Tag: debt

Bankruptcy Law, Credit, Timothy Kingcade Posts

New Rules Bring Fairness to Debt Cases

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A New York judge has proposed new filing requirements for debt collectors that will bring fairness to state consumer cases and put them in line with due process. Judge Jonathan Lippman says many debtors discover they have been sued only after their bank accounts are frozen or their wages are garnished. Others are never served a notice of a lawsuit and lose the case simply by default.

More than 100,000 consumer credit card lawsuits are filed in state courts annually, most from third party buyers of delinquent credit card debt. Some of this debt, which is referred to as “zombie” debt, is several years old. The new rules would be implemented by June 15th and are intended to stop default judgments based on what the judge refers to as “robosigned” affidavits, “containing few if any facts relating to the history of the debt at issue.”

Instead, plaintiff creditors would have to file detailed court affidavits identifying the specific content at issue, the credit agreement, the complete chain of debt ownership, an itemized list of the principle interest and other charges. Default judgments would be prohibited where notices are returned because of an unknown or wrong address.

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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, Timothy Kingcade Posts

4 Ways Debt Collectors Abuse Your Rights

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Debt collectors often resort to abusive practices to try and collect on a debt. This can include lying, using profanity and even intimidating you to try and get you to pay up. Many consumers do not know that they have rights when it comes to these abusive debt collection practices. The Fair Debt Collection Practices Act (FDCPA) protects consumers from harassing phone calls, threats and abusive language debt collectors often use to obtain payment.

Do not be a victim to these most commonly used debt collection practices:

• Threats of garnishment / criminal action. If a debt collector calls and threatens to garnish your wages, it’s a lie. The only exceptions are for student loan debt and taxes. A debt collector must sue you, first and this can take months.

• Calling too late or too early. The law states that a debt collector can only call you between the hours of 8 a.m. and 9 p.m. in your time zone.

• Calling your neighbors or employers. Debt collectors cannot reveal who they are or why they are calling. If they do not abide by this, they run the risk of having a lawsuit filed against them for releasing third party information.

• Not putting it in writing. Do not settle a debt if it is not put in writing by the debt collector. If you give a debt collector access to your bank account, they can take everything and leave you with nothing to pay your rent and bills.

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.

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.

Related Resources: http://www.daveramsey.com/blog/4-top-ways-debt-collectors-abuse-your-rights

Bankruptcy Law, Credit, Timothy Kingcade Posts

Sbarro Seeks Bankruptcy Protection, Again.

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The pizza restaurant chain Sbarro has filed for bankruptcy protection a second time after struggling with way too much debt and fewer customers in malls, where many of its restaurants are located. Sbarro plans on filing a Chapter 11 reorganization, which will allow it to cut its debt load by more than 80 percent. Lenders have supported the restructuring, which will require court approval.

Founded in 1956 by Gennaro and Carmela Sbarro, a married couple who immigrated from Naples, Italy, Sbarro quickly expanded in the New York City area. The original restaurant format featured an open kitchen which allowed customers to serve themselves.

The restaurant attributes its financial problems to an “unprecedented decline in mall traffic,” an “unsustainable” balance sheet and the closure of hundreds of its restaurants. However, experts in the restaurant industry attribute Sbarro’s loss in earnings to its outdated business model. The restaurant is trying to sell food that has been sitting out for a while. Today, more people want food that is made to order.

The company said it recently closed more than 180 money-losing restaurants and expected to close about 50 more. It now has 799 restaurants in more than 40 countries, employing about 2,700 people. Sbarro said the bankruptcy did not affect the 582 restaurants owned by franchisees.

Sbarro and 33 affiliates filed for protection from creditors with the federal bankruptcy court in Manhattan. The company reported assets of $175.4 million and liabilities of $165.2 million. It plans to shed $140 million of secured debt in the reorganization. Sbarro previously filed for bankruptcy protection in April 2011, and emerged from Chapter 11 the following November.

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

Man who Faked Bankruptcy Faces 17 Years in Prison

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A Sacramento businessman who asked the FBI to investigate his ex-wife ended up with the Feds investigating him. Steven K. Zinnel, now 50, and his wife split in 1999. They had two sons. Zinnel, a successful Gold River businessman declared bankruptcy during the proceedings. However, his bankruptcy, which was finalized in 2005 was fake. He had put money in accounts with other people’s names on it and hid assets. As the case proceeded through family court, he continued to hide assets and disguised his wealth so he could pay less in child support.

Zinnel was in the clear until he asked the FBI to investigate his ex-wife, Michele, for trying to get illegal access to his private health insurance information. However, when the authorities heard her side of the story, they were more interested in Zinnel’s bankruptcy than her alleged offense.

The president of the electric substations company that was paying Zinnel off the books agreed to cooperate with the Feds and participated in taped interviews with undercover agents. Far from being bankrupt, Zinnel was found to be worth several million dollars. He was convicted on 15 counts of bankruptcy fraud and money laundering. This week he was ordered to forfeit $2.8 million of his assets, pay a half million dollar fine and serve more than 17 years in prison.

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

More Americans Facing Retirement with Debt

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According to a recent study, the majority of people who contribute to retirement plans, such as 401(k)s, have accumulated more debt than retirement savings in recent years. More troubling is the fact that those approaching retirement- between 50 and 65 years old- had a monthly debt obligation in 2010 equivalent to 22% of their earnings, up 69% from 1992, according to the analysis.

A study by the Center for Retirement Research at Boston College found that the proportion of people in their 60s with debt increased from just under half in 1998 to nearly two-thirds in 2010. Debt as a percentage of assets nearly doubled, from 10% to 18% over that time frame.

Mortgages account for the largest portion of that debt. Older Americans are not only more likely to have mortgages than in previous years; they are also taking longer to pay them off. Some owners enjoy low enough mortgage rates and large enough investment assets to feel comfortable taking out a home equity line of credit to pay for emergency expenses. But in some cases, this is not a good idea. Many financial institutions are encouraging homeowners to look at their houses as a cash machines, with low interest rates. A lot of baby boomers have done this and are now stuck with higher mortgages. To keep debt from derailing your retirement plans, it is important to meet with an experienced financial advisor to manage your post-retirement cash flow.

The typical worker – between 50 and 65 years old- has saved enough for just two years of working income, even though the median post-retirement life span is about 17 years. Balancing debt and saving for retirement starts with carefully measuring what your income and your expenses will be. Many people facing retirement will be on a fixed-income. It is important to make sure that the income streams have the ability to pay your debt.

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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

7 Ways to Build Credit without a Credit Card

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Whether you are buying a home, car or other big purchase item, the first thing a lender will look at is your credit score. Before applying for a major loan, it is important you know where you stand with your credit score. Many people believe that the only way to establish and build credit is by opening and using a credit card.

Here are a few alternatives to help you put the plastic away and establish good credit.

1.) Ask companies to report on your behalf. If you have recurring bills that you pay on a monthly basis (i.e.- rent, utilities, cell phone, etc.) request that these providers report your payment activity to the three major credit bureaus- TransUnion, Experian and Equifax. Of course before you do that, make sure you have a responsible/on-time payment history. Payment history accounts for 35 percent of your credit score and can have significant impact if there is not a lot of other data on your credit report.

2.) Become an authorized user on another credit card. Do this ONLY if the cardholder has a strong credit background. Signing on as an authorized user will enable you to piggy back off their stellar credit.

3.) Open an account with a credit union and take out a small personal loan. Credit unions typically offer financing options at lower interest rates than traditional banks. To give your credit score a boost, apply for a small personal loan. If denied, inquire about a secured loan-where a certificate of deposit or savings account- will be used as collateral. This request will likely be approved because the risk in minimal on the lender’s end.

4.) Apply for an installment loan. These loans paid in a timely manner over an extended period of time build your credit score because they show creditors that you are a responsible borrower.

5.) Federal student loans. A credit check is not required to obtain a federal student loan. Since it is an installment loan, it can help boost your credit score. Aim for one that is subsidized and deposit the money into a safe interest-bearing account so the funds will be available when repayment starts.

6.) Peer-to-peer loans. Companies like Prosper and Lending Club offer peer-to-peer loans, where borrowers are connected with individual investors. The interest rates are low and these lenders report to the major credit bureaus.

7.) Try an alternative credit score. Check out Payment Reporting Builds Credit (PRBC), which helps consumers create a nontraditional credit score, an alternative to the big three credit bureaus.

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

Never Give Debt Collectors Access to This

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Debt collectors are looking to get as much information as they can on a bad or late debt. NEVER, under any circumstances allow them electronic access to your debit card or personal checking account. There have been numerous situations where collectors have taken more than the agreed-upon amount from someone’s account once they have gained access, leaving unsuspecting people without money to pay their rent, the electric bill or even groceries.

Do not be intimidated by the collection company’s threats or lies. There are safer ways to pay off the debt. You can send money overnight or wire the cash to them. You can also send a cashier’s check. You can also invest in a pre-paid debt card that is not attached to any of your personal accounts.

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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, Timothy Kingcade Posts

Five Common Debt Traps and how to avoid them

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Consumer debt stands at more than $3 trillion, according to the Federal Reserve. Below are five of the top debt traps Americans face and how you can avoid them.

1.) Job loss.Unemployment is steadily improving; but the level still remains above 7 percent. Unemployment or underemployment is the number one reason people seek financial counseling. Having an emergency savings fund totaling three to six months’ living expenses can help bridge the gap between jobs, if necessary.

2.) Medical costs. An unexpected illness can be emotionally and financially devastating, even for those with health insurance. It’s tempting to choose lower healthcare coverage to bring down a monthly premium. But those who forgo needed medication to mediate costs can face substantially higher emergency and ambulatory costs. Those with chronic health conditions or medication needs should consider a plan that’s more all-inclusive.

3.) Credit card overuse. When expenses increase and income decreases, many turn to credit cards to cover the difference. When managing credit card debt, pay off the cards with the highest interest rates first.

4.) Loss of a partner. Whether going through a divorce or losing a spouse to an illness, the loss of a partner can be financially devastating. Many times, this loss cannot be predicted. Paying down debt and building savings can provide a cushion if tragedy strikes.

5.) Student loans. The average student loan balance among borrowers is more than $24,000 and 66 percent of all bachelor’s degree recipients incur student loan debt. In some circumstances, student loan payments can be postponed through deferment or forbearance- sometimes these can even be forgiven. Federal lenders also offer extended payment and loan consolidation programs, which can extend the term of the loan and lower your monthly payments.

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

“Dance Mom’s” Star Emerges from Bankruptcy

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It turns out that even celebrities can find themselves facing financial trouble. The popular “Dance Mom’s” star, Abby Lee Miller recently emerged from bankruptcy. The dance instructor, who owns a studio in Pittsburg, filed for bankruptcy on December 3, 2010, claiming assets of about $325,000, but owed more than $400,000.

According to legal documents, Miller got into financial trouble when she fell behind in real estate taxes and her property was nearing foreclosure. She also claimed that business had slowed down at her dance studio. Shortly after filing bankruptcy, the reality show “Dance Moms” which debuted in July, 2011, became her saving grace. Her case was officially discharged on New Year’s Eve and her lawyer confirms that all creditors were paid in full.

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

Ways to Pay Down Holiday Debt Quickly

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With the New Year approaching, many of us are inspired to examine our finances and get our debt under control. Below are some ways to pay down debt you may have accrued over the holidays.

• Create a list. Make a list of holiday expenditures that were paid for with a credit card. Separate the list by credit card and prioritize the debt based on interest rates. Plan on paying the cards off with the highest interest rates, first.

• Stop using your credit cards. Leave the cards at home while you are out to avoid temptation. Even if you earn reward points by using them, stop putting expenditures on these until your finances are under control.

• Use your Christmas bonus check. If you received extra money from your place of employment for the holidays, put it towards your debt. Avoid the temptation to spend it on a luxury item or vacation.

• Sell unwanted gift cards. You can sell your unused gift cards for cash at an online marketplace and use this money to pay off holiday debt. Make sure you read the fine print on each site before doing this.

• Sell unwanted gifts or personal items. Take inventory of personal items and unwanted gifts to sell on sites like eBay or Craigslist. Take quality photos and write captivating descriptions to sell these items quickly.

• Save money by transferring balances. If you are eligible for any 0 percent interest credit card offers, consider transferring your holiday debt over to one of those cards. Make sure you know how much you will be paying in balance transfer fees.

• Make a weekly payment. Do not wait until you receive your statement in the mail. Be proactive in making your debt payment. Have a goal to make weekly payments, instead of monthly payments.

• Change your spending habits. Be prepared to cut back. Tighten your grocery budget and keep household expenditures low. Keep track of how much you are saving each week/month.

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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.