Bankruptcy Archives - Page 23 of 34

Detroit the Latest City to File Bankruptcy?

Posted on May 17, 2013by Admin

A recent report by Detroit’s emergency manager declares that the city is broke and at risk of running completely out of money. This financial meltdown could mean employees do not receive paychecks, retirees lose their pensions and residents endure even deeper cuts in municipal services.
If Detroit cannot bounce back from this devastation, the only remaining option appears to be bankruptcy. In March 2012, Detroit borrowed $80 million from Bank of America to avoid running out of money. However, in the last year there has been no improvement. The budget deficit that a few months ago was believed to be about $327 million could reach $386 million before July 1. The city also owes more than $400 million, including $124 million for public improvement projects. Its long-term debt tops $14 billion.

Click here to read more about the latest city on the verge of filing 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

How to Rebuild your Credit after Filing for Bankruptcy

Posted on May 15, 2013by Admin

A poor credit score can affect everything from your credit card and mortgage interest rates to your insurance premiums. It can even affect your employment prospects. Repairing credit takes time, but it’s not impossible. If you are in the subprime category because of a foreclosure or bankruptcy, below are some steps you can take to start improving your credit and getting your score above the all-important 700 mark.

1. Get a secured credit card: A secured credit card can be a good payment method to keep you out of debt. If you deposit $500 to your card, your credit limit becomes $500. Make sure that the issuer reports your activity to the three main credit bureaus (i.e. – TransUnion, Experian and Equifax) to help raise your score.

2. Use Retail or Gas Cards: As your credit score improves with secured or prepaid cards, you will eventually qualify for retail cards from department stores and gas stations. The interest rate on these cards is often high making it essential that you don’t hold a balance beyond the grace period.

3. Beware of Quick Fixes: Do not pay a lot of money to somebody promising to rebuild your credit in a short amount of time. There are no quick fixes. It will take time to repair your credit, but you will likely have a score above 700 before the bankruptcy falls off your report.

Click here to read more about how to improve your credit after filing for bankruptcy.

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.

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.