Chapter 7 Bankruptcy Archives - Page 24 of 28

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Can an employer check my credit?

Posted on June 1, 2016by Admin

While credit checks are not the norm in the job application process, the practice is common for jobs where candidates will be privy to sensitive information or making financial decisions.

States and local jurisdictions are increasingly regulating the use of credit reports in hiring. Eleven states limit employers’ use of credit reports, and other states are considering similar legislation.

When an employer checks your credit they are reviewing your credit report, not your score. What are they looking for? In most cases they want to see evidence that you are honest and responsible- this is not always the best indicator of either.

It is important to remember that the employer needs to ask your permission and receive written consent, before running a credit check. If your poor credit disqualifies you, the employer is required to let you know and give you a chance to respond.

Regardless of where you stand, it is a good idea to take a look at your credit report before you start a job search. Check for inaccuracies and take steps to correct them. Remember, there are three different credit bureaus—Equifax, Experian and TransUnion. You can access your FREE credit report at AnnualCreditReport.com.

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

When Bankruptcy is the Best Option

Posted on May 25, 2016by Admin

Filing for bankruptcy is not the end of the world. In fact, it can help improve your overall situation and relieve the financial stress you are facing. Bankruptcy stops collection calls, lawsuits and wage garnishment. It wipes out most, sometimes all of your debt and can improve your credit score.

Many credit bureaus and scoring experts will disagree, not seeing the whole picture. For most people after struggling with insurmountable debt for sometime, their credit score has already greatly been affected by the time they file for bankruptcy.

Once they file for bankruptcy, their credit score typically increases. If the debt is erased, which is also known as a “discharge,” scores can increase even more- typically within a year. Accessing data from the Equifax credit bureau, researchers at the Federal Reserve Bank of Philadelphia found that filers’ credit scores plunged in the 18 months before filing for bankruptcy and rose steadily after that. The average credit score for someone who filed Chapter 7, the most common type of bankruptcy, in 2010 was 538.2 on Equifax’s 280 to 850 range. (Scores in the low 600’s and below are generally considered poor.) By the time the filers’ cases were discharged, usually within six months, their average score was 620.3.

Credit scores are not the only factor to consider when making the decision to file for bankruptcy. People who file for bankruptcy benefit from the “automatic stay,” which stops all collection activity, including lawsuits, wage garnishment and collection calls. A Chapter 7 bankruptcy wipes out a number of debts, including: credit card debt, medical bills, personal loans, civil judgments (excluding fraud), past-due rent and utility bills, business debts and older tax debts.

Most of us feel we have an ethical obligation to repay our debts, if we are able to. But oftentimes, people find themselves in over their head before realizing they need to consider bankruptcy as an option. Some continue to pay down debt they may never be able to pay off, prolonging the damage to their credit score and diverting money that could be put into retirement savings.

Bankruptcy is likely your best option if your consumer debt (any of the debts listed above) total more than half your income, or if it would take five or more years to pay off that debt, with extreme fiscal measures.

Click here to read more on this story.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Don’t think you can buy a home after bankruptcy? Actually, you can.

Posted on May 24, 2016by Admin

There are a number of myths associated with bankruptcy; the inability to purchase a home is one of them. Bankruptcy is certainly not the end of homeownership. In fact, all major mortgage programs available today- conventional, USDA, VA and FHA home loans-have established guidelines that allow post-bankruptcy buyers to qualify for a mortgage.

Each loan type has its own waiting period requirement after bankruptcy. Waiting periods for the four major types of loans are as follows:

FHA loans: 2 years
VA home loans: 2 years
Conventional mortgages: 4 years
USDA home loans: 3 years

While these are the “standard” guidelines, you may qualify for a conventional or FHA loan even sooner. Both of these loans have exceptions for “extenuating circumstances” or one-time events that caused income loss and were outside of the homeowner’s control.

In this case, an applicant can be approved for a conventional loan just two years after bankruptcy, and an FHA applicant can receive approval after one year in the “Back to Work Program.”

Below are some quick and easy ways to re-establish your credit after bankruptcy.

Re-establishing your credit involves opening credit accounts and paying them on-time for at least 12 months. These credit accounts must be kept open and active.
Begin with a credit card. Use it for gas and groceries and pay it down every month. Keep a small balance on it so the credit bureaus can see that it is active, but keep the balance below 30% of your available balance.
The credit bureaus value a diverse credit profile, more than just credit card accounts. Personal loans, student loans and car loans are other types of credit. Credit bureaus want to see that you can manage your credit responsibly.
Lenders may look for non-traditional credit. For example, 12 months of cell phone bill, gym membership, car insurance, cable bill, etc.

With proper planning, you can re-establish your credit to the level at which you can qualify for a home loan.

Click here to read more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

FBI Arrests 8 in Miami accused of hiding assets before filing bankruptcy

Posted on May 18, 2016by Admin

Eight people were arrested this week and charged with concealing more than $3 million in assets from federal bankruptcy court in Miami. The five cases allege that eight individuals hid or illegally transferred assets out of their name before filing for Chapter 7 bankruptcy.

The neighbors of one of the couples could not believe a small army of FBI agents arrived at their Miami high rise condo building early Tuesday morning, and escorted them out in handcuffs.

One of the accused couples liquidated a certificate of deposit worth approximately $141,829 in 2010, then filed a joint petition for Chapter 7 bankruptcy in 2011, according to the allegations in the indictment. Another one of the indictments allege a Pinecrest man transferred and concealed a Jeep Wrangler, a 34-foot boat, The Isabella, approximately $41,200 in cash and his interest and roles in companies he owned. The fraudulent transfer of these assets was valued at more than $160,000.

A Boca Raton woman is accused of liquidating approximately $102,445 from her IRA account and transferring the money into a family member’s account. A Miami couple is accused of concealing assets they held in a divorce settlement. Among the assets concealed: Properties in North Carolina, valued at $336,300; $36,000 in cash to purchase a Jaguar valued at approximately $80,000; and $100,257 in cash from the sale of a condo in the Bahamas.

This should come as a warning to anyone who plans to hide assets from the bankruptcy court. 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.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Lawsuit Alleges Orlando law firm violated rules on bankruptcy fees

Posted on April 29, 2016by Admin

The KEL law firm is facing a lawsuit alleging it routinely allowed clients to pay bankruptcy legal fees using credit cards, a violation of bankruptcy law. Credit card purchases are considered new debts and new debts are prohibited in the days before filing for bankruptcy and during the bankruptcy process. That is because bankruptcy courts often erase a filer’s credit card debt, which means the nation’s banking system would be on the hook for KEL’s legal fees.

The suit, which seeks class-action status, contends that KEL “uses standardized procedures when attempting to collect attorney’s fees by charging credit cards prior filing Chapter 7 bankruptcy.” It seeks the return of all bankruptcy fees paid by credit card—the amount of which is cited at $1,700 in the suit—and $1 million in punitive damages.

The lawsuit states an Orlando resident paid his bankruptcy fees to KEL using a Discover credit card and a BJ’s credit card. During the course of the filing, the debtor decided to switch to a new law firm, which noticed the prior fee payment on the credit cards to KEL. Jacksonville law firm Mickler & Mickler filed the proposed class action on behalf of the debtor.

Related Resources:

http://www.abajournal.com/news/article/ex_client_sues_law_firm_says_it_allowed_bankruptcy_fees_to_be_paid_by_credi

http://www.orlandosentinel.com/business/brinkmann-on-business/os-kel-firm-bankruptcy-fees-lawsuit-alleges-20160420-story.html

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

How quickly can you refinance your Mortgage after Bankruptcy?

Posted on April 28, 2016by Admin

The rules have changed over the years regarding how quickly you can refinance a mortgage after bankruptcy. If you are underwater on your mortgage, meaning your mortgage is more than the current value of your home, your only refinance option will be through the Home Affordable Refinance Program (HARP). The earliest you can take out a new mortgage guaranteed by Fannie Mae or Freddie Mac following a bankruptcy is two years.

Freddie Mac’s guidelines say, the “waiting period” for reestablishment of credit after a Chapter 13 bankruptcy is 48 months from the dismissal date, but this period is only in effect if the bankruptcy was “caused by financial mismanagement.”

If the bankruptcy was due to illness, income loss, etc. and not due to overspending, the period will be 24 months from the discharge date. Fannie Mae has similar rules in effect of two years from the discharge date or four years from the dismissal date.

If you are unable to meet Fannie or Freddie’s guidelines, you may be eligible for an FHA-backed refinance. You will need to document “one year of the pay-out period under the bankruptcy has elapsed, that your payment performance has been satisfactory and all required payments have been made on time, and you have received written permission from the bankruptcy court to enter into the transaction.”

This one-year waiting period is thanks to the “Back to Work Program.” Here’s how you qualify:

You meet all the typical FHA loan requirements;
You can properly document the issues that led to your financial hardship;
In the last year you have re-established your credit;
You have completed HUD-approved housing counseling.

What about refinancing while you are still in bankruptcy? For starters, the bankruptcy court will need to grant you permission to take on new debt. To be able to proceed, you will need to file a motion with the court. Although described differently in each court district, you are essentially filing a “motion to incur debt” or “motion to refinance secured debt.”

Start by working with the attorney who handled your bankruptcy filing, they will be familiar with your case and know the motion paperwork needed in your district.

Click here to read more on this story.

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

Judge’s Ruling on Law School Grad’s Debt Could Trigger ‘Seismic’ Shift in Loan Practices

Posted on April 18, 2016by Admin

A judge’s recent ruling to discharge a portion of a law school grad’s student loan debt could have major implications for those struggling with insurmountable student loan debt. The law student applied for the loan while she was studying for the bar exam as a student at Pace University Law School in 2009. She received a “bar loan” of $15,000 from Citibank, according to the bankruptcy court documents, and she made payments on the loan until June 2012. But in November 2014, after having failed the bar exam, she filed for Chapter 7 bankruptcy.

She wanted the $15,000 loan to be discharged arguing that it was not an “educational benefit” under the U.S. bankruptcy code. Citibank disagreed, arguing that the loan was an “educational benefit” in the fact that the eligibility for the bar loan was dependent on her being a law student.

But Judge Carla Craig of U.S. Bankruptcy Court in Brooklyn wrote in her decision, “However, this argument could be advanced by the myriad private lenders who provide funds to borrowers who are taking educational or training courses. The fact that [Citibank’s] underwriting standards required [Campbell] to be a law student does not turn an arm’s length consumer credit transaction into a ‘benefit’ within the meaning of [the bankruptcy code],” Craig wrote in her opinion.

Although there have been cases involving student loans where judges have ruled the opposite of Judge Craig, this recent decision may have an effect on future cases. This opinion is a confirmation that these loans should be dischargeable in bankruptcy.

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

The Biggest Threat to your Credit Score

Posted on April 6, 2016by Admin

A recent study from the Consumer Financial Protection Bureau found that 52 percent of debt on credit reports is from medical expenses, with an average balance of $579. Medical debt impacts 43 million Americans, and 15 million of those only had medical debt in collections.

This is important because it points to a few important threats for consumers.

Health insurance is confusing, doctors’ billing practices can be questionable and collection agencies have been known for putting the debt on your credit report before making any effort to collect from you. This means it’s not uncommon for people to see a medical debt end up in collections without ever being alerted of the debt.

Here are some ways to prevent medical bills from going to collections:

Make sure your doctor has your correct address. Take a moment to confirm the information your doctor’s office has on file is correct (i.e. – mailing address, phone number, email, etc.)
Set reminders to follow-up. Do not trust that the doctor’s billing dept. will do their job or have your best interest at heart. Set up reminders on your phone and in your day planner as to when your bill is due.
Understand your insurance. Know your deductible and how much your co-pays should be, so there are no surprises.
Work out a payment plan. Sometimes medical debt goes to collections because the bill is just too much to pay. Instead of ignoring the debt, try to work out a payment plan with your doctor’s office or the hospital, before it goes to collections. Request an itemized copy of the bill and check for any errors. Find out if you qualify for any charitable assistance. This is oftentimes based on income and circumstance.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney 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

‘Martin’ Actress Files for Chapter 7 Bankruptcy

Posted on April 5, 2016by Admin

Tisha Campbell-Martin, actress on the hit sitcom, ‘Martin’ and her husband/actor, Duane Martin, have filed for Chapter 7 bankruptcy. They owe more than $15 million dollars in debt with only $313,000 in assets between the couple. Their assets include $65,000 in real estate and $248,000 in personal property. They list the value of their two dogs as $2. As of their filing, they had just $200 in cash and $173 in a Credit Union.

The couple’s liabilities include $3 million to Broadway Federal Bank for a personal guaranty for a real estate loan they took out, $9.5 million to the City of Los Angeles for a personal guaranty, $82,000 in back state taxes for 2005 & 2011, $86,000 to New York State Department of Taxation and $30,000 to the State Board of Equalization.

They also owe $43,000 for a 2016 Range Rover, $17,000 on the 2016 Jeep Wrangler, $67,000 on their 2014 Range Rover, 39,000 to American Express, $455,000 to City National Bank, $538,000 to Comerica Bank for a judgment against them and $120,000 to a law firm. Court documents reveal they owe $208,611 in tax debt and $113,000 in student loan debt.

Tisha famously starred as Gina on the hit sitcom, ‘Martin’ from 1992- to 1997. Her other credits include My Wife & Kids, Everybody Hates Chris and Dr. Ken. Her husband has been equally successful with his career starring in the Real Husbands of Hollywood and the hit movie White Men Can’t Jump.

Related Resources:

http://www.eonline.com/news/753834/tisha-campbell-martin-files-for-bankruptcy-here-s-how-she-fell-15-million-in-debt

http://www.dailymail.co.uk/news/article-3522790/Martin-actress-Tisha-Campbell-Martin-husband-Duane-drowning-15-million-dollars-debt-filed-Chapter-7-bankruptcy.html

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Rapper 50 Cent Ordered to Appear in Bankruptcy Court after Instagramming Cash

Posted on February 22, 2016by Admin

Curtis J. Jackson III better known as rapper, 50 Cent has been ordered back to bankruptcy court following a string of posts to his Instagram and Twitter accounts flaunting numerous piles of cash.

Jackson first filed for bankruptcy in July of last year. Since October, he has posted several pictures of himself with dozens of stacks of $100 bills on his Instagram account. In one post, he lined the stacks of bills up to spell out the word “broke,” seemingly to mock his bankruptcy filing.

Last Thursday, U.S. Bankruptcy Judge Ann M. Nevins told the rapper’s attorney, “I’m concerned about allegations of nondisclosure or a lack of transparency in the case. There’s a purpose of having a bankruptcy process be transparent, and part of that purpose is to inspire confidence in the process. When that process becomes very public, the need for transparency, I believe, is even higher,” said Nevins.

Jackson’s attorney later issued a statement saying that his client would show up to court and answer all of the court’s questions. The statement also said, “Mr. Jackson has been forthcoming and transparent with all creditors.”

The issue was brought up in court papers filed in January by headphone maker Sleek Audio, SunTrust Bank and 50 Cent’s ex-girlfriend Lastonia Leviston, who claim the rapper owes them a combined $29 million. They also said he has posted videos of performances that he has probably gotten paid for and has not disclosed to the court. They also pointed out that the rapper never admitted he owned property in Africa, contrary to a post on his Twitter account.

This should come as a warning to anyone who plans to hide assets from the bankruptcy court and their attorney. Bankruptcy trustees are experts at finding undisclosed money, property, vehicles, 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 include fines and imprisonment of up to five years.

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, 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.