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Bankruptcy Law, Credit, Timothy Kingcade Posts

Hostess Selling Off Assets, Starting with Wonder Bread

Posted on January 18, 2013by Admin

Hostess has started the process of liquidating its assets, only two months after the popular baked goods company announced filing for bankruptcy. Last Friday, Flowers Foods announced it was purchasing Wonder Bread and three other bread brands from Hostess for $360 million. Flowers will also be purchasing the rye bread brand, Beefsteak, for $30 million. Flowers Foods owns Nature’s Own and Tastykake. Flowers Foods is waiting for approval from the bankruptcy court, after which, an auction will take place in several weeks. If Flowers is the winning bidder, the company can close the deal.

Hostess was forced into bankruptcy last November after its workers went on strike. The company and the union were unable to come to an agreement, forcing the company to close its doors. More than 18,000 employees lost their jobs and Hostess fans cleared out its stores’ shelves. Most believe that Hostess will have no problem selling off the majority of their brands. There is some indication that Flowers may have plans to make bids on other various snack brands owned by Hostess.

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. 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, P.A. at www.miamibankruptcy.com.

Foreclosures, Timothy Kingcade Posts

Consumer Groups Criticize New Mortgage Rules

Posted on January 17, 2013by Admin

The Consumer Financial Protection Bureau (CFPB) announced its new mortgage rules last week that would protect borrowers from risky mortgages. Some consumer groups are criticizing the rules with the argument that these rules only protect the banks. One of the CFPB’s new rules is that lenders cannot issue mortgages to those who do not have the “ability-to-repay.” This rule states that borrowers must be able to prove they can afford the loans. The new rules will also end the outbreak of multi-million dollar lawsuits against lenders for wrongful foreclosure practices.

Consumer groups argue that the rules provide a legal shield for banks that is detrimental to borrowers. The CFPB has also installed a “qualified mortgage” standard, meaning that when a loan meets the lending criteria, it will become a “qualified mortgage.” This standard protects banks from lawsuits filed by borrowers or buyers of mortgage-backed bonds. According to consumer groups, this standard will make it possible for lenders to issue unaffordable loans that still meet the “ability-to-repay” criteria. Lower-income borrowers will be at risk of losing their home and destroying their credit, but unable to take legal action.

To read more on this story visit: http://money.cnn.com/2013/01/10/real_estate/mortgage-rules/index.html

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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, P.A. website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Rise in Unemployment in 2013

Posted on January 16, 2013by Admin

There has been a slight rise in claims for unemployment benefits just two weeks into the New Year. Economists say this is an indicator of the current state of the job market. During the first week of the year, approximately 371,000 people filed first-time unemployment claims, 4,000 more than the last week in December. Although the job market recovery has a long way to go, it has improved since the height of the recession when weekly unemployment claims surged above 600,000. There were roughly 12.2 million Americans jobless during December, meaning the unemployment rate for the month was 7.8%.

Unemployment claims seemed to have leveled off during 2012, ranging from 350,000 to 400,000 throughout most of the year. The U.S. economy has added an average of 150,000 jobs to the market each month throughout 2012; a rate that barely keeps up with the population growth each month. Economists say that if the market could reduce filings to 320,000 and 350,000 claims per week in 2013, this would greatly improve the economy. If claims were in this range, approximately 250,000 jobs would be added to the economy each month.

To read more on this story visit: http://money.cnn.com/2013/01/10/news/economy/unemployment-benefits/index.html

Foreclosures, Timothy Kingcade Posts

New Rule to Protect Borrowers From “Risky” Mortgages

Posted on January 15, 2013by Admin

The Consumer Financial Protection Bureau (CFPB) has adopted a new rule that will protect borrowers from risky mortgages. Although it will not immediately make mortgages easier to get, it will spell out what lenders must do to ensure their borrowers can afford their mortgages. Part of the reason the housing market burst was due to borrowers agreeing to mortgages they did not understand and could not afford. As a result, millions of homeowners have been foreclosed on and housing prices have dropped more than 30 percent since 2006.

The rule will go into effect next year and prohibits qualified mortgages from:

• Containing “risky” provisions, such as terms that exceed 30 years, interest-only payments or payments where the principal amount increases (negative-amortization payments)

• Carrying fees and points in excess of 3 percent of the loan

• Issuing to borrowers who will spend more than 43 percent of their income on debt payments after the mortgage

There has already been some concern from consumer groups that the rule is too protective and does not help low-income borrowers. Some groups fear that the debt-to-income ratio of 43 percent is too high for most low-income households. The CFPB said that banks would be able to ease their standards over time, however it is necessary for now.

Bankruptcy Law, Timothy Kingcade Posts

Bankruptcy Filings Are Down

Posted on January 14, 2013by Admin

According to the National Bankruptcy Research Center (NBKRC), the November 2012 bankruptcy filing rates were down 10% from October 2012. Filings dropped from approximately 96,000 in October to 86,000 in November. However, this is a familiar trend, mostly due to the holiday season. A positive sign from the November report is that the annual filing rates have dropped. When compared with November 2011 reports, filings were down 15% in 2012.

During 2013, bankruptcy filing rates are at approximately one in every 220 adults or 4,600 per every million adults. Four states stand out with more than 70% of the national average including: Tennessee, Georgia, Nevada and Utah. There are six states with less than half of the national average including: Alaska, Washington D.C., South Carolina, Vermont, North Dakota and Hawaii.

The NBKRC report showed that filing rates in the far West have experienced a more extreme decline than anywhere else in the country. Nevada, Hawaii, Alaska, Arizona and California rates are all down by more than 22% from this time last year.

To read more on this story visit: https://www.nbkrc.com/November2012_News.aspx

Bankruptcy Law, Timothy Kingcade Posts

How Your Taxes Will Be Affected by the Fiscal Cliff Deal

Posted on January 11, 2013by Admin

The Fiscal Cliff deal will likely affect every taxpayer. Below are the effects it could have on your taxes:

1. Payroll Taxes: Wage earners will pay 6.2% in payroll tax on their first $113,700 in wages as opposed to the 4.2% rate that has been the payroll tax rate for the past two years.

2. Tax Rates: Individual taxes are going up for filers with incomes above $400,000 and couples above $450,000. Upper class taxpayers will pay 39.6% above the threshold. In the past, they paid 35% since 2001.

3. Investment Taxes: Capital gains and dividend tax rates for filers earning more than $400,000 or $450,000 for couples will increase from 15% to 20%. Taxpayers in the lowest bracket will pay 0% and all others will pay 15%.

4. Family Tax Breaks: President Obama’s Recovery Act has been extended for five years including:
a. American Opportunity Tax Credit: a partially refundable credit of up to $2,500 per year for four years for low-income families.
b. Child Tax Credit: Low-income parents can claim as much as $1,000 per child under 17.
c. Earned Income Tax Credit: provides a credit for working American with low- and moderate-incomes.
d. Expanded Dependent Care Credit: allows certain taxpayers to deduct up to 35% of expenses to a max of $6,000 for two children (permanently extended).

5. Itemized Deductions/Personal Exemption: Taxpayers who make $250,000 and above and couples who make $300,000 and above will soon be limited with the personal exemptions and itemized deductions they can take.

6. Alternative Minimum Tax: The income exemption level will be permanently adjusted for inflation.

7. Estate Taxes: The estate tax exemption will remain at $5.12 million and will be indexed to inflation going forward.

8. Marriage Penalty: Married couples will continue to receive a deduction that is twice that of individuals and income ranges for the 10% and 15% tax brackets are also doubled.

9. Debt Forgiveness: Homeowners who receive principal forgiveness or go through a short sale or foreclosure will not have to pay tax on the amount of debt forgiven. This will extend for one year.

10. Tax Breaks: Filers can continue to deduct state and local sales taxes. This deal extends to a bevy of tax breaks.

To read more on this story visit: http://economy.money.cnn.com/2013/01/02/taxes-fiscal-cliff/?iid=SF_PF_River

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. 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, P.A. at www.miamibankruptcy.com.

Bankruptcy Law, Timothy Kingcade Posts

Florida Brain Injury Hospital Files for Bankruptcy

Posted on January 10, 2013by Admin

The Florida Institute for Neurologic Rehabilitation Inc. filed for bankruptcy last week in Tampa. The hospital itself is located in Wauchula, a small city in Southwest Florida, and treats brain injuries. A few months ago, the state began investigating the hospital on reports of patient abuse and neglect. Along with three other affiliated institutions, the hospital filed Chapter 11 bankruptcy petitions on Friday. Court filings showed the institution owes between $3 million and $30 million to hundreds of creditors and their assets total less than $150,000.

In August, Florida officials ordered the hospital to send 50 patients to other facilities. This occurred shortly after a story by the Bloomberg News revealed the institution had a history of violence with its patients. The hospital’s creditors include: insurance companies, law firms, medical supply companies, water and electric utilities, the county tax collector and a public relations firm.

Or visit: http://www.miamiherald.com/2013/01/07/3170982/fla-brain-injury-hospital-files.html

Credit, Foreclosures, Timothy Kingcade Posts

Bank Of America Settles with Fannie Mae For $11.6 Billion

Posted on January 9, 2013by Admin

Bank of America recently announced legal settlements exceeding $14 billion for its participation in fraudulent foreclosure processes and bad mortgages sold to its investors. BOA recently settled with federally backed mortgage giant, Fannie Mae, for $11.6 billion for selling bad mortgages to the company. BOA also agreed to stop collecting payments on $306 billion worth of mortgage loans to Nationstar Mortgage Holdings and Walter Investment Management Corp. Approximately $3 billion from the settlement were part of a deal between mortgage lenders and regulators to end a review of foreclosures mandated by the government. Experts say that the Bank’s agreement to the recent settlements is a step in the right direction.

Analysts estimate the lender’s settlements have amounted to $40 billion in mortgage-related settlements this past year. However, BOA is far from finished with legal troubles from its part in the real-estate crisis. The agreement does not settle the lawsuit brought forth by the U.S. Justice Department last year for bad loans sold to Fannie Mae and Freddie Mac. Also, Bank of America is still awaiting the court’s approval to settle for $8.5 billion with private investors.

Bankruptcy Law, Florida Bar, Timothy Kingcade Posts

Kingcade & Garcia, P.A. Files 1,070 Bankruptcy Cases for the Year in the Southern District of Florida

Posted on January 8, 2013by Admin

MIAMI – Kingcade & Garcia, P.A. (www.miamibankruptcy.com) a Miami-based bankruptcy law firm, focused solely on helping individuals and families throughout the Southern District of Florida in Chapter 7 bankruptcy and foreclosure defense cases, is pleased to announce it filed 1,070 total bankruptcy cases in 2012.

“We are honored to be able to help more than 1,000 families in South Florida eliminate their debt and get a fresh start with their finances,” said Founding Partner and Managing Shareholder, Timothy S. Kingcade. “We attribute this success to our unwavering dedication to our clients and never losing sight of their best interest throughout the bankruptcy process.”

Attorney Kingcade practices exclusively in the field of bankruptcy law, handling Chapter 7 bankruptcy filings and foreclosure defense cases for the Southern District of Florida. All partners and associates at Kingcade & Garcia, P.A. 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.

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Miami-based Kingcade & Garcia, P.A. was established by managing partner and bankruptcy attorney, Timothy Kingcade in 1996. The firm represents clients throughout the Southern District 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. More information can be found at www.miamibankruptcy.com or by calling 305-285-9100.

Foreclosures, Timothy Kingcade Posts

Bill Filed to Speed Up Foreclosures in Florida

Posted on January 7, 2013by Admin

Last Thursday, Rep. Kathleen Passidomo filed a new bill proposing “faster foreclosures.” The bill offers many changes to civil procedures governing foreclosures. Florida has the highest foreclosure rate in the country and also one of the slowest. It currently takes more than 600 days for a foreclosure to run its course in Florida. However, many struggling homeowners rallied in Tallahassee last week to protest the faster foreclosure bill.

Paperwork problems have played a major role in the backlog of foreclosures in Florida for the past several years. The new bill would require lenders to certify they have the correct paperwork to legally foreclose. It also gives condo associations the ability to speed up the banks foreclosure proceedings if they are moving too slow. Condo associations have suffered major consequences from unpaid fees and abandoned homes since the housing market crash.

The bill Passidomo proposed also specifies that if a lender is sued for wrongful foreclosure practices, the lender can only be sued for monetary damages. The point of this is to eliminate any chance that the bank re-sells the home to a third-party, and then the family filing the lawsuit demands their home back in a settlement. A similar bill was proposed last year that passed in the Florida House but died in the Senate.