Chapter 7 Archives - Page 15 of 16

Bankruptcy Law, Credit, Timothy Kingcade Posts

Credit Card Debt or Student Loan Debt: Which to pay off first?

Posted on September 23, 2014by Admin

It is important to first realize, that all debt is not created equal. Some debt can actually work for you. For example, debt that is tax deductible, such as mortgage and student loan debt falls into the category of “good” debt. On the other hand, debts like credit card debt and car loans fall into the “bad” debt category.

Student loans offer fixed rates and tax deductible interest. You should not be in a rush to pay these off, particularly if you are not already saving adequately for retirement and other emergencies. Federal student loans offer the opportunity to reduce or even suspend payment without damaging your credit scores if you face financial difficulty and have the possibility of forgiveness. Those options are not available for credit card debt.

If your student loan payments exceed 10% of your income when you enter into repayment, the federal government has a “Pay as you Earn” program, which offers more manageable payments for borrowers, especially those with large amounts of debt.

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

New Study Reveals Surprising Impact Student Loan Debt has on the Housing Market

Posted on September 22, 2014by Admin

A new study reveals the impact of student loan debt on home ownership. The impact is 414,000. That is how many home sales will not happen this year as a result of high levels of student loan debt, according to a report from John Burns Consulting, a firm that advises home builders. This number is the equivalent of about 8% of all home sales, enough to dent the housing industry by $83 billion a year!

The report estimates that the number of borrowers under the age of 40 that owe $250 or more each month in student loans has nearly tripled since 2005, to 5.9 million. And it projects that every $250 in monthly student loan payments decreases home borrowing and purchasing power by $44,000. With the typical sale price of a home being $200,000, you get $83 billion in lost sales.

The Federal Reserve Bank of New York has found that young people with student loan debt are now less likely to own a home than people who never attended college, a reversal of the long-standing trend linking higher education to home ownership and higher earnings. Student debt has been a key factor in the lower-than-normal rates, particularly for first-time home buyers, according to the National Association of Realtors.

Bankruptcy Law, Timothy Kingcade Posts

Consequences of Concealing Assets in Bankruptcy

Posted on September 17, 2014by Admin

A Palm Beach couple is facing criminal charges for attempting to hide pricey assets, such as jewelry and silverware from bankruptcy court. The couple filed Chapter 7 in 2008 hoping to discharge $2.9 million in debt. Dr. Richard Krugman heads a medical practice in New Jersey that lost a $4.3 million judgment to an insurance company. The couple claimed available assets of less than $13,000, but a court review found significantly more than that.

According to the federal criminal complaint, the couple fraudulently failed to disclose that they owned the following pricey items:

• A woman’s gold wedding band with two carats of diamonds.
• A woman’s platinum hoop earrings with pave diamonds.
• A woman’s gold cocktail ring with blue stone.
• A woman’s silver bangle bracelet.
• A man’s Swiss army diving watch.
• A Royal Doulton China set.
• A high-end silverware set.
• A Waterford Crystal glass set.
• A Lalique leaf bowl.
• A Lalique caviar bowl.
• Two George Rodrigue “Blue Dog” lithographs, signed and numbered.

As a result, the bankruptcy court refused to grant them a discharge. Now the couple could face up to five years in prison and a fine of up to $250,000 for excluding these assets. The defendants intend to plead guilty.

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 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 include fines and imprisonment of up to five years.

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.

http://www.bizjournals.com/southflorida/news/2014/09/15/couple-faces-criminal-charges-for-hiding-pricey.html?ana=e_sflo_bn_breakingnews&u=um2Eyo72dYSImvglWn/0xO6wsIE&t=1410970294

Bankruptcy Law, Credit

Senior Americans Burdened with Student Loan Debt

Posted on September 11, 2014by Admin

The student loan crisis is not just affecting young college graduates, it is reported that a growing number of aging Americans are struggling to pay their student loans. Even a senior’s social security benefits become fair game for lenders when borrowers cannot keep up with their payments.

Among Americans ages 65 to 74, 4 percent in 2010 carried federal student loan debt, up from 1 percent six years earlier, according to a recent Government Accountability Office (GAO) report released. For all seniors, the collective amount of student loan debt grew from about $2.8 billion in 2005 to about $18.2 billion last year.

Student loan debt hits seniors especially hard because many of them are also struggling with other challenges such as health problems, divorce and job loss. Some went back to school in hopes of making a higher salary, or co-signed on loans to help fund their children’s education.

The GAO found that about 80 percent of the student loan debt by seniors was for their own education while the rest was taken out for their children or other dependents. Federal data revealed that seniors were more likely to default on loans for themselves compared with those they took out for their children.

The GAO found that about a quarter of loans held by seniors’ ages 65 to 74 were in default. In addition to docking Social Security benefits, the government can use a variety of collection methods to recoup student loans, such as docking wages or taking tax refund dollars.

Bankruptcy Law, Timothy Kingcade Posts

Hiring the Right Bankruptcy Attorney

Posted on May 27, 2014by Admin

After struggling with unmanageable debt and harassing collection calls for too long, you have finally considered bankruptcy as an option. But what should you look for in a bankruptcy attorney? Do not simply choose your attorney from an advertisement. Filing for bankruptcy is a serious decision and should not be entered into lightly.

Make sure your bankruptcy attorney possesses the following qualities:

1. Experience matters. Do your research. Visit your state bar’s website and see how many years the attorney has been practicing bankruptcy law, how much of their business is devoted to this practice area and whether or not the attorney has been peer reviewed by Martindale-Hubbell. These types of credentials provide you with assurance that the attorney has practical knowledge and experience in the area of bankruptcy law.
2. Passion and professionalism. Find out why your attorney chose to practice in this area of law. Many lawyers find this work especially rewarding and this should be apparent in your initial consultation with the attorney. If you feel like “just another number” at the firm, keep looking.
3. They listen to you. For most people, filing for bankruptcy is oftentimes an emotional and sometimes painful process. You will not only want your attorney to have the proper credentials, but also be empathetic to your situation and take the time to listen and address all of your concerns throughout the process.
4. Cheaper is not always better. Would you have a medical procedure done by the cheapest doctor? Probably not. You would likely want the most experienced doctor. Take this same approach when it comes to hiring a bankruptcy attorney. Avoid ultra-low-cost bankruptcy mills that advertise heavily. These type firms usually have a small number of attorneys and a large number of legal assistants. If unforeseen problems arise in your case, you could be in trouble. There can be serious consequences for hiring the wrong attorney and it can cost you far more than what you thought you could save in the first place.
5. Discuss alternatives. Bankruptcy is not for everyone. A complete cancellation of eligible debts may not be the best option. An ethical attorney will present you with all of your options and help you determine whether bankruptcy is the right option for you.

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

Tips for Dealing with Debt Collectors

Posted on April 17, 2014by Admin

It’s one of the things consumers dread the most- a debt collector calling to collect a payment on an unpaid credit card, medical bill or past due student loan. Experts agree that ignoring debt collectors’ letters and phone calls is a bad idea. It can only make matters worse. The best advice is to avoid debt collectors altogether and attempt to negotiate a payment plan with the original creditor before it is sold to a third-party debt collector.

The following tips will help you deal with debt collectors:

1.) Educate yourself. Become familiar with the Fair Debt Collection Practices Act (FDCPA). The FDCPA protects consumers from harassing phone calls, threats and abusive language debt collectors often use to obtain payment. These tactics are illegal and should be reported to the U.S. Consumer Financial Protection Bureau (CFPB). To learn more about the FDCPA and the protections it offers, watch this short video: https://www.youtube.com/watch?v=5o-ci9nVEgA.

2.) Do not ignore. The law allows consumers to send written requests for verification of the debt within 30 days of being contacted by a debt collector. Do not ignore letters, phone calls or court notices about debt lawsuits.

3.) Keep copies and records. Experts say keep these as long as you keep your tax documents. Others believe these should be kept for as long as the statute of limitations. Documents detailing proof of settlement or resolution of debts should be kept forever.

4.) Safeguard your bank account. Debt collectors can file a lawsuit against consumers for nonpayment of debts. Freezing savings or checking accounts is one of the court-ordered options for collecting debts. Do not make payments using your bank account and routing numbers. Make payments with money orders or a third party payment service so you have proof of payment but avoid paying with a personal check. Let collectors know if your bank account contains only exempt funds. You should also tell them if you have filed for bankruptcy. This will cease all collection attempts.

5.) Record conversations. If a debt collector uses abusive language or threatens you, record the conversation. Using these type tactics to collect on a debt is illegal. Another option is to tell the debt collector the conversation is being recorded, as many collectors will be less likely to overstep their bounds if they know they are being recorded.

6.) Get it in writing. Any agreements for making debt collection payments should be confirmed in writing and signed by a debt collector before you make your first payment. This can avoid any misunderstandings about the amount to be paid and time period to pay off the debt.

If you have any questions on this topic or 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

Is Bankruptcy Right for you? Review our 5-point Checklist

Posted on February 6, 2014by Admin

1.) You must be eligible to file. The “means test” will determine this. If you have enough money to pay your creditors, you will likely be ineligible to file Chapter 7 bankruptcy. If you make less than the median income for your state, you are fine. If your income exceeds that figure and you have enough money to pay for your necessary expenses and part of your debts, you will not be eligible to file.

2.) You do not see your financial situation improving in the near future. If your financial hardship is only temporary and you are due money with a gift, inheritance or better paying job, you may want to wait it out. However, if debt collectors are constantly calling you and you see no end in sight, it may be time to sit down with an experienced Miami bankruptcy attorney to discuss your options.

3.) Most of your debts are unsecured. Not all debts are discharged in bankruptcy. Unsecured debt- including credit cards, medical bills, collection accounts are dischargeable in bankruptcy. However, student loans, recent tax debt, legal bills and child support payments are not. Asses your liabilities. If the bulk of them are dischargeable debts, bankruptcy may be a good option.

4.) You are comfortable walking away from your financial obligations. Filing for bankruptcy is a big decision, and for many, it can be an emotional process. Take plenty of time to project how you will feel after filing. Many feel a sense of relief, and looking back, wish they had filed sooner.

5.) You will be in a better place. The big advantage to filing for bankruptcy is that it allows you to start over, wipe the slate clean and gain a fresh financial start. Immediately after you file for bankruptcy, an automatic stay is created which stops future collection attempts against you. This includes debt collector calls, wage garnishments, foreclosure proceedings, repossessions, etc. Bankruptcy can provide you time to catch up on your mortgage payments, and save your home from foreclosure. It can also lower your monthly car payments and eliminate second mortgages.

Before filing Chapter 7, it is important that you consult an experienced Miami bankruptcy attorney to determine if bankruptcy is the right option for you. 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

Bankruptcy Fraud and its Consequences: Don’t Let this Happen to You

Posted on October 23, 2013by Admin

A 55 year old woman from Barron, Wis., has been charged with bankruptcy fraud. The indictment alleged that in December 2008, she concealed $18,977 in U.S. currency. The indictment also charged her with making material false declaration in a bankruptcy proceeding, by stating that she had only $100 cash on hand and fraudulently omitting a $12,000 transfer of U.S. currency to relatives and a $3,650 payment to a creditor. She is also charged with falsely testifying under oath in a bankruptcy proceeding on February 3, 2009, about the concealed currency and the transfer of currency to relatives.

If convicted, Cynthia Barlow faces a maximum penalty of five years in federal prison on each count. The charges against her are the result of an investigation by the FBI. If you are considering filing bankruptcy, do not attempt to hide money or assets. This can include transferring money to a family member or opening a hidden bank account to conceal funds. Do not attempt to hide or destroy property from a creditor. These actions can greatly affect the outcome of your case and land you in jail.

Click here to read more on this story.

Bankruptcy Law, Timothy Kingcade Posts

Casey Anthony Files for Bankruptcy in Florida

Posted on January 30, 2013by Admin

Casey Anthony filed for Chapter 7 bankruptcy protection last Friday in Florida. Anthony claimed approximately $1,100 in assets and $792,000 in liabilities. Her listed debts included: $500,000 for attorney fees and costs for her criminal defense lawyer during the trial; $145,660 for the Orange County Sheriff’s office for a judgment covering investigative fees and costs related to the case; $68,540 for the IRS for taxes, interest and penalties and $61,505 for the Florida Department of Law Enforcement for court costs. Her legal debt accumulated when she was on trial for the murder of her daughter, Caylee. Anthony was acquitted of killing Caylee in 2011, however she is currently unemployed, with no recent income.

Aside from her financial troubles, Anthony is also facing a defamation lawsuit. Among many other civil suits, the defamation suit was brought forth by Zenaida Fernandez-Gonzalez in the Orange County Circuit Court. Fernandez-Gonzalez claims that Anthony defamed her when she told the detectives that a baby sitter with the same name kidnapped Caylee in 2008.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced 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, P.A. at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Houston Man Convicted of Internet and Bankruptcy Fraud Sentenced to 15 years in Federal Prison

Posted on January 23, 2012by Admin

A 64 year old Houston man, James Maceo Ramey, was recently sentenced to 15 years in federal prison for 25 counts of fraudulent activity. Ramey was charged with bankruptcy fraud after an investigation proved he had filed 15 different bankruptcy cases in less than five years, all in different jurisdictions. Under Chapter 7 and Chapter 13 bankruptcy laws, an individual is prohibited from filing bankruptcy more than one time in an eight-year period, regardless of the jurisdictions.
During the period of Ramey’s bankruptcy scandal, he was conducting an Internet gold scheme as well. Ramey launched a website under a fake business name, “Manhattan Gold, Inc.” The website solicited the selling of numerous gold items, most in the form of coins, all of which, Ramey had no possession of or intent to actually distribute to consumers. During the gold scandal Ramey profited some $400,000, all of which he did not claim in any of the bankruptcy cases he filed.
After five days of deliberation, Ramey was convicted on all 25 counts. Eight of those counts were mail fraud, due to the Internet gold scheme. The other 17 counts were due to false oaths and declarations, concealment of assets, and conspiracy to commit bankruptcy fraud.
To read more on this story visit: http://7thspace.com/headlines/403574/internet_gold_scam_lands_houston_man_15_years_in_federal_prison.html
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. 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, P.A. website at www.miamibankruptcy.com.