Tag: bankruptcy protection

Consumer News, Credit Card Debt

Credit Card and Car Loan Defaults Hit 10-Year High

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A number of consumers are defaulting on their credit cards and car loans to the point where the number of defaults reported are the highest seen since the financial crisis. With inflation not nearing an end any time soon and interest rates continuing to rise, the number of consumers defaulting is expected to grow.

This information comes from data provided by the credit agency, Equifax. The agency found that credit card delinquencies have hit 3.8 percent while car loan defaults have hit 3.6 percent. These figures are the highest ones seen in more than 10 years.

Bankruptcy Law

Knowing When to File for Bankruptcy

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Making the decision to file for bankruptcy is never an easy one. Many times, it can be difficult to know when the time is right or when it is better to wait.  

A bankruptcy case allows a consumer to receive a much-needed financial fresh start by discharging his or her outstanding consumer debts. The types of debts that are discharged in a bankruptcy case include credit card debt, mortgages, car loans, medical debt, and other unsecured loans.  

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, Timothy Kingcade Posts

6 Tips to Get a Car Loan After Bankruptcy

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If you have filed for bankruptcy or are considering filing for bankruptcy, you may be under the impression that it’s impossible to ever get approved for a home or car loan, again. This is simply not true.

Below are six tips to help you buy a car after filing for Chapter 7 or Chapter 13 bankruptcy:

1. Get a copy of your credit report and credit score. Be prepared before you go to the dealership. Your credit report is available for free at AnnualCreditReport.com or Credit.com. The dealership will pay particular attention to your previous auto loans, so make sure you familiarize yourself with that information.
2. Start saving for a down payment. Most consumers’ cash flow improves after bankruptcy, so you can put some of that extra money towards your down payment. Remember that the larger the down payment, the less risky you look to the lender.
3. Shop around. Try to do your car shopping in one day to avoid having multiple pulls on your credit report. It is better to be preapproved before you visit the dealer, that way you have some leverage.
4. Avoid “buy here, pay here” dealers. Do not assume that dealers with the highest interest rates will be the only option for you. Some of these dealers do not have a great selection and you may end up with a car payment with a higher interest rate along with repair bills.
5. Pay on time. Chances are your credit score has taken a hit after filing for bankruptcy. Use your auto loan to help improve your scores by making your payments on time.
6. Refinance your car loan. If you have been making your car payments on time each month, you may be eligible to refinance your auto loan at a lower interest rate after six to 12 months.

Click here to read more on ways to purchase a car loan after filing for bankruptcy.

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

Sbarro Seeks Bankruptcy Protection, Again.

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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.

Click here to read more on this story.

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, Timothy Kingcade Posts

NFL Quarterback Vince Young Files for Bankruptcy

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Former NFL and University of Texas quarterback Vince Young has recently filed for Chapter 11 bankruptcy protection. The Houston federal bankruptcy court listed Young had estimated assets between $500,001 and $1 million and liabilities between $1,001,000 and $10 million. The 30-year-old is fighting two lawsuits stemming from a $1.8 million loan obtained in his name during the 2011 NFL lockout. The original loan amount has grown to $2.5 million with interest. A court has granted a judgment against Young to Pro Player Funding, the company that made the loan. Pro Player Funding has made several attempts to enforce the collection of the judgment, but those efforts remain pending.

Young was a first-round pick by Tennessee in 2006, and he reportedly signed a five-year deal with $25.7 million guaranteed. He reportedly signed a one-year deal with the Philadelphia Eagles that was worth up to $5 million in 2011. Young was on Green Bay’s pre-season roster in 2013, but did not make the team.

Click here to read more on this story.

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, Timothy Kingcade Posts

Stockton, CA. could become the Nation’s Largest City to File Bankruptcy

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Within the next three months, Stockton could become the nation’s largest city to file for protection from creditors under U.S. bankruptcy code. Using a new California law, the City Council is attempting to stall the process by entering mediation with creditors, including public employee unions. The Central Valley port city of 300,000 has suspended several bond payments and will not cash out vacation or sick time for employees who leave.
Before the recession, the city’s officials were spending large amounts of money on a new sports arena, a theatre complex, a marina and much more with the intention of creating a more cultured city. There is speculation that this could be one of the many reasons the city has been hit so hard by the recession. Residents believe the problem is the inflated salaries of city officials and their generous retirement packages. Others speculate that it is a result of the city’s dedication to employee unions. No matter the reason, Stockton’s economy has taken a severe hit. Crime has also increased in the area due to lack of funds for public employees such as police and firefighters.
To read more on this story visit: http://www.standard.net/stories/2012/03/14/stockton-calif-could-become-largest-city-file-bankruptcy
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. website at www.miamibankruptcy.com.

Bankruptcy Law, Timothy Kingcade Posts

Kodak Files for Chapter 11 Bankruptcy

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Eastman Kodak Co. and its U.S. subsidiaries recently announced the company was filing for Chapter 11 bankruptcy protection. Kodak will use the protection of Chapter 11 bankruptcy as a time for reorganization and transformation.
Filing Chapter 11 bankruptcy will allow Kodak to keep many of its assets and continue operations such as the distribution of goods and services to consumers, throughout the filing process. Kodak released a statement explaining they intend to “bolster liquidity,” in the United States and abroad. The news release went on to explain that Kodak intends to work with its stakeholders to shift the company’s focus to its most valuable commodities.
As part of the transformation, Kodak has decreased its workforce by 47,000 since 2003. The company has also taken steps such as closing 13 manufacturing plants and 130 processing labs. The company hopes to emerge from the transformation as a more digitally operated company.
To read more on this story visit: http://abcnews.go.com/blogs/business/2012/01/kodak-files-for-chapter-11-bankruptcy/
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, Credit, Timothy Kingcade Posts

Study Reveals a Growing Number of College Grads filing for Bankruptcy Protection

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A new study done by the Institute for Financial Literacy reveals an increasing number of college graduates are filing for bankruptcy, challenging the notions that an advanced education is almost a guarantee for economic success. In 2006, degree holders accounted for 11.2 percent of bankruptcy protection filers, the study found. By 2010, their proportion rose to 13.6 percent.
Similar trends were observed for holders of two-year associate degrees and graduate degrees. In contrast, high school diploma holders or college dropouts logged a decline in bankruptcy protection applications. Data from the Department of Education showed that before students even leave their university some of them are already defaulting on their student loans. For the fiscal year that ended on Sept 30, 2010, student loan defaults went up to 8.8 percent from 7 percent the previous year. It comes as no surprise that there is a strong link between student default rates and joblessness rates.
To read more on the story visit: http://www.allheadlinenews.com/articles/90059838?Study%3A%20Growing%20number%20of%20college%20grads%20filing%20for%20bankruptcy%20protection
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.