Tag: Chapter 11 Bankruptcy

Bankruptcy Law

New Bankruptcy Laws Offer Relief for Veterans, Small Businesses and Farmers

Posted on by Admin

President Trump signed legislation into law on August 23, 2019, that offers bankruptcy relief that will benefit veterans, small business owners and farmers. Now that these changes are being implemented, they will have long-lasting, positive effects when it comes to access to bankruptcy relief for these individuals.

The first piece of legislation is the Family Farmer Relief Act of 2019. It doubles the debt ceiling allowed under the Bankruptcy Code for a “family farmer.”  This relief increases the number of farmers eligible to receive relief under Chapter 12 reorganization bankruptcy, which is a special form of bankruptcy that is designed to meet the needs of farmers facing financial difficulty.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Former “Dance Moms” Star Abby Lee Miller Begins Prison Sentence for Bankruptcy Fraud

Posted on by Admin

Abby Lee Miller, star of the hit reality TV show “Dance Moms,” began her sentence in federal prison this month, more than a year after pleading guilty to fraud in a Pittsburg federal court.  Her sentence is 366 days in prison after pleading guilty to bankruptcy fraud and bringing in more than $120,000 worth of Australian currency into the United States, unreported.

Federal prosecutors charged that Miller was in the middle of Chapter 11 bankruptcy when she attempted to hide $775,000 in income from her Lifetime network reality show and its spinoffs.

The investigation was prompted after the bankruptcy judge in Miller’s case was channel-surfing one night and saw the reality star on TV in December 2012 and figured she had to be making more than the $8,899 in the monthly income she was claiming.

On a lighter note, Miller’s prison diet will be fruit, hot grits, whole wheat bread with jelly, and skim milk for breakfast; burgers with a choice of fries or a baked potato and fruit for lunch; and a deli sandwich or hummus wrap for dinner during her first week in prison, according to TMZ Live.

Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to hide assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing. In addition, the potential penalty for bankruptcy crimes includes fines and imprisonment of up to five years.

Click here to read more on this story.

If you 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, 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, Debt Relief, Student Loans, Timothy Kingcade Posts

The “Soup Nazi” of Seinfeld Fame Files for Bankruptcy Protection

Posted on by Admin

The New York City food company, Soupman, made famous by the popular Seinfeld TV sitcom, has filed for bankruptcy protection just weeks after its CFO was indicted on federal tax evasion charges.  A Chapter 11 bankruptcy petition was filed in Delaware stating that Soupman had estimated debts ranging from just over $10 million to $50 million and assets between $1 million and $10 million.

CFO Robert Bertrand failed to pay Medicare, Social Security, and federal income taxes.  His job included collecting, accounting for and paying the taxes for Soupman’s employees. However, the indictment alleged that between 2010 and 2014 Bertrand paid employees with undocumented cash, and compensated certain workers with unreported stock awards.

As a result, the federal government lost $593,971 in total tax payments that should have been paid by the company, according to prosecutors. Bertrand, who has pleaded not guilty, was released on $50,000 bond, pending a scheduled hearing on July 18, court records show.

The Staten Island-based, Soupman company licenses the name and recipes of Al Yeganeh, the model for the gruff “Soup Nazi” character in the popular Seinfeld series.  The character focused fanatically on his culinary creations and refused to serve certain customers using the popular catchphrase: “No soup for you!”

Click here to read more on this story.

If you 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, 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, Debt Relief, Timothy Kingcade Posts

Darius Miles’ Bankruptcy is a Cautionary Tale for Young Athletes

Posted on by Admin

After filing for bankruptcy earlier in the year, former NBA superstar Darius Miles’ belongings were auctioned off last week in Belleville, IL. Miles reportedly made $62 million throughout his career that ended following a knee injury and two arrests between 2009 and 2011. Items that were auctioned off included: an autographed Lebron James jersey, an autographed Michael Vick jersey, a four-wheeler, a dining room set, four firearms, 10,000-plus DVDs and karaoke equipment.

According to the Belleville News-Democrat, Miles’ bankruptcy was the result of unpaid child support, tax debt, a failed real estate deal and overspending. Profits from the auction held at the Belle-Clair Fairgrounds will go to his creditors.

Miles was a first-round draft pick with the Los Angeles Clippers in the 2000 NBA draft and signed a contract worth $9 million. Miles played in Los Angeles, Cleveland, Portland and Memphis. He also starred in a movie with Scarlett Johansson and Ryan Reynolds and landed an endorsement with Michael Jordan’s athletic brand.

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, 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.bnd.com/news/local/article102254247.html

http://www.stltoday.com/sports/columns/ben-frederickson/benfred-miles-bankruptcy-is-a-cautionary-tale-for-young-athletes/article_b29ff674-5e2a-502c-b6ae-84bc1276bde7.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The 4 Critical Mistakes that Lead Businesses to Bankruptcy

Posted on by Admin

We have all seen the headlines of some of the largest retailers filing for bankruptcy.  From Sports Authority to popular brands like Aeropostale and Pacific Sunwear, these are just a few of the apparel players that have filed for bankruptcy this past year.

According to experts, a variety of factors have played a part in these business bankruptcies.  Here are four missteps that lead businesses to financial collapse.

  1. Failure to adapt. While e-commerce has created an exciting new environment for brands and retailers to promote and sell their apparel, difficulties with adaptation have hurt businesses that lack the support and expertise to manage change in today’s digital and mobile arena. Teens and millennials are driving a massive migration online and are also less brand-focused than previous generations.
  2. Expanding too soon and high real estate costs. There is a good reason why closing stores is often the first line of defense in a retail bankruptcy and restructuring plan. These excessive brick-and-mortar expansions can destroy profit margins across the board, and retail analysts say U.S. retail is at the peak of over-expansion. Expensive rents played a key role in the collapse of Sports Authority and Pacific Sunwear.  PacSun successfully emerged from bankruptcy this month after reducing its debt, closing some of its stores and negotiating lower rent.
  3. Outdated business concepts. Not keeping up with the times can cost a business (and a brand) dearly. A number of businesses file for Chapter 11 bankruptcy because their concept is no longer of interest or their consumers’ tastes have changed. On the other hand, there is the issue of “oversaturation,” where a marketplace becomes too competitive and there is an overabundance of similar businesses and products.
  4. Poor mergers and ownership challenges. The past year and a half has brought a strong wave of mergers-and-acquisitions, particularly in the footwear and apparel industry. Who owns the business plays a big role. Is it a family-owned business that has a vested interest in keeping the company going or is the business owned by a private equity firm, who owns a variety of other businesses? In the case of Sports Authority it was said that new ownership played a pivotal role in the company’s downfall.

If you 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, 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://footwearnews.com/2016/business/retail/bankruptcy-chapter-11-brands-retailers-mistakes-reasons-business-analysis-258911/

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

11 Steps to Take When Bankruptcy is Your Best Option

Posted on by Admin

Many Americans have had difficulties keeping up with their debts and credit obligations since the Recession. If you have similar difficulties, filing for bankruptcy may be your best option.

Here are 11 steps you should take if you are filing for bankruptcy.

  1. Explore your options. Before filing for bankruptcy, it is best to educate yourself on what filing for bankruptcy means. For example, you need to determine if you need to file Chapter 7 bankruptcy or Chapter 13 bankruptcy. Most individuals file Chapter 7 bankruptcy, which means that you, as the debtor are relieved from some or all of your financial obligations.
  2. Complete the means test. This is a standard test that will compare your income to your debts to determine if you are eligible to file for Chapter 7 bankruptcy.
  3. Hire an experienced bankruptcy attorney. A bankruptcy attorney is invaluable to you during the bankruptcy process. Your attorney will explain your options, answer your questions, make informed recommendations and even fill out the forms for you and make sure they are filed correctly and on time.
  4. Pay the fees. When filing for bankruptcy, you will be responsible for legal fees and application fees. The application fees alone can cost between $300-$500 and once you include your attorney fees, you may spend around $2,000 total.
  5. Assemble your information. Gather and organize all of your financial information. This includes: your income, expenses, assets, debts and property exemptions. You need to have all of your financial information ranging over the past six months for the bankruptcy procedure. You have to list this information in order to have your debts discharged.
  6. Determine which debts are excusable. Although bankruptcy is considered a clean slate, there are debts you will still be responsible for after your bankruptcy proceedings. For example, you will most likely still be responsible for: student loans, child support and tax debts.
  7. Attend a credit-counseling program. Within six months before filing your petition, you will need to attend a credit-counseling program at a court-approved agency. The counseling can usually be completed online or over the phone.
  8. File the forms. One reason it is important to hire a bankruptcy attorney is so that they can help you fill out the necessary forms and can remind you of the deadline.
  9. Automatic Stay. Once you complete all of the paperwork and file it, you will be granted an automatic stay that prohibits almost all creditors from continuing collection actions against you.
  10. Attend the meeting. Oftentimes, Chapter 7 bankruptcies do not end up in court. However, you will need to attend a mandatory meeting known as a 341 meeting with the creditors and a court-appointed trustee. The trustee will ask questions pertaining to your finances and your petition.
  11. Post-Bankruptcy Obligations. Once you have successfully filed for bankruptcy, you will need to attend a post-bankruptcy credit counseling. This will help you successfully manage your finances and proceed forward so that you do not end up in a financial crisis again.

Click here to read more on this story.

If you 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, 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, Debt Relief, Timothy Kingcade Posts

Donald Trump’s Companies have Declared Bankruptcy not once- but SIX times

Posted on by Admin

Hillary Clinton recently mocked Donald Trump’s business failings in a speech and stressed to the public how disastrous he would be for our nation’s economy if he were to become President.

“He’s written a lot of books about business. They all seem to end at Chapter 11,” Clinton said.

Here they are one by one.

Bankruptcy No. 1: The Trump Taj Mahal, 1991

Trump funded the construction of the $1 billion Trump Taj Mahal casino in Atlantic City, N.J., which opened in 1990. A year later, the casino was nearly $3 billion in debt, while Trump had accumulated nearly $900 million in personal liabilities. It was at that time Trump decided to file for Chapter 11 reorganization, according to the New York Times. Trump surrendered half his personal stake in the casino and sold his yacht and airline.

Bankruptcy No. 2: Trump Castle, 1992

Within a year of his first Chapter 11 filing, Trump found himself in bankruptcy court again for Trump Castle, which opened in 1985. In March 1992, the Castle filed a prepackaged bankruptcy plan, and Trump gave up his 50 percent share in the casino for lower interest rates on $338 million worth of bonds.

Bankruptcy No. 3: Trump Plaza and Casino, 1992

The Trump Plaza Hotel and Casino in Atlantic City, which opened in 1984, declared bankruptcy at the same time as the Castle. The casino had racked up $250 million in debt by 1992, after an 80 percent decline in cash flow. Trump Plaza filed for bankruptcy that spring as well.

Bankruptcy No. 4: Plaza Hotel, 1992

That same year, Trump filed bankruptcy on another Plaza in New York. Trump purchased the Plaza Hotel in Midtown Manhattan for $390 million in 1988, but it accumulated more than $550 million in debt by 1992. In December 1992, Trump forfeited a 49 percent stake in the Plaza to a total of six lenders. Trump remained the hotel’s CEO, but did not earn a salary and had no say in the hotel’s day-to-day operations, according to the New York Times.

Bankruptcy No. 5: Trump Hotels and Casinos Resorts, 2004

Trump Hotels and Casinos Resorts filed for bankruptcy again in 2004 when his casinos, including the Trump Taj Mahal, Trump Marina and Trump Plaza casinos in Atlantic City, and a riverboat casino in Indiana, had accrued an estimated $1.8 billion in debt. Trump agreed to reduce his share in the company from 47 percent to 27 percent in a restructuring plan, but he was still the company’s largest single shareholder and remained in charge of its operations.

Bankruptcy No. 6: Trump Entertainment Resorts, 2009

Trump Entertainment Resorts (formerly Trump Hotels and Casinos Resorts) was hit hard by the 2008 economic recession and missed a $53.1 million bond interest payment in December 2008, according to ABC News. It filed for  Chapter 11 bankruptcy in February 2009. After debating with the company’s board of directors, Trump resigned as the company’s chairman and had his corporate stake in the company reduced to 10 percent.

Trump has filed for Chapter 11 bankruptcy, four times within two years in the 1990s, once more in 2004 and once more in 2009. But experts agree Trump should not bear all of the responsibility, as Clinton’s speech suggests, as the majority of bankruptcies happened as the overall casino industry struggled.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, 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, 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, Debt Relief, Timothy Kingcade Posts

Rapper 50 Cent Posts Another Photo of Himself Surrounded by Mountains of Cash Amid Bankruptcy Filing

Posted on by Admin

‘Bankrupt’ rapper-entrepreneur, 50 Cent posted another controversial photo of himself posing in front of a mountain of cash just days after he was ordered back to court by a bankruptcy judge.

U.S. Bankruptcy Court Judge Ann Nevins ordered 50 Cent, whose real name is Curtis Jackson, back to court to explain whether or not he is being truthful with creditors about his financial situation after filing for bankruptcy. Nevins said she was “concerned about allegations of nondisclosure and a lack of transparency.” Jackson was ordered to court on March 9th to discuss those concerns.

Financial expert Ira Spiegel said that people who file for bankruptcy should keep money in a special bank account that is created once the case is filed in order to ensure full disclosure, “not in your house, not laying around on your floor.”

A mortgage lender and a partner in a failed headphones business deal recently expressed concern to Bankruptcy Judge Nevins regarding the rapper’s multiple Instagram posts where he is surrounded by thousands of dollars in cash.

Jackson filed for Chapter 11 protection shortly before jurors were scheduled to determine whether he should pay additional damages in a lawsuit filed by Lastonia Leviston in 2010.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, 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, 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

NFL Quarterback Vince Young Files for Bankruptcy

Posted on by Admin

Former NFL and University of Texas quarterback Vince Young has recently filed for Chapter 11 bankruptcy protection. The Houston federal bankruptcy court listed Young had estimated assets between $500,001 and $1 million and liabilities between $1,001,000 and $10 million. The 30-year-old is fighting two lawsuits stemming from a $1.8 million loan obtained in his name during the 2011 NFL lockout. The original loan amount has grown to $2.5 million with interest. A court has granted a judgment against Young to Pro Player Funding, the company that made the loan. Pro Player Funding has made several attempts to enforce the collection of the judgment, but those efforts remain pending.

Young was a first-round pick by Tennessee in 2006, and he reportedly signed a five-year deal with $25.7 million guaranteed. He reportedly signed a one-year deal with the Philadelphia Eagles that was worth up to $5 million in 2011. Young was on Green Bay’s pre-season roster in 2013, but did not make the team.

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

Company’s Fourth Bankruptcy Filling Sets Unprecedented Record

Posted on by Admin

The charter air transport company, Global Aviation Holdings, Inc. filed a record fourth Chapter 11 bankruptcy. The company is the largest provider of commercial charter airline services to the U.S. military and has attributed the bankruptcy filing to the recent government cutbacks.

Global Aviation had previously filed for bankruptcy in 2004 and 2006 in the Southern District of Indiana and last year in the Eastern District of New York.

Repeat filings by companies like Global Aviation are not uncommon. In fact, about one-third of larger companies that file for Chapter 11 find themselves back in bankruptcy court within four years. But it’s pretty rare to end up there a third time, a fourth time is unprecedented.

Global Aviation’s previous bankruptcies were particularly hard on general unsecured creditors, such as suppliers. The best they did was in the company’s 2006 bankruptcy, when court records indicate they were expected to get as much as 2.4 percent of what they were owed.

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.