Miami bankruptcy attorney Archives - Page 79 of 104 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Important Tax Deductions You Probably Don’t Know About

Posted on January 31, 2017by Admin

It’s that time of year, again. With tax season officially upon us, do not miss out on some of these money-saving deductions. The most recent numbers show that more than 45 million of us itemized deductions on our 1040s—claiming $1.2 trillion dollars’ worth of tax deductions.

Most taxpayers know about mortgage expense, student loans, medical expenses, and investment expense deductions, but itemized deductions do not stop there.

Here are some of the most overlooked tax deductions:

Subscriptions. You can deduct the cost of subscriptions when it comes to professional (as long as it is related to your job in some way) or investment-type publications. This covers newspapers, magazines, newsletters, journals and do not forget your online subscriptions. Keep in mind, this deduction is subject to the 2% floor, which means that you subtract 2% of your adjusted gross income (AGI) for the year from your deduction (and all other itemized deductions with the same floor). The remainder is the amount you can claim for those deductions.
IRA Custodial Fees. You can deduct the administrative fees you pay for your IRA if these fees are billed as a separate transaction. This deduction applies to traditional and Roth IRA’s and is subject to the 2% AGI floor.
Job Search Expenses. If you looked for a new job last year, you can deduct your expenses related to job hunting (whether or not you actually got the job). This can include things like employment agency fees, preparing and sending out resumes, transportation expenses, even long-distance travel if your primary purpose in traveling was to look for a job.
Tax Expenses. You can deduct certain taxes you have paid from your taxable income. First, you can deduct any state and local taxes you pay, including real estate taxes and other property taxes, on your federal tax return. **Note that you can deduct state income taxes or state sales taxes, but not both.** You are allowed to deduct the full amount here, this is not subject to the 2% AGI floor limitation. Foreign income taxes and real estate taxes are also fully deductible. You can deduct any fees you pay to have your tax return professionally prepared. If you prepare your own taxes, you can deduct the cost of the software you use and any tax publications you purchased to help determine your return. These deductions are subject to the 2% AGI floor, and you can only deduct the expenses related to the return’s tax year. For example, in 2017 you would deduct tax preparation fees related to your 2016 tax return.

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

Related Resources:

http://www.foxbusiness.com/markets/2017/01/30/4-types-tax-deductions-probably-dont-know-about.html

https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Deductions-and-Credits/The-10-Most-Overlooked-Tax-Deductions/INF12062.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

FTC Cracks Down on Dishonest Payday Lenders

Posted on January 30, 2017by Admin

The FTC has been targeting fraudulent payday lending companies, headquartered in Missouri and Kansas, with consumer settlements reaching as high as $1.266 billion. The FTC recently announced charges against Joel Jerome Tucker, and his companies, SQ Capital LLC, JT Holding Inc., and HPD LLC, for selling portfolios made up of phony payday loans.

The loans listed in the portfolios named fake lenders and debtors, including their social security and bank account numbers, and led to collection activities against consumers who had not taken out loans, according to the FTC.

In another case, a settlement was reached between the FTC and payday lenders, Tim Coppinger and Ted Rowland, and their companies.

Under the terms of the agreement, the lenders paid nearly $1 million with the threat of substantially greater judgments (up to $32 million) should they fail to abide by the terms of the settlement agreement. The fraudulent activity included debiting money from the accounts of people who never requested loans, but for whom the payday lender had obtained personal information. They would then charge interest and fees on the unauthorized loans.

Click here to read more on this story.

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

Tips for Avoiding Student Loan Repayment Traps

Posted on January 24, 2017by Admin

Know your loans. Check copies of your FREE credit report from the three major credit bureaus via annualcreditreport.com if you think you may have lost track of a loan, as lenders will almost always report the existence of the loan to the bureaus. For federal loans, check the National Student Loan Data System. Always know how much you owe, and to whom.

Know your options when it comes to income-driven repayment plans. If you have federal loans, you may be eligible for a payment plan that allows you to submit information based on your income and family size and then reduce monthly payments to amounts that are affordable for you. Here is a list of Income-Driven Repayment Plans available through the Education Dept. and answers to frequently asked questions.

Stay Informed. Signing up for an income-driven repayment plan is not enough. You have to re-qualify each year with updated financial information. Do not trust your lender to do this for you. The consumer bureau recently accused Navient, the largest student loan servicer in the U.S., of not properly informing borrowers of this fact or of crucial deadlines. As a result, many borrowers saw their payments jump, leading to numerous late payments and additional interest and fees.

Avoid Forbearance. If you are having trouble making your monthly payments, your servicer may offer you something called a forbearance, which essentially allows you to reduce or even eliminate payments for a period of time. The downside: The loan’s interest keeps piling up. Recently, Navient was charged with steering borrowers into forbearance when they may have had better options, such as income-driven repayment plans.

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.

Related Resources:

https://www.nytimes.com/2017/01/20/your-money/6-tips-for-avoiding-the-worst-student-loan-repayment-traps.html?src=me&_r=0

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

When Debt Collectors Call Know your Rights

Posted on January 17, 2017by Admin

When a debt collector calls, it’s important to know your rights. In July, the Consumer Financial Protection Bureau required debt collectors to do their “due diligence” to help ensure they are collecting on legitimate debt and put a cap on their weekly attempts to reach a consumer. The bureau also increased enforcement, bringing more than 25 cases on debt-collection tactics that deceive or abuse consumers.

The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers against unfair collection practices, including:

Calling you repeatedly to annoy or harass you;
Trying to collect more than you owe;
Failing to send a written notice of the debt;
Threatening violence, using profanity or offensive language;
Threatening dire consequences (i.e. – lawsuits, criminal prosecution, wage garnishment, jail time, permanently ruining your credit);
Calling you before 8 a.m. or after 9 p.m.;
Revealing debt to third parties (i.e. – family, neighbors, friends, co-workers, etc.);
Contacting you at your work, after you have requested them to stop;
Failing to verify disputed debts;
Ignoring cease communication requests.

It is important that consumers verify everything when it comes to a debt they may (or may not) owe. In a recent CFPB survey, half of Americans contacted about a debt in the past year said they were given inaccurate information about what they owed. Debt collectors are legally required to follow up their phone call with a written notice detailing the debt.

Understand that just because someone is calling to collect a debt, does not mean you should pay it right away. It is always important to verify. The collection attempt could be for a so-called zombie debt that is past the statute of limitation or a debt collection scam.

If you do in fact owe the debt, make sure and take notes. Write down every name and employee number you speak with, including the agency, the number they called, the time of the call, etc. Take notes on what was said. This detailed record keeping can prove helpful if you need to file a complaint about the debt collector’s behavior in the future.

Related Resources:

http://www.cnbc.com/2017/01/12/know-your-rights-when-a-debt-collector-calls.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

More Consumers Report Debt Collectors are Denying Requests for them to STOP Calling

Posted on January 16, 2017by Admin

A shocking three out of four consumers reported that debt collectors ignored their requests to stop calling, according to a recent survey by the Consumer Financial Protection Bureau. The survey also revealed that consumers felt threatened by debt collectors, were contacted late at night and early in the morning and the debt collectors oftentimes used false information- all violations of The Fair Debt Collection Practices Act.

The survey examined a sample of consumers drawn from credit-reporting records about their experiences with debt collectors. More than 1 in 4 consumers contacted by a creditor or debt collector felt threatened, 3 out of 4 consumers who asked collectors to stop contacting them said they refused to do so. More than a third said debt collectors called between 9 p.m. and 8 a.m., according to the survey.

In addition, more than half reported a mistake in the debt, such as an incorrect amount, a debt not owed or a debt owed by a family member. The frequency of calls was also excessive- 17% said they received eight or more calls in a single week.

Consumers are protected from these predatory and unfair practices by The Fair Debt Collection Practices Act– but only if they exercise their rights. The law’s consumer protections include:

Communication: Consumers can tell debt collectors how and when to contact them- including telling them to stop contacting them entirely.

Harassment and abuse: Debt collectors cannot use abusive language, threaten violence or repeatedly call and harass them.

Truthfulness: Debt collectors must be honest about the amount of the debt, whether it is past the statute of limitations for lawsuits and cannot misrepresent themselves.

Debt validation: Consumers must receive a validation letter within five days of the first contact with information about the amount owed, the original creditor seeking payment and their rights on disputing the debt.

Click here to read more on this story.

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

The Student Loan Crisis Facing Older Americans

Posted on January 13, 2017by Admin

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.

Bankruptcy Law, Credit, Debt Relief

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

Posted on January 12, 2017by Admin

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Student Victims Seek to Become Creditors in ITT’s Bankruptcy

Posted on January 9, 2017by Admin

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

A WIN for Bankruptcy Filers on Means Test Expense Issue

Posted on January 5, 2017by Admin

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Select Portfolio Servicing Accused of Violating Telephone Harassment Law

Posted on January 3, 2017by Admin

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.

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