Tag: Miami bankruptcy attorney

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

The Student Loan Crisis Facing Older Americans

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When we think of those struggling with student loan debt, we typically think of millenials still living with their parents.  However, many boomer parents are struggling, too.  According to a report from the federal Consumer Financial Protection Bureau (CFPB), older Americans are carrying an “unprecedented amount of student loan debt into retirement.”

In 2015, older consumers owed an estimated $66.7 billion in student loan debt.  Nearly 867,000 borrowers 65 and older owed federal student loans in 2015, now the fastest growing segment of student loan borrowers.

With these new findings, it seems the education debt crisis and retirement are closely tied.  A growing number of older borrowers are struggling to make their loan payments, oftentimes due to reduced incomes in retirement.

A growing number of federal student loan borrowers age 65+ had their Social Security benefits reduced or offset because of unpaid student loans – 8,700 in 2005 and 40,000 in 2015.   The vast majority of the older borrowers, approximately 73%, took out student loans to finance their children’s or grandchildren’s education.  Many of these loans were taken out under the Parent PLUS Loan Program, with a current interest rate of 6.31%, the only federal program that allows parents to borrow for the undergraduate education of their children.

Here are some tips for older borrowers struggling with student loan debt:

If you have co-signed your child or grandchild’s student loan, request the servicer send you an account statement so you can learn the outstanding balance and pay off the loan.

If you are struggling to make federal student loan payments, you may qualify for a payment plan that can substantially cut your costs.  For example, if you retire and your income drops substantially, you can apply for an income-based repayment plan.  This could reduce your payments and even suspend them.

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, 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, Debt Relief

Medical Debt Collection Firms Ordered to Pay $577K for Threatening Consumers

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Two medical debt collection firms must refund hundreds of thousands of dollars after they were caught falsely claiming there were attorneys involved in the collection actions. Two Oklahoma-based law firms, both named Works and Lentz, misled consumers by exaggerating the extent to which actual “lawyers” were involved in the collection attempts.

The companies involved in the case attempt to make collections on 700,000 accounts annually, collecting medical debt on behalf of hospitals, doctors, and other healthcare providers.  From January 2012 to August 2016, every letter sent to the alleged debtors was printed on the firm’s letterhead, giving the impression that a legal action was pending.

Approximately one month after the letter was sent out; Works and Lentz assigned the account to a manager who contacted the debtor, representing themselves as a law firm.

In addition, when consumers called the firm back, they were greeted with a message stating, “You have reached Works & Lentz, Attorneys at Law.”  The letters sent out to consumers ended with a computerized signature of an individual attorney with the title, “Attorney at Law.”   The Consumer Financial Protection Bureau alleges that in most cases there was never an attorney who reviewed the collection accounts.

As specified in The Fair Debt Collection Practices Act, it is illegal for firms to use false, deceptive or misleading representations or means to collect a debt, including using false implication that any individual is an attorney or that communications are from an attorney when they are not. This law was designed to protect consumers and help prevent creditor abuse and harassment.

In addition to misrepresenting that they are attorneys, the CFPB alleges that employees of Works and Lentz provided information to credit reporting agencies related to consumers’ debts without verifying the information was correct.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, 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, 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, Debt Relief, Timothy Kingcade Posts

Student Victims Seek to Become Creditors in ITT’s Bankruptcy

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Five former ITT students have taken matters into their own hands by petitioning a federal bankruptcy court to consider student loan forgiveness as part of the school’s liquidation.  The now defunct Corinthian Colleges or ITT Educational Services left students with worthless degrees and mountains of student loan debt.  Because tax payers backed most of these loans, the Department of Education has been reluctant to forgive them.

For years federal regulators allowed ITT schools to keep operating, even though they were well aware of the company’s questionable practices. For example, ITT had been under investigation by the Education Department since 2014, and state regulators had accused it of misleading students about the quality of its programs and their job potential upon graduation.

The Consumer Financial Protection Bureau filed a lawsuit against ITT nearly three years ago, accusing the chain of predatory student lending. But even with all of this evidence it hasn’t helped former students of the college discharge their student loan debt.

ITT filed for bankruptcy last year after the Education Department cut off the school’s access to federal student aid. At the time, the company operated 137 campuses in 39 states.  The company was successful for years, thanks to the revenues from federal student aid. Over the past 10 years, ITT students took on over $7 billion in debt; roughly $1 billion were private loans.

In a first of its kind approach, student loan borrowers will be at the table, not just banks and regulatory agencies fighting over ITT’s assets.  They in fact contributed to the creation of assets at ITT. The five former ITT students involved in the suit are seeking to establish themselves and other former ITT students as creditors in the company’s bankruptcy. Typically a company’s creditors are people or entities to whom it owes money.

ITT reported assets of $389 million and liabilities of $1.1 billion to the bankruptcy court. The company had also deposited $94 million in escrowed funds with the Education Department before it collapsed. That money could go toward some loan forgiveness.

The company’s assets include almost $80 million owed by ITT students who were enrolled at the time of the bankruptcy filing or who had withdrawn funds within the previous 90 days.  Some of the $80 million is likely from students who never even had the opportunity to attend a class because of the school’s collapse.

The lawyers fighting on behalf of the students hope the judge will make a legal finding that ITT violated state consumer protection laws. This would make it easier for the students to get their loans canceled by the Department of Education.  The lawyers in the case are also requesting that the five students’ claims be asserted on behalf of all former ITT students.

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, 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, Debt Relief, Timothy Kingcade Posts

A WIN for Bankruptcy Filers on Means Test Expense Issue

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In the case Lynch v. Jackson, No. 16-1358 (4th Cir. Jan. 4, 2017), the two debtors filing for Chapter 7 bankruptcy complied with Form 22A’s instructions to list their expenses using the IRS National and Local Standard amounts rather than their actual expenses, which were less.

The bankruptcy administrator moved to dismiss their case as “abusive” under section 707(b)(2)(A)(i). Section 707(b)(2) permits a debtor to take the full National and Local Standard amounts for expenses even though the debtor’s actual expenses are less. The bankruptcy court denied the motion to dismiss.

The administrator argued that Form 22A’s instructions were erroneous and that the expense deduction amounts listed in the IRS Standards represent a cap on how high an expense amount may be claimed for certain expenses, but that if the actual amount is less, the debtor must use the lesser amount.

The Fourth Circuit found the answer in the plain language of the statute: “[t]he debtor’s monthly expenses shall be the debtor’s applicable monthly expense amounts specified under the National Standards and Local Standards. 11 U.S.C. § 707(b)(2)(A)(ii)(I).”

The fact that Congress used the word “actual” elsewhere in the same statute indicates that it made a distinction between applicable and actual. The court also recognized how outlandish it was to punish a frugal debtor should the bankruptcy administrator’s interpretation of the statute be accepted.

Click here to read more on this case.

If you are in financial crisis and considering filing for bankruptcy, 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, 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, Debt Relief, Timothy Kingcade Posts

Select Portfolio Servicing Accused of Violating Telephone Harassment Law

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Debt collector, Select Portfolio Servicing, Inc., is being sued for violating telephone harassment statutes.  A consumer filed the complaint in the U.S. District Court for the Southern District of Florida alleging that the debt collector called his cell phone hundreds of times in an attempt to collect a debt.  The plaintiff alleges he suffered damages when he received more than 350 collection calls after he demanded the company stop contacting him.

Select Portfolio Servicing, Inc. allegedly used an automatic telephone dialing system to contact the plaintiff in this case.  The plaintiff is requesting a trial by jury, $1,000 in statutory damages, actual damages, all attorney fees paid, and any additional relief the court deems appropriate.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, 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, 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.

Click here to learn more about the Fair Debt Collection Practices Act (FDCPA), designed to help prevent creditor abuse and harassment.

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

Student Loan Borrowers Increasingly Turning to Bankruptcy to Alleviate Debt

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Those struggling with student loan debt often do not see a way out.  The stress of monthly payments is causing more graduates to put off things like marriage and buying a home.  However, a new trend is helping alleviate the pressure: filing for bankruptcy.

Since March there have been a number of bankruptcy courts that have allowed borrowers to discharge their private student debt thanks to the vague wording in the definition of a student loan.

Bankruptcy law states that a borrower cannot discharge a loan that was for an educational benefit without proving “extreme hardship.” An increasing amount of students are arguing that their loans fall outside of this debt category because they attended a college that was not accredited or used loans that were taken out for the purposes of studying for a test like the bar exam.

This is an argument borrowers would not be expected to win, but in recent cases some judges have agreed with the borrower.

An example of this is a 37-year-old woman who filed for bankruptcy in 2014 and was able to discharge the unpaid portion of a $15,000 Citibank loan she needed to study for the bar exam. U.S. Bankruptcy Court Judge Carla Craig ruled that loan debt for bar exams is comparable to consumer debt and does not fall into the category of student loans that remains with a borrower even after bankruptcy.

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, 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, Debt Relief

Congress May End Tax Benefits on Inherited IRA’s in the New Year

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Retirement accounts may soon be taking a major hit from the IRS, if Congress decides to change the rules on a tax strategy involving inherited IRAs.

Under the current rules, people who contribute to an IRA and do not end up needing the money for retirement are able to pass the account to their heirs.  The money is then allowed to keep growing tax-deferred throughout the heir’s lifetime, with minimal taxes due on withdrawals.

However, the Senate Committee on Finance voted 26-0 to put an end to the ability to stretch an IRA across generations, putting trillions of dollars of legacy wealth in danger of being taxed.

Second to the home, retirement accounts are a household’s greatest source of wealth.  Individuals who inherited traditional IRAs have been able to profit from one of the biggest benefits of the tax code, allowing the tax-deferred balance to continue compounding for years.  The ability to transfer that wealth to second and third generations will be put in jeopardy with this legislation.

The proposed legislation comes after the Supreme Court ruled unanimously that inherited IRAs are not “retirement funds” under the bankruptcy code and are not entitled to exemption from a debtor’s bankruptcy estate.

The proposed law does not apply to surviving spouses.  Surviving spouses may either roll the money over into another retirement account or spread the taxes due on the account across their lifespan.

The proposed rule would not affect Roth IRAs because taxes on those accounts have already been paid with after-tax income by the account owner. Taxes on traditional IRAs are deferred until the account owner begins making withdrawals to cover living expenses during retirement. Heirs are required to continue making annual withdrawals from the inherited account and pay taxes on those withdrawals. The new rule would dramatically speed up the pace of those withdrawals.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, 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, 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, Debt Relief, Timothy Kingcade Posts

Sycamore Attorney Charged with Bankruptcy Fraud

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Kevin O. Johnson, also known as “K.O. Johnson,” was indicted by a federal grand jury on charges of bankruptcy fraud.  He is charged with four counts of bankruptcy fraud and four counts of making a false oath in a bankruptcy case under penalty of perjury, fraudulently withholding information pertinent to the case and concealing assets.

Johnson, whose practice included bankruptcy law, filed a Chapter 7 Bankruptcy Petition on Dec. 31, 2011.  The indictment alleges that Johnson fraudulently concealed property from the bankruptcy trustee, creditors, and the United States Trustee, including complete information of about $1,790,000 of account receivables owed to Johnson by his present and former clients.

The indictment also charges Johnson with the following:

  • Failing to comply with a court order requiring him to turn over all proceeds from the collection of account receivables;
  • Having directed clients not to send any payments to the Bankruptcy Trustee and asking clients to sign misleading documents about the nature of payments they made, despite Johnson knowing that all future account receivable payments were required to be made to the Trustee;
  • Making false statements concerning his security interests and liens on the $1,790,000 of account receivables;
  • Removing invoices and fee agreements from client files;
  • Obstructing the Bankruptcy Trustee by omitting a bank account used to deposit a check received in payment of an account receivable owed to Johnson at the time he filed for bankruptcy.

Each charge in this case carries a maximum penalty of up to five years in prison, and a fine of up to $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.  The Court may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years.

Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to conceal assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you list in a subsequent bankruptcy filing.  In addition, you can face serious fines, even jail time.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, 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, 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, Debt Relief, Timothy Kingcade Posts

Take These Steps to Prepare for Tax Filing Season

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With tax season right around the corner, the IRS recommends taxpayers take the following steps to prepare.

Individual Tax Identification Number: Filers who have expired Individual Tax Identification Numbers (ITIN) are likely to experience processing delays. If your ITIN expires on December 31st, 2016, you can renew your ITIN at any time by submitting the accurate documentation such as a W-7 and valid ID. The requirements needed to renew your ITIN are listed at www.IRS.gov/ITIN.

Refunds: According to a new tax law, the IRS cannot issue refunds before February 15th. Taxpayers should be advised not to count on receiving their refunds any earlier. However, you can file your tax return before February 15th. You can also check the progress of your return by visiting the Where’s My Refund page.

Adjusted Gross Income: If you are preparing your own taxes this year and plan to file electronically, you will need to know your Adjusted Gross Income (AGI) from the previous year or your prior-year Self-Select PIN. You can no longer use an electronic filing PIN when filing electronically. You can find your AGI from your 2015 federal income tax return on line 37 of the form 1040; line 21 of the form 1040-A; or line 4 of the form 1040-EZ.

Protection: The IRS has upgraded its identity verification process in order to protect taxpayers from impersonations and account takeovers. As a result, it is better if you prepare to register early on the Secure Access page in advance.

Click here to read more on the steps to prepare for tax filing season.

If you are in financial crisis and considering filing for bankruptcy, 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, 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, Debt Relief, Timothy Kingcade Posts

How to Keep Debt Collectors from Ruining Your Holiday

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It is important for consumers to know that if you do not want to deal with a delinquent account over the holidays, you don’t have to. You can request the collection agency stop calling you.  Under The Fair Debt Collections Practices Act (FDCPA) a debt collector must cease contact with you if you send a written request to do so.

However, it is important to note that this request does not eliminate your debt.  The outstanding bill can still end up on your credit report and the collector can elect to seek a judgment against you to recoup the debt, which could result in wage garnishment and further damage to your credit report.

That is why it is important to try and negotiate a payment plan with the debt collector. Doing so can prevent them from taking further action against you.  Make sure and have the collector put your agreement in writing and mail it to you.  Another tip: if you have an unpaid bill that has not yet gone to collections, you may want to reach out personally to the creditor.  They may be willing to waive fees, lower the interest rate or settle the debt for less than you owe.  Many creditors wait up to 90 days before turning a debt over to collections.

Finally, if you truly do not owe the debt or you think a debt collector has crossed the line, you can consult a consumer attorney about whether you have a FDCPA claim and what your next steps should be. Remember, when it comes to debt collectors, it helps to know your rights. If you believe a debt collector is violating the law by calling you outside the allowed times or by calling more frequently than they should, after you have asked them to stop calling or have sent a cease and desist letter, you can report them to the Consumer Financial Protection Bureau and your state Attorney General.

At the law firm of Kingcade & Garcia we want you to have a safe and Happy Holiday this year!   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, 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://blog.credit.com/2016/12/can-a-debt-collector-call-me-during-the-holidays-163536/