Tag: Bankruptcy Law

Bankruptcy Law, Debt Collection, Debt Relief

Student Loan Tax Refund Garnishment and What Borrowers Need to Know

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Many student loan borrowers struggle to keep up with their federal student loan payments upon graduation, but defaulting on student loans can end up resulting in the loan servicer garnishing the borrower’s state and federal tax refunds. Here’s what borrower’s need to know about tax refund garnishment.

The Treasury Offset Program, established in 1986, overseen by the Bureau of Fiscal Service, gives departments within the federal government the ability to ask the Internal Revenue Service (IRS) to garnish tax refunds to collect on defaulted debt owed toward either state or federal government entities. This action is known as a tax offset. A tax offset does not mean that the borrower will lose all his or her refund. The government can choose to seize the entire refund or a portion of the refund, depending on how much debt is owed. If part of the refund pays off the debt owed, including fees and interest charges, whatever is left of the refund will then be forwarded to the borrower.

Bankruptcy Law

Can Filing for Bankruptcy Save My Home?

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When someone is facing the possibility of bankruptcy, the thought of losing his or her home is a very real and frightening one. However, the protections of the bankruptcy automatic stay can help the filer protect his or her home through a Chapter 7 or Chapter 13 filing. The key to this protection rests heavily on the type of bankruptcy filing and the filer’s financial situation. The bankruptcy automatic stay also offers filers who are facing a multitude of collection calls relief from their creditors, protect them from lawsuits, wage garnishment, repossession, and losing valuable property.

As soon as the bankruptcy petition is filed, the automatic stay goes into effect. After this point, creditors and debt collectors are legally barred from attempting to collect on any debt owed by the filer.

Bankruptcy Law

Impounded Cars Cannot Be Held After Drivers File for Bankruptcy

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Drivers in Chicago who are without their vehicles may be able to get their cars back from city impound lots after filing for bankruptcy, according to a new federal appeals court ruling. The 7th U.S. Circuit Court of Appeals ruled this week that the city’s policy of keeping impounded vehicles belonging to bankruptcy filers despite the fact that an automatic stay has been issued by the bankruptcy court is against federal bankruptcy law.

More specifically, the court argued that this policy essentially discourages drivers from filing for bankruptcy and violates the most basic of protections offered by a bankruptcy filing. It is the court’s belief that the city is doing this to generate revenue rather than help protect their constituents.

Eugene Wedoff, a retired bankruptcy judge who represented the debtors, argued that a Chapter 13 bankruptcy case was meant to allow the filer to get back his or her life by putting property in the filer’s hands. By keeping these impounded vehicles away from their owners, they argue the city is violating their rights.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

What It Means to Commit Bankruptcy Fraud

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When filing for bankruptcy, it is extremely important that you fully disclose all information requested and that all information provided be accurate and true. Although, most people who file for bankruptcy are honest hardworking people, some individuals can be tempted to hide property and assets.  This is called bankruptcy fraud, which is a federal crime that the U.S. Department of Justice takes very seriously.

Bankruptcy fraud occurs when a person knowingly and fraudulently commits certain prohibited acts in their bankruptcy case. It is estimated that somewhere around 10 percent of all U.S. bankruptcy filings include some form of bankruptcy fraud. If this fraud is discovered, the person committing the fraudulent act can face fines up to $250,000 and even imprisonment for up to five years in federal prison.

The four most common types of bankruptcy fraud include: concealment of assets, petition mills, multiple-filing schemes, and bust-out schemes. It must be shown that the person intended to commit the crime of bankruptcy fraud, which means that intent to deceive must be present. The person must have planned to commit the fraudulent act. If, for instance, someone makes a mistake in their forms or accidentally forgets an asset when preparing the documents, fraudulent intent is not necessarily there.

One of the most common types of bankruptcy fraud is concealment of assets. Concealing assets accounts for approximately 70 percent of all bankruptcy fraud cases reported. A person should never assume they can outsmart the bankruptcy court. Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to hide assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing.

Another form of bankruptcy fraud is making false statements either in sworn documents filed with the court or in person to the bankruptcy trustee. Debtors are required to fill out a bankruptcy petition and a number of other supporting documents, which includes a schedule of income and assets as well as a sworn financial declaration. By submitting these documents, you are swearing that all information provided is completely true.

Bankruptcy fraud can also be committed by someone filing too many bankruptcy cases in two or more states. These filings can be made using the same name and information or also false name and information, so long as they were filed by the same person. In these types of cases, the debtor will list the certain assets on some claims while other assets on the others, thus confusing the system. The ultimate goal of these multiple filings is to keep assets from total liquidation, giving the person time to conceal assets he or she wishes to keep.

Another form of bankruptcy fraud that seems to focus heavily on non-English speaking claimants involves bankruptcy petition mills. These “mills” are fraudulent schemes committed by a third-party, where that person claims to be a consultant who can help someone avoid eviction. That person gets all of the tenant’s information and files a bankruptcy petition without the tenant ever knowing. While the bankruptcy case is pending, the perpetrator of the crime will often completely clean out the tenant’s bank accounts and destroy his or her credit.  Sadly, these types of schemes are on the rise, especially in areas where many non-English individuals reside.

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

When Unpaid Student Loan Bills Mean You Can No Longer Work

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Many former students across the country have realized that the loans they took out to pay for their education are now derailing their careers. In 20 different states, government agencies can and have been seizing state-issued professional licenses from residents who default on student loans.

As debt levels rise, creditors are taking increasingly tough actions to pursue people who fall behind on student loans. Across the nation, firefighters, nurses, teachers, attorneys, massage therapists, barbers, psychologists and real estate brokers have all had their licenses suspended or revoked.

In the past, lenders have pursued delinquent borrowers by filing lawsuits, garnishing their wages, putting liens on their property and seizing tax refunds. However, lenders believe if borrowers are faced with losing their licenses, they will find the money. On the other hand, critics of the laws say that enforcing these terms will shove some borrowers off a financial cliff.

Florida is among the 20 states that can seize state-issued licenses if a borrower defaults on student loans. The other 19 states include: Washington, California, Alaska, Hawaii, North Dakota, South Dakota, Minnesota, Iowa, Illinois, New Mexico, Texas, Arkansas, Mississippi, Louisiana, Tennessee, Virginia, Georgia, Kentucky and Massachusetts.

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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 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, Credit, Timothy Kingcade Posts

Miami Ranked As One of the Worst Major U.S. Cities for Managing Money

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CreditCards.com recently ranked the nation’s cities in terms of money management by comparing credit scores and an index of U.S. Census Bureau data including: average income, education level, unemployment rate and the population ages of the 25 largest cities. According to the report, Miami ranked as one of the worst major cities in the country for managing their money. In fact, Miami came in 22nd. Tampa ranked 23rd on the list with Washington, D.C. at 24th and Baltimore at 25th. Los Angeles was ranked as the best city in the nation at money management, followed by Minneapolis as second and New York as third.

In order to rank the cities, the report focused on which city residents were paying their bills on time, keeping low credit card balances and not “over-applying” for credit, according to CreditCards.com senior industry analyst Matt Schulz. The original theory was that the older, richer and more educated residents would have higher credit scores, however, the data proved that factors such as cost of living, divorce rate and mobility level greatly impacted scores.

For example, although the Washington D.C. residents brought home a larger annual income than most cities, they also carried significantly higher credit card balances than other cities.

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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, Credit, Timothy Kingcade Posts

TREND ALERT: Middle Class Debt Falling Nationwide

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As the economy is steadily improving, middle class families are feeling the effects. According to Manilla.com, a financial organization website, total household debt- which includes outstanding mortgage, auto and college loan balances-fell 1.1% in the first quarter of this year among middle-class families. Overall, consumers are being more cautious before taking on new debts for major investments like homes, automobiles and education. Americans average mortgage debt was $150,200.21 as of July 1, down 4% since the end of 2012. Below are the top 10 cities with the highest mortgage balances:
• San Francisco: $312,301.64
• Los Angeles: $262,792.56
• San Diego: $258,548.22
• New York: $250,078.12
• Washington, D.C.: $226,444.31
• Seattle-Tacoma: $199,205.30
• Sacramento: $194,796.46
• Portland, Ore.: $176,452.78
• Boston: $176,350.70
• Miami-Ft. Lauderdale: $176,057.60

Auto loan balances have increased by 7.9% since the end of 2012, Manilla.com reports, because Americans are now willing to spend more on cars, which signals a stronger economy. Eight of the 10 markets with the highest auto loan balances remained consistent in the first half of 2013. The worst debt offenders for auto loans as of July 1 are:

• Little Rock-Pine Bluff: $17,797.82
• Houston: $17,078.08
• Miami-Ft. Lauderdale: $16,997.15
• New Orleans: $16,968.24
• New York: $16,672.47
• Memphis.: $16,538.02
• Birmingham.: $16,436.04
• Las Vegas: $16,294.38
• Waco-Temple-Bryan: $16,263.03
• San Antonio: $16,164.34

Click here to read more on the recent trend of middle class debts falling nationwide and the cities with the highest amount of debt.

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

Dealing with Creditors and Debt Collectors While Filing for Bankruptcy in Florida

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One of the reasons that many people file for bankruptcy is that they are being harassed by debt collectors, or are facing wage garnishment and foreclosure, and they know they cannot turn around their financial situations without help. Filing bankruptcy stops all collection actions, including home foreclosure, but while people are in the process of filing a bankruptcy petition, they are often still dealing with creditors. Following some simple steps can reduce the stress of debt collectors bothering a person filing for bankruptcy.

Bankruptcy Protections

One of the most attractive benefits of bankruptcy is the stay of all foreclosure, garnishment, repossession and utility shut-off actions by creditors. Once a person files a bankruptcy petition, all of the person’s assets become part of the bankruptcy estate for the trustee to distribute to the creditors according to their priority under the law. Creditors cannot try to take money or other assets from the bankruptcy estate because it would potentially be “cutting in line” in front other creditors who have a higher priority.

Tips for Dealing with Creditors While Filing Bankruptcy

If a creditor is harassing a debtor with phone calls and letters during the time the debtor is filing the bankruptcy petition, the best course of action for the debtor is to inform the creditor that he or she is in the process of filing bankruptcy and that any actions to collect will be in vain.

It is advisable to keep all communications with the debt collector brief and only inform them of the upcoming bankruptcy petition. Many debt collectors will say things that are upsetting to the debtor or try to get the debtor to say things contrary to his or her interest. Writing a letter to the creditor is one possible way of ensuring that the communication is limited.

However, if a creditor has already obtained a judgment against a debtor against the debtor, the creditor may be motivated to act even more aggressively upon hearing the news that the debtor is filing bankruptcy by garnishing wages or bank accounts. The creditor cannot take more than $600 or the bankruptcy court will likely call that a “preference” and make the creditor return it. However, creditors may rush to garnish wages or accounts and take just under $600, knowing that they will likely be able to keep it and that is possibly the only payment they will ever see on the debt. In such a situation, the only remedy is to file the bankruptcy petition as quickly as possible.

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. 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. website at www.miamibankruptcy.com.

Bankruptcy Law, Timothy Kingcade Posts

New Survey Reveals Economic Factors Behind Bankruptcy

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CHICAGO, IL, (AttorneyNewsWire.com) — December 24, 2009 — As America closes out 2009 with roughly 1.45 million bankruptcy filings, a new survey reveals the possible economic factors behind the surge.

The statistics are based on a December 2009 survey of 1,000 people contacting Total Attorneys to connect with a bankruptcy lawyer.

The Economic Factors Survey
When asked which economic factor (job loss/wage reduction, the credit crunch, increased mortgage payments, gas prices or food prices) forced them to consider bankruptcy, 57% of respondents cited job loss/wage reduction.

“Widespread, long-term job loss means many people don’t have the income to cover basic living costs,” says Kevin Chern, bankruptcy attorney and president of Total Attorneys. “Bankruptcy may be a way for people to protect their homes and regain control over their finances.”

The Bankruptcy Relation Survey
In an indication of how much the bankruptcy idea has spread, 10% of people polled said they know three or more people who recently considered bankruptcy.

“Bankruptcy isn’t something that happens to someone else,” says Chern. “It’s not a sign of failure or irresponsibility. For many people it’s a way to protect their family.”

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