Tag: Bankruptcy

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Miami Bankruptcy Attorney Timothy S. Kingcade Named a Florida Super Lawyer 5 Consecutive Years

Posted on by Admin

Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade Garcia McMaken has been selected for inclusion in Florida Super Lawyers 2018, in the practice area of consumer bankruptcy. This is the fifth consecutive year Kingcade has been selected to the Florida Super Lawyers list (2014-2018). The prestigious honor is awarded to only five percent of lawyers in the state.

Attorney Kingcade practices exclusively in the field of bankruptcy law, handling Chapter 7 and 13 filings and foreclosure defense cases for the Southern District of Florida.  As an experienced CPA and proven bankruptcy attorney, Timothy Kingcade knows how to help clients take full advantage of their rights under the bankruptcy laws to restart, rebuild and recover.

Super Lawyers is a listing of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement, representing the top 5% of Florida lawyers.  The annual selections are made using a patented multiphase process that includes a statewide survey of lawyers, an independent research evaluation of candidates and peer reviews by practice area.  The result is a credible, comprehensive and diverse listing of exceptional attorneys.

Miami-based Kingcade Garcia McMaken, P.A. was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade & Garcia, P.A. specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

Student Loans and Bankruptcy: Fixing a Broken System

Posted on by Admin

Student loan borrowers have continuously run into roadblocks when it comes to their student loan debt being discharged in bankruptcy cases. Many students graduate with well over six figures in student loan debt, causing them financial hardship for years.

The Department of Education recently solicited comments and input on what loan holders should consider when making a determination on whether to discharge student loans in bankruptcy. As a result, the Department ended up receiving over 400 comments in response to this request.

Currently borrowers have to prove that paying the student loan debt would constitute an “undue hardship” to the borrower. Traditionally, this standard has been a very hard one to meet. For student loans issued by the government, borrowers have had to jump a rather high hurdle to show this undue hardship. In addition, no set standard has been issued for determining what an undue hardship is, resulting in different courts applying different standards.

Only Congress can modify how the law handles discharging student loan debt in bankruptcy cases, but the Department of Education does have some say in making a recommendation on how these cases are handled. An official memo from the Department may go a long way in providing guidance for judges when evaluating these cases.

One possible change is clear criteria will be given to help determine what an undue hardship is. One recommendation has been establishing whether a student loan borrower is near the poverty line, has been determined to be unemployable due to a disability or whether the person is a caretaker for someone who is disabled or chronically ill.

Another recommendation was to make the standard more lenient to allow for more borrowers to be able to discharge student loans in bankruptcy. Congress has never given a clear definition for what undue hardship consists of, but many courts have used the “Brunner” test to determine what this means.

The Brunner test requires that the borrower show that he or she has made a good faith effort in repaying the debt, that the financial circumstance is such that the person cannot have a reasonable standard of living if he or she has to repay the debt, and this financial situation is likely to continue in the future. The problem is this standard is not easy to meet with each court viewing it differently. It has been recommended that courts use a more lenient standard called the totality of the circumstances test, which looks broadly at the debtor’s financial situation to determine if paying the loan(s) back constitutes a hardship.

Other comments suggested that the Department and loan issuers also consider whether the borrower finished college and whether he or she was victim of fraudulent conduct before making an ultimate determination on whether the debt should be discharged. This recommendation follows the issues that have followed students who have attended for-profit colleges who have been accused of enticing students to attend their schools with inflated job placement figures and graduation rates.

The strict standards that have been used in not allowing borrowers to have their student loan obligations discharged have kept many from pursuing bankruptcy when they arguably need this relief the most.

Click here to read more on this story.

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. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

 

Bankruptcy Law, Credit, Debt Relief

Rent-A-Center Accused of Kicking in Doors and Crushing Customers’ Credit

Posted on by Admin

Rent-A-Center has recently made headlines due to its unethical treatment of customers and harassing debt collection practices.  In fact, it has gotten so out of hand that the complaints and harassment lawsuits have grown in numbers.

Rent-A-Center customers throughout the U.S. are now complaining that Rent-A-Center has virtually destroyed their finances after they have leased electronics, appliances and furniture from the company.

Rent-A-Center is a Texas-based publicly-traded company. The company started in 1986, offering consumers a way to purchase electronics and other household items that they would not be able to afford otherwise. The customers rent these items, making payments on a monthly, semi-monthly or even weekly basis. At any time during the lease, the customer can terminate the lease and return the household goods, or they can keep making payments until they own the items in full. The company’s mission aims to help those in lower-income households by allowing them to purchase items they would not otherwise be able to afford.

Once a customer begins to fall behind on his or her payments, that is where issues arise. Just one missed payment, missed by something as small as a day, can trigger aggressive collection efforts.

One federal lawsuit, brought by a Florida resident, claimed that she was forced to hide in a closet with her two young sons while a Rent-A-Center employee pounded on her door to collect payment on her rented household items. Another lawsuit claims that a Rent-A-Center worker kicked in her front door after she fell behind on payments for her laptop computer.

Even debt collectors are complaining about the practices of Rent-A-Center. In 2014, the collection company, Acceptance Now, took on accounts from Rent-A-Center, but as soon as debt collectors began making efforts to collect on the accounts, customers continually informed the agents that their debts had already paid. The problem was Rent-A-Center’s records did not reflect these payments.

Many states allow rent-to-own companies, like Rent-A-Center to file criminal charges against customers who do not pay on their rental agreements and do not return items when asked to do so. The collectors are well aware of this information, and Rent-A-Center regularly uses these threats to scare customers into making payments. It can make customers feel trapped in a no-win situation, not only fearing for their safety against aggressive collectors but fearing jail time if they are not able to make payments.

Between January 2016 and June 2017, the Federal Trade Commission received 2,779 complaints regarding both Rent-A-Center and Acceptance Now. Out of these complaints, 90 percent of them involve aggressive collection tactics, involving employees banging on customer’s houses and blasting car horns outside of homes.

Know your rights when it comes to creditor harassment. The Fair Debt Collection Practices Act (FDCPA) was designed to help prevent creditor abuse and harassment.

Click here to read more on this story.

If you have questions on this topic or 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Cambridge Analytica to File for Bankruptcy After Misuse of Facebook Data

Posted on by Admin

Cambridge Analytica, the political consulting firm that has found itself in a firestorm of controversy recently, announced on Wednesday that it would be closing operations and filing for bankruptcy. This announcement comes after the company has been the focus of political scrutiny due its business practices and the part it has allegedly played in the presidential campaign of Donald J. Trump.

For those who are not already aware of the scandal, it was discovered two months ago that Cambridge Analytica and Facebook were involved in the compromise of personal information of about 87 million individuals. It was alleged that this personal information was given to Russian bots or other companies and individuals who were a part of creating propaganda to help influence the Presidential election.

In a statement, Cambridge Analytica said the controversy had driven away essentially all of its customers, resulting in having to file for bankruptcy in both the United States and Britain. It will also be shutting down the elections division of SCL Group, the Cambridge British affiliate.

However, now that the announcement has been made, many are questioning who will hold the company’s intellectual property, which includes the voter profiles that were a part of the data release from Facebook. Where will this information go now that the company is no longer in business?

The company said it conducted its own independent investigation, results of which were released on Wednesday. In its results, Cambridge Analytica seemed to downplay the assertions that were made by former employees about how it acquired the data from Facebook, and the information also downplayed the role Christopher Wylie, the contractor who ended up being the whistle-blower on the whole deal, calling the role Wylie played “very modest.”

Cambridge Analytica is financially backed by a wealthy Republican donor, Robert Mercer, who is said to have invested at least $15 million of his money in the company. The company has been said to have offered tools to help identify the personalities of the typical American voter and ways to influence their behavior. These techniques were what led the company’s work for the Trump campaign, as well as other candidates in the 2014 and 2016 elections. It was the help these techniques gave to the Trump campaign, however, which has brought the company under such scrutiny, scrutiny that has apparently led to the company’s financial downfall.

Click here to read more on this story.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorneywho 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 McMaken 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 McMaken website at www.miamibankruptcy.com

 

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What happens if a creditor tries to collect on a debt during my bankruptcy?

Posted on by Admin

After you file for bankruptcy, creditors are not allowed to contact you regarding any debt you owe; they must deal only with your attorney.  The protections allotted by the bankruptcy automatic stay prohibit all collection activity, including legal action, wage garnishment, even contact by phone or mail in an attempt to collect on a debt.

There are a few exceptions. For example, the automatic stay does not stop criminal cases, some child support actions, and certain eviction cases. The automatic stay also does not apply to debts incurred after the bankruptcy case was filed. Here’s how to determine if a creditor violated the automatic stay and what you can do if a creditor continues trying to collect a debt.

The penalties for violating the automatic stay depend on the nature of the violation and whether it was done with deliberate disregard for the bankruptcy filing. You have several options if a creditor continues to pursue a debt in violation of the automatic stay.

Tell the creditor about your bankruptcy. Most debt collectors will stop contacting you if you tell them this.  Many times the debt collector is unaware of your case.  For example, if a collector garnishes your wages after the bankruptcy case is filed, it must immediately return the money.

Notify the bankruptcy court. If the collection attempts continue, the next step is to notify the bankruptcy court. The court can sanction the collector for violating its automatic stay order.

File a lawsuit. If a debt collector continues to try and collect on the debt, it may not only be violating the automatic stay but also other state and federal laws including, the Fair Debt Collection Practices Act (FDCPA).

Our firm works to hold creditors accountable for violating the protections allotted by the U.S. bankruptcy laws.  Recently, our firm’s motion was granted by a Florida judge in a case that held the creditor in contempt of court for violating the automatic stay in a Miami bankruptcy case. The Order directed the creditor to cease and desist all eviction proceedings until further order of the court.  The creditor in this case was also required to pay attorneys’ fees for our firm having to bring forth the motion to enforce the automatic stay to protect our client.

If you are dealing with a creditor you think may have violated the automatic stay, contact your attorney immediately.  An experienced Miami bankruptcy attorney will know whether the contact was innocent in nature or a willful violation worth pursuing.

If you have any questions on this topic or 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Student Loans

Trump Proposal Could Protect Student Loan Debt Collectors

Posted on by Admin

Bloomberg reported the U.S. Department of Education could issue a directive that says federal law prohibits state governments from regulating student loan debt companies that collect student loan debt on behalf of the Education Department.

A document from the Department of Education that was obtained by NPR states:

“Congress created and expanded the Direct Loan Program with the goal of simplifying the delivery of student loans to borrowers, eliminating borrower confusion, avoiding unnecessary costs to taxpayers, and creating a more streamlined student loan program. Recently, several States have enacted regulatory regimes or applied existing State consumer protection statutes that undermine these goals.”

If the directive is enacted, the student loan debt collectors will benefit because they would face less regulations. Student loan borrowers are currently protected by state regulators who do not allow collectors to use aggressive tactics and unfair business practices to collect on debts.

Click here to read more on this story.

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 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

New Data shows 43 Percent of Credit Card Holders Have More Than $15,000 in Debt

Posted on by Admin

According to the Federal Reserve, credit card debt is the highest it has ever been in the U.S. In December, American’s had a total of $1.029 trillion in credit card debt. This means the average household had $8,732 in credit card debt. A survey conducted by Student Loan Hero reported that 43 percent of credit card holders surveyed had more than $15,000 in credit card debt and 58 percent had at least $6,000 of credit card debt for more than a year.

The Federal Reserve also reported that the average interest rates on credit cards are approximately 14.99 percent, which makes it much more difficult for Americans to pay off their debt.

Carrying a consistent credit card balance is detrimental to your financial well-being. One option that is often overlooked by cardholders is getting a credit card consolidation loan. According to Student Loan Hero, only 52 percent of cardholders that have more than $6,000 in credit card debt have consolidated.

Below are three ways credit card consolidation loans may help you.

  1. They typically come with lower interest rates than credit cards do, meaning you are paying less in the long run.
  2. Installment loans set firm repayment plans, unlike credit card companies. This means you are more likely to pay off your debt when making your minimum payment each month.
  3. They combine your payments. This comes in handy if you have debts across multiple credit cards.

Click here to read more on this story.

If you have any questions on this topic or 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Credit, Student Loans, Timothy Kingcade Posts

How To File For Bankruptcy with Student Loan Debt

Posted on by Admin

For consumers struggling with significant debt, filing for bankruptcy may be your best option to provide you with a fresh start. If your debts consist of federal student loans, it is not an easy process to get these discharged in bankruptcy; however, it is possible.

The first thing you must do is to decide whether you will file for Chapter 7 or Chapter 13 bankruptcy. In Chapter 7 bankruptcy, the goal is to get unsecured debt wiped out. This means, you have little disposable income available to pay off your debts. If you choose to file for Chapter 13 bankruptcy, your plan is to get your debts restructured in order to repay some of it. This also means you likely have some disposable income to repay part of your debt.

The most important part of your case when you have student loan debt is that you must prove “undue hardship” to the court. This means that you must prove that you cannot pay back your federal student loans. In order to prove undue hardship, you and your bankruptcy attorney must file a petition called an adversary proceeding, which is unique to bankruptcy involving student loan debt.

In most courts, The Brunner Test is used to evaluate hardship. Below are 3 factors of The Brunner test outlined by the U.S. Department of Education’s Federal Student Aid office:

  • The filer cannot maintain a basic standard of living if paying back federal student loans
  • The filer can prove the hardship will last for a large percentage of the repayment period
  • The filer honestly tried to repay the loans before filing

Click here to read more on this story.

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 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief

Steps to Take if a Creditor Has Seized Your Bank Account

Posted on by Admin

If you owe a debt to a creditor or a collection agency, they can legally seize your bank account and take back what is owed. However, agencies are supposed to notify debtors about the lawsuit beforehand. Unfortunately, creditors can take everything in your bank account and leave you with nothing if it is the same amount or less than what is owed.

Although your options are limited, here are three of your best options at this point.

  1. File Bankruptcy. If a creditor seizes your account and you immediately file for bankruptcy, you may be able to recover some or all of the money that was in your account. In some states, you can “exempt” those funds that were seized from your bank and the creditor would be forced to return it.
  2. Contest the Lawsuit. You may be successful in contesting the lawsuit if you were not properly served.
  3. Stop using your Account. If the first two options fail, it may be in your best interest to avoid keeping funds in your bank account. Creditors may continue to seize your funds until the balance is paid in full.

Click here to read more on this story.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorneywho 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief

Things Not To Do Before Filing Bankruptcy

Posted on by Admin

If you are considering filing for bankruptcy, the list of actions to avoid is just as important as the list of things to do before filing. If you do not avoid these simple decisions, it may prevent you from getting debt relief.

  • Do not transfer assets out of your name. Doing so raises huge red flags in bankruptcy court, particularly if the transferal of assets occurs right before bankruptcy filing. In some cases, hasty asset transfers may be illegal.
  • Do not use a credit card for large cash advances. Many filers choose to max out their credit cards before filing for bankruptcy because they fear losing credit later or they assume the debt will be discharged. However, if someone has no intention of paying money back, it is considered fraud.
  • Do not pay off a preferred creditor. Oftentimes, bankruptcy filers try to pay off debts with friends and family members before filing. However, bankruptcy court may make them give the money back so other creditors can get their share.
  • Do not make large purchases. It may seem like a good time to make large, expensive purchases since your debts are about to be discharged, however; the bankruptcy court may consider these purchases fraudulent.

Click here to read more on this story.

If you have any questions on this topic or 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 McMaken 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 McMaken website at www.miamibankruptcy.com.