Senator Gary Stanislawski introduced a bill to the Oklahoma state legislature, which would make it illegal for debt collection companies to try and collect on debt that has exceeded its statute of limitations, otherwise known as, “zombie debt.” The purpose of the bill is to make it illegal for collection companies to collect this type of debt. The bill would also require collection companies to present proof that they own the debt and can legally collect on it. Another term of the bill would create a requirement that debtor’s information be passed to the entity that purchased it.
The debt collection companies who purchase “zombie debt” from credit companies tend to pay very little for this type of debt. For this reason, even if the collection companies are only able to receive a small payment amount from the debtor, they are still making a substantial profit from this practice. If passed, the bill will help those individuals being harassed for debt that they legally no longer owe.
To read more on this story visit: http://www.chapter7.com/ok-bill-would-ban-collection-of-zombie-credit-debt/
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.
Tag: Kingcade and Garcia
Florida Bill to Speed up Foreclosure Process
A bill to speed up the foreclosure process is on the fast track to becoming a law in the State of Florida. So far, the majority seem to be in support of the bill. However, many Florida attorneys and government officials see several problems if the bill becomes a law. The bill is intended to speed up the foreclosure process for homes that have been abandoned or in cases which the defendant is unable to prove a legitimate reason they should not lose their home in a “show cause” hearing. If the individual is unable to prove his or her case, the bill will allow the lienholder to immediately file a judgment of foreclosure on the home.
Another way the bill would change the foreclosure process is that banks will no longer be able to file a deficiency judgment for more than one year. A deficiency judgment is how much debt is still left after the property is resold. Currently, banks may file a deficiency judgment for up to five years.
Critics of the bill see a problem due to the fact that Florida courts have always ruled that when homeowners are absent from their homes, the homes are not considered “abandoned.” Another criticism with the bill is that homeowners who lost their homes due to fraudulent foreclosure practices are only able to receive monetary compensation and have no chance of repossessing their homes. However, the most substantial problem with the bill, deals with the “show cause” hearing. Attorneys say that it is difficult to prove a defendant’s case because there is typically very little time and that most initial court documents filed are false, but it is impossible to tell they are false.
If the bill is passed, it will go into effect July 1, 2012. The law will apply to any future and current foreclosures that are making their way through the system.
To read more on this story visit: http://www.palmbeachpost.com/money/foreclosures/bill-to-streamline-foreclosures-moves-one-step-closer-2203415.html
Choosing the right attorney can make the difference between whether or not you can keep your home. A well qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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, P.A. website at www.miamibankruptcy.com.
“Dirty Dozen” of 2011
Every year the Internal Revenue Service (IRS) issues a list called the “Dirty Dozen.” The “Dirty Dozen” consists of the twelve most commonly used tax scams and fraudulent tax crimes of the previous year. The IRS urges all taxpayers to use caution, due to this being the most prevalent time these scams are carried out.
Below is a list and short description of each scam.
• Identity Theft is the most common tax scam and due to evolving technology, it is quickly becoming the most complex scam for the IRS to track. Thieves are collecting personal and financial information, then proceeding to file and collect tax refunds. The IRS was able to protect $1.4 billion from being wrongfully issued in 2011, in various identity theft schemes. If a taxpayer is issued a statement that more than one return has been filed, this is a red flag and the taxpayer should contact the IRS immediately.
• Phishing is a scam that is typically carried out by the use of a fictitious e-mail account. The scam artist will create an email address that will trick taxpayers into disclosing their personal and financial information, and then use this information to collect tax refunds in their name. In some cases, the scam will claim to be the IRS or an affiliate in need of personal information. Taxpayers should be aware that the IRS would never initially approach anyone through e-mail. Such e-mails should immediately be reported to the IRS at phishing@irs.gov.
• Return Preparer Fraud is a commonly used tax scam. Many taxpayers use a preparer to file their tax returns and some are scammed out of their refunds due to return preparer fraud. Two common ways preparer fraud is committed is by “skimming off” the refunds belonging to taxpayers and also some preparers charge inflated fees. Starting in 2012 there is a requirement for any preparer to enter an identification number before filing another persons’ tax return, to try to reduce the potential for fraud.
• Hiding Offshore Income is a way many wealthy Americans have gotten away with tax evasion. Americans hide a large portion of their income in offshore accounts and use mostly wire transfers to access their money. Those who commit tax evasion by hiding income offshore can be charged fines and penalties and can be criminally prosecuted by the federal government. In 2009 due to the Offshore Voluntary Disclosure Program, about 30,000 Americans came forward and cleared themselves of their tax evasions.
• “Free Money” scams are typically targeted towards the lower income sector of taxpayers and the elderly. Scam artists approach taxpayers with hopes of free money due to refunds from their social security checks. These individuals are then scammed out of their own money for the services to submit these refunds, when their claims are ultimately rejected.
• Inflated Income and Expenses are another tax scam where taxpayers claim income that was not earned or they inflated the actual amount of income in order to collect a larger sum in their refund. In other cases, taxpayers falsely claim expenses to collect a refund on them.
• False Refund Forms such as a 1099 are typically filed to justify a false refund. Many taxpayers are under the impression that the government has a secret account to issue refunds for U.S. citizens if these forms are filed. This can ultimately result in penalties and criminal prosecution.
• Frivolous Arguments is a type of scheme taxpayers who owe the government large sums of money typically try to use in their court cases. Taxpayers are allowed to contest their tax obligations, but the use of false or unreasonable claims in court can result in cases being thrown out.
• Falsely Claiming Zero Wages is a tax scam used to reduce the amount of taxes the taxpayer owes.
• Abuse of Charitable Organizations and Deductions is another scam where certain organizations claim donations of a non-cash asset at an over-valued price to ultimately collect on it.
• Disguised Corporate Ownership is a scam conducted by the formation of a third party to try and hide the ownership of the corporation. These entities are used to hide assets, income and report false deductions. Many are also used to enable money laundering.
• Misuses of Trusts are a way to evade taxes by promising a reduction of income that would be subject to tax. Some of the uses are legal however many times the IRS has found that many use this to hide assets.
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.
Kodak Files for Chapter 11 Bankruptcy
Eastman Kodak Co. and its U.S. subsidiaries recently announced the company was filing for Chapter 11 bankruptcy protection. Kodak will use the protection of Chapter 11 bankruptcy as a time for reorganization and transformation.
Filing Chapter 11 bankruptcy will allow Kodak to keep many of its assets and continue operations such as the distribution of goods and services to consumers, throughout the filing process. Kodak released a statement explaining they intend to “bolster liquidity,” in the United States and abroad. The news release went on to explain that Kodak intends to work with its stakeholders to shift the company’s focus to its most valuable commodities.
As part of the transformation, Kodak has decreased its workforce by 47,000 since 2003. The company has also taken steps such as closing 13 manufacturing plants and 130 processing labs. The company hopes to emerge from the transformation as a more digitally operated company.
To read more on this story visit: http://abcnews.go.com/blogs/business/2012/01/kodak-files-for-chapter-11-bankruptcy/
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.
Banks Propose $25 Billion Deal to U.S. State Officials to help Victims of Deceptive Foreclosure Practices
The five major mortgage lending banks, Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial have proposed a deal to U.S. state officials that could re-shape the structure of mortgage lending and better protect homeowners from foreclosure malpractice.
Since the housing market crash of 2007, almost eight million American homes have been foreclosed on. A reportedly 11 million homeowners in America owe more than half of what their home is currently worth. Under the proposed deal, those who are eligible will receive a check for approximately $1,800, but it is doubtful they will get their homes back. The purpose of the reserve accounts will be to help those who have been victims of deceptive foreclosure practices.
Under the proposed $25 Billion deal:
• $17 billion would go toward reducing the principal that struggling homeowners owe on their mortgages.
• $5 billion would be placed in a reserve account for various state and federal programs; a portion of that money would cover the $1,800 checks sent to those homeowners affected by the deceptive practices.
• $3 billion would be to help homeowners refinance at 5.25 percent.
To read more on this story visit: http://abcnews.go.com/Business/wireStory/25b-nationwide-mortgage-deal-states-15421108#.TyGfg5jl1SU
Choosing the right attorney can make the difference between whether or not you can keep your home. A well qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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, P.A. website at www.miamibankruptcy.com.
Reuters Reports a Major Surge in Consumer Credit Spending
Reports show that U.S. consumer credit spending increased approximately 10 percent towards the end of 2011 in both revolving credit, such as credit card use, and non-revolving credit, such as major loans. This is the highest increase since 2001. During November 2011, outstanding revolving credit increased about $5.6 billion, while non-revolving credit, such as student and auto loans increased by about $14.78 billion. The government lending out student loans has reportedly made the largest increase, raising 31.9 percent. This generated an increase of $6.4 billion from student loans, alone.
There are many speculations as to the reasons behind this surge of consumer credit use. Some economists attribute this surge to consumers being willing to risk spending because they are more comfortable with their financial stance than they have been in the past. It is also said the recent consumer credit surge may be a sign that U.S. consumers are being forced to use their credit cards to fund ‘necessary expenditures.’ In contrast, other economists believe the increase in consumer credit spending is a result of banks instating new fees on debit card use and the attractive ‘cash back’ bonuses offered by credit card companies.
To read more on this story visit: http://www.reuters.com/article/2012/01/10/us-usa-economy-consumercredit-idUSTRE80823O20120110
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.
Recent Ruling could have major implications on Florida Foreclosures setting Precedent for Similar Cases
A recent ruling in Wellington, FL could have major implications on foreclosure proceedings statewide. The ruling from the 4th District Court of Appeal ruled in favor of the owners of a Wellington home whose bank filed papers sworn by a loan service employee who had no personal knowledge of the case.
This decision reversed an earlier ruling stating the homeowners owed more than $400,000 to LaSalle Bank. The amount was based on an affidavit of indebtedness signed by an employee who obtained the information from a company computer.
The decision hits at the essence of the nation’s foreclosure robo-signing scandal in which tens of thousands of foreclosure court documents were signed by people swearing they had personal knowledge of cases when they did not. From July 2010 to June of this year more then 100,000 foreclosure cases were dismissed in Florida courts often because lenders did not file important paperwork properly.
To read more on this story visit:
http://www.palmbeachpost.com/money/foreclosures/ruling-in-wellington-case-could-further-complicate-florida-1826227.html
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, P.A. website at www.miamibankruptcy.com.