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Bankruptcy Law, Credit, Timothy Kingcade Posts

JP Morgan Chase faces Class Action Lawsuit

Posted on March 19, 2014by Admin

The trend in robosigning has spread from mortgage to credit card debt in a recent lawsuit against JPMorgan Chase Bank. The bank has been accused of filing thousands of false affidavits in court. Miami resident Ruth E. Moya filed the class action lawsuit on March 11 in the Southern District of Florida against the NY-based bank and its credit card division. She is hoping to form a class with other customers who were hit with default judgments after the bank submitted a robosigned affidavit in support of the motion for default.

The lawsuit states that Chase relied upon and/or submitted improper, incorrect and fraudulent affidavits attesting to the alleged cardholders’ debts. These affidavits were executed by Chase employees, often thousands at a time, without the employee reviewing or verifying the information attested to in the affidavits. The lawsuit also claims the affidavits were notarized en masse by notaries who did not witness the party’s signature. It is alleged that this was done by Chase to obtain rapid default judgments without ensuring the accuracy of the cardholders’ debt. In Roth’s case, the lawsuit alleges that the amount of the default judgment Chase obtained against her was greater than the past due amount listed on her balance statement.

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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

Avoid Getting Audited this Year: 10 Tax Audit Red Flags

Posted on March 18, 2014by Admin

1.) You’re “very” charitable. Be careful not to exaggerate your good deeds. The IRS has pre-calculated a donation level for each income range, so anything that exceeds those amounts could cause the IRS to take a second look at your return. Keep in mind- you are required to keep receipts for any donations exceeding $250 and to fill out form 8283 for any non-cash donations exceeding $500. Non-cash donations are where a lot of people end up exaggerating and get into trouble. So remember, items that you are giving to Goodwill should be valued at the price someone would actually pay for them today- not the amount you purchased them for 10 years ago.

2.) You deduct your home office. The home office deduction is one of the most complicated and abused deductions in the tax code. Starting this year, you can claim $5 per square foot of workspace, up to 300 square feet. The deduction will be capped at $1,500 per year. The IRS’s definition of a home office remains the same. Your home office must be your primary place of business and used exclusively for work. So if you check your emails from the kitchen or work from home a couple times a week, this does not constitute a home office.

3.) You claim bizarre deductions. These can spark suspicion with the IRS. When in doubt, ask a tax professional before claiming these deductions.

4.) You’re a millionaire. Being rich has its benefits, but not during tax time. The more income you report, the higher the likelihood you will get audited. Be sure and keep up-to-date records of all income, donations and other transactions. The better documentation you have and the more organized you are, the less headaches you will have down the road.

5.) You claim the same child someone else does. If your ex files taxes before you do and claims your child as a dependent, the IRS is going to be very suspicious if you claim the same child as a dependent. This often happens when a couple gets divorced and one parent has primary custody, but the other still tries to claim the child as their dependent. Even if you are in the right, the IRS may force you to provide extensive documentation proving this.

6.) You have money abroad. The IRS has made it a mission to retrieve money that is illegally being stashed in overseas accounts. So even if you have money in a perfectly legal account abroad, you better report it. Failing to disclose this can result in penalties, including a fine of up to $100,000 or 50% of the account balance- whichever is greater.

7.) You claim the earned income tax credit. This refundable credit can be as much as $6,000 depending on your income and how many children you have. That’s why the IRS tries to make sure that this credit is only given to those who truly deserve it. If you claim this credit, make sure and have documentation including the Social Security numbers of all of your children and proof that they live with you (i.e. – letters from their schools or doctors that were sent to your address).

8.) You deduct gas costs. Most employers reimburse you for driving-related costs like gas and mileage. So if you are deducting hundreds or thousands of dollars of automobile costs as a business expense that is going to raise suspicion from the IRS. If you own a business, you can only deduct business-related costs. The gas you purchase for personal trips cannot be combined with that.

9.) Your “business” is really just a hobby. The general rule of thumb is that if the venture has not earned a profit in three out of the last five years, it’s usually not a legitimate business.

10.) You fail to report income. For those who earn money from a variety of different sources, it can be easy to forget an account. Some clients forget about small brokerage accounts they have and since the IRS receives information from brokerage firms directly as well, there is a good chance you will be contacted if your records do not match up with what the IRS receives. If you worked side jobs and earned more than $600 at any one of them in a year, those employers should send you a Form 1099 so you can report that income on your taxes as well.

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Bankruptcy Law, Credit, Timothy Kingcade Posts

Quiznos Files for Bankruptcy

Posted on March 17, 2014by Admin

First Sbarro now Quiznos- it’s been a tough week for fast food chains. Executives at the chain restaurant, known for its toasted sandwiches, agreed to a restructuring plan that will reduce its debt by more than $400 million.

The company has lined up $15 million from investors to help keep the business running during the bankruptcy. All but seven of Quizno’s 2,100 restaurants in the U.S. and 30 other countries are independently owned by franchises, will remain open and operating as usual.

Quiznos once had more than 5,000 stores and was a competitive player in the sub market. But now, Subway has nearly 20 times the number of stores. Quizno’s CEO, Stuart Mathis has devised a plan of action that will help increase sales for its franchise owners moving forward. This strategy will look to reduce food costs, invest in local advertising, and in some circumstances, make loans available for restaurant improvements.

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Foreclosures, Timothy Kingcade Posts

Florida still No. 1 in Foreclosure Activity

Posted on March 14, 2014by Admin

The most recent data from RealtyTrac reveals that Florida remains the No. 1 state in the nation in foreclosure activity for the month of February. This activity includes initial filings, auction notices and lender repossessions. The number has dropped 24 percent from a year earlier.

One in every 372 residences in Florida received some sort of filing during the month of February; a rate more than three times the national average. In Miami, Fort Lauderdale and Pompano Beach, foreclosure activity fell 33 percent in February compared with a year earlier and was down 27 percent from the previous month.

Nine of the 10 major U.S. metro cities with the highest rate of foreclosure were in Florida. At the top of the list was Palm Bay-Melbourne-Titusville. Tampa ranked No. 2; Jacksonville, No. 3, and Miami, No. 4-with one in every 328 residences seeing some type of foreclosure activity during the month. Port St. Lucie was No. 5.

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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, Credit, Timothy Kingcade Posts

Sbarro Seeks Bankruptcy Protection, Again.

Posted on March 13, 2014by Admin

The pizza restaurant chain Sbarro has filed for bankruptcy protection a second time after struggling with way too much debt and fewer customers in malls, where many of its restaurants are located. Sbarro plans on filing a Chapter 11 reorganization, which will allow it to cut its debt load by more than 80 percent. Lenders have supported the restructuring, which will require court approval.

Founded in 1956 by Gennaro and Carmela Sbarro, a married couple who immigrated from Naples, Italy, Sbarro quickly expanded in the New York City area. The original restaurant format featured an open kitchen which allowed customers to serve themselves.

The restaurant attributes its financial problems to an “unprecedented decline in mall traffic,” an “unsustainable” balance sheet and the closure of hundreds of its restaurants. However, experts in the restaurant industry attribute Sbarro’s loss in earnings to its outdated business model. The restaurant is trying to sell food that has been sitting out for a while. Today, more people want food that is made to order.

The company said it recently closed more than 180 money-losing restaurants and expected to close about 50 more. It now has 799 restaurants in more than 40 countries, employing about 2,700 people. Sbarro said the bankruptcy did not affect the 582 restaurants owned by franchisees.

Sbarro and 33 affiliates filed for protection from creditors with the federal bankruptcy court in Manhattan. The company reported assets of $175.4 million and liabilities of $165.2 million. It plans to shed $140 million of secured debt in the reorganization. Sbarro previously filed for bankruptcy protection in April 2011, and emerged from Chapter 11 the following November.

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Foreclosures, Timothy Kingcade Posts

NEW bill protects renters from foreclosure-related evictions

Posted on March 11, 2014by Admin

Receiving a foreclosure notice as a homeowner is devastating. But imagine losing your home or apartment to foreclosure as a renter, when you paid your rent on time every month. Congress is pushing for permanent protections for renters who find themselves in this very situation.

U.S. Senator Sherrod Brown is a cosponsor of a bill that would permanently extend the Protecting Tenants at Foreclosure Act of 2009, which gives temporary protection against eviction to families renting houses that go into foreclosure.

Tenants who work hard and are responsible rent payers each month deserve protections for themselves and their families. The problem lies with the landlords, who failed to make mortgage payments on these properties.

Up until 2009, if the houses were foreclosed upon and resold, almost always at a discount, the new owners could evict the tenants, often giving the renters no recourse or very little notice to move. The 2009 law ended that by saying if the tenants had leases and were abiding by their terms, the new owners had to honor those leases. There was an exemption if the new owners intended to occupy the properties, but it required giving the tenants 90 days’ notice before eviction.

Tenants would gain a new protection in the latest legislation that they currently do not have: the explicit right to sue the new owners if they believed the owners violated the law. Tenants would have what is called a “right of action,” giving them a clear right to sue.

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Foreclosures, Timothy Kingcade Posts

Wells Fargo Pays the Consequences in “Shocking” Foreclosure Case

Posted on March 10, 2014by Admin

A New Mexico judge issued a $3.2 million judgment against Wells Fargo & Co. for foreclosing on a man’s home after his death, even though he had a purchased insurance policy through the bank that would have covered the remaining balance on the mortgage. The judge called the bank’s conduct “shocking” and so reprehensible that in addition to damages, attorney’s fees and court costs; she awarded James Dollens’s estate $2.7 million in punitive damages.

Dollens had purchased an accidental death mortgage insurance policy for his Rio Rancho home that was marketed by Wells Fargo and issued by Minnesota Life. His death was reported immediately to Minnesota Life and to Wells Fargo to make a claim under the insurance policy.

However, instead of collecting funds from the insurance policy, Wells Fargo sent notices about the loan being in default and sent the loan to foreclosure. There was $125,000 owed on the mortgage.

When the bank received a $133,559 check from the insurance company in May 2011, it collected delinquent payments, late fees, and fees for lawyers and for 18 property inspections, leaving only $4,400 for Dollens’s estate ‘‘because of misapplication of the insurance proceeds,’’ the judge said.

Wells Fargo argues the family should have continued making payments regardless of the insurance policy. The judge called this case “a breach of the covenant of good faith and fair dealing- The bank’s unwillingness and failure to hold off on the foreclosure even when requested to do so by the insurance company was shocking.”

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Credit, Foreclosures, Timothy Kingcade Posts

Foreclosure Nightmare Far from Over

Posted on March 7, 2014by Admin

The revival of the U.S. housing market has produced a sigh of relief for much of the economy, as home prices and construction have finally rebounded. However, for some homeowners the foreclosure crisis has never ended. The worst of the foreclosure crisis passed years ago, but it has continued to cast a shadow over homeowners in places like Maryland, where many old cases have yet to work their way through the system.

Last year, Florida’s foreclosure rate was the third-highest in the country, behind Nevada and Illinois, according to RealtyTrac. Nationally, it is estimated that 5.2 million foreclosures have been completed since 2007. But the vast majority happened in the early years of the recession, with 2013’s foreclosures making up just 9% of the U.S. total.

Maryland’s high foreclosure rate is actually linked to the state’s attempt to remedy the process for underwater homeowners. In 2010, the state passed a law requiring mediation if homeowners requested it, and some foreclosure cases from early in the housing crisis are now going through the program.

Consumer advocates believe that these reforms are an important preventative measure against abusive practices that abruptly forced people out of their homes. Mortgage servicers have continued to employ abusive practices, which plague underwater homeowners and prolong the pain.

The Moody family, for example, missed one payment in February 2009 after Paul Moody suffered a back injury and lost his job. Five years later, after dealing with three different mortgage servicers, two foreclosure attempts and more than a dozen different applications for loan modifications, there is still no resolution in site. Attempts to seek relief from state and federally backed programs have gotten the family nowhere.

The major rules for mortgage servicers only went into effect in January 2014, allowing many abuses to continue despite intense scrutiny and demands for reform at the height of the housing meltdown. For instance: servicers are now prohibited from “dual-tracking” homeowners by offering them a loan modification while moving forward with a foreclosure at the same time. Mortgage companies are now required to ensure their customer representatives can actually answer question and access relevant documents to eliminate red tape issues, mixed messages and unreturned phone calls.

The good news is, the Moody’s have been able to stay in their home while negotiating with their lenders. A quicker resolution could be far worse- at least from the homeowner’s perspective- Legislative attempts to fast-track foreclosures have denied homeowners their rights and took their properties away before they could save them.

The end is slowly coming into sight for others as well. Nationally, foreclosures have hit a six-year low. Though many Maryland homeowners are still underwater, the delinquency rate for loans that aren’t yet in foreclosure is dropping, falling from about 11% of all mortgages in 2009 to 8% by the end of 2013, according to the Mortgage Bankers Association. Rising property values in the area means that fewer foreclosed houses remain vacant for long.

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Bankruptcy Law, Credit, Timothy Kingcade Posts

Man who Faked Bankruptcy Faces 17 Years in Prison

Posted on March 6, 2014by Admin

A Sacramento businessman who asked the FBI to investigate his ex-wife ended up with the Feds investigating him. Steven K. Zinnel, now 50, and his wife split in 1999. They had two sons. Zinnel, a successful Gold River businessman declared bankruptcy during the proceedings. However, his bankruptcy, which was finalized in 2005 was fake. He had put money in accounts with other people’s names on it and hid assets. As the case proceeded through family court, he continued to hide assets and disguised his wealth so he could pay less in child support.

Zinnel was in the clear until he asked the FBI to investigate his ex-wife, Michele, for trying to get illegal access to his private health insurance information. However, when the authorities heard her side of the story, they were more interested in Zinnel’s bankruptcy than her alleged offense.

The president of the electric substations company that was paying Zinnel off the books agreed to cooperate with the Feds and participated in taped interviews with undercover agents. Far from being bankrupt, Zinnel was found to be worth several million dollars. He was convicted on 15 counts of bankruptcy fraud and money laundering. This week he was ordered to forfeit $2.8 million of his assets, pay a half million dollar fine and serve more than 17 years in prison.

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Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Two “Real Housewives of New Jersey” cast members admit to mortgage and bankruptcy fraud

Posted on March 5, 2014by Admin

Teresa and Giuseppe “Joe” Giudice, the couple on Bravo’s hit reality TV show, “Real Housewives of New Jersey” both pleaded guilty this week to mortgage and bankruptcy fraud. The popular reality show featured a handful of “supposedly” wealthy cast mates flaunting their lavish lifestyles for five seasons. The Giudices, in particular, flaunted cash freely on the show.

Teresa, 41, and Joe, 43, admitted to conspiring for years to defraud banks and other lending institutions while seeking nearly $5 million in construction loans home equity loans and mortgages. They also admitted to misleading a federal bankruptcy court. After applying for Chapter 7 bankruptcy protection in 2009, the Giudice’s failed to disclose Teresa’s true income from the “Real Housewives” show and personal and magazine appearances. They also concealed businesses they owned and money made from rental income.

Under federal sentencing guidelines, Joe Giudice is facing a recommended prison sentence of 37 to 46 months. Teresa’s lawyer is pushing for a much lesser sentence of only probation, saying she bears less responsibility than Joe for their decade of fraud and noting that the couple has four daughters who need to be cared for. Under the sentencing guidelines, it is recommended that Teresa receive less than 2 ¼ years in prison.

During the 75-minute hearing, before U.S. District Judge Esther Salas, both of the Giudices admitted to one count of conspiracy to commit mail and wire fraud, one count of bankruptcy fraud by concealment of assets, one count of bankruptcy fraud by false oaths, and one count of bankruptcy fraud by false declarations.

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