Chapter 7 Bankruptcy Archives - Page 25 of 28

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

New Bankruptcy Paperwork May Result in More Inaccurate Filings

Posted on November 23, 2015by Admin

As we discussed in an earlier blog, the paperwork that people and businesses have used to file for bankruptcy protection since the 1980s is being replaced effective December 1, 2015. Perhaps the biggest change with the new forms is that people and business owners will use two different sets of paperwork to file for bankruptcy. Historically, they have used the same three-page petition.

Bankruptcy experts have expressed concern that the new forms with clearer and more concise instructions (free of legalese) will encourage more people to file for bankruptcy without the help of an attorney. This could lead to people making BIG mistakes.

It is estimated that approximately 10% of bankruptcy filers nationally file without an attorney. While you may think you are saving money, the results can be devastating- jeopardizing your chances of a successful bankruptcy discharge. Studies have shown that filers who hire an attorney to file their Chapter 7 bankruptcy obtained a discharge 95% of the time. By contrast, those debtors who filed “pro se” only received their discharge in 61% of cases.

There are other benefits to hiring an attorney when filing for bankruptcy. A bankruptcy petition incorrectly or untimely filed can negatively affect a debtor’s future, rather than provide them with a much-needed financial fresh start. Bankruptcy is not about filling out forms, it is about understanding the rules, statutes and case law that determine how these forms are completed.

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

Five Things to do after Bankruptcy

Posted on November 12, 2015by Admin

So you recently filed for bankruptcy and received your discharge, what should you do next? Whether you filed for Chapter 7 (a simple and straightforward elimination of debt bankruptcy) or a Chapter 13 (a debt repayment bankruptcy), there are certain things you should do once your case is finalized.

Collect and preserve all paperwork from your case. You should have received a full copy of your bankruptcy petition from your attorney, which is 40-50 pages of detailed financial information – including the facts about the debts and assets involved in your case. You should have also received a notice of bankruptcy filing directly from the court, which shows the deadlines that affected your case. The court should have also sent you a copy of your discharge order entered by the bankruptcy judge. It is important to have these because some lenders want to see a copy of the bankruptcy papers when considering you for new credit. This is especially true for mortgage loans.

Monitor your credit reports regularly. Credit reports from the three major credit reporting agencies can be obtained for free once a year- and it’s important to know what your creditors are saying about you. Wait approximately three to six months after your bankruptcy has been discharged to do so. It may take several billing periods for creditors to update their accounts, and many creditors and lenders will stop reporting to the credit bureaus altogether after a bankruptcy. It is important to do this because you want to make sure all of your discharged debts from the bankruptcy are being reported to the credit bureaus with a zero balance, so it does not count against you as outstanding debt, which can hurt you if you are applying for new credit.

Start a budget and review it regularly. A main focus after bankruptcy is rebuilding your credit and your budget. Create a basic budget to understand your expenses and take some time every week to see where you are at. Remember the Means Test from your bankruptcy paperwork that compared your income and expenses over a six-month period to standards set by the Census Bureau and the IRS. This test was meant to ‘filter out’ those who had the means to pay their debts, but who were living an extravagant lifestyle financed on credit cards. This is often considered an urban myth, as statistics reveal that a very small percentage fit into “the extravagant lifestyle” category. Most bankruptcies are the result of unforeseen medical expenses, a job loss, divorce or birth of a child.

Start an emergency fund. This goes hand in hand with putting together a realistic budget. When creating your budget, a small part of your income should be set aside for the unexpected. You can begin saving for an emergency fund in less than one month. If you do this every month, you will be amazed at how much it grows. You can start putting a portion of it aside for retirement or your child’s college fund. This is important to do because it will prevent you from obtaining new debt and repeating the cycle.

Consider new credit. Don’t let yourself get carried away with this one. Start with a small credit limit; monitor your charges and budget so you can pay the balance in full each month. There is a world of difference between having good credit and a heavy debt load.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What’s Considered Bankruptcy Fraud? The Supreme Court will decide in New Case

Posted on November 11, 2015by Admin

Bankruptcy relief is not available to those who defraud their creditors, but what is the definition of fraud? The Supreme Court is getting ready to decide this in a new case. Bankruptcy laws require debtors pay back the money they owe if it was obtained by “false pretenses,” “false representation” or “actual fraud.”

Two circuits have broadly interpreted “actual fraud” as when a debtor obtains money through a scheme that is intended to cheat creditors. However, another appellate court, ruled that it is not “actual fraud” unless a debtor actually lies to the creditor. As a result, the Supreme Court will have to decide between the narrow and broad definitions of “actual fraud” to determine when certain debts will be discharged or must be dealt with in bankruptcy.

The case involves business owner Daniel Lee Ritz Jr., whose company, Chrysalis Manufacturing Corp., purchased $164,000 worth of goods from Husky International Electronics Inc. between 2003 and 2007. During the four-year period, Chrysalis never paid for the goods, and Ritz funneled more than $1 million of Chrysalis’s funds to other companies under his control.

Husky later sued Ritz to hold him personally liable for Chrysalis’s debt, but before a judge could rule on the suit, Ritz filed for Chapter 7 bankruptcy protection. Husky countered and sued Ritz in bankruptcy court, arguing that he should pay the debt because he defrauded Husky by moving Chrysalis’s funds out of its reach. A bankruptcy court found in 2011 that although Chrysalis did not benefit from the transfer of its funds, and although Ritz was not a “credible witness,” his conduct did not meet the definition of “actual fraud” for one reason: He did not lie to Husky.

A lack of misrepresentation from Ritz to Husky is what also caused a district court and appellate court to each conclude that there was no “actual fraud” and therefore Ritz could be set free from the debt he owed Husky. Husky has requested the Supreme Court take the case, which they agreed to last week.

Click here to read more on this story.

Bankruptcy Law, Timothy Kingcade Posts

Miami Bankruptcy Attorney Timothy S. Kingcade Receives the AVVO Clients’ Choice Award 2015

Posted on April 22, 2015by Admin

Managing Shareholder, Timothy S. Kingcade of the Miami-based law firm of Kingcade & Garcia, P.A. was recently honored with the 2015 AVVO Clients’ Choice Award. In order to achieve this honor, an attorney must have received five or more exceptional client reviews within the last year.

One of attorney Kingcade’s reviews on AVVO had this to say, “It’s never easy for a hard working, honest person to file for bankruptcy. But after years of struggling with a workplace injury, decreased earnings, and a dishonest bank, it was time to make a quality decision. I am so grateful that we chose the Law Firm of Kingcade & Garcia! From the very first interview, it was clear; Mr. Kingcade was no ordinary attorney. There is no question Mr. Kingcade is a brilliant legal intellect, but what is most striking is the sincere passion he has for his work. Fighting for families in financial straits is not just a career, but a calling for him. He truly understands the negative impact financial hardships have on couples and families. His confidence, transparency and availability, afforded us peace-of-mind we hadn’t had in a long time! Excellence is not just concentrated behind Mr. Kingcade’s desk. It permeates the entire office. As a result, our bankruptcy was completed according to plan and ahead of schedule!”

Timothy S. Kingcade founded the law firm of Kingcade & Garcia, P.A., in 1996. Today, he and his firm handle more than one thousand bankruptcy filings each year. As Managing Shareholder of Kingcade & Garcia, P.A., Timothy and his firm represent clients throughout the State of Florida in Chapter 7 bankruptcy, foreclosure defense, personal injury and PIP claims. To compliment Attorney Kingcade’s extensive legal experience, he is also a certified public accountant (CPA), which provides him with a unique understanding of how to handle tax-motivated bankruptcy cases against the IRS.

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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, foreclosure defense, personal injury and PIP claims. 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, Timothy Kingcade Posts

Find out the Jobs that Qualify You for Student Loan Forgiveness

Posted on April 17, 2015by Admin

Student loan debt is the second largest source of debt in America, behind home mortgages. Last year’s graduates entered into the job market with an average of $33,000 in student loan debt, the largest average debt for college graduates to date, according to an analysis by Edvisors.

Students do have options, such as deferment and income-based repayment plans to assist on a short-term basis. Some students have even turned to refinancing their student loans. However, there are some jobs that make you eligible for true student loan forgiveness.

Last year the Consumer Financial Protection Bureau revealed that approximately 25 percent of the U.S. workforce employed by a public service employer may be eligible for student loan forgiveness.

Although there is no student loan forgiveness program for private student loans, the programs cover many different types of federal student loans. In addition, forgiveness programs vary depending on the type of federal loan.

The Department of Education has created a reference charge that provides all of the conditions that may lead to the cancellation or forgiveness of a federal student loan.

Teacher Forgiveness
One of the most common ways to qualify for student loan forgiveness is to work as a teacher in the public service sector or for a nonprofit organization. You must first work for five consecutive years in a designated elementary, secondary or educational service agency to be eligible for up to $5,000 of the total amount to be forgiven.

Up to 100 percent of a Perkins loan may be forgiven if you have served full-time in a public or nonprofit elementary or secondary school system serving low-income families. You may also qualify if you are a special education teacher for infants, toddlers, children or youth with disabilities. If you teach in the fields of mathematics, science, foreign languages, bilingual education or any other field determined by the state education agency to have a shortage of qualified teachers in your state, you may also be eligible for student loan forgiveness.

If you qualify, the following formulas may be applied:

• 15 percent canceled per year for the first and second years of service;
• 20 percent canceled for the third and fourth years of service;
• 30 percent canceled for the fifth year of service.

Public Service Employee Forgiveness
Direct Loans are the most common loan considered for forgiveness for public service employees. If you hold a Perkins or FFEL loan, you may need to consolidate your loans in the Direct Loans program to qualify. PLUS loans for parents and graduate students are part of the Direct Loans Program.

If you are employed with a federal, state or local government agency, entity or organization or a not-for-profit organization that has been designated as tax exempt by the IRS, you may qualify for this program.

You may also qualify if the following apply to you:

• You have made 120 on-time, full scheduled, monthly payments on your Direct Loans after October 1, 2007. If you have consolidated your Perkins or FFEL loans, the 120-payment cycle must begin after the loans are consolidated;
• You have made those 120 payments under a qualified repayment plan;
• While you have made each of those payments, you must be working full-time at a qualifying public-service organization.

Click here to read more on jobs that may qualify you for student loan forgiveness.

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 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 http://www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Student Loan Debt Delinquencies on the Rise

Posted on March 26, 2015by Admin

Data collected by Equifax, one of the three major credit bureaus, showed that student loan debt delinquencies are continuing to increase while other forms of household debt are improving. The data from the fourth quarter of 2014 was collected from the New York Federal Reserve’s Consumer Credit Panel. Student loan debts that have been delinquent for more than 90 days have increased to 11.3%.

One of the reasons the Credit Panel cited was the rise in delinquent student loan debts is the fact that it is not dischargeable in bankruptcy. Unfortunately, the delinquencies are expected to continue increasing due to most borrowers forgetting that student loan debt is a secured debt. This means that student loans can be garnished from a borrower’s wages if they are not paid.

Student loan borrowers struggling with debt have options available to them and delinquency should be a last resort. Federal student loan borrowers offer several repayment options to best suit your needs. In addition, interest rates for private student loan borrowers are nearing all time lows. If borrowers have good credit scores, they may be able to refinance their loans.

Click here to read more on the increase in student loan debt delinquencies.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Government Debt Collectors Targeted for their Abusive Practices

Posted on March 20, 2015by Admin

A recent CNN report found that special treatment is being given to debt collectors hired by government agencies. These collectors are charging steep fees and making threats, which include wage garnishment, foreclosure and even arrest. Other debt collection firms that are hired to go after credit card debt or auto loans are held accountable for such acts.

A senior member of the House Financial Services Committee is currently reviewing the report. He said he fears that low-income Americans are the most likely to suffer. The high fees leave many Americans unable to pay off their debts and afford their monthly bills.

The debt collectors are using power given to them by the government to pressure individuals into financial commitments they cannot afford. Unfortunately for consumers, the FTC admitted that the laws governing debt collection do not apply to the types of bills that government debt collectors pursue.

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

Following Obama’s Lead, Democrats Propose Bill to Relieve Student Loan Debt

Posted on March 18, 2015by Admin

President Obama addressed the growing problem of student loan debt in a speech he gave on Tuesday at Georgia Tech. He spoke about his plans to make it easier for students to eliminate some of their student loan debt through bankruptcy. Two days later, thirteen democrats in the Senate introduced a bill backing the President’s plans called the “Fairness for Struggling Students Act of 2015.” The bill will treat student loans issued by private lenders the same as other types of private unsecured debt in bankruptcy. Changes made to the federal bankruptcy code in 2005 made it nearly impossible for struggling students to discharge their student loan debt.

Private student loans make up only 10% of all student loans. The other 90% are loans issued by the federal government. If the bill is passed, it would only account for the 10%. The Consumer Financial Protection Bureau estimates that there is $165 billion that stems from private student loans and approximately $1.2 trillion in total student loan debt.

President Obama and the Senate are targeting private student loans due to their high interest rates, lack of consumer protection and inflexible repayment options. The bill is the White House’s latest attempt to address the rapid increase in student loan debt in America. Plans have also been set up for borrowers to file complaints against loan servicers.

Click here to read more on the story:

Bankruptcy Law, Credit, Timothy Kingcade Posts

5 Tips to Digging your Way out of Debt

Posted on March 6, 2015by Admin

Financial guru Dave Ramsey has advised millions on how to get out of debt. Here are five tips that can work for you.

1. Stop shopping and sell what you do not need.

2. Cut up the credit cards. Use a debit card or just plain cash. Paying with cash will make you think twice about every purchase.

3. Skip the big car loan. The average car payment runs American’s $478 a month over 84 months. If you invested that amount from age 30 to 70 instead of paying a car payment, you would have $5.6 million!

4. Have an emergency fund. Start with $1,000 as your starter emergency fund and go from there.

5. Pay off credit cards, starting with the one with the highest interest rate.
Once you have paid off your credit cards, begin saving for your children’s college and try to pay off your mortgage in 15 years. Most importantly, have hope that things will get better.

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Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Homeowners in Bankruptcy Receive $50 Million Settlement from JP Morgan Chase over Robo-Signing Allegations

Posted on March 4, 2015by Admin

JP Morgan Chase Bank has agreed to pay out over $50 million to more than 25,000 homeowners who are in bankruptcy as part of a settlement with the Dept. of Justice’s U.S. Trustee Program (USTP). The settlement will include cash payments, mortgage loan credits, and loan forgiveness to the homeowners in bankruptcy.

In addition the settlement, Chase has agreed to change its internal operations and have an independent compliance reviewer conduct oversight to ensure that Chase is complying with the terms of the settlement.

Chase acknowledged as part of the settlement that it filed more than 50,000 payment change notices in bankruptcy courts nationwide that were improperly signed by persons who had not checked the notices for accuracy, a practice commonly referred to as “robo-signing.” Chase also acknowledged that it failed to file timely, accurate mortgage payment change notices and provide timely, accurate escrow statements.

More than 25,000 of the notices were signed in the names of either former bank employees or employees who were not part of the accuracy checking process, and the remaining notices were signed by third party vendors on matters that were not related to the accuracy checking process, according to the Department of Justice.

The settlement is a strong warning sign to banks and mortgage servicers that they cannot continue to ignore legal requirements, compromise the integrity of the bankruptcy system and abuse customers who are in financial distress.

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