Tag: government shutdown

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

South Florida Bankruptcy Court Surviving Government Shutdown

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The partial government shutdown has had some far-reaching effects, but many of the offices that were affected are still operating despite Congress’s failure to pass a spending bill. South Florida’s Bankruptcy Court is one of those entities that is continuing to operate.

The bankruptcy court has three different locations in Miami, Broward and West Palm Beach, all three of which are still open as usual and will continue to operate.

The court has the ability to remain open due to non-appropriated funding that it receives from sources outside of congressional funding. Because of this funding, business can keep running, and these three offices have remained open with regular business hours.

Here is how the government shutdown has affected the United States Bankruptcy Court for the Southern District of Florida Operations.

The trustee’s office has been able to offer limited staff for tasks, including scheduling Section 341 creditor meetings, making sure that trustees are appointed to cases, handling means testing for bankruptcy cases, and handling emergencies as they have come up.

Section 341 meetings are continuing as scheduled. These meetings are important for ensuring that bankruptcy cases move smoothly and do not get backlogged during the shutdown.  In the event the judiciary does shut down, the court will maintain its online electronic filing system, PACER, for all bankruptcy filings.

Government Shutdown Update: After submitting to mounting pressure amid growing disruption, President Trump signed a bill to reopen the government for three weeks, backing down from his demand that Congress give him money for his border wall before federal agencies get back to work.  Trump said he would sign legislation funding shuttered agencies until February 15 and try again to persuade lawmakers to finance his long-sought wall. The deal he reached with congressional leaders contains no new money for the wall but ends the longest shutdown in U.S. history.

Click here to read more.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

 

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

IRS Will Pay Tax Refunds During Government Shutdown

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The government shutdown has taxpayers nervous about what it will mean for their tax refund.  However, a statement made today by the acting director of the White House Office of Management and Budget, Russel Vought, said the Internal Revenue Service (IRS) will issue refunds even during the government shutdown.

It had been speculated that the IRS would accept tax returns, but refunds would be delayed until the government was fully functioning again. This situation is exactly what happened during previous shutdown contingency plans. However, the administration assured taxpayers that would not be the case this time around.  It is a decision that may reduce political pressure on Congress and President Trump to reach a deal to reopen the federal government.

Last tax season, the average tax refund was estimated at $2,899.  If you are struggling with debt, a tax refund can be your ticket to a fresh financial start and pay for the costs of bankruptcy.

Data from the Administrative Office of the U.S. Courts shows that Chapter 7 bankruptcy filings in March were 26 to 34 percent higher during March, and 15 to 25 percent higher during April from 2013 through 2016.

How do you know if bankruptcy is right for you? Consumers should strongly consider Chapter 7 if any of the following are true:

  • Problem debts, such as credit cards, medical bills or other high-interest loans, account for more than 50 percent of your annual income;
  • You are using credit to pay for everyday expenses;
  • Your credit cards are maxed out with no end in sight;
  • Your wages are being garnished;
  • You are being sued by debt collectors;
  • You are in danger of losing your home.

In the 2018 tax filing season, 18.3 million people claimed $12.6 billion in tax refunds within the first week of filing season alone. This “season,” normally begins at the end of January or early February, considering employers are required to mail W-2s by the end of January.

During shutdowns in years past, the IRS had stated that refunds could not be issued during a shutdown due to the agency’s interpretation of the Antideficiency Act. This act governed what type of work was allowable during a shutdown, which normally only included government work that was necessary to protect life and property. Previously, IRS work was not considered one of those categories.

Click here to read more on this story.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Timothy Kingcade Posts

How the Government Shutdown will affect Bankruptcy Courts

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The government officially began a partial shutdown on December 21, 2018 as a direct result of Congress not being able to enact an appropriations (spending) bill.  Negotiations between congressional Democrats and the Trump administration over the President’s demands for a border wall so far have not yielded an agreement. The bitter negotiations over funding for the border reached a milestone yesterday, now tying for the third longest on record without any end in sight.

Here is how the partial government shutdown will affect the United States Bankruptcy Court for the Southern District of Florida Operations.

  • Until further notice, the Court will continue operations and remain open during regular business hours in all divisions (Miami, Ft. Lauderdale, and West Palm Beach).
  • The Judiciary receives non-appropriated funding outside of appropriated funding from Congress and can continue its normal operations through January 11, 2019.  However, after this date, if there is not a resolution or a final budget set for fiscal year 2019, it can be expected the bankruptcy court will likely close on January 11, 2019.
  • The court’s case management systems – CM/ECF and ECF/Pacer will remain available, even in the event of a Judiciary shutdown.
  • The Miami Office of the U.S. Trustee is temporarily closed due to a lapse in federal funding.  However, a limited number of staff will be available to perform excepted activities (e.g., oversee appointment of trustees, scheduling of Section 341 meetings, perform activities related to means testing, and handle any emergency or urgent matters).
  • Section 341 meetings of creditors will be conducted as scheduled unless further notified.

Click here to learn more.  For the latest updates regarding the government shutdown and the affects it will have on the bankruptcy courts stay tuned to our blog.

If you have 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Timothy Kingcade Posts

When Can I File my 2013 Taxes?

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Due to the government shutdown, the filing date has been pushed back to file your 2013 tax returns. The IRS has announced plans to open the 2014 filing season on January 31, 2014, as opposed to the January 21st date. The government shutdown and the extensive set of ATRA tax changes affected many 2012 tax returns, which led to the late January opening.

The IRS noted several options available to help taxpayers prepare and receive their refunds as quickly as possible.

• Many software companies are expected to begin accepting tax returns in January and hold those returns until the IRS systems open on January 31.

• Taxpayers are encouraged to file their tax returns using e-file or Free File with the direct deposit option to receive their refunds the fastest.

• The April 15 tax deadline is set by statute and will remain in place. To receive an automatic six month extension, you will need to file Form 4868, electronically or through the mail.

Click here to read more on this story.

Bankruptcy Law, Timothy Kingcade Posts

Federal Courts Continue Facing Delays during Government Shutdown

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The government shutdown has delayed civil cases and continues to raise uncertainty about the federal courts immediate future. If the shutdown continues past Thursday, reserve funds that the federal courts have been using since the October 1st start of the shutdown will run out. Criminal cases, bankruptcy cases and most appeals continue to move forward in the system. However, civil cases and those in immigration court are feeling the greatest impact from the shutdown.

Immigration court proceedings are largely shutdown. Rafael Sanchez has been waiting two years to make his case for a green card after he and his family from Bogota, Colombia, overstayed their U.S. tourist visa in 1997. Their New Hampshire court hearing scheduled for October 9th was canceled because of the shutdown. Sanchez’s daughter, a high school senior, is not sure if she will be able to attend college now, as she will not qualify for financial aid without her green card. If the shutdown continues into the second half of October, juror reimbursement funds could run out as well – which would force courts to issue IOUs to jurors for their service.

Click here to read more about the Federal courts’ continued delays during the government shutdown.

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, Foreclosures, Timothy Kingcade Posts

U.S. Federal Courts Remain Open Amid Government Shut Down

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Federal courts will continue to hear and decide cases amid the U.S. government shutdown. Federal courthouses will remain open under the terms of the Anti-Deficiency Act, the federal law that calls for “essential” work to continue in the event that federal funding is frozen. Most judicial services are considered essential- so judges will keep working, legal filings will continue to be processed and federal defenders will continue to be assigned indigent defendants.

However, courts have been encouraged to conserve as much as possible by deferring non-crucial expenses. The first two weeks following the shutdown, the courts will use revenue from filing fees and long-term appropriations that are not part of the annual budget to pay its staffers as normal.

Once those funds are exhausted, employees deemed non-essential would be furloughed without pay. Those considered essential would continue to work without pay, though they would be entitled to retroactive money after the government resumes business. Jurors will also be forced to wait until after the shutdown ends to receive payment for their service.

A memo from the courts’ central administrative office said judges should not prioritize between criminal and civil cases. During a shutdown, courts will eschew non-essential expenses, such as training, purchasing equipment and supplies and paying for travel.

While judges will continue to hear cases, the Justice Department said it will ask to postpone appearances in civil and bankruptcy cases as long as it did not compromise the safety of human life or the protection of property under the terms of the Anti-Deficiency Act. The Justice Department has said that criminal cases would continue to be heard without delay or interruption.

Click here to read more on the effects the government shutdown has on U.S. Federal Courts.

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.

Foreclosures, Timothy Kingcade Posts

How the Government Shutdown Could Hurt Housing Market Recovery

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The improvement in the housing market has been a driving factor for economic recovery. However, the recent government shutdown could impact this. Existing home sales increased 1.7% to an annual rate of 5.48 million units in August, the highest level since February 2007, according to the National Association of Realtors.

The housing market’s path to recovery has not been an easy one. It seems before the housing bubble burst, anyone with a pulse could qualify for a mortgage loan. One of the biggest problems the housing market has faced is extremely stringent lending requirements, which are expected to be compounded by the current government shutdown.
Banks remain risk adverse to issuing new loans in the wake of a financial crisis. In a tight credit market, potential buyers are expected to have a high credit score and put down at least 20% down payment.

To show proof of income, sellers are often asked to provide IRS Form 4506, but the majority of the Internal Revenue Service has been dark since Tuesday after lawmakers failed to reach an agreement on funding the government. There is also a strict IRS loan verification process. If buyers do not meet specific requirements, most mortgage loans cannot be authorized. David Stevens, president and CEO of the Mortgage Bankers Association and a former FHA commissioner, said if the shutdown extends beyond Monday that is when the delays in the mortgage process will really begin. Another hurdle, Stevens points out is that many lenders have to go through the FHA to get a mortgage approved and are unable to verify Social Security numbers because that system is also down- another obstacle for buyers trying to secure a loan.

Click here to read more on the recent government shutdown’s effect on the housing market.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.