Chapter 7 Archives - Page 14 of 16

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

Student loan debt has grown 250% in the last 10 years

Posted on July 31, 2017by Admin

Student loan debt has skyrocketed, as much as 250 percent across the U.S., according to a new report. This puts total student loan debt at $1.4 trillion. Between 2004 and 2014, the U.S. saw an almost 90 percent increase in the number of student loan borrowers, and a nearly 80 percent increase in average balance size. The average amount of debt per borrower is now $26,700. Value Penguin, the consumer spending site that published the report ranked the states where the average amount of student debt is the highest.

New Hampshire

Number of graduates with debt: 76 percent
Average debt: $36,101

Pennsylvania

Number of graduates with debt: 71 percent
Average debt: $34,798

Connecticut

Number of graduates with debt: 64 percent
Average debt: $34,773

Delaware

Number of graduates with debt: 65 percent
Average debt: $33,849

Rhode Island

Number of graduates with debt: 64 percent
Average debt: $32,920

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, Debt Relief, Timothy Kingcade Posts

New Payday Loan Regulations for Lenders

Posted on July 27, 2017by Admin

Online lenders are now required to advertise on at least one price comparison website and display “prominently” a link on their own website to a price comparison site. A cap on payday loan costs is also being enforced. The Competition and Markets Authority (CMA), say the new rules are a win for consumers and will allow them to compare loans more easily and establish the best value. Borrowers will also be provided a clear explanation of the fees and charges, making it easier to determine the costs of missing payments.

We never advise clients’ resort to taking out payday loans, as this are an extremely costly way to borrow money. We have identified alternatives to payday loans in another blog on this same topic.

Click here to read more about this story.

If you have any questions on this topic or are in a 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

Bankruptcy & Divorce: Which comes first?

Posted on July 14, 2017by Admin

Going through a divorce can be stressful enough, but when you pile on financial issues the effects can be overwhelming. Your financial situation can be greatly affected by a divorce, as divorce is commonly cited as the leading cause of bankruptcy. Here are some important facts you should know when it comes to bankruptcy and divorce.

Do not file for divorce and bankruptcy at the same time. This is for the sake of simplicity. People typically file bankruptcy before divorce for several reasons. Once you file for bankruptcy an “automatic stay” is put in place. This is a court order that prohibits creditors from contacting you and protects your property and assets. This hold is in effect throughout the bankruptcy process.
Chapter 7 bankruptcy is ideal for a quick divorce. One of the benefits of filing for Chapter 7 is the timeline. A Chapter 7 bankruptcy typically eliminates all dischargeable debts within three to six months, allowing you to file for divorce relatively soon after. In comparison, a Chapter 13 bankruptcy establishes a three- to five-year payment plan for you to pay off your debt, which can drag your divorce out longer.
Conditions of Bankruptcy. Abiding by the rules listed in the Bankruptcy Code is critical for having your debts discharged. A Chapter 7 discharge may be denied if the debtor:

Fails to provide requested tax documents;
Hides property for the purpose of defrauding creditors;
Destroys financial books or records;
Commits perjury in connection to the bankruptcy case;
Violates a court order;
Fails to complete the mandatory credit counseling course.

Bankruptcy and divorce are chances for you to make a fresh start for you and your family. However, both of these processes can be extremely complex and detailed in nature. You should consult with an experienced bankruptcy attorney and have a strong divorce attorney on your side who can guide you through the process and obtain the most successful outcome for you.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Pensions SAVED as court rules retirement funds protected in bankruptcy

Posted on October 10, 2016by Admin

In the case Horton v. Henry, the court was recently asked whether savers subject to an Income Payments Order (IPO) would have to surrender their undrawn pension funds in bankruptcy. Normally, under IPO people are forced to give up a proportion of their salary or wages to pay the bankruptcy trustee, but this landmark case may set a precedent.

The High Court initially rejected the argument in 2014, but the decision went to the Court of Appeal. However, the appeal was dismissed on October 7. The case is in strong contrast to the 2012 Raithatha v Williamson verdict, when the judge said savers could be forced to withdraw their 25% tax-free lump sum to pay creditors.

Bankrupt savers can breathe a little easier now. The ruling follows a similar conclusion reached in Hinton v Wotherspoon in May, which said retirees not taking any income could not be forced to withdraw savings to pay any debts.

Congress updated the bankruptcy laws in 2005. Under the current law, virtually all retirement account and pension plan funds are exempt from creditors, meaning you get to keep them if you file for Chapter 7 bankruptcy. With a few exceptions to the rule, the exemption amounts are unlimited, so the entire amount of the retirement account is protected.

Plans subject to this exemption include any ERISA-qualified pension plan, such as:

401(k)s
403(b)s
IRAs (Roth, SEP, and SIMPLE)
Keoghs
Profit-sharing plans
Money purchase plans, and
Defined-benefit plans.

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.

Related Resources:

http://www.nolo.com/legal-encyclopedia/retirement-plan-bankruptcy-chapter-7-13-32410.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Business Owners Convicted of Bankruptcy Fraud

Posted on August 26, 2016by Admin

Two Louisiana business owners were convicted by a federal jury of concealing assets during their bankruptcy and making false statements under penalty of perjury. According to the testimony, Brian and Debra Spurin filed for Chapter 7 bankruptcy in September 2005 and submitted various bankruptcy schedules and a statement of financial affairs, all signed as true and correct under penalty of perjury.

However, they failed to disclose real property as required, nor did they list all of the businesses they established and had an interest in, which included Golden Choice Financial, LLC; Golden Athletics Financial Services, LLC; J&S Management and Marketing, Inc.; and International Oil, Gas and Mineral Management, Inc. The assets of these companies were never listed, including the home in which the couple lived in and the vehicles they used.

In total, the couple fraudulently concealed approximately $400,000 worth of assets from the bankruptcy proceeding.

The defendants each face a fine of $250,000, imprisonment for not more than five years, or both, for each count of concealment of bankruptcy estate assets and making a false statement under penalty of perjury.

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, you can face serious fines, even jail time.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The South has the highest rates of personal bankruptcy filings in the country

Posted on August 25, 2016by Admin

Personal bankruptcy filings fell to levels not seen since before the Great Recession of 2007, according the American Bankruptcy Institute. However, this is not the case for some parts of the country. Recent federal data from U.S. courts reveals the median bankruptcy rate among the 587 counties examined was 224 filings per 100,000 residents. Among the 50 states and Washington, D.C., the median bankruptcy rate was 226 filings per 100,000 residents.

Six of the 10 states and eight of the 10 counties with the highest personal bankruptcy filings were in the South. Many of the areas had lower to median annual incomes. Eight of the 10 states with the highest rates of bankruptcy filings had annual household incomes lower than the 2014 U.S. median of $53,657.

Another downside, states with the highest bankruptcy rates offer the least amount of protections for consumers. For example, Alabama and Kentucky, allow debt collectors to seize nearly everything a debtor owns, according to the National Consumer Law Center.

These are the states with the highest rates of personal bankruptcy filings:

Tennessee, 553 bankruptcy filings per 100,000 residents

Alabama, 529 bankruptcy filings per 100,000 residents

Georgia, 483 bankruptcy filings per 100,000 residents

Illinois, 432 bankruptcy filings per 100,000 residents

Utah, 392 bankruptcy filings per 100,000 residents

Indiana, 387 bankruptcy filings per 100,000 residents

Mississippi, 361 bankruptcy filings per 100,000 residents

Kentucky, 345 bankruptcy filings per 100,000 residents

Arkansas, 344 bankruptcy filings per 100,000 residents

Ohio, 322 bankruptcy filings per 100,000 residents

While seeking relief through bankruptcy may not have been your first choice, it may be your best financial strategy, when compared to the alternatives of wage garnishment, lawsuits and endless collection calls. In addition, depending on the type of bankruptcy filing, there is no more overwhelming debt. The majority of personal bankruptcy filings are for Chapter 7, which erases most unsecured debts, such as your credit card debt and medical bills.

Related Resources:

http://www.csmonitor.com/Business/Saving-Money/2016/0816/The-South-has-the-highest-bankruptcy-rates-in-the-country

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Florida Governor Signs Bill Aimed at Curbing Unexpected Medical Debt

Posted on April 25, 2016by Admin

Governor Rick Scott signed legislation this month that may help curb unexpected medical debt. The bill prohibits charges from an out-of-network provider when a patient has covered emergency care or covered non-emergency care services. It also establishes a payment process for insurers to provide reimbursement for such out-of-network services.

The legislation was prompted by complaints patients made who received emergency care treatment at in-network hospitals and subsequent bills from doctors who were out-of-network. Florida’s Chief Financial Officer issued the following statement: “This new law protects consumers by holding them harmless in times of both emergency situations when choosing a provider is not an option and in non-emergency situations when communication may not be made clear regarding out-of-network providers who may be offering care. As a result, consumers are left with a more affordable bill comparable to what they would have paid if the provider had been in their network.”

Under the new law, hospitals are required to maintain information on their websites to include contact information for practitioners and practice groups contracting with the hospital. It also states the hospitals are required to provide notice that care may be provided by entities that issue separate bills and might not work with the same health insurance companies.

Bills from out-of-network providers contribute to medical debt problems among insured, non-elderly adults, according to a Kaiser Family Foundation survey. Nearly 7 in 10 individuals with out-of-network medical bills they cannot afford to pay did not know the healthcare provider was out-of-network at the time they received care.

The bill should take effect July 1, 2016.

Click here to read more on this story.

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, Debt Relief, Timothy Kingcade Posts

Bankruptcy Filings Drop to Eight-Year Low

Posted on February 11, 2016by Admin

The Administrative Office of the U.S. Courts (AOUSC) released statistics showing a 9.9 percent drop in bankruptcy filings in 2015. During the 12-month period, January through December, 844,495 cases were filed in federal bankruptcy courts. This is down from 936,795 bankruptcy cases filed in 2014.

This is the lowest number of bankruptcy filings within a 12-month period since 2007. Last year was the fifth consecutive year that bankruptcy filings have fallen.

Business and non-business bankruptcy filings dropped in 2015. The total business bankruptcy filings were down from 26,983 in 2014 to 24,735 in 2015. The total non-business bankruptcy filings were 819,760, down from 909,812 the previous year.

Both Chapter 7 and Chapter 13 filings dropped in 2015. Chapter 7 filings are the proceedings in which a debtor’s nonexempt assets are liquidated and the proceeds are distributed to creditors. Chapter 13 filings allow individuals to receive regular income to obtain debt relief while retaining their property by proposing a plan that uses future income to repay a portion of their debts over a three to five year period.

Chapter 11 and Chapter 12 filings both increased slightly from 2014. Chapter 11 filings are for businesses or individuals whose debts exceed the statutory thresholds for Chapter 13. Chapter 12 filings are for family farmers or fisherman.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Bankruptcy or Divorce: Which should you file first?

Posted on January 1, 2016by Admin

Filing for bankruptcy can be further complicated when the parties involved are in the middle of a divorce or considering divorce. Clients in this situation wonder whether they should file for divorce or bankruptcy, first. Unfortunately, there is not a clear-cut answer, as every divorce and every bankruptcy filing is unique. However, there are a variety of factors one should consider when making this decision.

Income of the parties. If one party has significantly more debt, and the other party makes a substantial income, it will be difficult to file a joint Chapter 7 bankruptcy. This is due to the fact the court will have to consider the total household income when determining whether or not to grant the bankruptcy petition. In this case, it is likely more beneficial to file for divorce before filing bankruptcy so the household income is not considered in bankruptcy.

Both parties must agree to file bankruptcy. Filing a joint bankruptcy requires both parties consent to the filing. One spouse cannot force the other to file, even during a divorce proceeding. The party who wants to file for bankruptcy may be eligible to do so individually, but filing individually will not discharge the other spouse’s debt. Therefore, in this case it may be advisable to file for bankruptcy before the divorce so both parties’ debt can be discharged before the divorce proceedings begin.

How has the debt been distributed? In certain instances, one of the parties may have substantial property and assets, separate from the spouse, possibly received through a gift or inheritance or acquired before the marriage. In this situation, the party wanting to file bankruptcy should do so individually, since the spouse’s assets (if filed jointly) could prevent a bankruptcy discharge.

Property of the estate during a divorce. After a bankruptcy petition is filed, all of the debtor’s property becomes the property of the bankruptcy estate. This means the property cannot be divided in a property settlement agreement during a divorce unless permission is received from the bankruptcy judge or if the bankruptcy is over. This can delay a divorce proceeding significantly.

Considering the variety of factors involved , it is very important that anyone with questions about bankruptcy who is also going through a divorce be able to provide complete and accurate information about their assets and liabilities, so your attorney can best assess your situation.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

The WRONG Reasons to File Bankruptcy

Posted on April 20, 2015by Admin

Although you may be receiving unwanted collections calls and falling behind on some bills, bankruptcy may not be the best option for you. There are certain types of debt which bankruptcy cannot erase. For example, back child support, alimony obligations, student loans and certain tax debts are non-dischargeable in bankruptcy.

Below are four reasons you should NOT file for bankruptcy:

1. You cannot make small payments on unsecured debt. Unsecured debt consists of most credit card debt and medical bills. In other words, it is debt that the lender has allowed you to run up without asking for a collateral in return. If you default on unsecured debt, the lender has nothing to repossess. Most consumers think that failing to make these payments will result in wage garnishment or other significant consequences. However, most lenders cannot take action unless they sue you. This can oftentimes be a lengthy process, providing you time to come up with the payments. If the amount you owe is small, the lender may write it off as uncollectable, rather than taking legal action. There are also options such as the negotiation of your interest rate or being placed on a realistic payment plan.

2. You want debt collectors to stop contacting you. The Fair Debt Collection Practices Act (FDCPA) requires debt collectors stop contacting you if you ask them. You must send the collection company a certified letter requesting this. After you have taken such action, it is against the law for the collection company to contact you, except to let you know they are either going to take legal action against you or stop their collection efforts.

3. Most of your debts are from recent income taxes, court judgments, child support payments or student loans. These are some of the debts that are oftentimes non-dischargeable in bankruptcy court. Filing for bankruptcy will not relieve you of these type debts.

4. You do not have any assets or income outside of Social Security, unemployment or welfare. Creditors cannot garnish your Social Security income, unemployment or welfare, even if they sue you. It is not necessary to file bankruptcy if you do not have an income that creditors can take or assets they can seize.

Click here to read more on the wrong reasons to file bankruptcy.

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.