Miami bankruptcy attorney Archives - Page 78 of 100

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The 4 Critical Mistakes that Lead Businesses to Bankruptcy

Posted on September 29, 2016by Admin

We have all seen the headlines of some of the largest retailers filing for bankruptcy. From Sports Authority to popular brands like Aeropostale and Pacific Sunwear, these are just a few of the apparel players that have filed for bankruptcy this past year.

According to experts, a variety of factors have played a part in these business bankruptcies. Here are four missteps that lead businesses to financial collapse.

Failure to adapt. While e-commerce has created an exciting new environment for brands and retailers to promote and sell their apparel, difficulties with adaptation have hurt businesses that lack the support and expertise to manage change in today’s digital and mobile arena. Teens and millennials are driving a massive migration online and are also less brand-focused than previous generations.
Expanding too soon and high real estate costs. There is a good reason why closing stores is often the first line of defense in a retail bankruptcy and restructuring plan. These excessive brick-and-mortar expansions can destroy profit margins across the board, and retail analysts say U.S. retail is at the peak of over-expansion. Expensive rents played a key role in the collapse of Sports Authority and Pacific Sunwear. PacSun successfully emerged from bankruptcy this month after reducing its debt, closing some of its stores and negotiating lower rent.
Outdated business concepts. Not keeping up with the times can cost a business (and a brand) dearly. A number of businesses file for Chapter 11 bankruptcy because their concept is no longer of interest or their consumers’ tastes have changed. On the other hand, there is the issue of “oversaturation,” where a marketplace becomes too competitive and there is an overabundance of similar businesses and products.
Poor mergers and ownership challenges. The past year and a half has brought a strong wave of mergers-and-acquisitions, particularly in the footwear and apparel industry. Who owns the business plays a big role. Is it a family-owned business that has a vested interest in keeping the company going or is the business owned by a private equity firm, who owns a variety of other businesses? In the case of Sports Authority it was said that new ownership played a pivotal role in the company’s downfall.

If you 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://footwearnews.com/2016/business/retail/bankruptcy-chapter-11-brands-retailers-mistakes-reasons-business-analysis-258911/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What happens to my car when I file for Chapter 7 bankruptcy?

Posted on September 28, 2016by Admin

In most cases, when you file Chapter 7 bankruptcy you have the option to either keep your vehicle or surrender it to the lender. If your vehicle is paid off, you will likely be able to keep it after filing for bankruptcy- as long as its value is below your state’s vehicle inspection amount.

If you are still making payments on the vehicle, you have two options: (1) you can return the car to the lender and assume no liability, or (2) you can keep the vehicle and continue making payments on it.

If you choose to keep your vehicle, you will have to prove to the court that it is in your best interest to do so. Probably the easiest way to keep a vehicle that you still owe money on during in bankruptcy is through redemption.

With redemption, you pay the trustee the current value of the vehicle in one lump sum. This is a beneficial option for those who are underwater, because the filer only has to pay the current value of the car, even if the loan amount is greater.

For example, if you still owe $10,000 on your car loan, but the vehicle is only worth $6,000, if you pay $6,000 to redeem the car, you will not be responsible for the remaining loan balance.

If you are current on your payments, but cannot afford to redeem your vehicle, you can continue to make payments by entering into a reaffirmation agreement. The lender will then send you an agreement that may be similar to the original loan contract.

At this time, with the help of an experienced bankruptcy attorney, you may be able to negotiate a better deal. The lender knows that you have the option to surrender the car and assume zero liability. This usually gives them an incentive to at least get some money out of the car.

A hearing will then be scheduled to determine whether or not the reaffirmation agreement is in your best interest. In making the decision, the judge will consider your income, the value of the car and the amount you still owe on the loan. This is important, because the whole point of filing for Chapter 7 bankruptcy is to eliminate the burden of debt.

Related Resources:

https://www.autocreditexpress.com/blog/your-car-in-chapter-7-bankruptcy/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How to deal with ‘old’ debt

Posted on September 21, 2016by Admin

When a debt exceeds the statute of limitations, it is referred to as “time-barred debt.” That means creditors cannot legally sue you. But they may still try. They may continue contacting you. It is important you proceed with caution, because the practice of debt collection has many pitfalls.

Perhaps you never took out the debt, that the collector has the wrong amount or that you already paid and the collection attempt is a mistake.

A debt collector should send you a validation notice within five days of first contacting you. This notice should include the debt owed, the amount, date of last payment, who the collector is and how to request information on the original creditor. If you do not receive this notice within 10 days after the debt collector first contacts you, ask for it.

Challenge it!

If you are being asked to pay a time-barred debt that is not yours, that was already paid off or invalid, you can write the creditor to dispute the debt.

You have 30 days from first contact to challenge the debt before it is deemed accepted by default. If you dispute the debt within this window, debt collection efforts must stop until the issue is resolved.

Be as specific as possible in your letter. Say why the debt collection attempt is invalid, including information about payment history or why the debt may not be yours and any other relevant information. Send the letter by certified mail so you get confirmation of receipt.

If for any reason you feel the debt collector has violated your consumer rights, file a complaint with the Consumer Financial Protection Bureau or the Federal Trade Commission.

The Fair Debt Collections Practices Act (FDCPA) originally enacted in 1978 requires that debt collectors provide consumers with certain basic information such as the amount of debt owed and the name of the creditor to whom the debt is owed. A lesser-known requirement of the FDCPA says debt collectors must give consumers a 30-day notice to dispute the debt before it is assumed as valid.

Pay it off- but proceed with caution.

Although you may think paying a little bit of the debt owed will get the creditor off your back, it can make things much worse. Making even a single payment on time-barred debt can bring it back from the dead and reset the statute of limitations. In some states, even if you pay as little as a $1, you will reactivate the entire debt and you can be sued for the original debt plus fees.

If you want to pay off the debt, you have several options:

Pay in full with a lump sum;
Work with the creditor to set up a payment plan;
Make an agreement to settle the debt by paying a portion.

If you pay the debt in full, make sure the collector sends you a confirmation in writing. Hold onto this in case the payment is not properly recorded or the debt gets sold, again.

Discharge the debt through bankruptcy.

If you feel the debt is just too much to pay off or you want to rid yourself of the debt for good, you could file for Chapter 7 bankruptcy. After filing, you are likely to see your credit scores improve.

Steps to take if you are sued.

Creditors may sue you even though a debt is past its statute of limitations.

The most important thing: DO NOT ignore the lawsuit. Ignoring it will likely lead to an automatic judgment against you and result in wage garnishment. Consider talking with an attorney about how to proceed, and gather all documents you have proving that the debt is time-barred.

Related Resources:

http://www.latimes.com/business/la-fi-expired-debt-20160917-snap-story.html

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Former NBA player Darius Miles Files for Bankruptcy

Posted on September 19, 2016by Admin

NBA players can earn salaries to last a lifetime. But that is not the case for former NBA player, Darius Miles who entered the NBA in 2000 with a $2.8 million starting salary. This was followed by a cover appearance on Sports Illustrated and a lucrative endorsement contract with a major shoe company. The former Clipper, Cavalier, Trail Blazer and Grizzly also appeared as an actor in two movies, alongside Scarlett Johansson in “The Perfect Score” and Ryan Reynolds in “Van Wilder.”

But this kind of story is not uncommon. In fact, National Basketball Player’s Association (NBPA) Vice President Adonal Foyle pointed out that 60 percent of ex-NBA players file for bankruptcy within five years of their retirement.

Some 16 years later, and nearly eight years after playing his final NBA game, Miles is filing for bankruptcy. The 34-year-old made nearly $62 million during his NBA career.

In a filing statement, Miles listed $460,385 in assets and $1.57 million in liabilities. He claims that a number of poor investments led to his financial demise.

Debts listed in his bankruptcy filing include a: $20,000 child-support debt and a poor $100,000 investment in a California real estate deal in 2008. He also highlighted a separate real estate deal with fellow investors, former NFL Rams player Marshall Faulk and rapper Nelly.

Discovered when he was only in high school, Miles showed enough potential to be selected No. 3 overall in 2000.

Related Resources:

http://sports.inquirer.net/222970/former-nba-player-darius-miles-declares-for-bankruptcy

http://sports.yahoo.com/news/former-preps-to-pros-nbaer-darius-miles-files-for-bankruptcy-211023845.html

Credit, Timothy Kingcade Posts

Thousands of Wells Fargo Employees Fired over Phony Accounts

Posted on September 13, 2016by Admin

Wells Fargo employees secretly created millions of unauthorized bank and credit card accounts without customer consent, according to federal regulators. The phony accounts, some dating back to 2011, caused the bank to accumulate unwarranted fees and allowed Wells Fargo employees to boost their sales and increase profits.

“Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses,” Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), said in a statement.

Wells Fargo confirmed to CNNMoney that it had fired 5,300 employees over the last few years related to the unethical behavior. Employees went so far as to create phony PIN numbers and fake email addresses to enroll customers in online banking services, the CFPB said.

In addition, Wells Fargo employees submitted applications for 565,443 credit card accounts without their customers’ knowledge or consent. Approximately 14,000 of those accounts incurred more than $400,000 in fees, including annual fees, interest charges and overdraft-protection fees.

Wells Fargo has agreed to pay “full restitution to all victims.” As part of the settlement, Wells Fargo must make changes to its sales practices and internal oversight. The bank agreed to pay $185 million in fines, along with $5 million to refund customers.

Even though the Wells Fargo scandal took place nationally, the settlement in L.A. requires the bank to specifically alert all of its California customers to review their accounts and terminate ones they do not recognize or want.

Click here read more on this story.

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Wells Fargo and U.S. Trustee Program Reach Mortgage Settlement

Posted on September 8, 2016by Admin

The U.S. Trustee Program recently announced that it has reached an agreement with Wells Fargo Bank requiring the bank to pay nearly $3.5 million in remediation to 8,000 homeowners in Chapter 13 bankruptcy.

The settlement arose in the Chapter 13 case of Ernestine C.J. Green, filed Nov. 30, 2011. Chapter 13 bankruptcy allows individuals receiving regular income to obtain debt relief while keeping their home. To do so, the debtor must propose a plan that uses future income to repay all or a portion of his or her debts over a three to five year period.

A debtor with a home mortgage can continue to pay the mortgage, or sometimes the Chapter 13 trustee appointed in the case pays the mortgage with income provided by the debtor’s earnings. Mortgagees or mortgage servicers are required under Bankruptcy Rule 3002.1 to file and serve notices when the mortgage payments change during the course of the Chapter 13 case.

The previous settlement in November 2015 contemplated that Wells Fargo would engage an independent reviewer to identify potential systemic issues in the bank’s operations.

“That compliance monitoring led to the discovery of a deficiency in Wells Fargo’s processes and procedures relating to the certificates of service filed with the PCNs” between 2011 and 2016, Jane Limprecht of the USTP told Bloomberg BNA. The deficiency caused “thousands of homeowners” to receive their change notices with fewer than the 21 days notice required before payment changes could take effect, she said.

The new settlement will provide refunds and credits to affected consumers, and Wells Fargo is required to change its procedures to prevent the problem from happening, again.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Bankruptcy Filings Increase in August Breaking the Trend

Posted on September 7, 2016by Admin

Nationwide bankruptcy filings were a little higher in August 2016 compared to a year earlier, breaking an ongoing trend of decline. Bankruptcy filings totaled 68,495 in August, which was an increase from July’s total of 61,340, and was approximately 1.1 percent higher than August 2015’s total of 67,777 (an increase of 718).

Year-to-date, there have been 528,397 bankruptcy filings nationwide for the first eight months of 2016 (about 66,049 per month), down from 2015’s year-to-date total through the end of August of 562,579 (about 70,322 per month), according to August 2016 AACER bankruptcy data reported by Epiq Systems.

August’s total of 68,495 bankruptcy filings was just over half of the peak total for the month of August recorded in 2010 of 135,771. The state with the highest cumulative filings for the first eight months of 2016 was California with 49,564. Illinois was second in year-to-date filings with 36,371. The next three states with the most cumulative filings were Georgia (30,751), Florida (30,640), and Ohio (24,986).

Click here to read more on this story.

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

The collapse of ITT Tech gives former students a chance to wipe out their student loan debt

Posted on September 1, 2016by Admin

Students who graduated or dropped out of ITT Technical Institute may be the biggest winners in the federal government’s aggressive actions against the for-profit school. The Education Department’s sanctions on the Carmel-based ITT Educational Services Inc. allow past students to take advantage of the “defense to repayment” rule that can wipe out their student loans.

Federal law gives the Education Department broad discretion to forgive student loans for borrowers who claim they were defrauded or that their college violated state laws. The government recently made the case that ITT has done just that and is inviting former students to request what could amount to hundreds of millions of dollars in loan forgiveness.

The “defense to repayment” rule applies to all former students with federal loans, but does not cover private loans.

Another piece of good news- The Education Department is simplifying the claim process for borrowers. The defense to repayment rule falls under the U.S. Higher Education Act. It has existed for years, but received little attention until recently.

The Education Department has already forgiven more than $4.2 million in loans from more than 2,000 Corinthian College students who claim they were defrauded by the for-profit chain. Students at other for-profit colleges, such as Brown Mackie College, which is closing most of its campuses, will likely have a strong case as well due to the precedent set by Corinthian.

ITT has been ordered to begin working with other colleges to facilitate transfers for students. Anyone already enrolled in ITT can continue to access federal loans if they want to finish their program. If ITT closes, the Education Department has said it will forgive current students’ loans.

Here are some ways you can submit a claim:

Go online: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/borrower-defense

Email your claim: FSAOperations@ed.gov

Mail your claim: U.S. Department of Education, PO Box 194407, San Francisco, CA 94119

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, Student Loans, Timothy Kingcade Posts

Credit Card Use Increasing Among Consumers with Low Credit Scores

Posted on August 30, 2016by Admin

According to the latest quarterly report on household debt, credit cards are making a comeback in a big way. In the second quarter, total household debt increased by $35 billion to $12.3 trillion. The two driving factors: auto loans and credit cards.

While auto loans have been on a steady incline for the past six years, rising credit-card balances are a new development. After the 2007 Great Recession, households cut back on credit-card use until 2014. This was also in part to financial institutions strengthening credit requirements for risky borrowers.

Since that time, card balances have risen by about $70 billion. From 2008 to 2013, total household debts dropped by more than $1.5 trillion. However, first student loan and auto loan balances began to rise, and then mortgages and finally credit cards.

The report reveals that credit cards are returning among individuals with low credit or subprime credit scores below 660. Among people with credit scores between 620 and 660, the share that had a credit card increased to 58.8% in 2015 from a low of 54.3% in 2013. Among those with scores below 620, the number of people with a credit card increased to 50% from a low of 45.6% two years ago. Both figures for 2015 are the highest since 2008.

These figures were generated from the New York Fed’s Consumer Credit Panel that analyzed millions of consumer credit reports from Equifax.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

5 Times you should Never Use a Credit Card

Posted on August 29, 2016by Admin

Using a credit card responsibly is an excellent way to boost your credit score, build your credit history, track spending, even take advantage of cash-back and other reward programs. However, if you are unable to pay your bill off every month the high interest rates will cost you.

Here are five times you may want to put the credit card away and opt for another method of payment:

Paying for a BIG expense– Moving to a new city, remodeling your home or going on a vacation are all purchases you will want to save up for ahead of time. Using more than a third of your available credit on a card can have a negative effect on your credit score.

To consolidate credit card debt– If you are trying to consolidate all of your consumer debts into one payment, the best option depends on your credit score, how much debt you have and, most importantly, your ability to pay down the debt. If you cannot reasonably pay off your consumer debt in five years, most experts advise debt reorganization or bankruptcy. If your credit score is average, you can tap into your home equity or take a loan against your retirement account or life insurance policy. However, the consequences of defaulting on these loans come with severe penalties.

To fund emergencies– In an emergency situation, a credit card should be your last resort. If you do not have an emergency fund, start one today. Budget to have the money automatically transferred from your checking account into a savings account- even if it is only $50 a month. This can add up over a year.

To pay for your wedding– Do not start your married life in debt. Taking out a personal loan to help pay for a portion of the wedding expenses is a smarter option because these come with fixed interest rates, making it easier for the payments to be factored into your monthly budget. Depending on your credit, these can come with lower interest rates and allow you to pay overtime.

To pay your taxes– Avoid using a credit card to pay your taxes. It is better to take from savings or utilize the IRS installment plan option to avoid paying a fee on top of your tax bill. Vendors that the IRS authorizes to accept card payments charge a convenience fee of 1.87% to 2.25% of the amount you owe. E-filing software companies charge even higher rates for credit card payments.

Related Resources:

http://www.usatoday.com/story/money/personalfinance/2016/08/20/5-times-you-shouldnt-use-credit-card/88945872/