Bankruptcy Archives - Page 18 of 34

Bankruptcy Law, Credit, Timothy Kingcade Posts

Tips for Dealing with Debt Collectors

Posted on April 17, 2014by Admin

It’s one of the things consumers dread the most- a debt collector calling to collect a payment on an unpaid credit card, medical bill or past due student loan. Experts agree that ignoring debt collectors’ letters and phone calls is a bad idea. It can only make matters worse. The best advice is to avoid debt collectors altogether and attempt to negotiate a payment plan with the original creditor before it is sold to a third-party debt collector.

The following tips will help you deal with debt collectors:

1.) Educate yourself. Become familiar with the Fair Debt Collection Practices Act (FDCPA). The FDCPA protects consumers from harassing phone calls, threats and abusive language debt collectors often use to obtain payment. These tactics are illegal and should be reported to the U.S. Consumer Financial Protection Bureau (CFPB). To learn more about the FDCPA and the protections it offers, watch this short video: https://www.youtube.com/watch?v=5o-ci9nVEgA.

2.) Do not ignore. The law allows consumers to send written requests for verification of the debt within 30 days of being contacted by a debt collector. Do not ignore letters, phone calls or court notices about debt lawsuits.

3.) Keep copies and records. Experts say keep these as long as you keep your tax documents. Others believe these should be kept for as long as the statute of limitations. Documents detailing proof of settlement or resolution of debts should be kept forever.

4.) Safeguard your bank account. Debt collectors can file a lawsuit against consumers for nonpayment of debts. Freezing savings or checking accounts is one of the court-ordered options for collecting debts. Do not make payments using your bank account and routing numbers. Make payments with money orders or a third party payment service so you have proof of payment but avoid paying with a personal check. Let collectors know if your bank account contains only exempt funds. You should also tell them if you have filed for bankruptcy. This will cease all collection attempts.

5.) Record conversations. If a debt collector uses abusive language or threatens you, record the conversation. Using these type tactics to collect on a debt is illegal. Another option is to tell the debt collector the conversation is being recorded, as many collectors will be less likely to overstep their bounds if they know they are being recorded.

6.) Get it in writing. Any agreements for making debt collection payments should be confirmed in writing and signed by a debt collector before you make your first payment. This can avoid any misunderstandings about the amount to be paid and time period to pay off the debt.

If you have any questions on this topic or 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

Men vs. Women: Does Gender Matter when it comes to Debt?

Posted on April 15, 2014by Admin

While no person falls neatly into statistical averages, understanding the differences between men and women when it comes to debt management can help couples understand each other’s “money personalities.” According to credit counselors interviewed in a recent study, women more often handle the household budget, paying bills and spending money on necessary and discretionary items.

Because of this day-to-day spending responsibility, women carry more guilt for debt woes, which can be compounded if their spouses blame them. Women appear to shy away from debt compared with men, according to an Experian analysis released last year. On average, men carried 4.3% more debt than women. Their mortgages were also 4.9% higher than home loans taken out by women. The study also found that women used less available credit on their credit cards than men- 30% versus 31%.

While men may appear to be more comfortable taking on more debt, they also get into financial trouble more often. Experian found that men were more likely to fall 60 days or more behind on their mortgage payments than women – 5.7% versus 5.3%. Despite having more problems handling a larger debt load, men seek help later than women, according to credit counselors.

Several of the counselors interviewed said women respond to financial crisis by eliminating items on the household budget, where men work more to increase the income to get out of debt. The best solution is a combination of both along with an understanding between the two spouses.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Bankruptcy linked to GM’s faulty ignition switch recall?

Posted on April 9, 2014by Admin

Federal authorities are investigating whether GM committed bankruptcy fraud by concealing its ignition switch defect when it filed for bankruptcy back in 2009. The ignition switch problems led to the recall of 1.6 million vehicles last month.

GM is a different legal entity than the one that filed for bankruptcy in 2009. The “new” GM is not responsible under the terms of its bankruptcy exit for legal claims relating to incidents that took place before July 2009. Those claims must be brought against the “old” pre-bankruptcy GM.

The class action lawsuit said plaintiffs should be allowed to sue over the pre-bankruptcy actions “because of the active concealment by the Old GM and GM.” The lawsuit has also said that GM is responsible for reporting to the federal government any safety-related problems for cars made before its bankruptcy.

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Bankruptcy Law, Timothy Kingcade Posts

Divorce often tied to Bankruptcy

Posted on April 2, 2014by Admin

A recent study from the Minnesota Population Center at the University of Minnesota revealed that the age-standardized divorce rate has grown by 40 percent since 1980. The age-standardized divorce rate is an important factor in calculating divorce risk, because the U.S. had a younger population in 1980 and statistically younger couples are at a higher risk of divorce. The study also revealed that since 1990, the divorce rate for those ages 60 to 65 has tripled.

Divorce can be costly for a variety of reasons and is a common cause of many bankruptcy filings. Considering the court costs, attorney fees and similar expenses, the divorce process can cause financial hardship. Not to mention splitting into two households, the financial strain of alimony or child support payments and the loss of certain economic benefits associated with marriage.

Depending on your unique circumstance, bankruptcy may be better to file before or after divorce. In some instances it can be advantageous to file for bankruptcy before divorce. Eliminating your debts can simplify the divorce settlement process. On the other hand, filing a joint bankruptcy can save on court costs and legal fees. Incomes generally decrease after a divorce so while you may not qualify for bankruptcy prior to divorce, you may qualify for it afterwards.

The best way to determine if and when bankruptcy is the right option for you before a divorce is to speak with 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.

Related Resources: http://www.digitaljournal.com/pr/1826759

Bankruptcy Law, Timothy Kingcade Posts

How to get your Student Loan Debt Erased

Posted on April 1, 2014by Admin

Two-thirds of college students in the U.S. are graduating with some level of debt. According the Institute for College Access and Success, the average borrower will graduate $26,600 in the red. That’s a staggering number! Getting student loan debt erased in bankruptcy court is difficult, but not impossible. Several recent court decisions have challenged the notion that only the worst-off borrowers, typically those who are permanently disabled, can get student loan debt erased.

In many cases, borrowers filing for bankruptcy do not even ask about their student loan debt being discharged because they figure it’s a rare possibility. A recent study published in the American Bankruptcy Law Journal, found that only 213 out of 170,000 student loan debtors tried to have their education debt discharged by filing what’s known as the “adversary proceeding.”

Of those who tried to get their student loan debt discharged, two out of five received at least some relief. Based on the characteristics of those who were able to get discharges, the researcher who conducted the study calculated that an additional 69,000 people who filed for bankruptcy that year would have a “good chance” of erasing their student loans after filing adversary proceedings.

The study concluded that one reason so few student loan borrowers seek to discharge their student loan debt is because they have been convinced that it is a hopeless fight. A borrower must prove that repaying his or her student loans would be an “undue hardship.” This means meeting following requirements:

1.) A current inability to pay the loans, because doing so would not allow you to maintain a minimal standard of living given current income and expenses;

2.) A future inability to repay the money, because your financial situation is likely to continue;

3.) A good-faith effort to repay what you owe.

In two recent decisions, courts granted relief to borrowers who had not made voluntary payments on their debt and who refused to enroll in income-based repayment plans. The appeals court judges in both cases said enrolling would have been pointless given the women’s incomes. In a third case, the borrower was both employed and healthy, but wage garnishments by his student lenders left him unable to support his wife and two children.

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 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

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.

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, 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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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

Hospital Bankruptcies the Result of a Downward Trend

Posted on February 28, 2014by Admin

A recent study by the Department of Health Services Administration at the University of Alabama, reveals that it is not simply a “bad year” but a downward trend over time, decreasing volumes, reimbursement changes and deteriorating physician relationships that results in a hospital filing for bankruptcy.

While 67 percent of hospitals that filed for bankruptcy eventually closed, one-third completed a re-organization. The study examined a six-year period from 2000 to 2006, during which 42 hospitals across the nation filed for bankruptcy. Data was compiled from the American Hospital Association and trade publications to get detailed information on these organizations.

The study revealed that filing hospitals tend to be smaller and many factors were involved, including: poor financial management, changes in pay, reimbursement reductions, overzealous construction, purchasing of physician practices, decrease in volume and demographic shifts.

Many organizations often overlook the signs and wait until they are in a very poor financial condition before filing. If the hospital starts pursuing strategies to change earlier, they have a better chance at restructuring afterward. Hospitals need to look at the issue from a positive perspective. First, bankruptcy can be a good way for hospitals to get debt relief and be purchased by a system or other hospital. It also gives time to pause and think about how they will move forward in the future.

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Bankruptcy Law, Credit, Timothy Kingcade Posts

Mel Gibson’s Ex Files for Bankruptcy

Posted on February 21, 2014by Admin

Oksana Grigorieva, Mel Gibson’s ex has filed for bankruptcy over her legal debts just years after turning down a $15 million custody settlement. The legal debts are said to be in the range of $250,000. In legal documents obtained by TMZ, Oksana has just $10 in cash to her name. The musician, who is the mother to Mel’s four-year-old daughter Lucia, has $48,000 in assets and $438,000 in debts.

During her custody battle with Mel, Oksana used more than 40 lawyers. At the end of it all, Mel was ordered to pay $750,000 to Grigorieva, which he is paying in installments. According to legal documents, she is receiving $20,000 a month in child support for Lucia, while Timothy Dalton pays her $2,500 for their son Alexander.

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