Kingcade Garcia McMaken Archives - Page 20 of 25

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips To Help You Keep to Your New Year’s Debt Resolutions

Posted on January 1, 2018by Admin

Some of the most common New Year’s resolutions involve improving one’s health or cutting out bad habits. Some of us want to improve our financial health and paying off debt in the New Year is a common resolution. By taking the right approach and building good financial habits, you can pay down debt in the New Year.

Here are some tips to help you keep your New Year’s debt resolutions:

Know exactly how much you owe. Create an inventory of all your debts. This should include all totals and interest rates. Add these up and see exactly how much you have to pay down.
Break it up into smaller tasks. Focus on the steps you need to take day-to-day to achieve paying off your debt. Figure out how much you can put toward your debt each month by doing a detailed budget. Trim expenses, which will allot you more money to pay off your debt. If you go out to eat four nights a week, see what you would save by cutting it down to just one or two nights a week.
Choose how you will pay off your debt. Consider using the debt snowball method, where you pay off smaller debts first to secure early victories and momentum that will keep you motivated to pay off bigger debts.
Make the most of every dollar. Building a budget is key to any financial plan, but it is absolutely essential when paying off debt. Select a budget that allows you to still live comfortably, while not feeling deprived.
Side hustle. Whether it is freelancing, selling old clothes through consignment, or being an Uber driver, there are a number of ways you can increase your income while still keeping your day job. Here are 26 legitimate side hustles to consider. This additional income can go towards paying off your debt, without having to drastically adjust your lifestyle.
Stay focused and hold yourself accountable. Track your progress and consider using a debt reduction app to help you solidify your new habits and stay on track.

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.

Related Resources:

https://www.usatoday.com/story/money/personalfinance/2017/12/17/how-actually-keep-your-new-years-debt-resolutions/942250001/

https://www.nerdwallet.com/blog/finance/7-tips-for-paying-off-debt-from-people-who-did-it/

Foreclosures, Timothy Kingcade Posts

Foreclosure Myths Debunked

Posted on December 29, 2017by Admin

The thought of losing one’s home is scary, and because the foreclosure process can be complicated there are a lot of misconceptions and myths surrounding it. Here are some common myths disproved.

Foreclosure happens fast. Even though the foreclosure process can happen in as few as 6 months in some states, it is taking much longer to process the average foreclosure. Recently, JP Morgan Chase revealed that their average borrower who loses a home to foreclosure has not made any payments in 14 months nationwide; 22 months in Florida and 26 months in New York. The fact that foreclosure is not happening nearly as fast, gives struggling families who are temporarily down on their luck some time to get back on their feet and figure out a financial plan to save their home.
Buyers cannot get clear title or title insurance on foreclosed homes. Buyers of bank-owned properties in nearly every jurisdiction are protected from later title attacks by foreclosed homeowners by the “bona fide purchaser rule,” under which courts would prefer to simply award cash damages to be paid by the culpable bank to a wrongfully foreclosed-on homeowner, rather than reversing the sale or ownership to the new, innocent buyer.
Having a foreclosure on your credit history means it will take five years before you can buy again. One of the most frequently asked questions from homeowners facing foreclosure or who have just lost their home is how long will it take before they will be able to purchase another home. Until recently, it was assumed that it would take 5 years, minimum, before being able to purchase a new home. However, borrowers can obtain an FHA loan with the low, 3.5 minimum down payment requirement 3 years after foreclosure. Post-foreclosure buyers need a credit score of 620-640 to qualify for an FHA loan. A foreclosure itself will diminish a consumer’s credit score by 100-150 points. Former homeowners who want to purchase again need to ensure they have no other late payments or credit dings after they lose their home.

Click here to read more on this story.

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 McMaken website at www.miamibankruptcy.com.

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

Exceptions to Paying Tax on Forgiven Debt

Posted on December 28, 2017by Admin

If you recently had debt forgiven or negotiated down last year, you likely breathed a sigh of relief. However, if you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount as income on your tax return, depending on the circumstances. Before you write a check to the IRS, see if you qualify for one of these exceptions to paying tax on forgiven debt.

Debts discharged in bankruptcy. If you filed for bankruptcy protection, you do not have to pay tax on the canceled debt.
Mortgage debt forgiven due to foreclosure. Originally set to expire after the 2012 tax year, the Mortgage Forgiveness Debt Relief Act protects you from having to pay tax on debt forgiven when you lose your home in foreclosure. The deadline has been extended several times, most recently in December 2015 to include the calendar years 20017 through 2016. And in early 2017, a bill to grant another exemption was introduced to Congress.
Debts canceled when you were insolvent. This is the most common exception, because debt is generally only cancelled when debtors are “insolvent” (i.e. – completely broke). This exclusion only applies up to the amount by which you are insolvent.
Student loans forgiven after you have worked for a period of time. If your student loans contain a loan forgiveness provision based on service in your profession, do not include the canceled debt as income. In addition, certain federal student loans that were discharged by the U.S. Education Department’s “Defense to Repayment” or “Closed School” discharge process are exempt. These apply to students at Corinthian Colleges and American Career Institutes Inc.
Forgiven interest that would have been deductible. For example, interest on a business debt. You are not required to pay tax on the portion of the debt due to interest, if you could have deducted the interest if you had paid it. However, if it was interest on a personal credit card- you must pay taxes on all the forgiven debt, including the interest.
Cancellation of debt as a gift. If the cancellation of debt is a gift, it is not income. Generally, the IRS will believe you if you say the debt payoff was a gift between parties such as family members or friends.
Business and farm exceptions. You may not have to pay tax on canceled debt if it was in connection with your farm or if the debts were tied to business real estate and were forgiven when you owed more money than the property was worth.

Related Resources:

https://www.creditcards.com/credit-card-news/six-exceptions-paying-tax-forgiven-debt-1282.php

https://www.irs.gov/newsroom/home-foreclosure-and-debt-cancellation

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

What You Can Expect at the Bankruptcy Meeting of Creditors

Posted on December 27, 2017by Admin

The meeting of creditors, also known as the 341 hearing, is a meeting with the bankruptcy trustee and creditors who choose to attend the hearing. The trustee is the individual responsible for administering your bankruptcy estate and ensure that you did not leave any assets or property off your bankruptcy papers and your reported income is accurate.

Before the meeting of creditors, it is important that you carefully review your bankruptcy petition with your attorney to ensure every entry is accurate.

Here is what you will need to bring to the meeting of creditors (341 hearing):

Your bankruptcy papers;
Proof of income;
Recent bank statements and investment account information;
Your photo id;
Your social security card;
If documentation was required for any expenses under the Means Test, bring those as well;
Additional documentation the trustee requests in the Notice of Meeting of Creditors or required by the local courts.

The meeting of creditors is held in a meeting room, not a courtroom. The trustee will be there, not the bankruptcy judge and creditors may attend, although in many bankruptcy cases creditors do not show up. The trustee will swear you in and ask you some of the following questions. You will be required to answer the questions under oath.

How did you come up with the value for big ticket items, like your house or car?
Do you anticipate receiving any tax refunds?
Have you transferred any property within the last year?
Does anyone else hold property that belongs to you?
Do you anticipate receiving an inheritance or life insurance payout in the future?
Will you be receiving any property as a result of a divorce in the next year?
Do you have any legal claim for money from a business or another entity?
Do you have any possible claim against someone because of a recent accident?
Have you made any recent large payments to relatives or creditors?
Does anyone owe you money?

Related Resources:

http://www.alllaw.com/articles/nolo/bankruptcy/what-expect-meeting-creditors-341-hearing.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Beware of these Holiday Debt Traps

Posted on December 22, 2017by Admin

The holidays are officially here and if you have some last minute shopping to do this weekend, make sure and avoid these common holiday debt traps. Last year shoppers took on an average of $1,003 worth of debt, up from $986 in 2015. The merriment and excitement of holiday shopping can be replaced with anxiety and fear of debt in the New Year.

Keeping up with the Joneses. The pressure to purchase the latest and greatest holiday gifts ranging from expensive electronics to brand new cars all contribute to holiday debt. From the tree, to elaborate light displays and decorations, if not limited to a budget can all leave you with debt in the New Year.

Hot holiday toy crazes. On average, parents plan to spend $495 per child, according holiday shopping data from Rubicon Project. When the ‘must-have’ toy items start to run out, prices increase. Plan accordingly, and budget throughout the year for holiday spending.

Store credit cards. Avoid store credit cards at all costs. The 10% off the day of purchase can have big consequences if a single payment is missed on one of these cards, such as 29.99 percent APR.

Holiday parties. Hosting hordes of holiday visitors and entertaining guests can cost hundreds of dollars, not only adding to your grocery bill, but your utilities in the month of December.

Indulgent spending. The problem is that many consumers do not plan for holiday spending. Sometimes, they mentally plan to go into debt. We advise planning ahead for the next season, start checking items off the list in February or in the summer months when fewer people are buying and prices are lower.

Related Resources:

http://www.wbir.com/article/money/magnify-money/watch-out-for-these-holiday-debt-traps/507-493900752

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Federal Trade Commission Bans Three Scammers from Posing as Debt Collectors

Posted on December 14, 2017by Admin

A settlement has been reached with three defendants who allegedly posed as lawyers and falsely threatened to sue consumers, even have them arrested for failing to pay on debts they did not owe. The settlement resolves an FTC complaint filed in July 2017, alleging that the defendants told consumers they were attorneys or calling from a law firm and that a lawsuit had been filed or would soon be filed against them for an unpaid debt. We originally wrote a blog on the topic, entitled: FTC Shuts Down Debt Collector for Allegedly Threatening Lawsuits.

The FTC alleged the defendants Hardco Holding Group LLC, S&H Financial Group Inc. and Daryl M. Hall (DBA- Alliance Law Group) threatened consumers with prison time and claimed police would show up at their home and arrest them if the debt was not paid. The threats and harassment on the so called, “phantom debt” are all a violation of the Fair Debt Collection Practices Act (FDCPA).

According to the settlement order, the defendants are banned from ever participating in debt collection activities, buying or selling consumer or commercial debt, and trading in consumer information related to a debt. They are also prohibited from making misrepresentations about any product or service, profiting from consumers’ personal information obtained from any debt collection activities, and failing to dispose of consumers’ information properly. The order imposes a $702,059 judgment that will be partially suspended upon the surrender of certain assets.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Reasons to File Bankruptcy before Divorce

Posted on December 13, 2017by Admin

Financial stress caused by the way couples view and spend money can ultimately lead to divorce. If you are facing both of these issues, does it make sense to file for bankruptcy or divorce, first? The bottom line: Divorce will most likely not make the financial pressure go away, oftentimes it compounds it.

Here are some reasons why you should file bankruptcy before divorce.

You will save money filing jointly. If you are still married, you can file your bankruptcy case together. This will allow you to pay one court filing fee, one set of documents and scheduling, one meeting of the creditors and one attorney fee.

Filing for bankruptcy together will free you of any liability on joint debt. If you file for bankruptcy before divorce you will be off the hook for paying joint debt acquired during the marriage. However, if you file for divorce first and receive a divorce settlement, you may still be responsible for some (or all) of the joint debt. Essentially, you may have to cover your spouse’s liability.

Filing jointly doubles the exemption amounts. When you file for bankruptcy, you are allowed to keep some property in order to regain a fresh start. These exemption amounts are usually limited or capped. However, if you file a bankruptcy case with your spouse, in most states you and your spouse will each be able to claim a full set of exemptions.

It saves you time. If one spouse files for bankruptcy in the middle of the divorce case, the bankruptcy judge may take jurisdiction of any property settlements, which can cause delays. Filing a joint bankruptcy will eliminate most (if not all) unsecured debt, such as credit cards, medical bills and personal loans for both spouses, allowing the divorce to go much smoother when negotiating debt and property division.

It reduces stress. Eliminating debt and reducing financial pressures can in turn reduce stress in the marriage. If the marriage ultimately cannot be saved, it can help the divorce proceed more amicably.

Keep in mind, if your spouse files for bankruptcy before or during the divorce case and you do not, you may ultimately be responsible for all of the marital debt. This is because your spouse used the bankruptcy case to eliminate his or her liability on your joint debts.

Related Resources:

https://www.thebalance.com/six-reasons-to-file-bankruptcy-before-the-divorce-316343

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Reasons to Delay Your Bankruptcy Filing

Posted on December 12, 2017by Admin

Bankruptcy can be used as an effective tool to take back control of your financial future and get out from under insurmountable debt. However, sometimes it is best to delay filing your bankruptcy case. Here are some reasons you should do so.

You recently took on additional debt. If you took on additional debt right before filing, there is a chance that debt will not be discharged in your bankruptcy case. If you took on the debt knowing you could not repay it or intended to file for bankruptcy, the debt could be considered fraudulent. Certain debts can be exempt from a bankruptcy discharge. These include:

Cash advances of at least $925 taken out within 70 days before filing bankruptcy;
Charges of $650 or more to any one creditor for luxury items made within 90 days before filing bankruptcy.

You recently sold, gave away or transferred property. If you sold or gave away property two years before filing for bankruptcy, the trustee will scrutinize the transaction. They do this to prevent the person who is filing for bankruptcy from putting the property in the hands of someone else. These might be gifts or they may be transferred intentionally to get them out of the bankruptcy case (i.e. – fraudulent transfers).

You expect your income to decrease or your expenses to increase soon. To qualify for Chapter 7 bankruptcy, your financial circumstances are applied to the Means Test. This test compares your income and expenses against national and local norms to determine if you have the means to pay at least a portion of the debt. The higher your income the more likely you are to have difficulty qualifying for the Means Test. Sometimes depending on your financial circumstances and the timing, it might make sense to wait until the figures used to calculate the Means Test are most favorable. It is important to work with a professional who has the skill and experience to evaluate all aspects of your financial situation and to build a strategy for your bankruptcy case that meets your specific needs.

Related Resources:

https://www.thebalance.com/four-reasons-to-delay-filing-your-bankruptcy-case-316336

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

Wells Fargo Faces Penalties over Ignoring Student Loan Debt Included in Bankruptcy

Posted on December 11, 2017by Admin

An important legal victory was recently obtained for a borrower attempting to discharge a student loan debt. Ryan, the consumer, filed for bankruptcy and following the bankruptcy Wells Fargo Bank sued Ryan and obtained a state court judgment to collect on the debt.

Ryan had attended Capella University, a for-profit school. In the case, Educational Financial Services, a division of Wells Fargo Bank, made the argument the loan was not actually discharged in the 2007 bankruptcy. When Wells Fargo sued Ryan in State Court to collect on the student loan debt they made no mention of Ryan’s previous bankruptcy and discharge.

Ryan felt pressured to enter a consent judgment over the debt in 2008 and made monthly payments of $150 on the loan for the next seven years. Frustrated, he sought legal help to reopen his previous bankruptcy case and his attorney raised the valid point, “that the loans from Wells Fargo were discharged by operation of law on November 29, 2007, because the loans were not a student debt protected by any subsection of Section 523(a)(8).”

The issue at hand was if Ryan’s discharge had been violated because the loans were not student loans under Section 523(a)(8).

“Given Wells Fargo’s actual and constructive knowledge of the timing of the Plaintiff’s loans, the “cost of attendance” at Capella University, and the nature of the Loans it extended to the Plaintiff, Wells Fargo knew or should have known that the Loans were discharged in the Plaintiff’s bankruptcy,” the complaint states.

The Judge ruled that even though Ryan had previously repaid the debt through the State Court judgment he was not prevented from reopening his bankruptcy and filing an adversary proceeding to rule on the discharge of his non-protected private student loan debt.

This is why it is important for anyone who includes student loans in a bankruptcy to pursue an adversary proceeding to get a ruling on the dischargeability of the loans, a key step which is often overlooked.

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. 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, 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Hurricanes could bring with it another disaster: Foreclosures

Posted on December 8, 2017by Admin

As life returns back to normal for the hurricane ravaged parts of Florida, Texas and Puerto Rico, housing and consumer experts are warning of another crisis looming: The threat of foreclosure. Legal aid groups are working with borrowers who are struggling to make their current mortgage payments on homes made uninhabitable by the storm, while paying rent somewhere else.

Approximately, 4.8 million mortgaged properties were in the eye of Hurricanes Harvey, Irma and Maria, representing nearly $746 billion in unpaid principal balances, according to financial data firm Black Knight. In September, the number of loans that were more than 30 days past due rose 48% in Irma-affected areas and 67% in Harvey-affected areas, according to Black Knight found. The numbers have not been run yet for Puerto Rico.

For many homeowners, months of postponed payments were suddenly due all at once after that grace period ended, creating an overwhelming financial burden.

Click here to read more on this story.