawsuit and have the court specifically award these fees and costs as part of the ruling. If no winning party exists, it is assumed that each side is responsible for his or her own attorney’s fees.

The attorneys leading this class action lawsuit claim that adding these fees and not alerting the homeowner is a direct violation of the Florida’s Consumer Collection Practices Act. The banks should be aware of this fact, but are hoping borrowers’ will not know the difference.

In fact, it is happening quite frequently and has been said to be a result of the financial institutions taking advantage of the fact that the homeowners are not educated enough on the subject to know better or will not notice these fees on an already confusing billing statement.

If you have had a foreclosure case filed and then later dismissed by the bank, carefully review your statements. If any charges that are indicated as “corporate advances” or “legal fees,” it is highly possible that the bank has added these illegal fees to the statement. Contact an attorney as soon as possible and dispute these fees as soon as they are noted.

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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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Student Loans, Timothy Kingcade Posts

More than 1 million student loan borrowers default each year

Posted on August 23, 2018by Admin

Student loans are a problem for many Americans, but recent loan statistics show just how serious the problem is. More than one million student loan borrowers reportedly go into default on their loan obligations every year, surpassing auto loans and credit card debt.

In fact, the amount of student loan debt Americans carry has tripled in size over the last decade and is now over $1.5 trillion.

Default occurs when a borrower has not made a payment on their loans in over a year, thus triggering the debt being sent to a third-party debt collector.

Why are so many borrowers defaulting on their loans? For many of them, continuing to make the payments has become not feasible. Because of this, it is estimated that approximately 40 percent of borrowers are expected to default on their student loan obligations by the year 2023.

According to a report from the Urban Institute, a progressive Washington, D.C., think tank, within four years after graduating or leaving school, approximately one-fourth of all borrowers have defaulted.

Borrowers who end up defaulting on their loan obligations are less likely to carry some type of debt that requires a risk assessment, like a mortgage or credit card, but they are more likely to have medical bills or utility bills that end up being sent to collections. All these additional debt obligations can put added pressure on the borrower, and for this reason, many of the borrowers will put the student loan payments dead last next to other obligations.

Those who defaulted on their student loan obligations were found to live in an area where the median income was $50,000. Those who did not default on their loan obligations typically lived in areas where the average income was around $60,000.

The report further showed that the amount of the loan balance did not seem to matter. Even those who carried a small loan balance still struggled to pay off their debt.

What happens to a borrower’s loan when it goes into default?

As soon as someone’s student loan goes into default, their credit score will take a hit of approximately 60 points, dropping the average defaulter’s score to 550, which is a “poor” score. If the borrower stays current, the average credit score has been in the high 600s.

If the case ends up going into collections, the borrowers find themselves in the danger zone of receiving a judgment against them and wage garnishment. Collections judgments and wage garnishments can be extremely difficult to shake in bankruptcy cases, which can make the situation even worse if the borrower falls into a dire financial situation.

If someone finds himself or herself not able to make student loan payments, the first recommendation is to contact the student loan servicer. Many of these servicers will work with borrowers on payment plans that are capped at a monthly payment based on a percentage of the borrower’s income. The borrower can request the loan be put in forbearance, which temporarily postpones payment of the debt- however, the interest on the loan will continue to accrue. If the loans are in default, contact the loan servicer to see what can be done to get the account in good standing. The worst thing that a borrower can do is to ignore the loan payment requests.

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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. There are ways to file for bankruptcy with student loan 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Foreclosures, Timothy Kingcade Posts

Florida: The Only State to Post an Increase in Mortgage Delinquencies

Posted on August 22, 2018by Admin

Recent statistics show that across the nation, mortgage delinquency rates have declined. However, despite the decline in numbers, delinquency rates in the State of Florida are on the rise and can be attributed primarily to the destruction brought by the 2017 hurricane season.

These figures come from a recent CoreLogic Loan Performance Insights Report. The report showed that over all, delinquency rates on mortgages are on the decline nationwide. For a select few states, including Florida, however, that’s not the case. Florida was reported as having the third highest delinquency rate in the nation, coming in at 6.2 percent. It is also noted that this rate is a one percentage point increase from the previous year.

The state with the highest rate of delinquency reported was Mississippi, posting a 7.9 percent delinquency rate. Another state that was touched by the 2017 hurricane season, Texas, posted a high delinquency rate, although its rate did not change from May 2017. Texas, like Florida, was also hit hard during the 2017 hurricane season.

Out of all 50 states, Colorado had the lowest mortgage delinquency rating, coming in at 1.8 percent.

The total mortgage delinquency rate for the nation was reported at 4.2 percent. This figure means that 4.2 percent of all American homes were in some stage of the delinquency process. It should be noted that this figure did drop 0.3 percentage points, coming down from 4.5 percent the previous year. This figure is also the lowest reported for the month of May since May 2006 when the figure was reported at 4.1 percent.

The delinquency rates reported by CoreLogic include all home mortgages or loans that are at least 30 days or more past due, as well as those loans that are in foreclosure. For the month of May alone, the year where the number of mortgages that were delinquent was the highest was in May 2010 when the rate was reported at 11.4 percent nationwide. The years when the rates were the lowest were before the recession in 2007, between the years 2000 and 2006 where the average delinquency mortgage rate was 4.7 percent.

CoreLogic does not only monitor mortgage delinquency rates. The report also showed the rate at which a mortgage moves from one stage of delinquency to the next stage such as the 30 days delinquency to 60-day delinquency to 90-day delinquency stage. The most recent report showed the rate mortgages moved from current to 30 days delinquency was 0.8 percent. This rate did not change from the previous year. However, the rate of mortgages that went from 30 to 60 days was reported at 15.1 percent, up from the previous year when it was reported at 13.8 percent. The number of mortgages that went from 60 days to 90 days was 24.3 percent, which is down from the prior year’s figure of 24.9 percent.

CoreLogic also reports on the foreclosure inventory rate. This rate includes the number of mortgages that are in some stage of the foreclosure procedure. The national figure was reported at 0.5 percent, down from the 2017 figure of 0.7 percent. It should be noted that this year’s number is the lowest it has been since 2006.

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

Millennials Acquiring More Debt, Less Stuff

Posted on August 21, 2018by Admin

Millennials are entering the workforce with more student loan debt than ever before. They may be earning more in terms of income, but a large percentage of their paychecks are dedicated to their student loan payments. After making those required monthly payments, all they have left goes towards daily living, healthcare and rent. They end up having less to spend on discretionary items, such as travel, eating out or clothing.

In fact, Americans ages 18 to 29 are spending $20 less daily than this same age group did ten years ago. The reason for this difference in spending is the amount of debt Millennials carry.

According to a recent Bankrate study, Millennials are spending more on bills and less on discretionary items than other generations. On average, Millennials spend 15 percent more than older generations on necessities, such as gas, food or other utility bills.

Here are some tips for millennials struggling with student loan debt:

Know what you owe.
Millennials who have graduated and have jobs often qualify for better rates than when they had little to no income at the start of school.
Get help at work. Certain companies offer student loan repayment assistance, including Fidelity, Aetna and PwC, and others.
Seek forgiveness. Certain professions, such as public service jobs, offer student loan forgiveness. Others include public defenders, law enforcement officers, doctors, nurses and some teachers. For example, teachers who work in low-income school districts and teach certain subjects may qualify for complete cancellation of their student loans.

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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 McMaken, 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, Debt Relief, Timothy Kingcade Posts

Souring Bankruptcy Rates Signal a Calm Before the Storm for the Elderly

Posted on August 20, 2018by Admin

Bankruptcy statistics are showing an alarming trend among senior citizens as more of them are filing for bankruptcy than ever before. In fact, according to the study, these numbers have jumped significantly in the last 25 years.

The numbers come from the Consumer Bankruptcy Project as published by the Social Science Research Network. These figures show that the rate of individuals over the age of 65 who have filed for bankruptcy has grown 204 percent from 1991 to 2016. Further, the percentage that senior citizens who filed compared to all other U.S. bankruptcy filers went up five times over this 25-year period.

It is reported that the rising cost of healthcare, reduced income and decline in pensions are to blame for the increase. All three of these factors have led to the perfect storm, leaving more financially broken retirees than ever before.

Most of these individuals worked their whole lives, thinking Social Security, their pensions and Medicare would carry them through retirement. However, following the 2008 recession, companies began to freeze or completely eliminate pensions. Many also lost their jobs during this time or were forced to retire early and are now delaying collecting Social Security, just barely getting by. All it takes is for one major crisis, whether it be a medical diagnosis or job loss, for their finances to quickly fall apart.

Medical costs seem to be the biggest trigger for financial issues, according to the study. For one, Medicare does not cover all medical expenses that may be needed, including the costs of long-term care, dental treatments or hearing aids. Medicare requires co-pays most of the time, as well as deductibles, and even meeting these costs can be difficult for many. If someone needs major surgery, those costs can be astronomical, even just meeting the deductible.

According to figures from the Kaiser Family foundation, out-of-pocket health expenses for individuals on Medicare took over 40 percent of the average reported Social Security income during 2013. It is anticipated that costs are going to increase to 50 percent of what the average Social Security income is by the year 2030.

The financial institution, Fidelity, reported earlier this year that the average retiree couple, age 65, will need approximately $280,000 alone to cover health care and other medical costs throughout retirement. That figure does not even begin to cover the cost of living. This number is up 75 percent from what Fidelity recommended in 2002, when the company recommended that a retired couple at the age of 65 save up $160,000 for healthcare costs.

One major concern brought up from these statistics is the fact that even though older individuals are struggling, society as a whole does not seem to be all that concerned with their struggles. When the average person is in this type of financial situation, bankruptcy offers him or her a fresh start.

Individuals in this generation can sometimes view bankruptcy as a way of giving up or have trouble asking for help. It is important, however, that if family and friends see their older loved ones struggling financially, that they reach out to them and encourage them to seek help as soon as possible. For many seniors, bankruptcy can provide the relief they so desperately need and help them enter retirement with a fresh financial start.

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If you have questions on this topic or 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

How Long Can a Debt Collector Pursue an Old Debt?

Posted on August 10, 2018by Admin

When it comes to debt collections, certain rules do exist as to how long a debt collector can attempt to collect on a debt. These rules apply to the actual lawsuits themselves, as well as credit reporting.

Statute of Limitations

Every state has what is referred to as a statute of limitations, laws which set a limit as to how long an individual has to bring a legal claim on a certain matter. States have limitations on how long a debt collector has to collect on a debt. In Florida, the statute of limitations varies for different types of debts. For written contracts such as personal loans, the statute of limitations is five years. So once this type of debt is more than five years past due, the lender can no longer sue in order to collect owed money.

However, the problem is the debt collectors are not obligated to tell the consumer that they are past the statute of limitations. It is up to the consumer to do the research and know his or her rights if a debt collector is trying to communicate with a them regarding an old debt. There are ways to deal with old debt. Most states have a statute of limitations for debt collections that restricts collections on debts that are four to six years after the date the debtor last made a payment.

One thing to keep in mind, if you think the debt is past the statute of limitations- do not pay on it, until you confirm. A single payment towards an old debt can revive that debt, restarting the statute of limitations.

Indefinite Attempts to Receive Payment

Technically, while there are laws that state how long a debt collector can take legal actions to collect on a debt, there is no law saying they cannot keep trying to contact the individual to pay on the amount. For all purposes, the original creditor can try to get the individual to pay indefinitely, unless the debt has been settled or discharged in bankruptcy.

The law does restrict certain tactics taken by third-party debt collectors who are trying to collect on a past-due debt. The Fair Debt Collections Practices Act (FDCPA) specifically prohibits any communication from third-party collectors that is abusive, harassing or threatening. If a third-party debt collector is continuing to call to the point where the communication is harassing, the individual can send a written letter ordering that debt collector to cease and desist.

Foreclosures, Timothy Kingcade Posts

Mortgage Delinquency Rates Decline Nationally, But Florida Shows Increase Due to Irma

Posted on August 7, 2018by Admin

Mortgage delinquency rates have declined on a national level, as reported by the monthly Loan Performance Insights Report published by CoreLogic. However, despite the national decrease, Florida residents have seen an increase, which is attributed mostly to Hurricane Irma and the 2017 hurricane season.

According to CoreLogic’s report, as of April 2018, 4.2 percent of mortgages nationwide are in some stage of delinquency. A delinquency means that the mortgage is 30 days or more past due and includes those mortgages that are already in foreclosure. This number shows a 0.6 percentage point decrease in the overall delinquency rate as compared in April 2017. At that time, the percentage was at 4.8 percent.

The report also provided information on the foreclosure inventory rate, which measures the share of mortgages that are in some stage of the process of foreclosure. The rate as of April 2018 was at 0.6 percent, which is down 0.1 percentage points from where it was in April 2017. The foreclosure inventory rate has been steady at the rate of 0.6 percent, which is the lowest rate that has been reported since June 2007, when the rate was last reported at 0.6 percent. The April 2018 rate is the lowest that it has been in the past 11 years.

The purpose of measuring delinquency rates during the early stage of the process helps in analyzing the health of the mortgage market. CoreLogic’s report looks at all stages of mortgage delinquency and transition rates, including the percentage of mortgages that are reported as moving from one stage of delinquency to the next step in the process.

Early stage delinquency occurs when a mortgage payment is 30 days to 59 days past due. This early-stage delinquency was reported at being at 2.2 percent in April 2017 and was reported at 1.8 percent in April 2018. The figures in the early-stage delinquency category can be volatile, so it is for this reason that CoreLogic looks at the transition rates, meaning the number of mortgages that transition to the next stage. The transition rates for mortgages reported in the early-stage to later stage went down from 1.2 percent in April 2017 to 0.8 percent in April 2018. To provide some perspective, at the start of the financial crisis the early-stage delinquency transition rate was at 1.2 percent in January 2007 and 2 percent in November 2008.

The percentage of mortgages at the 60 to 89 days past due remained the same during this time. The mortgages that were reported in the serious delinquency stage at more than 90 days past due were down from 2.0 percent in April 2017 to 1.9 percent in April 2018. It should be noted that this is the lowest the serious delinquency rate has been since 2007 when it was reported at 1.6 percent.

However, despite these decreasing numbers, two states were reported as showing significant gains in the serious delinquency stage. These two states, Florida and Texas, were showing serious negative effects from the 2017 hurricane season. Of the two states, Florida has the most densely populated areas and the longest coastal area. This long coast leads to more exposure to storm surge flooding, putting almost 2.7 million homes at risk during hurricane season. After Florida, Louisiana is second to Florida with 817,000 homes in the “at-risk” area. Texas is right behind in third with 543,000 at-risk homes. Of these three states, Florida and Texas are the ones currently still struggling following Hurricanes Irma and Harvey which hit in 2017. Both states are finding themselves with higher mortgage default rates due to the natural disasters that have hit those states. The percent of mortgages that are in the serious delinquency category with loans that are 90 days past due are doubled than what they were reported in the previous year. In Puerto Rico, another area hit by hurricanes in 2017, the foreclosure rate or 90-day delinquency rate has quadrupled.

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Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

More Older Americans Filing for Bankruptcy

Posted on August 6, 2018by Admin

A greater number of Americans who are 65 years of age and older are filing for bankruptcy. The reasons for this increase in bankruptcy filings are numerous, including the loss of pensions, high medical expenses, and lack of savings. Regardless of the reasons, research is consistently showing that individuals at retirement age of 65 years old or older are three times more likely to file for bankruptcy than this age group in previous years.

One reason for this trend is the instability behind the government safety net that was once there for retirees as they left the work force. Social security was always considered a given, something that would support the retiree throughout their remaining years. Retirees are now having to wait longer to receive their full social security benefits, causing them to struggle to make ends meet until that time.

The pension plans they always considered were a given are now replaced with 401(k) plans, which require self-contribution for them to be successful. Many of these individuals are paying out-of-pocket for medical expenses, and many are being forced into early retirement before they are financially ready to live without a reliable, steady income.

According to Consumer Reports, from February 2013 to November 2016, bankruptcy statistics showed that there were 3.6 bankruptcy filings for every 1,000 individuals between the ages of 65 to 74 years old. This number shows a significant increase from the 1.2 bankruptcy filings for every 1,000 individuals in the same age category in 1991.

Looking at all bankruptcy filings made currently, 12.2 percent of those who filed are older than 65 years old. In 1991, only 2.1 percent of all filings were from individuals older than 65. The problem is the generation following this age group is also filing for bankruptcy in greater numbers. The best explanation for why this is occurring are structural shifts for these generations.

Of the reasons given for why they are filing for personal bankruptcy, these filers are reporting medical debt as a leading cause. The recession of 2008 has also been a leading cause for why these aging filers are facing such difficult financial circumstances. The recession wiped out a great deal of their investments, leaving everyone, including this demographic, leaving them with little money to retire with and a small amount of liquid assets with which to pay medical bills. Lastly, many wives in this generation are outliving their husbands, those in the family who were the main breadwinners and the individuals handling the family finances. Once the husband dies, the surviving spouses may not know how to handle the finances, resulting in decisions that could later lead to bankruptcy court. The notion may seem dated, but in this generation, it is an all-too-common occurrence.

For many, bankruptcy offers a fresh start providing the relief needed from collection proceedings and harassment from debt collectors. But what are the signs that it’s time to file for bankruptcy? Debt collectors can be anything but subtle in their efforts to receive payment on a debt, and this added stress can be too much for an older individual. Filing for bankruptcy puts these efforts to a halt and at the very least gives the individual a chance to breathe and to receive relief from this type of communication. If you are filing for Chapter 7 bankruptcy in Florida, you can use Florida bankruptcy exemptions to protect your property, social security and retirement savings. In addition, residents are provided unlimited exemptions for homestead, annuities, and the cash surrender value of a life insurance policy.

Click here to read more on this topic.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Tax Debt will Affect Passport Renewals and Applications for Thousands of Americans

Posted on August 3, 2018by Admin

Americans who have overdue tax debts will soon find it difficult to receive a new or renewed passport, according to the Internal Revenue Service (IRS). It is estimated that approximately 362,000 Americans have overdue tax debts, and soon, Congress will be increasing efforts to enforce a law passed back in 2015.

The 2015 law requires that the IRS and State Department deny applications for new or renewed passports for taxpayers who have overdue tax debt in the amount of $51,000 or more.

Increased efforts to enforce this law began in February 2018, according to a recent Wall Street Journal report. Currently, the IRS is in the process of sending the names of these 362,000 individuals to the State Department.

According to the IRS Division Commissioner, Mary Beth Murphy, authorities are currently only denying passports rather than revoking them for people who hold excessive IRS debts. In fact, the State Department has stated that the agency has already denied passports for individuals who hold tax debts. For the time being, Americans with over $51,000 in tax debt will be able to continue traveling abroad if they hold current passports.

The IRS has accounted for inflation and other assessed penalties, taxes and interest when calculating the amounts owed. These amounts do not include debts that were collected by the IRS, such as FBAR penalties due to the person’s failure to report foreign financial accounts or child support owed. If the taxpayer has entered into an agreement for installment payments, is in the middle of a bankruptcy proceeding, is a victim of identity theft or is in a federally declared disaster area is not subject to revocation of their passports.

The State Department is within its rights to issue a passport for emergencies or other humanitarian reasons should a U.S. citizen who is subject to this law need to return to the U.S. from overseas. Individuals affected by the law will be notified in writing by the IRS.

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