Kingcade Garcia McMaken Archives - Page 14 of 27

Chapter 7 vs. Chapter 13 Bankruptcy. Which option is right for you?

Posted on June 27, 2019by Admin

There are two types of bankruptcy available to consumers who are struggling with debt- Chapter 7 and Chapter 13 bankruptcy. Choosing the right one is critical to success in eliminating your debt. Below is a comparison guide to help you best decide which bankruptcy is right for you.

Chapter 7 is a form of liquidation and it is often considered the most straightforward type of bankruptcy. Consumers are essentially given a financial fresh start, oftentimes within three months of filing.

Contrary to the bankruptcy myths surrounding Chapter 7, it does not mean you will lose your home, car or retirement savings. In most Chapter 7 cases, filers do not have assets above the legal threshold, which is set by state law and therefore they do not have to lose anything- only their debt. If a person is filing for Chapter 7 bankruptcy in Florida, they can use Florida’s bankruptcy exemptions to protect valuable property.

Chapter 13 restructures your debt into an affordable repayment plan. The debtor’s obligations are combined into one monthly payment to the bankruptcy trustee, which is then distributed to the creditors. Chapter 13 takes into account your income and expenses, the amount of your debt, the types of debt, and even your property value when setting the repayment plan. If you are behind on your mortgage payments, Chapter 13 allows you to get caught up on these payments and save your home from foreclosure.

Chapter 13 plans can last anywhere from three to five years, but most are five-year plans.

If you are struggling to keep up with your Chapter 13 payments, or have recently lost your job or become ill, Chapter 13 may no longer be the right option for you. You can convert a Chapter 13 bankruptcy to a Chapter 7 bankruptcy at any time if you become eligible. Many of our clients are surprised to discover they never have to go to court or see a judge in order to convert their Chapter 13 filing to a Chapter 7.

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 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

How to Time Your Bankruptcy Filing

Posted on June 26, 2019by Admin

Deciding when to file for bankruptcy can be a complicated one. Many times, it makes sense to delay filing for bankruptcy, while other times it makes sense to file right away. In some situations, people are able to work out a plan to pay off their debt without having to file at all. If someone is struggling with making that determination, a bankruptcy attorney can help talk that person through his or her life situation and can help the individual decide when a good time would be for filing for bankruptcy.

Modifying a Mortgage

Bankruptcy is often used as a means of delaying foreclosure. In a Chapter 13 bankruptcy case, a bankruptcy filing will often allow the person to catch up on past-due payments while continuing to make current ones. However, sometimes a mortgage modification may be all the filer needs to hold onto his or her home. If the person files too quickly, he or she may have a harder time obtaining a modification of the mortgage. In fact, once a bankruptcy case has been filed, many lenders will not even talk to the borrower in terms of negotiations over the mortgage. If the borrower is anticipating a mortgage modification, it may be best to wait before filing for bankruptcy.

Income Qualifications

If someone is wanting to pursue a Chapter 7 bankruptcy case, he or she will need to pass the “means test” requirements set by the bankruptcy courts in Florida. If the filer’s income is too high, he or she will be prevented from pursuing a Chapter 7 liquidation bankruptcy case. Not passing the means test does not necessarily mean the person cannot pursue any type of bankruptcy. The filer may still qualify for a Chapter 13 bankruptcy plan, which requires him or her to repay a portion of the qualifying debts over a three to five-year period. The means test calculates the person’s income over a period of several months. Therefore, if the person’s income has dropped recently, he or she may still be able to qualify for Chapter 7 by holding off on filing for a few months.

Keeping Certain Property

Many times, the filer may have certain property that he or she would lose in a Chapter 7 bankruptcy case, such as an incoming tax refund. If the case is filed too soon, that tax refund may be liquidated and used to pay off certain debts. If the potential filer expects a large income tax refund, he or she may wish to hold off on filing for bankruptcy temporarily and use that money to pay for living expenses over the course of a few months before filing. However, make sure that the expenses being paid with this refund are for necessities and not luxury items. Otherwise the bankruptcy trustee may see the filer as trying to conceal or hide this income before filing. Also, this situation only matters for property that does not fall under an exemption, including the personal property exemption for Florida filers.

New Incoming Debts

If the filer anticipates some additional debts coming in the near future, it may also be wise to hold off on filing for bankruptcy. For most cases, a Chapter 7 bankruptcy case will only liquidate debts the filer has as of the date the petition was filed. Any debt that is incurred after the date of filing will stay with the filer after discharge. If the filer anticipates a major medical expense that will result in debt or necessary home improvement expense, it may be best to wait for filing until after that expense has been incurred, making it possible for that debt to be discharged.

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.

Related Resources:

https://www.nolo.com/legal-encyclopedia/file-bankruptcy-or-wait-29955.html

Bankruptcy Law

Miami Bankruptcy Attorney Timothy S. Kingcade Named a Florida Super Lawyer 6 Consecutive Years

Posted on June 11, 2019by Admin

Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade Garcia McMaken has been selected for inclusion in Florida Super Lawyers 2019, in the practice area of consumer bankruptcy. This is the sixth consecutive year Kingcade has been selected to the Florida Super Lawyers list (2014-2019). The prestigious honor is awarded to only five percent of lawyers in the state.

Attorney Kingcade practices exclusively in the field of bankruptcy law, handling Chapter 7 and Chapter 13 filings for the Southern District of Florida. As an experienced CPA and proven bankruptcy attorney, Timothy Kingcade knows how to help clients take full advantage of their rights under the bankruptcy laws to restart, rebuild and recover.

Super Lawyers is a listing of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement, representing the top 5 percent of Florida lawyers. The annual selections are made using a patented multiphase process that includes a statewide survey of lawyers, an independent research evaluation of candidates and peer reviews by practice area. The result is a credible, comprehensive and diverse listing of exceptional attorneys.

###

Miami-based Kingcade Garcia McMaken, P.A. was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade Garcia McMaken, P.A. specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

Bankruptcy Law

Kristina Gonzalez of Kingcade Garcia McMaken Named a 2019 “Rising Star” by Florida Super Lawyers

Posted on June 11, 2019by Admin

Attorney Kristina Gonzalez of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade Garcia McMaken has been selected for inclusion in Florida Super Lawyers 2019 as a Rising Star in the practice area of consumer bankruptcy.

The list recognizes the top up-and-coming attorneys in the State of Florida, who are 40 years of age or younger, or those who have been practicing law for 10 years or less. A select group of 2.5 percent of attorneys are named to the prestigious Rising Stars list.

Gonzalez has been licensed to practice law in the State of Florida since 2011. She is a graduate of the University of Florida Levin College of Law and practices exclusively in the field of consumer bankruptcy law, handling Chapter 7 and Chapter 13 filings for the Southern District of Florida.

###

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

What Trump Has Done to Undermine Student Loan Debt Reform

Posted on September 6, 2018by Admin

Student loan debt has skyrocketed since President Trump took office. In fact, the amount of student loan debt has increased by $110 billion in the last 16 months to a total of $1.41 trillion nationwide. It is currently estimated that 45 million Americans have student loan debt and this figure is up two million since Trump’s inauguration.

Not only has the number of student loan borrowers increased rapidly, but actions taken by the Trump administration have raised major red flags with those who have fought for student loan reform for years. The Trump administration has methodically dismantled effective debt relief reforms set by the Obama administration in their efforts to curtail abusive lending practices.

During the Obama administration, the student loan industry was forced to give back approximately $750 million in what was found to be abusive marketing and collection practices targeting student borrowers.

Further, the Department of Education Secretary appointed under Trump, Betsy DeVos, has been moving to eliminate Obama-era rules that penalize lenders who engage in abusive student loan debt collection practices.

One of the major changes made by the Trump administration was through the reorganization of the Consumer Financial Protection Bureau (CFPB) and its student loan office. The administration argued this reorganization was routine and made no major change to the agency.

However, one of the major changes was made to the student loan debt office’s watchdog or ombudsman function. This specific office was created to address payment difficulties student loan borrowers were facing. By the time the borrowers got to the point where they were reaching out to this office, they were fielding numerous phone calls, many of them harassing and threatening, as well as lawsuits and collections cases. Other borrowers accused lenders of misleading them about any eligibility for debt relief programs, assistance that is meant to lower the borrower’s payments or have their loans forgiven.

The student loan office was key in a major lawsuit against Navient, Inc., a major student loan service provider and former division of Sallie Mae. Navient was accused of convincing borrowers to go into expensive repayment plans without telling them of more reasonable and cost-effective options. A trial date has not yet been set, which leads many to question whether one will ever be set.

Click here to read more on this story.

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. There are ways to file for bankruptcy with student loan debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all 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

Credit Card Debt Increasing at An Alarming Rate for the Floridians

Posted on September 5, 2018by Admin

Credit card debt is a problem for many Americans across the country, but for Floridians, this problem is growing at what experts say is an alarming rate. According to recent figures released by the credit reporting agency, Experian, Floridians are using their credit cards more than ever, increasing their debt at the nation’s second fastest rate.

The State of Nevada tops the list of states with the highest credit card rate, but Florida is a close second. In fact, credit card balances have increased 8.59 percent as compared to the same time last year. Currently, the national average is at 6.58 percent, and Florida’s rate is well above this national average.

According to Experian, credit card debt nationally is at an all-time high, reaching $786 billion by the end of 2017. It is up 6.7 percent from 2016. The average American holds a credit card balance of $6,354. The use of store credit cards, mortgage debt and debt overall also increased approximately three percent.

Credit card debt can be a slippery slope and is one of the most common problems facing those with serious financial issues. With exorbitant interest rates, fees and penalties, making only the minimum payment does not even begin to make a dent in the total balance.

Credit card companies design fee and repayment structures to keep you from ever getting out of debt. An unexpected job loss or serious medical diagnosis, even a trip to the emergency room can put significant financial strain on individuals and families who are already facing mounting credit card debt.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Tax Debt will Affect Passport Renewals and Applications for Thousands of Americans

Posted on August 3, 2018by Admin

Americans who have overdue tax debts will soon find it difficult to receive a new or renewed passport, according to the Internal Revenue Service (IRS). It is estimated that approximately 362,000 Americans have overdue tax debts, and soon, Congress will be increasing efforts to enforce a law passed back in 2015.

The 2015 law requires that the IRS and State Department deny applications for new or renewed passports for taxpayers who have overdue tax debt in the amount of $51,000 or more.

Increased efforts to enforce this law began in February 2018, according to a recent Wall Street Journal report. Currently, the IRS is in the process of sending the names of these 362,000 individuals to the State Department.

According to the IRS Division Commissioner, Mary Beth Murphy, authorities are currently only denying passports rather than revoking them for people who hold excessive IRS debts. In fact, the State Department has stated that the agency has already denied passports for individuals who hold tax debts. For the time being, Americans with over $51,000 in tax debt will be able to continue traveling abroad if they hold current passports.

The IRS has accounted for inflation and other assessed penalties, taxes and interest when calculating the amounts owed. These amounts do not include debts that were collected by the IRS, such as FBAR penalties due to the person’s failure to report foreign financial accounts or child support owed. If the taxpayer has entered into an agreement for installment payments, is in the middle of a bankruptcy proceeding, is a victim of identity theft or is in a federally declared disaster area is not subject to revocation of their passports.

The State Department is within its rights to issue a passport for emergencies or other humanitarian reasons should a U.S. citizen who is subject to this law need to return to the U.S. from overseas. Individuals affected by the law will be notified in writing by the IRS.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Attorney Timothy S. Kingcade Obtains Successful Win for Bankruptcy Client

Posted on July 30, 2018by Admin

Second Motion to Dismiss Granted & Hearing Cancelled due to lack of evidence to support the claims

Bankruptcy Attorney Timothy S. Kingcade, founding partner of Miami-based Kingcade Garcia McMaken successfully obtained an Order for his client in a Chapter 7 case, granting a Second Motion to Dismiss and cancelling a hearing scheduled for July 25, 2018.

“We are extremely pleased with the victory obtained for our client today. The allegations stated in the Complaint lacked sufficient evidence to support the claims. It was simply assumed that actions taken by Torres and PSI petroleum, LLC assigned liability to our client, without providing sufficient and specific allegations. The law was on our side in this case,” Kingcade said.

On March 5, 2018, the Plaintiffs in the case: Milan Gohil and GMC Law Firm, PLLC filed an adversary proceeding seeking a judgement against the Defendant. The complaint alleged three counts: (1.) False Pretenses, Fraud & Nondischargeability; (2.) False Financial Statements & Non-Dischargeability, and (3.) GMC Law Firm Claim for Attorney’s Fees. The Order Granting the First Motion to Dismiss included a provision that allowed the Plaintiffs to file an amended complaint, and on May 6, 2018 the Plaintiffs filed an Amended Complaint to Determine Dischargeability of Debt. On May 18, 2018, Defendants filed the Second Motion to Dismiss stating the plaintiffs did not plead their claims for relief as required by law.

A court “weighing a motion to dismiss asks ‘not weather a plaintiff will ultimately prevail but whether the claimant is entitled to offer evidence to support the claims.’” (quoting Scheurer v. Rhodes). Federal Rule of Bankruptcy Procedure 7012, adopting Federal Rule of Civil Procedure 12, authorizes the court to dismiss a complaint that fails to state a claim upon which relief may be granted.

The Order directs the Second Motion to Dismiss be granted, all pending motions are denied as moot and the hearing on July 25, 2018 be cancelled.

###

Miami-based Kingcade Garcia McMaken was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade Garcia McMaken specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

For more information visit, https://www.miamibankruptcy.com/.

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

Miami Residents Carry Second Highest Credit Card Debt Balance in the Country

Posted on July 5, 2018by Admin

Credit card debt is a problem for many people and breaking the cycle can be even more of a challenge. While no one specific timeline works for every person when it comes to paying off credit card debt, it can take years of dedication and regular payments above the minimum to finally pay off a credit card. According to a recent study, it takes the average Florida resident around two years to get out of credit card debt.

The study published by CreditCards.com reported that people living in the Miami metro area, which includes both Fort Lauderdale and West Palm Beach, carry the second-highest credit card debt balances in the country, second to San Antonio, Texas. Texas was reported as being a state with three of the five cities that reportedly had the highest credit card debt.

According to the study, Florida residents holding this much credit card debt would need an estimated 21 months to pay off the current card balance. Those living in San Antonio were reported as only needing one more month, meaning 22 months, to bring the balance to zero.

The CreditCards.com study reviewed median income across the country to average credit card debt by taking data that was provided through the credit reporting company, Experian. The data looked at high debt burdens when the balance on the card was significantly high as compared to the residents’ income being reported as average or below average.

At the opposite end of the spectrum, San Francisco, a well-known area for residents living with higher-than-average income, was reported as having the lowest-reported credit card debt. The average San Francisco resident can pay off his or her debt in 13 months. The reason that debt can be paid off so quickly is the average San Francisco resident earns enough income to pay off this debt comfortably.

Other cities that reported lower debt burdens included Minneapolis, Boston, Seattle and Washington, D.C.

The report indicated that the size of the debt was not so much the problem in the Miami area but rather the debt-to-income ratio. \South Florida residents are taking on more credit card debt than they have the income to handle.

The CreditCard.com study is not the first one that had reported that many Miami-area residents suffer from low income and high financial obligations. An additional report recently shows that Miami residents paid the highest proportions of their income on rent than any other area in the nation. In fact, it has been reported that the Miami-area is one of the least affordable places to live in the nation.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

10 Things Debt Settlement Companies Won’t Tell You

Posted on May 17, 2018by Admin

When facing overwhelming debt, it can seem like there is no way out, the thought of a third-party debt settlement company coming in and negotiating down the debt can seem like a dream come true. While it can be tempting to jump at this offer, there are several important facts that debt settlement companies will not tell you.

It is important to first understand what makes a debt settlement company different from the normal credit counseling service. A debt settlement company assists in negotiating down the individual’s debt. To qualify, the individual must stop making payments on any debts. All of the late fees, interests and penalties will continue to grow during this time, and the debtor will make payments to an escrow account held by the debt settlement company. When a specified amount has been saved, the company contacts your creditors and tries to get them to accept a lower amount to settle the debt.

If it seems too good to be true…

The consumer facing mounds of debt is able to settle the case for less than what he or she owed. In return, the debt-settlement company collects fees from the consumer for having to negotiate the debt. However, like many things that sound too good to be true, it is not always that easy. In fact, the consumer can end up in a much worse financial situation than they were in before. The debt settlement company, on the other hand, comes out earning fees on the payments made by the consumer. Many times, the consumer will never end up seeing the light at the end of the tunnel and will end up filing for bankruptcy anyway. In the meantime, he or she has been making payments in an escrow account, while accruing fees and costs accumulate.

Debt settlement is not an easy process.

The individual has to basically stop paying his or her bills and let all debt go into delinquency or default. The money that would be going towards the debt goes towards the debt-settlement firm and into an escrow account. By stopping payments on current debts, the creditors are supposed to be fooled into believing they will never receive payment, which will make them desperate to take a lower settlement. However, until that happens, it does not mean the collections efforts will stop. The creditors will want to receive payment and will continue doing anything they can to receive it. The debt settlement firm cannot stop the calls from coming, and they cannot stop the collection efforts during all of this.

Debt-Settlement Companies Cannot Ask for Upfront Fees

In 2010, the Federal Trade Commission made it illegal for for-profit debt-settlement companies to charge upfront fees. Firms are not allowed to collect fees from the consumer before they have settled the debts. If the company is settling debts one debt at a time, fees can be collected on that settled amount, but they are not allowed to ‘front-load’ fees.

There are other alternatives to debt relief.

Other debt-relief options are out there. Credit counseling is available, and many non-profits offer education for consumers on how to get rid of debts. Debt management programs offered through non-profit credit counseling services are also available. Additionally, if all else fails, bankruptcy is an available option. It helps to sit down with a bankruptcy attorney to discuss the possible options, as well as the best ones for the specific debtor.

Debt-Settlement Will Not Save Your Credit Score.

The fact that the consumer simply stops paying his or her credit cards, letting them go delinquent means that the individual’s credit is going to take a hit. Even missing a payment for 30 days means that the consumer’s credit score is going to get hit. Once that happens, it can be hard to get it back.

The Consumer May Still End Up Filing for Bankruptcy.

When all is said and done, the debtor may end up back at the point where he or she would have ended up had he or she not sought debt-settlement. The bankruptcy process provides some protections for debtors that debt-settlement does not. All collection efforts stop with the automatic stay, including the fees from accruing. Also, the Chapter 13 bankruptcy process allows a more structured way for the individual to pay back the debt.

Not All Debt Will Be Settled.

It is possible that the debt-settlement company may not end up settling all of the debt. They normally deal with liabilities that are unsecured, like credit cards, medical bills and unsecured loans. Debts that have collateral attached to them, such as mortgages or car loans, can be a little more difficult. Creditors are not under an obligation to work with debt-settlement companies, which is why many debts end up not being successfully settled.

Debt Settlement Lawyers Do Not Represent You.

Many debt-settlement firms will tell consumers that their attorney represents them in negotiations with the creditors. However, half the time that means the attorney is basically letting the debt-settlement company utilize their letterhead. Most of the time, the attorney on the letterhead will never truly represent the consumer, and consumers should never assume or rely on false promises that they are legally protected by representation.

You don’t need them.

One big issue debt-settlement companies do not want you to know is that you can do this alone. Nothing prevents a consumer from negotiating a settlement directly with the creditor. Many consumers are actually successful in working with creditors on a mutually-beneficial solution, independent from third-party intervention.

Prepare for Tax Consequences.

The Internal Revenue Service considers debts that are forgiven, cancelled or discharged to be taxable income. If a consumer is successful in reducing or paying off their debts through settlement, they may still owe taxes for the amount that has been written off. In fact, consumers will receive a 1099-C form for any debt that applies as income, and this will need to be reported as gross income for taxes. The only exception to this rule is for taxpayers who are insolvent, meaning they owe more than they own.