Chapter 7 Archives - Page 14 of 16

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.

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

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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

How Avoiding Bankruptcy can Backfire

Posted on April 1, 2015by Admin

Bankruptcy is often misunderstood and accompanied by a negative stigma. However, bankruptcy can mean different things to different types of entities. For example, a business filing for bankruptcy is often seen as a healing process, allowing the company to reorganize and restructure its debts, while continuing its operations.

Oftentimes, credit counselors and debt relief services will advise against bankruptcy to steer consumers toward their services of financial assistance, postponing the inevitable. Banks and personal finance gurus manipulate consumers into believing that it is impossible to rebuild your credit after bankruptcy.

The reality is that most consumers who have filed for bankruptcy have access to more “new lines of credit” than those who continue struggling with insurmountable debt. This was proven in a study conducted by the Federal Reserve Bank of New York. The study focused on the financial lives of people who continue struggling with debt and those who opted for bankruptcy.

The study revealed that those individuals who filed for bankruptcy early in the year opened a larger number of unsecured accounts than those who chose not to file for bankruptcy. The study proves that filing for bankruptcy opens doors to new lines of credit rather than closing them.

The study also revealed that those who filed for bankruptcy saw a greater improvement in their credit scores than those who did not. Also, those who did not file for bankruptcy lost a significant amount of retirement income, compared to those who did file for bankruptcy. Under federal law, most retirement accounts are fully exempt in bankruptcy.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

The Student Loan Borrower’s Bill of Rights Explained

Posted on March 31, 2015by Admin

Following President Obama’s introduction of the “Student Aid Bill of Rights” the Senate followed suit by reintroducing the Student Loan Borrower’s Bill of Rights. The bill was first introduced last year, but failed to move forward. The bill is an effort to ensure that the 40 million Americans with student loan debt are protected and understand their rights as consumers.

“The Student Loan Borrower’s Bill of Rights” will ensure that all borrowers have basic rights and protections as they repay their student loans and offer more repayment options to them if they are unable to make their monthly payments in full,” according the Senator Dick Durbin. He was one of three senators to reintroduce the bill.

The legislation’s authors explained that the new bill would give six basic rights to both federal and private student loan borrowers:

1. The right to have options such as alternative payment plans to avoid default.
2. The right to be informed about terms and conditions of the loan and repayment options to ensure changing plans will not cost more.
3. The right to know your loan’s servicer and who to contact when there is a problem.
4. The rights to have consistent monthly payments. Lenders and servicers will also be required to honor promotions and promises that are advertised or offered to borrowers.
5. The right to fairness when it comes to issues such as grace periods, when loans are transferred, or debt cancellation when the borrower dies or becomes disabled.
6. The right to accountability including timely resolution of errors and certification of private loans.

The Bill of Rights will also ensure that service members and veteran borrowers will be provided with a liaison specifically trained in the benefits available to military borrowers.

Click here to learn more about the Student Loan Borrower’s Bill of Rights.

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

Consumers Still Struggling with Medical Debt

Posted on February 18, 2015by Admin

The Federal Health Care Law was intended to keep an unexpected illness or injury from bankrupting Americans. When calling for the law’s passage, President Obama proudly declared, “people shouldn’t go broke because they get sick.” Even though the Affordable Health Care Act has authorized states to expand eligibility for Medicaid and created online insurance markets for those without employer coverage to qualify for federal subsidies- it hasn’t solved the problem.

In 2013, medical debt was the largest cause of personal bankruptcy — 1.7 million people lived in households experiencing bankruptcy because of health costs. The health care law brought regulations that limited for the first time the cost-sharing in plans. For example, an individual plan sold on an exchange cannot include out-of-pocket costs greater than $6,600. In practice, the average deductible (which must be paid before insurance kicks in), varies based on how expensive a plan is. This regulation still only applies to “in-network” doctors and specialists, which can be a short list. Many vulnerable consumers are incurring medical debt by visiting unapproved doctors or hospitals.

Deductibles keep growing. Last year, work-sponsored insurance plans had an average deductible of about $1,200. In 2009, the average deductible was $826. And this year, the silver plans sold through the federal marketplace require people to pay on average more than $2,500 or approximately $3,500 before their insurance benefits kick in. Bronze plans, known for having cheaper monthly premiums have average deductibles of about $5,300.

Even with the Affordable Health Care Plan in place, efforts to regulate how providers can collect on patient debt remain limited. For instance, hospitals and doctors can still obtain judgments, garnish paychecks and go after people’s assets, including their homes.

Click here to read more on this story.
http://www.usatoday.com/story/news/2015/02/01/consumers-still-struggling-with-medical-debt/22587749/

Bankruptcy Law, Timothy Kingcade Posts

Medical Debt Responsible for the Majority of Bankruptcy Claims in the U.S.

Posted on November 12, 2014by Admin

Consumers may be surprised to find out that it is not credit card debt that is the leading cause of bankruptcy, but medical debt. According to a recent study, Americans pay three times more in third-party collections from medical debt each year than they pay for bank and credit card debt combined. This year alone, approximately 51 million Americans will be contacted by a debt collection agency about a medical bill- that’s roughly one in five! This means more than $1 out of every $3 paid to third-party collectors is for medical debt.

The study conducted by NerdWallet Health also indicated that many of the people who are facing medical debt are being mistakenly overcharged. In fact, the study found hospital billing errors with overages of up to 26%. These billing errors were even more prominent with Medicare patients.

The study highlighted that Medicare Compliance reviews conducted by the Office of the Inspector General found that none of the hospitals they audited fully complied with Medicare billing requirements, with nearly half (49%) of the Medicare claims containing billing errors.

Considering that American households have lost $2,300 in median income, while health care expenses have increased $1,814, it would be wise for American consumers to take more initiative in understanding their health insurance packages. Out-of-pocket spending on healthcare is expected to accelerate to a 5.5% annual growth rate by 2023. That is double the growth of GDP.

While the Affordable Care Act (ACA) is a step in helping consumers avoid medical bankruptcies, by eliminating the underwriting process and subsidizing healthcare health care for those who would otherwise be uninsured- it can cause problems for individuals and families who choose the wrong plan.

According to health care experts, the average deductible for a silver plan can be upwards of $3,000 for an individual or $6,000 for a family — and that is just for in-network care. While 2015 out-of-pocket expenses are capped at $6,600 for an individual and $13,200 for a family, plans may impose separate out-of-pocket maxes — or have no max at all for out of network doctors and hospitals. Given the narrow network of approved providers within these plans, it becomes a likely scenario that an individual will at one point accidentally visit an out-of-network doctor or clinic and then be stuck with a large bill.

It is important consumers know that the ACA offers an external appeals process for health plan decisions, which provides recourse to individuals who face large medical bills after undergoing medical care that was not covered by their health insurance plan. A recent study in California even found that nearly half of such insurance denials were overturned in favor of the patient after review by an external board.

http://www.alllaw.com/articles/nolo/bankruptcy/can-file-bankruptcy-eliminate-medical-bills.html

Bankruptcy Law, Credit, Timothy Kingcade Posts

Raise your Credit Score… FAST

Posted on October 7, 2014by Admin

Your credit score can range anywhere from between 300 to 850. And we all know, the higher the number, the better. Your credit score, also referred to as your FICO number is what lenders use to determine how much to lend you and what your interest rate will be when applying for a mortgage, car loan, credit card or student loan. A recent survey from the National Foundation for Credit Counseling revealed that people are more embarrassed to admit their credit score (30%) than their weight (12%).

Below are some immediate steps you can take to raise your score FAST:

1.) Dispute Errors. Mistakes happen. Order a copy of your credit report for free by going to www.annualcreditreport.com. Analyze the report for accuracy and dispute any errors immediately.

2.) Negotiate. You cannot deny that you stopped paying a credit card bill because you lost your job last year, but you can request that the creditor “erase” that debt or any other credit account that went into collections. Write a letter that offers to pay the remaining balance if the creditor will report the account as, “paid as agreed.” They may even remove it all together. You will never know unless you try.

3.) Check your limits. Make sure your reported credit limits are current. You do not want it to look as if you are maxing out plastic each month. If your card issuer forgot to mention an increased credit limit you are entitled to, request it.

4.) Get a credit card. If you use a credit card wisely (i.e. not charging too much, making payments on time, etc.) this will do good things for your score.

5.) Under-use your cards. Keep in mind, the “credit utilization ratio” is no more than 30% and ideally even less. Credit experts advise that a 10% credit utilization ratio will “maximize your FICO score.”

6.) Raise your credit limit. Request that your creditors increase your limit. However, this only works if you can trust yourself not to increase your spending limit.

7.) DO NOT close any cards. Canceling a credit card will cause your available credit to drop, which will not look good to the bureaus. One way to keep a card active is to use it for a recurring charge, such as an electric or phone bill.

8.) Mix it up. Using a different kind of credit can boost your score. For example, you can take out a small personal loan from a credit union to buy a piece of furniture or appliance. However, ONLY do this if you are 100% sure you can meet the payment schedule.

9.) Pay your bills on time. Your payment history makes up a whopping 35% of your FICO score. If you have a problem paying your bills on time, whether you are a busy working parent or simply absent-minded at times, automate your payments. This is an easy solution to this problem and a much needed time saver.

10.) Pay your bills twice a month. Using too much of your credit limit at any time does not look good. Make one payment just before the statement closing date and the second one right before the due date. The first payment will help you decrease the balance that the credit bureaus will see, the second ensures you will not pay interest or a late fee.

Bankruptcy Law, Timothy Kingcade Posts

Jersey Shore Star, ‘The Situation’ Indicted for $8.9M Tax Fraud Conspiracy

Posted on September 25, 2014by Admin

Former Jersey Shore cast member, Mike Sorrentino (a.k.a. ‘The Situation’) and his brother / business manager, Marc Sorrentino appeared in a New Jersey Federal Court this week to plead not guilty to a fraud indictment claiming they did not pay taxes on $8.9 million of income. Court documents show that both Sorrentino and his brother are being charged with one count of conspiracy to defraud the U.S., and an additional two counts of filing false returns. His brother faces three. ‘The Situation’ is also charged with not filing a tax return in 2011, when he earned more than $1.9 million in income.

The document states, “From in or about January 2010 through in or about November 2013, in Monmouth and Ocean Counties, in the District of New Jersey and elsewhere, defendants Marc Sorrentino and Michael Sorrentino, aka ‘The Situation,’ did knowingly and intentionally conspire and agree with each other and others to defraud the United States by impeding, impairing, obstructing, and defeating, through deceitful and dishonest means, the lawful functions of the IRS, a constituent agency of the United States Department of the Treasury, to ascertain, compute, assess, and collect federal income taxes,”

“According to the indictment, Michael and Marc Sorrentino filed false tax returns that incorrectly reported millions made from promotions and appearances,” U.S. Attorney Paul J. Fishman said in a statement. “The brothers allegedly also claimed costly clothes and cars as business expenses and funneled company money into personal accounts. The law is absolutely clear: telling the truth to the IRS is not optional.”

The conspiracy and filing false tax returns each carry a maximum penalty of three years in prison and a $250,000 fine. The count charging ‘The Situation’ for failing to file a tax return carries a maximum potential penalty of one year in prison and a $100,000 fine. Regardless of your occupation or status in life, if you attempt to cheat on your taxes for personal financial gain- you face real consequences, criminal prosecution and even jail time.

http://www.people.com/article/mike-the-situation-sorrentino-tax-evasion