Tag: Chapter 7 Bankruptcy

Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Dance Moms Reality Star Abby Lee Sentenced to One Year in Prison

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This week Abby Miller, former “Dance Moms” star was sentenced to a year and a day in prison. The reality TV star was charged with hiding $775,000 worth of income and bringing $120,000 worth of Australian currency into the U.S. without reporting it.

U.S. District Judge Joy Flowers Conti also fined Miller $40,000 on top of the $120,000 in currency she is forfeiting as a part of the guilty pleas she entered last year. She was also ordered to spend two years on probation after her prison sentence.

In late 2010, Miller filed for bankruptcy after defaulting on a $245,000 Florida condominium mortgage and a $96,000 mortgage on her Abby Lee Dance Company studio in Penn Hills, outside of Pittsburgh.

U.S. Bankruptcy Judge Thomas Agresti nearly approved a plan to let her repay her creditors at lower interest rates and longer terms before he saw her on TV one night. Miller had declared in court that she was only making $8,899 per month.

It is a crime to deceive a bankruptcy judge regarding one’s income and assets because that information is used to determine how much and how soon creditors will receive in the court-ordered repayment plan.

She later paid out $288,000 in TV income she did not initially report in 2012, then the federal investigators found that she had hidden nearly $550,000 more from personal appearances, dance sessions and merchandise sales.

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, Credit, Debt Relief, Timothy Kingcade Posts

Tips for Seniors Struggling with Credit Card Debt

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If you are a senior struggling with credit card debt, you are not alone.  For the first time, middle-class households headed by someone 50-plus years of age carried more credit card debt on average than households of people younger than 50, according to a recent study by Demos National Survey on Credit Card Debt.  Half of the respondents said they carried medical debt on their credit cards and a third said they used credit cards to pay for daily expenses.

Seniors carry credit card debt for a variety of reasons.  Some are still paying off educational loans or their children’s educational loans.  Many seniors are carrying credit card debt into retirement.  The debt may have been management when they were working, but has become a burden when their income level drops.  Oftentimes, medical debt compounds the problem, as health insurance only covers a portion of healthcare costs.

Here are some tips for seniors to help take control and manage their credit card debt:

  • Find a nonprofit credit counselor.  The sooner you seek help, the better.
  • Contact your credit card company to see if you can work out a payment plan.
  • Adjust your lifestyle. Cut your expenses (i.e. – expensive cell phone plans, cable and Internet packages);
  • Get help with budgeting. Paying off your debts only works if your spending is under control.  Know where your money is going every month.  Making a few small changes  to your monthly expenses can add up and give you more money to pay down debt.
  • For medical debt, talk with your doctor’s office to see what your options are. Avoid medical credit cards they may offer you; these come with very high interest rates, regardless of your credit score.
  • Consider a reverse mortgage. There are many ways you can use your home to get through difficult financial times, but there are risks associated with taking this route.  Make sure this will solve your financial problem without adding to it.
  • Consider bankruptcy. If you are struggling with insurmountable credit card or medical debt, bankruptcy may be right for you.  This option will allow you to reorganize your financial situation and discharge your debts if you cannot pay them.  There are several different types of bankruptcy, so you want to carefully weigh your options.  Many bankruptcy attorneys offer free consultations and will advise you on the best course of action.

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 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: https://www.usatoday.com/story/money/personalfinance/retirement/2017/04/09/seniors-rising-credit-card-debt-squeezes-tight/100102614/

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Who Actually Files for Bankruptcy? The Answer May Surprise You

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Many people feel guilty about filing for bankruptcy, but the reason they file is often beyond their control.  The majority of people who file for bankruptcy do so because they lost their jobs, became sick or had a medical emergency, or got a divorce.   Financial mismanagement is becoming a less common factor in bankruptcy filings, while job loss is one of the biggest factors.

Even if someone is able to get a new job after being laid off, oftentimes they are already too far behind on their mortgage, car and credit card payments, and their debt spirals.  Exorbitant medical bills are another factor that are out of a family’s control.  Even with health insurance, there are still out-of-pocket expenses and co-pays that can add up quickly.

Divorce causes two incomes to be taken down to one, with separate homes, additional bills and possible child support payments.  Predatory lending and the misuse of credit during these desperate times can play a role in consumer bankruptcy filings.

Chapter 7 bankruptcy allows you to discharge your debt and get a fresh start.  Common categories of dischargeable debt include:

  • Credit card debt (including overdue and late fees)
  • Collection agency accounts
  • Medical bills
  • Personal loans from friends, family, and employers
  • Utility bills (past due amounts only)
  • Dishonored checks (unless based on fraud)
  • Student loans (only if undue hardship can be proven)
  • Repossession deficiency balances
  • Auto accident claims (except those involving drunk driving)
  • Business debts
  • Money owed under lease agreements (includes past due rent)
  • Civil court judgments (unless based on fraud)
  • Tax penalties and unpaid taxes past a certain number of years
  • Attorney fees (except child support and alimony awards)
  • Revolving charge accounts (except extended payment charges)
  • Social security over-payments, and
  • Veterans’ assistance loans and over-payments.

In most cases, Chapter 7 bankruptcy filers automatically receive a discharge at the end of their case. A discharge releases you from personal liability for the debt and prevents the creditor from taking any collection actions against you. In other words, you are no longer legally required to pay any debts that are discharged. In Chapter 7, the court usually grants the discharge 60 days after the 341(a) Meeting of Creditors. Typically, this means you will obtain a discharge about four months after filing your Chapter 7 bankruptcy petition.

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.

Related Resources:

http://www.thenewsstar.com/story/money/2017/04/21/who-files-bankruptcy-answer-surprise-you/100565822/

http://www.nolo.com/legal-encyclopedia/debt-discharged-chapter-7-bankruptcy.html

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

Student Loans ‘Designed to Fail’: States Say Navient Preyed on Students

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Navient, a student loan lender that split off from Sallie Mae in 2014, retained nearly all of the company’s loan portfolio. In recent months, Navient has come under fire for aggressive and sloppy loan collection practices, leading the government to file multiple lawsuits against the student loan giant in January.

However, those accusations have overshadowed broader claims made against the lender. Two separate states, Illinois and Washington, have filed lawsuits against Sallie Mae claiming that it engaged in predatory lending, extending billions of dollars in private loans to students.

“These loans were designed to fail,” said Shannon Smith, chief of the consumer protection division at the Washington State attorney general’s office.

New details emerged last month in the lawsuits against Navient that shed light on how Sallie Mae used private subprime loans, some of which it expected to default at rates as high as 92 percent, as a tool to build its business relationships with colleges and universities across the company.

The risky loans were detrimental for students, however; they were beneficial for Sallie Mae. The private loans were a “baited hook” as Sallie Mae described it. The lender used the private loans to reel in more federally guaranteed loans, according to the lawsuit.

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, 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

Miami Bankruptcy Attorney Timothy S. Kingcade Receives Prestigious AVVO Clients’ Choice Award 2017

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Managing Shareholder, Timothy S. Kingcade of the Miami-based law firm of Kingcade & Garcia, P.A. (www.miamibankruptcy.com) was recently honored with the 2017 AVVO Clients’ Choice Award.  In order to achieve this honor, an attorney must have received five or more exceptional client reviews for the same year.

One of attorney Kingcade’s recent clients had this to say on AVVO: “I went to Kingcade & Garcia for information about a pending home foreclosure. After assessing my finances, Mr. Kingcade suggested bankruptcy options to protect my home. I appreciate the fact that he has a background in accounting and law. This allows him and his team to see the big “picture” in what is best regarding the order in which divorce, bankruptcy, and foreclosure options should be filed. Kingcade is very knowledgeable regarding taxes and other financial issues. He was able to help me with restoring my credit, advising with my divorce to protect my assets, and directed me in the right direction to save my house. I have already recommended his office to 2 other friends going through similar experiences.”

Attorney Timothy S. Kingcade founded the law firm Kingcade & Garcia, P.A. in 1996. He has been dedicated to helping thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. Timothy is also a certified public accountant (CPA), which allows him to better understand tax-motivated bankruptcy cases against the IRS. Timothy’s vast experience and expertise in the area of bankruptcy law allow him to know what bankruptcy trustees in the Southern District of Florida are looking for, preventing his clients from some of the pitfalls that can lead to the dismissal of a bankruptcy claim.

Miami-based Kingcade & Garcia, P.A. was established by managing partner and attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense. The firm is committed to providing personalized service to each and every client. The office environment and the service provided are centered on a culture of superior client care. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Man Used 31 Credit Cards in Poorly Planned Financial Scheme

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Federal officials say 28-year-old Janzaybe Khan, was living the good life in an illegal $165,000 spending spree until his luck ran out.  He used 31 credit cards and spent more than $59,000 on gift cards, precious metals and cash advances.

Some of the proceeds were transferred into Khan’s bank account, while others were transferred to various individuals, according to the U.S. District Attorney’s Connecticut office.  Court documents reveal Khan was able to qualify for and utilize 31 credit cards by falsely stating his income, assets, address and employment history.

After maxing out his credit cards, Khan filed for Chapter 7 bankruptcy and attempted to discharge all of his credit card debt.

In his bankruptcy filing with the court, Khan falsely stated that the majority of his debt was the result of gambling losses. Khan also made a number of false statements under oath during an examination by the U.S. Trustee in his bankruptcy case. The U.S. Bankruptcy Court refused to discharge Khan’s debts.

Instead, Khan was arrested on a criminal complaint charging him with bank fraud, conspiracy to commit bank fraud, and making a false oath and false statement under penalty of perjury in a bankruptcy case. The complaint alleges that the financial institutions that issued Khan’s credit cards incurred losses of more than $165,000 as a result of the scheme.

Bank fraud and conspiracy to commit bank fraud each carry a maximum sentence of 30 years imprisonment.

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

The IRS Has Hired a Debt Collector That is Being Sued by The Government

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The IRS has hired for-profit debt collectors to collect on long-overdue taxes that the government lacks the resources to work on. Four debt collectors were selected for the new contracts, including one whose parent company is currently being sued by the U.S. government over its student loan debt collection practices.

Pioneer Credit Recovery is a subsidiary of Navient, a student loan debt collector. The Consumer Financial Protection Bureau filed a lawsuit against both companies in January claiming that the companies “systematically misled consumers.” A few months prior, Pioneer was selected as one of the IRS debt collection contacts in September, alongside ConServe, Performant and CBE Group.

Pioneer’s parent company Navient, formerly known as Sallie Mae, holds a federal government contract to service approximately $300 billion in student loans owed by 12 million borrowers.

The IRS was mandated by Congress to hire debt collectors, in language that was inserted into a $205 billion highway funding bill in late 2015. Experts on consumer protection say the new contracts create more potential for bad behavior in debt collection.

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, 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

An Increasing Number of Americans Have Stopped Paying Their Car Loans

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Wall Street is starting to worry about the auto loan market as millions of Americans are falling behind on their car loans. The increased interest in the auto loan market seems to be based on commentary from Ally Financial, weak guidance from Ford and what Evercore ISI called “a splurge in incentive spending.” Here’s what you need to know:

  • The delinquency rate for subprime auto loans is at the highest level in at least seven years.
  • Banks are pulling back and newer players with loose lending standards are stepping in.
  • Used vehicle prices are dropping sharply, as the market is flooded with off-lease vehicles.
  • The percentage of trade-ins with negative equity is at an all-time high.
  • Asset-backed securities based on auto loans are showing signs of stress.
  • A growing proportion of the auto loan ABS market is now made up of “deep subprime” deals.

 

The 60+ day delinquency rate for subprime is the highest it has been in seven years. A key driver of the increasing delinquency rate is a spike in the proportion of “deep subprime” deals, or those with an average FICO score of less than 500. In other words, the subprime delinquency rate is creeping up while the subprime market is ballooning in size.

The Liberty Street Economics post, written by Andrew Haughwout, Donghoon Lee, Joelle Scally and Wilbert Van Der Klauuw said, “The data suggest some notable deterioration in the performance of subprime auto loans. This translates into a large number of households with roughly six million individuals at least ninety days late on their auto loan payments.”

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.

Related Resources:

http://www.businessinsider.com/wall-street-is-worried-about-car-loans-2017-3/#fitch-deteriorating-credit-performance-will-be-more-acute-in-the-subprime-segment-1

https://www.aol.com/article/finance/2016/11/30/6-million-americans-have-stopped-paying-their-car-loans-and-it/21617633/

Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

What the Navient Lawsuit Means for Your Student Loans

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Navient, a company that derived from Sallie Mae, has more than 12 million customers and services more than $300 billion of government and private student loans. In January, a lawsuit was filed against the student loan lender where the Consumer Financial Protection Bureau (CFPB) alleged that Navient “systematically and illegally failed borrowers at every stage of payment,” in many ways such as:

  • Creating obstacles to repayment by providing bad information
  • Processing payments incorrectly
  • Failing to act when borrowers complained
  • Illegally cheating many struggling borrowers out of their rights to lower payments, which caused them to overpay for their student loans
  • Deceiving private student loan borrowers about requirements to release their co-signer from the loan
  • Harming the credit of disabled borrowers, including severely injured veterans

 

According to the CFPB, Navient also improperly directed borrowers into forbearance when these borrowers otherwise might have qualified for income-based repayment plans. The lender also failed to keep borrowers in income-based repayment plans informed of deadlines to maintain their eligibility under such plans.

Navient later denied all allegations and claimed the lawsuit was politically motivated. The company filed a motion to dismiss the lawsuit on March 24th, claiming there have been no violations of actual servicing rules.

Does your student loan servicer owe you a fiduciary duty?

According to Navient, it is not a fiduciary financial advisor. The student loan lender claims that courts “routinely hold that servicers and lenders do not owe borrowers any specific fiduciary duties based upon their servicer/borrower relationship.”

This means that if you need guidance in choosing a repayment plan, Navient maintains that the lender is not responsible for counseling borrowers on alternative repayment plans. Navient further notes that the U.S. Department of Education does not pay Navient enough to provide sufficient customer service that the CFPB would like Navient to provide.

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, 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

When a Tax Refund Means Bankruptcy

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A review of the past four years shows that Chapter 7 bankruptcy filings, the most common form for individuals, have spiked during tax season or just after tax season. This suggests that taxpayers are using their refunds to file for bankruptcy and wipe out their debt, rather than funding a vacation or splurging on a big purchase.

Filings in March were 26 to 34 percent higher than the monthly average from 2013 to 2016, according to NerdWallet. Additionally, April’s bankruptcy filings were also 15 to 25 percent higher than other months.

Filing for Chapter 7 bankruptcy costs the average consumer approximately $1,500 to discharge their debts. Attorney fees typically cost $1,200 and other court fees total approximately $335. Due to a 2005 law change that made bankruptcy filing more complicated, fees have increased in recent years.

According to the IRS, the average tax refund in 2016 was $2,860, which is enough to cover the average bankruptcy costs.

When Bankruptcy Makes Sense 

You should consider Chapter 7 bankruptcy if the following applies to you.

  • Your problem debt is greater than 50 percent of your annual income. This usually means medical bills, credit card debt or high-interest loans.
  • You see no way of paying off your debt within five years.
  • Debt is interfering with other parts of your life, such as hampering your ability to buy a car or save for retirement.

 

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.