Chapter 7 Bankruptcy Archives - Page 21 of 28

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The U.S. States that Struggle the Most with Credit Card Debt

Posted on January 4, 2017by Admin

When it comes to managing debt, the Sun Belt states are struggling more than others: Florida, Georgia, Texas and New Mexico have the heaviest credit card debt burdens in the nation, according to CreditCards.com.

The Southern states struggled more with low incomes than high debts. For example, Florida’s average credit card debt per bank cardholder ranks 18 among 50 states, but its median income ranks 41. It would take a typical Florida cardholder nearly 13 years to pay off the state’s average credit card debt of $5,603 and they would pay more than $3,600 in interest.

Here are the states with the highest amount of credit card debt burdens, ranked by the number of months it would take to pay off the debt if 15 percent of their gross monthly income went towards payments.

Florida

Average credit card balance: $5,603

Median earnings: $28,381

Months to pay off: 18

Interest to pay off: $678

Texas

Average credit card balance: $6,009

Median earnings: $31,038

Months to pay off: 18

Interest to pay off: $712

Georgia

Average credit card balance: $5,953

Median earnings: $30,284

Months to pay off: 18

Interest to pay off: $716

New Mexico

Average credit card balance: $5,615

Median earnings: $26,244

Months to pay off: 20

Interest to pay off: $743

Alaska

Average credit card balance: $7,552

Median earnings: $35,552

Months to pay off: 20

Interest to pay off: $992

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.cnbc.com/2016/12/22/the-us-states-that-carry-the-heaviest-card-debt-burdens.html

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Sycamore Attorney Charged with Bankruptcy Fraud

Posted on December 28, 2016by Admin

Kevin O. Johnson, also known as “K.O. Johnson,” was indicted by a federal grand jury on charges of bankruptcy fraud. He is charged with four counts of bankruptcy fraud and four counts of making a false oath in a bankruptcy case under penalty of perjury, fraudulently withholding information pertinent to the case and concealing assets.

Johnson, whose practice included bankruptcy law, filed a Chapter 7 Bankruptcy Petition on Dec. 31, 2011. The indictment alleges that Johnson fraudulently concealed property from the bankruptcy trustee, creditors, and the United States Trustee, including complete information of about $1,790,000 of account receivables owed to Johnson by his present and former clients.

The indictment also charges Johnson with the following:

Failing to comply with a court order requiring him to turn over all proceeds from the collection of account receivables;
Having directed clients not to send any payments to the Bankruptcy Trustee and asking clients to sign misleading documents about the nature of payments they made, despite Johnson knowing that all future account receivable payments were required to be made to the Trustee;
Making false statements concerning his security interests and liens on the $1,790,000 of account receivables;
Removing invoices and fee agreements from client files;
Obstructing the Bankruptcy Trustee by omitting a bank account used to deposit a check received in payment of an account receivable owed to Johnson at the time he filed for bankruptcy.

Each charge in this case carries a maximum penalty of up to five years in prison, and a fine of up to $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. The Court may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years.

Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to conceal assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you list in a subsequent bankruptcy filing. In addition, you can face serious fines, even jail time.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Miami-based Catholic School Ordered to Release Student Transcripts

Posted on December 22, 2016by Admin

Emergency Motion Granted for Kingcade & Garcia Clients after School Violates the Bankruptcy Automatic Stay

On December 21, 2016, Miami bankruptcy attorney Timothy S. Kingcade of Kingcade & Garcia, P.A. (www.miamibankruptcy.com) obtained an Order from the Bankruptcy Court compelling Belen Jesuit Preparatory School, a Miami-based Catholic school, to release educational transcripts in compliance with the automatic stay and to pay his clients’ legal fees. Mr. Kingcade filed an emergency motion arguing the school willfully and intentionally violated the automatic stay by refusing to release the transcripts.

“Bankruptcy has its origins in the Old Testament and while the school may ignore the edicts of its own teachings, it may not ignore the bankruptcy law inspired by those philosophies,” said Kingcade. “The school evidenced no intention to abide by the automatic stay and as a result, my clients have been forced to seek relief from the court,” he continued.

Mr. Kingcade’s clients filed for Chapter 7 bankruptcy relief on December 12, 2016. On December 13, 2016, a notice of the filing and a request for the release of transcripts for their two children was sent to Belen Jesuit Preparatory School. The school had actual knowledge of their bankruptcy filing and refused to release the requested transcripts. The older of his clients’ children is in the process of applying for college and the withholding of the transcripts could result in his college application being deemed incomplete for consideration.

The school hired counsel and sought to mitigate the exposure for the school’s violation of the federal bankruptcy laws. Mr. Kingcade ultimately persuaded the school to release the transcript. The parties agreed to an order granting the emergency motion. The order requires Belen Jesuit Preparatory School to immediately release transcripts and / or final grade reports for the two children and for it to continue to cooperate with his clients and release future transcripts upon request. The school is also required to pay Mr. Kingcade’s legal fees.

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Miami-based Kingcade & Garcia, 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, Credit, Debt Relief, Timothy Kingcade Posts

Darius Miles’ Bankruptcy is a Cautionary Tale for Young Athletes

Posted on December 19, 2016by 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

Broward County Man Sues Debt Collector for Unauthorized Contact with Third Party

Posted on December 15, 2016by Admin

A Broward County resident is suing NPAS Solutions, LLC for unauthorized contact with a third party regarding his debt. The complaint was filed last month in the U.S. District Court for the Southern District of Florida against NPAS Solutions, LLC alleging that the debt collector contacted a third party regarding the plaintiff’s debt, which is a violation of the Fair Debt Collection Practices Act (FDCPA).

According to the complaint, the plaintiff alleges that he suffered damages. The plaintiff holds NPAS Solutions, LLC responsible because the defendant allegedly contacted and left several voice mail messages regarding plaintiff’s debt at the residence of his mother.

He seeks a trial by jury, payment of all legal fees and any other relief the court determines to be fair.

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

Can a Debt Collector Contact You During the Holidays?

Posted on December 14, 2016by Admin

Getting a call from a debt collector can be a frustrating and stressful experience, and the last thing you want to deal with during what is supposed to be the “Most Wonderful Time of the Year.” Even though it is legal for debt collectors to try and recoup a debt you owe, there are restrictions.

For example, debt collectors cannot contact you at times they know are inconvenient (i.e. – before 8 a.m. or after 9 p.m.) They cannot contact you at your job if you ask them to stop, they cannot repeatedly contact you throughout the day, they cannot threaten you or lie to you about the debt, and they cannot discuss your debt with any third party.

All of these are in violation of The Fair Debt Collections Practices Act (FDCPA).

But what about during holidays? Although the FDCPA does not specifically state which days of the week debt collectors can and cannot call you and does not designate a holiday exemption, it does state that collectors cannot communicate with you during times which are known to be inconvenient.

So you could essentially argue that a call on Christmas Eve is, in fact, a violation of the FDCPA. This would likely fall under, “calling at times known to be inconvenient.”

If you believe a debt collector is violating the law by calling you outside the allowed times or by calling more frequently than they should, after you have asked them to stop calling or have sent a cease and desist letter, you can report them to the Consumer Financial Protection Bureau and your state Attorney General.

At the law firm of Kingcade & Garcia we want you to have a safe and Happy Holiday this year! 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://blog.credit.com/2016/12/can-a-debt-collector-call-me-during-the-holidays-163536/

https://www.thebalance.com/when-can-debt-collectors-call-960573

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Wells Fargo, Ocwen and other Creditors Sued for Violating Chapter 7 Discharge

Posted on December 12, 2016by Admin

Secured creditors Wells Fargo, Ocwen, RAS Boriskin and Duane Morris must pay a debtor who filed Chapter 7 bankruptcy $7,000 in emotional distress damages and $39,142 in punitive damages for willfully violating the discharge order.

Judge Cecelia G. Morris of the U.S. Bankruptcy Court for the Southern District of New York concluded that the creditors harassed the debtors for years by filing an illegal foreclosure action against the debtors’ property and sending numerous collection letters after their debt had been discharged in bankruptcy.

The debtors received more than 100 calls and notices for collection of the discharged debt in the past five years. This case is particularly noteworthy for the large amount of punitive damages and the emotional distress damages the debtors received, who represented themselves pro se.

The debtors in the case filed for Chapter 7 bankruptcy and their nonexempt assets were liquidated by a trustee and the proceeds were distributed to their creditors. They received a discharge of all of their debts in 2009.

The debtors alerted the secured creditors to their violations by contacting them after the discharge, but the creditors insisted they were doing nothing wrong. Instead of taking steps to correct the problems, the creditors and their attorneys wrote threatening letters to the debtors. The court found evidence that the creditors and their attorneys received notice of the debtors’ bankruptcy and discharge on at least 15 different occasions, but failed to stop contacting them.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Delinquencies on the Rise for Subprime Auto Loans

Posted on December 6, 2016by Admin

Subprime auto loans are back in a big way, and according to recent data have climbed to the highest level in a decade, with large increases in loans to borrowers with credit scores below 660. The number of subprime auto loans becoming delinquent has climbed to the highest level since 2010 in the third quarter and is following a pattern similar to the months leading up to the 2007-2009 recession, according to data from the Federal Reserve Bank of New York.

New auto loans to borrowers with credit scores below 660 have nearly tripled since the end of 2009. In 2016, approximately $50 billion of new auto loans per quarter have gone to those borrowers thus far. About $30 billion each quarter has gone to borrowers with credit scores below 620.

The increasing delinquency of subprime auto loans is concerning because it comes as the overall economy is on the mend and the employment rate is improving. The credit quality of other types of loans has improved.

Delinquency rates declined in the quarter for mortgages, student loans and credit cards. The number of individuals with a new foreclosure notation on their credit reports hit the lowest level in 18 years of data.

The increase in auto loans, particularly the subprime sector, has raised alarms among some regulators in Washington. The rate at which auto loans for borrowers with credit scores below 620 has climbed for 10 consecutive quarters, especially on loans made to those with the lowest or subprime credit scores.

Lenders know that subprime borrowers are more likely to default and become delinquent on their loans and charge them higher interest rates. The mistake during the financial crisis was that while the lenders expected higher defaults among subprime loans, they failed to anticipate just how high it would rise.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Florida Debt Counselor Filing Bankruptcy, Owes More Than $100 Million

Posted on November 28, 2016by Admin

A Florida businessman who made his fortune as a debt counselor during the Great Recession has filed for Chapter 7 bankruptcy. Timothy McCallan, of Melbourne, is listing more than $100 million in liabilities. He was hit with a judgment for $107 million in an Alabama bankruptcy for Allegra Law, a large debt settlement law firm that was shut down for massive fraud.

Court investigators in the Allegro case have been pursuing McCallan, because his companies, Americorp and Seton Inc., provided record-keeping and data services to Allegro.

Now the businessman is telling a Florida court he needs protection from that claim among others in his bankruptcy filing. An Alabama bankruptcy judge had McCallan arrested and jailed for a time, and declared that McCallan had committed a fraud on the court.

“Thousands of customers signed up for debt settlement services offered by McCallan and paid him more than $100,000,000. Almost none of the money was paid to creditors of the customers as promised by McCallan,” U.S. Bankruptcy Judge William R. Sawyer wrote in an opinion entered in February.

McCallan, who owns a $1.5 million home on the Florida coast, has been ordered to turn over records related to the Allegro Firm. Most recently, McCallan told the court he had been delayed because of damage to his home during Hurricane Matthew, which side-swiped the Florida coastline in early October. But investigators in the Allegro case later learned McCallan’s home suffered no damage.

Click here to read more on this story.

Related Resources:

http://www.orlandosentinel.com/business/brinkmann-on-business/os-timothy-mccallan-bankruptcy-20161121-story.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Bankruptcy History Suggests Intent to Hinder and Delay Creditors

Posted on November 22, 2016by Admin

The Tenth Circuit Court recently heard the Rupp v. Pearson case where the debtor’s historical use of bankruptcy filings suggested improper purpose to hinder and delay creditors.

Mrs. Pearson had filed nine, mostly unsuccessful, bankruptcies since 1993. In 1997, she filed two unsuccessful chapter 13 cases before filing a chapter 7 petition and receiving a discharge. She later filed two more unsuccessful chapter 13 cases and had one pending chapter 13 case. She then filed another chapter 7 case seeking another discharge of her debts. The second chapter 7 case was filed two weeks after the dismissal of her chapter 13, and immediately upon the passage of the eight-year period.

The bankruptcy court inferred that Ms. Pearson was a “system-gamer.” This means that she routinely filed chapter 13 cases simply to stall collection efforts and with no actual intention of complying with the terms of her own plans. She then filed for chapter 7 relief as soon as the law allowed.

During one of Ms. Pearson’s filings, she agreed to contribute her expected tax return to the extent it exceeded $2,000. However, she kept the entire $4,829 refund and spent it on non-exempt personal items. This resulted in the bankruptcy court dismissing one of her chapter 13 cases. When she filed a chapter 7 case two weeks later, the trustee filed an adversary complaint seeking to have Ms. Pearson’s discharge denied due to her misappropriation of the tax refund with intent to defraud creditors, in violation of section 727(a)(2)(A). “In our view, the (trustee’s) complaint states a plausible claim that Ms. Pearson’s failure to turn over to the Chapter 13 bankruptcy estate the required portion of the tax refund was part of a scheme to hinder and delay creditors.”

However, the Tenth Circuit Court rejected the reasoning of the lower courts in finding that the complaint failed to state a claim for relief due to an absence of “fraud markers” and the fact that the complaint failed to negate the possibility of innocent uses of the tax refund. Rather, the circuit court noted that cases under 727(a)(2)(A) are fact-specific and not subject to rigid formulas.

Click here to read more on this story.