Bankruptcy Archives - Page 22 of 34

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Credit Mistakes that Can Wreck your Retirement

Posted on October 10, 2013by Admin

A recent University study found that elderly people are more likely than any other age group to file for bankruptcy. The “boomer generation,” now thinking about retirement can learn from the seven credit mistakes below:

1.) Assuming that you are nearing the end of the road. According to the Social Security Administration, the average life expectancy is 84 for men and 86 for women. Keeping that in mind, treat credit as a long-term asset accompanied with risks, responsibilities and important benefits.

2.) Avoiding Credit. Many seniors are proud of their financial accomplishments. Whether they have finally paid off their mortgage, payed off their credit cards or car. But if you ever need a loan and you have little credit in your name, your credit score could have dropped. This means you will likely have to pay higher interest rates if you ever need credit for a life emergency. Instead, get a credit card. But use it only as you would a debit card, charging only what you can afford to pay at the end of each month. This will help rebuild your score.

3.) Taking on too much debt. A recent study by Demos found that Americans aged 50 and over have an average credit card balance of $8,278, compared to $6,258 for people under 50. Senior debt has many causes. More than a third of people over the age of 50 with credit card debt use their credit cards to cover basic living expenses, which is a big mistake. This makes them vulnerable to debt collection scams and withdrawing money from retirement accounts to pay off credit card debt.

4.) Student Loans. Think twice before signing for any student loans. The average borrower over age 60 owes $19,521 in student loan debt, and 12.5 percent of them are delinquent on their payments. Some took college classes later in life. Others have debt leftover from school days long past or cosigned on student loans for their children and grandchildren.

5.) Co-Signing. To help their children or grandchildren purchase a car, new home or pay for college, many seniors have co-signed loans. Oftentimes, not realizing that lenders and credit reporting agencies do not distinguish between borrowers and co-signers. Instead, lend money directly. This will help your loved one establish credit of their own without endangering your financial future.

6.) Failing to check your credit score. Check your credit score for free once a year with each of the three major credit bureaus and sign up for tools such as Credit.com’s free Credit Report Card, which allows you to see your credit profile and provides free scores that update monthly. 36 percent of seniors who did this found errors which severely damaged their credit scores.

7.) Failing to understand reverse mortgage risks. A reverse mortgage can provide seniors extra money during retirement by tapping all the equity they have built up in their home. The loan is repaid only when they die, sell or move out of the home. It is important that you do your homework. Meet with a certified financial advisor to see whether a short- or mid-term reverse mortgage is right for you.

Click here to read more on credit mistakes that can wreck your retirement.

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

U.S. Dept. of Education to Contact Borrowers with NEW Options for Repaying Student Loans

Posted on September 26, 2013by Admin

Starting next month, the U.S. Department of Education will contact borrowers who are struggling to repay their federal loans to make sure they know of all the options available to them. The challenge will be getting the word out as there are many people who can benefit from the income-based repayment programs being offered. To accomplish this, the department is planning to send e-mails to those who seem most likely to benefit from the programs, explaining debt-relief plans based on the borrower’s income.

Efforts to help alleviate student debt, now at more than $1.1 trillion, and make college more affordable have been central issues for the Obama administration. It has expanded debt relief for low-income borrowers with a Pay as You Earn program for recent graduates, and simplified enrollment by putting the application online and allowing applicants to import information from their tax return.

Once enrolled in a program, low-income borrowers with high debt will pay a percentage of their discretionary income every month, and after a certain time period — 20 years in the new program, 25 years in older plans and 10 years for those in public service jobs — the remaining federal debt is forgiven.

Of course, income-based programs have a downside: because the repayment period is longer than the standard 10 years, except for those in public service jobs, interest costs are higher. The U.S. Dept of Education stresses that the programs are not meant for all borrowers, but as a safety net for those struggling with their student loan debt.

Click here to read more on the new options available for repaying student loans.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Parents on the Hook for Child’s Student Loans

Posted on September 25, 2013by Admin

American student loan debt tops $1 trillion, according to the Consumer Financial Protection Bureau. But with many recent graduates facing a tough job market and limited employment opportunities, what happens when they cannot afford their monthly student loan payments? If a parent co-signed the loan, the burden shifts to them.

Bankruptcy attorneys are seeing an increasing trend with parents struggling to pay off their child’s student loans. Unfortunately, even bankruptcy cannot wipe the slate clean- unless of course undue hardship can be proven. Al Franken, on the Senate Education Committee, said that he has backed several pieces of legislation he thinks could help. One example is the Fairness for Struggling Students Act, which, if passed, would make it possible to eliminate private student loan debt in bankruptcy. Franken has also backed legislation that aims to help students receive better counseling when taking out a loan.

Experts say parents can and should co-sign their child’s student loans, but must be “informed borrowers,” meaning they need to closely scrutinize the terms of the loan. Many banks are getting out of the student loan business, largely because of the increased scrutiny from lawmakers. JPMorgan Chase announced its departure just a couple of weeks ago. Bank of America, Citigroup, and U.S. Bank have already done the same. So for future borrowers, it means more student loans will come from the federal government.

Click here to read more on the story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

8 Bankruptcy Myths Disproved!

Posted on September 18, 2013by Admin

Filing for personal bankruptcy still carries a powerful stigma in this country. However, a divorce, death of a spouse, or severe medical illness can place a well-meaning consumer into an endless cycle of debt. There is a sense of shame and failure that allows certain misunderstandings about the bankruptcy process to linger. With that being said, below are the top eight bankruptcy myths- DISPROVED!

1.) I will lose everything if I file for bankruptcy. Not true. Creditors do have the right to get some of their money back, but you will not “lose everything.” Some assets are protected from liquidation. For example, creditors usually cannot touch locked-in pensions, RRSPs or RRIFs. People are also generally allowed to keep modest amounts of furniture, clothing, tools of the trade, and even their car- if there is not too much equity in it.

2.) My friends will all find out that I have filed for bankruptcy. If assets are minimal, creditors are notified by mail and generally there is no notice in the paper. Bankruptcy filings are a matter of public record, but most people are not going to bother, not to mention pay the monetary search fee required. So unless you tell people, there is a pretty good chance that your friends, neighbors and co-workers will never know.

3.) My credit rating will be ruined if I file for bankruptcy. Even though a bankruptcy filing is not desirable on a credit report, if you are months behind on paying your bills and creditors are calling you, your credit score is likely already damaged. Filing for bankruptcy can provide you with a fresh financial start and put you back on track to rebuilding your credit score.

4.) Bankruptcy erases all your debts. Not true. Some debts cannot be discharged in bankruptcy. These include secured debts like mortgages or car loans, alimony, spousal and child support obligations, court fines, claims arising from an assault and student loan debt- unless you can prove undue hardship.

5.) It does not cost anything to file bankruptcy. You may think that you should not have to pay to file bankruptcy, but bankruptcy trustees do not work for free. Their fees amount to around $1,500 and they typically get paid from the money that is freed up from the liquidation of the bankrupt’s assets.

6.) I will never be able to get credit again if I file for bankruptcy. A bankruptcy notation will remain on your credit report for six years following the discharge. But there’s no need to fear, many individuals that have filed are able to get a secured credit and even a car loan shortly after their bankruptcy is discharged. Many lenders specialize in working with clients who have a less-than-stellar credit history.

7.) Filing for bankruptcy will destroy my spouse’s credit rating. A consumer bankruptcy filing is personal to the individual filing it. As long as your spouse did not co-sign or guarantee your credit cards or loans, his or her credit rating will not be affected by your filing.

8.) Filing for bankruptcy is not a big deal. Bankruptcy is a big deal. During the nine- to 21-month-period it takes to complete a bankruptcy and have your debts discharged, you will have to hand over total control of your finances to the bankruptcy trustee. It is important to meet with an experienced bankruptcy attorney who can assess your financial situation and advice you if bankruptcy is your best option. At Kingcade & Garcia, we offer free initial consultations for this. Bankruptcy laws were designed to give people a fresh financial start and wipe their slate clean.

Click here to read more on eight popular bankruptcy myths disproved.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Bankruptcy Blunders: Top Reasons Your Bankruptcy Filing May Get Rejected

Posted on September 11, 2013by Admin

A recent FindLaw.com survey revealed that one in eight Americans have considered filing for bankruptcy. Whether because of a job loss, carrying an excessive amount of credit card debt or medical debt, a large number of Americans have considered the option of bankruptcy to gain a fresh financial start. But not everyone’s case is accepted by bankruptcy courts. Your bankruptcy filing can be rejected for a number of reasons- often due to mistakes or omissions of proper paperwork. That is why it is crucial you hire an experienced bankruptcy attorney to assist you in the process.

Below are a few reasons why your bankruptcy filing could be rejected:

1.) You do not pass the “means test” in court. In order to qualify for Chapter 7 bankruptcy, where most of your unsecured debts are wiped out, you must pass a “means test” imposed by the court. The means test is a way for the court to determine how much disposable income you have. If you have too much money, a court may reject your Chapter 7 bankruptcy request. It is important to meet with an experienced bankruptcy attorney who will advise you of all your options and let you know if you qualify for Chapter 7. At Kingcade & Garcia, P.A. we offer free consultations where we sit down with our clients, assess their financial situation and determine if bankruptcy is the right option for them.

2.) You fail to provide requested tax documents or fail to appear at the creditor meeting. The court may reject or dismiss your bankruptcy case if you misrepresent your tax information or fail to provide tax documents altogether. In past years, you were not required to file tax returns to pursue bankruptcy. But since bankruptcy reform passed in 2005, this has become a requirement.

3.) You submit a proposed repayment plan that is not feasible. With a Chapter 13 bankruptcy filing, you repay some of your debts over a period of three to five years. If you file for Chapter 13 bankruptcy and set up a repayment plan, your proposed plan must be feasible in order to be accepted by the courts. The courts will review your current income, debts and assets to determine whether you can realistically pay back your creditors under the Chapter 13 plan. If you cannot, they can reject your case.

4.) Someone challenges your bankruptcy request. Once you have filed for Chapter 7, the goal is to get a “discharge” of your debts. A discharge is a permanent court order that relieves you of any legal liability to pay unsecured debts like medical bills or credit card debts. However, for those filing a Chapter 7, a creditor or the bankruptcy trustee has the right to challenge your discharge. This can occur if the trustee or debtor believes you have been dishonest or committed fraud in some way. These can include: hiding assets, making false statements or even failing to appear at mandatory credit counseling- any and all of these can result in a challenge.

Click here to read more on the top reasons your bankruptcy filing could get rejected.

Bankruptcy Law, Timothy Kingcade Posts

Joe Francis Claims Bankruptcy Trustee Aims to Destroy Girls Gone Wild Brand

Posted on June 4, 2013by Admin

Girls Gone Wild founder, Joe Francis says the bankruptcy trustee who recently took over his adult-entertainment business wants to destroy the company as part of his “moral personal crusade” against the brand. Since a bankruptcy judge appointed Neilson to take over Girls Gone Wild’s operations in April, Francis said that Neilson and his attorneys have been “raping the company of every dollar they can get” in legal fees.

“Todd Neilson is a devout Mormon who is hard pressed to destroy me and destroy Girls Gone Wild just because of personal animosity,” Francis, 40, said. “It’s religiously rooted.”

In an emailed statement, Neilson, an accountant, said that he and his attorneys “are fulfilling our well-established duties with respect to the bankruptcy estates—nothing more and nothing less.”

Francis is not the only businessman to complain about how much bankruptcy costs. Court papers show that Neilson got court permission to pay attorneys up to $980 an hour for their work. So far, Neilson has filed a lawsuit to try to pull the Girls Gone Wild trademarks, copyright and website names back from a quiet West Indies company that he said paid nothing for them, according to court papers. In court papers, Neilson said, “the West Indies company is part of a web of offshore entities used by an asset-protection specialist involved with Francis and the Girls Gone Wild entities.”

Click here to read more about the Girls Gone Wild bankruptcy lawsuit and founder, Joe Francis.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Rebuilding Credit after Bankruptcy

Posted on June 3, 2013by Admin

More than a million people file for bankruptcy each year in this country. It is important to remember that immediately after filing bankruptcy you can begin rebuilding your credit. Below are five steps you can take to rebuild your credit after bankruptcy.
1.) Go to annualcreditreport.com and pull your three credit reports (Experian, Equifax and TransUnion). Make sure all of the debts affected by the bankruptcy are listed. Also confirm all information is accurate on each of the reports.
2.) Start getting new credit. The best way is through a secured credit card. Almost everyone is approved and a deposit will guarantee that you are able to cover the charges.
3.) Pay off the card timely, along with all of your other bills each month.
4.) Start a savings account. Having emergency savings means you will not be as likely to tap into your credit.
5.) If you made mistakes, learn from them. You should not feel ashamed after filing for bankruptcy.

Click here to read more on ways to rebuild your credit after bankruptcy.

Bankruptcy Law, Credit, Timothy Kingcade Posts

The 4 BEST Credit Cards for BAD Credit

Posted on May 23, 2013by Admin

It’s almost impossible to get around these days without a credit card. However, if you have poor credit, you are probably concerned you will not qualify for a card or the interest rates, penalties and fees will make it too difficult. Fear not, those individuals with poor credit (a credit score below about 640-660) should consider the below cards- which are not only easy to qualify for, but if used properly can help boost your credit score.
• Capital One Secured MasterCard. This card reports automatically to all 3 credit bureaus. This is a real credit card, not a prepaid card. You can increase your line of credit without increasing your refundable security deposit, and you can get up to a $3,000 line of credit. There are no processing or application fees. You can also utilize tools to track your credit score. No balance transfer fee. $29 annual fee.

• American Express Prepaid Card. This prepaid card doesn’t affect your credit score since it doesn’t report to any of the credit bureaus. With this card, you can load up to $2,500 to your card. You can order up to 3 American Express Prepaid cards. All your prepaid cards will benefit from roadside assistance and purchase protection, as well as excellent customer service. No annual fee.

• PASS Card from American Express. This prepaid card is mainly for parents to get for their teenage children so that they can learn to use a card to pay for their purchases and always have some money handy. You can reload this card whenever you want or schedule reloads, such as monthly or weekly for your child’s allowance. This card will give your teen special access to entertainment events, as well as purchase protection and roadside assistance. No fraud liability. No annual fee.

• BuyRight Prepaid MasterCard. This card requires no credit check. You can enjoy the online billpay feature that will allow you to pay your bills, checks and rent online. You must pay a $9.95 activation fee to use your card for the first time. This card allows you to earn rewards when spending at Starbucks, purchasing iTunes, RedBox, prepaid cell phone minutes and more. There is a $7.95 monthly fee.

Click here to read more on the four BEST credit cards for bad credit.

If you are looking to rebuild your credit history, it is recommended that you apply for Capital One Secured MasterCard as it reports monthly to the three major credit bureaus in the U.S. The key with this card is to pay your bill on time and maintain your account balance well below the credit limit.

Bankruptcy Law, Timothy Kingcade Posts

Study Finds People Diagnosed with Cancer More Likely to Declare Bankruptcy

Posted on May 22, 2013by Admin

According to a recent study from Fred Hutchinson Cancer Research Center, people diagnosed with cancer are more than two-and-a-half times more likely to declare bankruptcy than those without cancer. Researchers also found that younger cancer patients had two- to five-fold higher bankruptcy rates compared to older patients, and that overall bankruptcy filings increased as time passed following diagnosis.

“This study found strong evidence of a link between cancer diagnosis and increased risk of bankruptcy,” the authors of the study wrote. “Although the risk of bankruptcy for cancer patients is relatively low in absolute terms, bankruptcy represents an extreme manifestation of what is probably a larger picture of economic hardship for cancer patients.” Medical debt is one of the main causes of filing for bankruptcy. In fact, it’s a contributing factor in more than half of all bankruptcy filings. This study raises important questions about the factors underlying the relationship between cancer and financial hardship.

Click here to read more about the study that links cancer diagnosis to an increased risk of filing for bankruptcy.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Obama’s Latest Student Loan Policy Faces Scrutiny as Student Borrowing Costs Increase

Posted on May 21, 2013by Admin

A nonpartisan government report has shown that the Department of Education is forecasted to earn a record $51 billion profit off student borrowers this year. The Huffington Post highlighted the estimate by the Congressional Budget Office, which showed that the Education Department was forecast to report higher earnings this year than Exxon Mobil and nearly as high as those of the four biggest U.S. banks combined!

Congressional Democrats are scrutinizing President Obama’s latest student loan policy and urging for structural reforms. One member of the House of Representatives stated, “We don’t see students or their parents as profit centers, and we don’t think it’s an appropriate concept to be acting like a market-driven bank here.”
The increasing gap between what students and families pay to finance a college education and what the U.S. government pays to borrow has led to record profits for the Treasury. President Barack Obama’s plan, features lower rates than the House Republicans’ plan, though unlike the Republicans’ plan it does not cap interest rates in case the U.S. government’s borrowing costs rapidly increase. The president’s plan would expand a program signed into law by George W. Bush that would tie monthly repayments of federal student debt to borrowers’ income. However, that part of Obama’s proposal was not seriously pursued during the education committee meeting.