Bankruptcy Archives - Page 23 of 34

Bankruptcy Law, Credit, Timothy Kingcade Posts

South Floridians’ Average Credit Score Declines despite Paying Down Debt

Posted on May 14, 2013by Admin

Despite debt dropping in South Florida, credit scores have actually worsened from a year ago making it hard for consumers to capitalize on low interest rates and qualify for personal loans. According to CreditKarma.com, the average credit score in Broward and Miami-Dade fell to 646 in March after it had been at 658 a year earlier, even though credit card, mortgage and student loan balances improved during the same period. Credit Karma’s CEO, Kenneth Lin, attributes this to South Florida still experiencing fallout from being among the hardest-hit U.S. metro areas for foreclosures, short sales, bankruptcies and layoffs during the Great Recession.

Consumers being late even once in making a monthly credit card payment can hurt their credit score. Banks also could have inadvertently lowered many consumers’ scores when they cut credit card limits during and after the recession. Consumers also could have hurt themselves by closing accounts, which lowers their borrowing limit. Many young South Floridians with student loans are unfairly marked down because when their payments are deferred, they are scored as if they are delinquent in paying.

So what can consumers do to turn this trend around? Young people can apply for credit cards to have their on-time payments reported to improve their credit scores. You can also make sure the three credit reporting agencies- TransUnion, Experian and Equifax are free of errors. All South Floridians should check their credit reports once a year to make sure there are not any mistakes that can hurt their score.

Click here to read more about the average credit score decline despite South Floridians paying down their 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, Timothy Kingcade Posts

Bankruptcy Costs Attacked

Posted on May 13, 2013by Admin

A recent article in the Wall Street Journal reports that Federal watchdogs are preparing to exert more control over costs in big bankruptcy cases. The new guidelines are expected to be unveiled July 1st and aim to cap fee and expense applications submitted by attorneys for corporate debtors and sometimes creditors. The concern with these new guidelines is that unjustified costs can give the impression that professionals are ‘feasting off a corporate carcass that rightly belongs to the people and businesses they are serving.’

In large Chapter 11 cases, the corporate debtor typically foots the bill for its own lawyers and advisers and professionals retained by some creditors. Judges ultimately decide whether to approve expense and fee requests. U.S. trustees, who are Justice Department employees, watch over the conduct of parties in large corporate bankruptcy cases, including examining fees and expenses. The proposed guidelines, which are expected to apply to attorneys in bankruptcy cases with $50 million or more in assets or liabilities, have gone through two drafts so far.
Some in the field say time and money spent scrutinizing small costs itself adds up and can distract from the bigger task of repayment and reorganization. The push on costs comes as expenses from flights and hotels to photocopies and minibar candy billed by bankruptcy professionals are under greater scrutiny, according to dozens of lawyers and other advisers.

Click here to read more on bankruptcy costs being attacked http://online.wsj.com/article/SB10001424127887324031404578479250357752788.html

Bankruptcy Law, Credit, Timothy Kingcade Posts

Don’t Let Your Credit Card Rewards Points go to Waste

Posted on May 3, 2013by Admin

Credit Card Rewards points are a major marketing factor for credit card companies; however, few people are actually cashing in on the points they earn. A recent study conducted by thepointsguy.com showed that nearly 73 percent of credit card holders enrolled in a rewards program or frequent traveler program do not know how many points they have accumulated. Below are some tips on the best ways to accumulate, track and maximize the points you earn.

• Shop Differently: One expert says he never buys anything online without first checking airlines’ shopping malls. You will find that items are the same prices and you can get bonus miles in addition to what you earn on your credit card. After you rack up some points, use them to upgrade your flight from coach to business or first-class.
• Minimize Programs, Maximize Rewards: Mike Sprouse of Sprouse Marketing says the best way to maximize your rewards programs is to keep them to a minimum. This will make it easier to track and accrue points. Sprouse says that most of the companies that offer rewards programs count on you never redeeming them and having points spread out over fewer programs will ensure your redemption opportunities are on your mind.
• No Credit Card? No Problem: Even if you opt out of using credit cards or credit cards that offer rewards programs, you can still cash in on points programs. For example, Southwest’s Rapid Dining Program allows you to earn points by eating somewhere or going to certain clubs. Do your research and find the points programs that work for you.

Click here to read more on tips to use your credit card rewards points.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Doctors Driven to Bankruptcy

Posted on May 2, 2013by Admin

This reads as an unlikely headline, but recently a number of doctors have been struggling to keep their medical practices financially sound. According to the American Bankruptcy Institute’s Health Care Committee, Chapter 11 bankruptcy filings by physician practices have recently spiked. In recent weeks, there were at least eight filings, which is unusual for the industry.

In many cases it is not major medical malpractice lawsuits leading doctors to file bankruptcy, it is the struggling economy that has been blamed for this growing trend. Patients are cutting back on doctor visits and elective procedures due to their own financial hardships. Doctors attribute their financial struggles to shrinking insurance reimbursements, changing regulations and the rising cots of malpractice insurance, drugs and other business necessities.

Click here to read more on doctors being driven to bankruptcy.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Casey Anthony’s Bankruptcy Hearing Set for May 8th

Posted on May 1, 2013by Admin

A hearing date has been set in Casey Anthony’s Chapter 7 bankruptcy case for May 8, 2013. Zenaida Gonzalez and Roy Kronk filed defamation lawsuits against the infamous former murder defendant and continue their fight to salvage their lawsuits. Both lawsuits were put in jeopardy after Anthony filed for Chapter 7 bankruptcy protection in January. Gonzalez sued Anthony after she claimed that a similarly named nanny kidnapped her daughter. Although the nanny did not exist, Gonzalez was linked to the case in the media and claimed this ruined her reputation. Kronk was the man who found Caylee’s body in the woods near Anthony’s home. He filed a lawsuit against Anthony after he claimed her lawyers made statements wrongly implicating him in Caylee’s death.

Anthony has filed for Chapter 7 bankruptcy protection, which would discharge her of all debts and any other claims against her. Kronk and Gonzalez have filed motions with Anthony’s bankruptcy judge requesting their suits be exempt from discharge. Anthony’s bankruptcy lawyers filed paperwork stating that she has completed a “personal financial management course,” required of her bankruptcy. In her filings, Anthony listed more than $792,000 in debt and less than $1,100 in assets. Her largest creditor is to her criminal attorney Jose Baez, whom she owes $500,000.

Click here to read more about Casey Anthony’s Bankruptcy Hearing set for May 8th.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Credit Card Delinquencies Reach New Lows

Posted on April 30, 2013by Admin

According to Fitch Credit Ratings, preliminary results indicate that credit card ABS data improved across the board through the end of March. The report also indicated that 60+ day delinquencies are expected to hit an all-time low for general-purpose card issuers. Additionally, retail delinquencies are expected to reach 7-year lows. The data supports the ongoing positive performance and stability for U.S. credit card ABS.

Fitch’s Prime 60+ Day Delinquency Index is projected to decline to an all-time low. It fell below 1.60% during the March 2013 reporting period. The report also suggests that monthly payment rates are likely to improve. Chargeoffs are expected to remain flat for the Prime Credit Card Index. Fitch’s Gross Yield Index is expected to rise to over 19% for the first time since October 2011. Retail 60+ Day Delinquency Index is expected to decline to its lowest level since January 2006.

Click here to read more about Fitch’s Credit Card Delinquencies reaching new lows.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Chicago Bankruptcy Scam to Free Impounded Vehicles

Posted on April 29, 2013by Admin

A Chicago man was arrested last week for soliciting payoffs from drivers whose vehicles had been impounded by the city. Daniel Rankins was allegedly approaching people whose vehicle had been impounded by the city and offering to help them get their vehicle back for a fraction of the price. Rankins would file phony bankruptcy petitions, which placed an automatic hold on fines and released the vehicle. A spike in the number of motorists claiming bankruptcy to circumvent the process raised questions among city officials. Soon after, the FBI began investigating the scam.

Since May of last year, more than 1,000 bankruptcy cases had been filed with the Revenue Department and the city’s auto pounds as the only listed creditors. An individual at the Revenue Department Office approached an undercover officer posing as a motorist, whose car had been impounded. The individual put him in touch with Rankins, who provided him with bankruptcy paperwork that was already completed except for personal and vehicle information. After the paperwork was complete, Rankins drove the officer to federal bankruptcy court to file. The officer later paid Rankins $600 for his services. Rankins told authorities he learned of the scam when his own car was impounded a few months prior. After Rankins recovered his own vehicle, he began working with the other two individuals to recruit motorists with impounded cars.

Click here to read more on the Chicago Bankruptcy Scam to Free Impounded Vehicles.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Six Ways to Control Your Spending Habits

Posted on April 25, 2013by Admin

Debt is often thought of in a negative light. However, when it is used wisely, it can provide you with an education, a home, a car and a better life. South Floridians have struggled with some of the most substantial debt in the country throughout the Recession. According to Experian, South Florida’s average credit card debt is the nation’s highest, approximately $4,555 per person.

Below are six ways to better control your spending habits:

1. Determine what you owe and the interest rate each creditor is charging you. After you get a clear picture of what you owe, you should pay off the largest debt or the highest interest rate debts first.
2. Avoid spending money on things you really want. Frequently monitor where your money is going. There is a free website called DoughHound.com you can use to help control your spending.
3. Set a debt-reduction goal. When you are able to reduce your debt, reward yourself. After, you can set a new, higher goal for yourself with a bigger reward.
4. Don’t tempt yourself. Try to avoid leaving an excess of money in your checking account. Instead, you should use your extra cash to pay down your debt.
5. Get support from your family and friends. It is best to look for support from others who share your debt reduction goals. Keep a distance from your friends and family who are big spenders.
6. Beware of debt settlement organizations that offer a lot of promises. Typically, they charge you a lot and deliver less than they promise. Also, stay away from debt consolidation loans.

Click here to read more about the 6 best ways to control your spending habits and reduce your debt.

Bankruptcy Law, Credit, Timothy Kingcade Posts

House Passes Bill to Protect Kids from Identity Theft

Posted on April 24, 2013by Admin

Last week, the house passed a bill 116-0 that will require the nation’s three consumer-reporting agencies to allow Florida parents to open and freeze their child’s credit record. Doing so would prevent scammers from using children’s personal information or opening fraudulent accounts on their behalf. Such scams are a growing problem in Florida. Recently, a Broward County teacher was convicted of stealing children’s information from their student IDs. The bill, HB493, will protect the identity of every child in the State of Florida. Florida, particularly South Florida, is number one in the nation when it comes to identity theft.

In 2011, nearly 1,800 children’s identities were stolen in Broward, Miami-Dade and Palm Beach counties alone. Since then, the Federal Trade Commission has found that cases of identity theft have more than doubled in South Florida. There have even been cases where infants’ identities have been stolen and their families did not realize it until many years later. Scammers would steal a child’s identity and begin applying for credit cards on their behalf, according to IDChildNow.com. Sen. Nancy Detert has introduced a similar bill to the Senate. If the bill is passed it will be the second bill of this nature in the nation. Maryland adopted a similar law last year. Experts say that the current policies make it extremely easy for scammers to steal children’s identities.

Click here to read more on the House Bill to Protect Kids from Identity Theft.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Top 10 Misconceptions About Bankruptcy

Posted on April 22, 2013by Admin

There are many laws within the Bankruptcy Code that are often misunderstood. Below are the top ten misconceptions about bankruptcy.

1. You must be completely broke to file for bankruptcy. Filing for bankruptcy protection does not necessarily mean that you are broke; it can mean that you cannot pay your bills as they come due. However, many debtors wait until they are flat broke to file for bankruptcy protection. This delay limits your options of reorganizing your finances and being able to keep part or all of your property. It is better to file before you are “flat broke.”
2. If you file for bankruptcy protection, you will not qualify for credit in the future. Your bankruptcy will appear on your credit report for up to 10 years. Chances are, if you have filed for bankruptcy, your credit score has already suffered. Therefore, filing for bankruptcy may be the best way to raise your credit score, again. Once you file for Chapter 7 bankruptcy, you will receive a discharge on most debts. Once your debts are discharged, you can start working to raise your credit score, again.
3. If you file for bankruptcy, you cannot buy a house. Mortgage lenders may be hesitant to loan you money to buy a house within the first couple of years after filing. However, if you work to raise your credit score and practice good bill paying habits, you are likely to be approved. Your lender may charge you higher interest rates and require personal guarantees. If you can fund a sufficient down payment, you are likely to be approved for a mortgage loan.
4. If you file for bankruptcy, you will lose your house. Whether or not you are able to keep your home will be determined by the amount of equity you have in your home. When you file for bankruptcy, you are allowed to keep some property, called exempt property. Your home will be exempt from liquidation if it does not have any non-exempt equity.
5. Taxes cannot be discharged in bankruptcy. Some taxes are dischargeable in bankruptcy, such as personal income taxes that are more than three years old.
6. Student loans are nondischargeable. In most bankruptcy cases, student loans cannot be discharged. However, if the debtor can prove certain hardship, student loans can be discharged.
7. If you file for bankruptcy, you can leave out certain creditors. The Bankruptcy Code serves the purpose to treat similarly situated creditors equally. If you do not list a creditor in bankruptcy and decide to pay the creditor, you are technically prejudicing the other creditors. The court considers this fraud and you are at risk of losing the discharge and possibly facing jail time and fines.
8. Family members who loaned the debtor money will lose out. You must list all creditors in the bankruptcy; however, you can repay certain creditors after bankruptcy is filed. This practice is referred to as a reaffirmation agreement. All reaffirmations are subject to court approval. In most cases, debtors agree to pay back a debt they have no legal obligation to pay in order to maintain an existing relationship.
9. Signing an agreement stating that a debt cannot be discharged in bankruptcy makes the debt nondischargeable. These bankruptcy clauses are unenforceable and are used as a scare tactic.
10. You may lose your job if you file for bankruptcy. If an employee can prove they were fired solely because he or she filed for bankruptcy, the employee can sue the employer.

Click here to read more about the top ten misconceptions about bankruptcy.
http://www.nysscpa.org/cpajournal/2005/505/perspectives/p18.htm