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

SEC Settles Fraud Charges against ITT Technical Institute

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The fraud case has been settled against ITT Technical Institute, but the Securities Exchange Commission continues to pursue top executives from the college for deceiving investors about the high rates of late payments and the number of defaults on student loans backed by the company.

ITT executives assured investors in conference calls that the programs were performing well when in fact the company was making secret payments on the delinquent accounts to delay defaults, according to the complaint.

ITT Technical Institute ended its operations in September, shutting down 137 campuses after the U.S. Department of Education cut off access to federal loans and grants and threatened to pull the school’s accreditation amid mounting lawsuits and investigations.  The company filed for bankruptcy protection, leaving 35,000 students with worthless degrees and many with high interest student loan debt.

The student loan programs are what is at the heart of the SEC lawsuit.  ITT created two in-house student loan programs.  To get investors to finance the programs, the company offered a guarantee to limit the risk of students not repaying the debt.  According to the complaint, if a certain percentage of loans defaulted, the company agreed to cover the principal, interest and fees.

The SEC said investors did not have accurate information about the performance of the debt because ITT kept the loan programs off its balance sheets.  Regulators said executives failed to tell investors that the company was facing $30 million in guarantee obligation payments at the end of 2012 and used accounting tricks to cover up the numbers.

Click here to read more on this story.

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, 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

OJ Simpson Defense Attorney F. Lee Bailey Files Again for Bankruptcy

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F. Lee Bailey, OJ Simpson’s former defense attorney has filed for bankruptcy once again; this time to create a payment plan to resolve a federal tax debt owed.

Bailey recently filed for Chapter 13 bankruptcy, which allows a person who has a steady income to create a payment plan with creditors.  His latest bankruptcy filing will allow Bailey to discharge certain debts he could not eliminate in his Chapter 7 personal bankruptcy filing last year.

Bailey resolved his personal IRS debt through the earlier bankruptcy filing, but the federal government retained liens on some of his property that could not be discharged in the prior case.

His attorney said he estimates the IRS liens on Bailey’s property are worth about $100,000, but the government could dispute that as federal officials previously estimated their secured claims against Bailey at around $600,000.

Bailey owed the IRS approximately $5 million, in total.  Bailey’s filing in the Chapter 13 case states that he has assets worth between $100,000 and $500,000 and debts between $1 million and $10 million.

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If you 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, 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, Student Loans, Timothy Kingcade Posts

How Marriage Affects Your Student Loan Debt

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Saying “I do” does not mean you are legally bound to your spouse’s student loans.  Each of you remains responsible for your own student loans you took out before the marriage.  However, tying the knot can affect your payments, student loan-related tax breaks and your ability to pursue other financial goals.  Here are some other ways marriage can have an affect on your student loans.

  1. Your monthly payment could increase. Federal loan borrowers can enroll in one of four income-based repayment plans to lower their monthly payments. However, the Revised Pay As You Earn Plan, determines married borrowers’ payments based on their combined adjusted gross income and student loan debt. This typically means a higher monthly payment.
  2. You risk losing the student loan interest deduction. The student loan interest deduction tax break allows you to deduct up to $2,500. But if you and your spouse earn more than $160,000, you will lose out on that deduction- even if you file separately.
  3. Your spouse’s payments could affect your finances. In the event you co-sign your spouse’s private student loan, you are legally responsible for repaying it if he or she cannot.  The loan will also appear on both of your credit reports.  And if your spouse takes out a student loan during your marriage, then defaults creditors in some states can go after both of your wages and assets- even your tax refund.
  4. Your spouse may help pay off your student loan. If you and your spouse decide to help each other pay off your student loan debt, consider coming up with a written agreement.  This could help avoid future arguments, especially in the case of divorce if one spouse depends on the other financially.

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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, 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.

Foreclosures, Timothy Kingcade Posts

The “Mastermind” Behind a Foreclosure Rescue Scam has been Indicted by Feds

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Michael “Mickey” Henschel, accused of leading a foreclosure-avoidance scam that preyed on struggling borrowers, has been arrested and charged with 11 counts related to the scam that made him $7 million.  According to the indictment, Henschel owned a Van Nuys-based company that operated under several different names (including Valueline), and illegally marketed foreclosure and eviction-delay services to homeowners in default on their mortgages and renters facing eviction.

As part of the scam, Henschel and his co-conspirators allegedly convinced homeowners to sign fake grant deeds that supposedly showed that the homeowners conveyed an interest in their properties to fictional third parties. Henschel then allegedly filed bankruptcies in the names of fake people to activate the automatic stay provision of the Bankruptcy Code that stops a foreclosure sale.

Henshel charged large fees before agreeing to clear the title to the properties, in addition to the monthly fees paid for the illegal services. During the course of the scam, which ran from October 2010 through July 2013, Henschel and his co-conspirators allegedly collected more than $7 million for the illegal services.

Henschel has been charged with one count of conspiracy, eight counts of bankruptcy fraud and two counts of wire fraud.  If convicted, he would serve a statutory maximum sentence of five years in federal prison for each of the conspiracy and bankruptcy fraud counts, while the two wire fraud counts carry a statutory maximum sentence of 20 years.

Click here to read more on this story.

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, Debt Relief, Student Loans, Timothy Kingcade Posts

The “Soup Nazi” of Seinfeld Fame Files for Bankruptcy Protection

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The New York City food company, Soupman, made famous by the popular Seinfeld TV sitcom, has filed for bankruptcy protection just weeks after its CFO was indicted on federal tax evasion charges.  A Chapter 11 bankruptcy petition was filed in Delaware stating that Soupman had estimated debts ranging from just over $10 million to $50 million and assets between $1 million and $10 million.

CFO Robert Bertrand failed to pay Medicare, Social Security, and federal income taxes.  His job included collecting, accounting for and paying the taxes for Soupman’s employees. However, the indictment alleged that between 2010 and 2014 Bertrand paid employees with undocumented cash, and compensated certain workers with unreported stock awards.

As a result, the federal government lost $593,971 in total tax payments that should have been paid by the company, according to prosecutors. Bertrand, who has pleaded not guilty, was released on $50,000 bond, pending a scheduled hearing on July 18, court records show.

The Staten Island-based, Soupman company licenses the name and recipes of Al Yeganeh, the model for the gruff “Soup Nazi” character in the popular Seinfeld series.  The character focused fanatically on his culinary creations and refused to serve certain customers using the popular catchphrase: “No soup for you!”

Click here to read more on this story.

If you 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, 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, Debt Relief, Timothy Kingcade Posts

How a debt avalanche strategy can eliminate your debt

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One of the smartest and fastest ways to eliminate your debt is a strategy known as a debt avalanche.  To start, you must first take inventory of your debt- meaning you need to write down all outstanding debts- including credit card balances, student loan payments, car payments, etc. and determine the interest rates you are paying on each of the balances.

The debt avalanche strategy begins by ranking each of your debts by interest rate, from highest to lowest.  No matter the size of the loan balance, it will always be less expensive (and faster) to pay off your debts in order from highest to lowest interest rates.

For example, your interest rate on a credit card is probably going to run much higher than the interest rate on your vehicle.  Tackle those debts with the highest interest rates, first and save as much money on interest payments as possible.

Finally, if the debt inventory process reveals an overwhelming or confusing amount of debt, consider meeting with a financial expert who can discuss your options in greater detail.  Sometimes a simple debt consolidation can reduce your payments by thousands, just by reducing the interest amount.  If you fear you might be at risk of personal bankruptcy, it is best to meet with a professional as soon as possible to know exactly where you stand.  Many bankruptcy attorneys offer free consultations and have appointments available on the weekend.

Click here to read more on this story.

If you have any 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, 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.

Debt Relief, Timothy Kingcade Posts

Miami Bankruptcy Attorney Timothy S. Kingcade Recognized as a Top Lawyer in Florida Trend’s Legal Elite 2017

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Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade & Garcia, P.A. was recently recognized in the 2017 edition of Florida Trend’s Legal Elite™.  The list of 1,080 honorees, published in the July issue of Florida Trend magazine, includes attorneys in private practice as well as top government and non-profit attorneys. The Legal Elite listing is widely regarded as one of the preeminent referral guides to the legal profession.

To compile the list, Florida Trend invited all actively practicing Florida lawyers to name attorneys whom they hold in highest regard – lawyers with whom they have personally worked with and would recommend to others. The winner list represents just over 1% of the active Florida Bar members who practice in Florida.

Florida Bar President Michael J. Higer notes, “The Florida Bar is committed to connecting both our members and the public with the legal resources needed to support their practices, businesses and daily lives. Florida Trend’s Legal Elite helps accomplish this objective by creating an independent and reliable process to identify our state’s top legal talent and rising stars.”

Attorney Kingcade practices exclusively in the field of bankruptcy law, handling Chapter 7 and 13 filings and foreclosure defense cases for the Southern District of Florida.  As an experienced CPA and proven bankruptcy attorney, Timothy Kingcade knows how to help clients take full advantage of their rights under the bankruptcy laws to restart, rebuild and recover.

Miami-based Kingcade & Garcia, P.A. 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, 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.

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

Trump Administration Delays Student Loan Forgiveness Program

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The federal student loan forgiveness program established to refund borrowers who were defrauded by their schools has been put on hold until further notice, according to the Department of Education.  This applies to Corinthian College students who were defrauded by the school’s deceptive advertising and false job placement rates.  Approximately 15,000 student loan forgiveness claims from Corinthian students had been approved as of October 2016.

Here are the requirements for qualifying for a borrower defense federal loan discharge:

  • If your school misled you in any way about your loans or education program;
  • If your school violated certain state laws, such as consumer protection statutes or laws related to your loan or educational services.

Secretary of Education Betsy DeVos said on June 14 that last year’s expansion of the forgiveness rules “missed an opportunity to get it right.” Several Democratic senators are demanding answers and asking the Dept. of Education to provide detailed information regarding loan forgiveness applications and approvals for past students of Corinthian Colleges, along with two other failed for-profit college chains: ITT Technical Institute and American Career Institute.

Click here to read more on this story.

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, 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.

Debt Relief, Timothy Kingcade Posts

CFPB Penalizes Mortgage Servicing Company with $1.15 million Fine for Illegal Foreclosure Practices

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The Consumer Financial Protection Bureau announced it will fine Fay Servicing more than $1 million for illegal foreclosure practices.  An investigation found the mortgage servicing company was “keeping borrowers in the dark” about their foreclosure prevention options.

The Bureau stated, “Fay Servicing illegally launched or moved forward with the foreclosure process while borrowers were actively seeking help to save their homes.”  The investigation further unveiled that Fay Servicing violated the bureau’s mortgage servicing rules related to borrowers’ foreclosure rights.

The CFPB’s mortgage servicing rules state that servicers must keep borrowers informed about requirements, options, and rights throughout the process of applying for foreclosure relief.  In addition, the servicer must provide certain protections from foreclosure proceedings during the application process in certain cases.

Click here to read more on this story.

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.

 

Debt Relief, Timothy Kingcade Posts

The Dangers of Medical Credit Cards

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A medical credit card can help you cover an unexpected medical expense or procedure, but it is important to know the costs associated with these type cards.  Offered at most doctors and veterinary offices nationwide, medical credit cards are designed to spread out the payments on medical-related bills you cannot afford to pay upfront.

Approval rates for these cards are high- you can even get approved right at the doctor’s office, according to CreditCards.com.  These cards offer a type of financing called “deferred interest,” which sounds appealing in theory, but beware of the consequences.  If the balance of the card is not paid in full by the end of the agreed-upon payment period, you are hit with all of the accrued interest at one time, which is typically a very high interest rate.  For example, CareCredit’s APR is 26.99%, while the average credit card has an interest rate of around 16.5%.

Something else to remember: the promotional financing applies only to “healthcare-related” expenses, so if you use the card to buy groceries or fill up your gas tank, you will incur interest charges if you do not pay the bill in full during the billing cycle- even if it is within the promotional period.

One of the top medical credit card companies, CareCredit has come under fire when it comes to their lending and enrollment practices.  CareCredit was forced to refund customers$34 million in 2013 by the Consumer Financial Protection Bureau for deceptive enrollment practices, because consumers thought they were signing up for interest free cards.

If you have medical debt, the best option is to work out a payment plan with the doctor’s office or hospital.

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Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney 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.