Miami bankruptcy attorney Archives - Page 82 of 102

You can sue over Robocalls- Know your rights when it comes to Collection Calls

Posted on July 12, 2016by Admin

Debt collectors have the right to contact you, but they do not have the right to harass you. Recently, a woman received robocalls from the same business four or five times a day, all hours of the day and night, even on holidays- including Christmas day! She received a total of 800 robocalls in a year and a half period. After repeatedly telling the company to stop contacting her, she took legal recourse. The woman had suffered complications from bypass surgery and had fallen behind on her car payments.

The unwanted calls are in violation of the Telephone Consumer Protection Act, the number one complaint to the FCC. Consumers have the right to sue and can be awarded up to $1,500 for every call that does not fall within these guidelines.

Here are five illegal tactics that unethical debt collectors use:

Harassment. Relentless calling, 4-5 times a day falls into this category.
Timing. Debt collectors must limit their calls between 8 a.m. and 9 p.m. on weekends and weekdays.
Pretending to be someone else. Debt collectors always have to identify themselves and who they work for.
Making threats. It is illegal to make threats to get you to pay. The debt collector cannot threaten physical harm, jail-time or let your neighbors know about an outstanding debt.
Contacting third parties. It is illegal for a debt collector to contact employers, neighbors or leave messages with anyone regarding your debt.

Know your rights as a consumer. The Fair Debt Collection Practices Act (FDCPA) was designed to help prevent creditor abuse and harassment.

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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, Student Loans, Timothy Kingcade Posts

Parents Responsible for Nearly Every New Private Student Loan

Posted on July 11, 2016by Admin

Student loans are no longer just for students. New private student loans are requiring parents to sign on the dotted line as well. This change comes as lenders continue to strengthen the guidelines on underwriting requirements. Nearly every, or 94%, of private student loans distributed to undergraduates for the 2015-2016 academic year had more than one borrower responsible for the debt–not only the student but a co-signer, according to the report.

Five of the largest private student lenders distributed $6.46 billion in loans between July 2015 and March 2016, up 7% from the same period a year earlier–and the fifth consecutive year of increases, according to recent data from MeasureOne.

Cosigners are becoming more common with graduate school student loans as well. Nearly 61% of student loans dispersed for 2015-2016 had cosigners versus 57% the previous year. For lenders, cosigners increase the chance that the loan will be repaid, avoiding defaults. When the student borrower cannot make the payments, co-signers- usually the parents- have to pay up. Otherwise lenders can report both the student and co-signer of being late to the credit bureaus. That would lead to lower credit scores for both the student borrower and the cosigner, making it harder to obtain other types of financing.

Student loans are considered among the riskiest type of consumer loans, because it is difficult to determine whether borrowers will graduate or end up with a salary that is enough to repay the debt. In case you missed it, read our blog on the dangers of co-signing.

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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

Debt Collector on Trial for Targeting Financially-Struggling Consumers

Posted on July 7, 2016by Admin

A Georgia man who prosecutors say organized a scheme that victimized more than 6,000 consumers nationwide is set to go to trial. Prosecutors say John Williams spearheaded efforts to defraud at-risk consumers from 2009 to 2014 into paying approximately $4.1 million by misrepresenting the status of their debts and consequences of not paying. John Williams’ debt collection agency Williams, Scott & Associates LLC was shut down in 2014.

The trial comes when there is a time of heightened regulatory attention toward debt collection, which the Consumer Financial Protection Bureau (CFPB) considers the No. 1 most-complained about area of consumer financial services.

Debt collection firms, like the one in this case, purchase delinquent debts, oftentimes for pennies on the dollar, then attempt to collect the full amount the original lender claimed. These firms claim they are simply seeking recovery on a rightfully-owed debt. However, regulators say many of these firms engage in abusive tactics while targeting financially-struggling individuals.

Prosecutors at Williams, Scott & Associates contacted consumers and falsely referred to themselves as “detective” or “investigator,” claimed to be tied to government agencies and even threatened arrest.

Scripts employees read on the calls included legal-sounding language, like the “statute of limitations” on the consumers’ “civil legal rights” had expired, according to prosecutors. The six employees arrested with Williams have pleaded guilty. Williams has pleaded not guilty to the charge of conspiracy to commit wire fraud. He has been held without bail since his arrest and faces up to 20 years in prison.

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

Even Death does not Meet Threshold for Student Loan Debt Forgiveness

Posted on July 6, 2016by Admin

Grief stricken after her son’s unsolved murder, a New Jersey mother faced an endless list of tasks- helping the police track down his killer, cancelling his credit cards, bank accounts, cell phone and planning a funeral.

And then there were his college student loans she co-signed.

When she called about his federal loans, an administrator offered condolences and assured her the balance would be written off. However, she received a far different response from a New Jersey state agency that had also lent her son money.

“Please accept our condolences on your loss,” explained a letter from the Higher Education Student Assistance Authority of New Jersey. “After careful consideration of the information you provided, the authority has determined that your request does not meet the threshold for loan forgiveness. Monthly bill statements will continue to be sent to you.”

These loans also carry higher interest rates than similar federal programs. Most significant, New Jersey’s loans come with a hurdle that even the most predatory for-profit players cannot avoid: the power of the state.

New Jersey can garnish wages, rescind state income tax refunds, revoke professional licenses, and even confiscate lottery winnings— all without having to get court approval.

Some consumer attorneys compare it to “state-sanctioned loan-sharking, a program that is set up so that you fail.”

Like many states, New Jersey administers a student loan program designed to help students further their education in order to be competitive in today’s workforce. Where New Jersey differs with other states is the degree of difficulty in getting out from under burdensome loan payments despite extreme poverty, illness and even death.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Wells Fargo will pay $16.3 Million for Calling Customers’ Cell phones without Consent

Posted on July 5, 2016by Admin

Wells Fargo Bank will pay approximately $16.3 million to end a proposed class action lawsuit alleging it used an Automatic Telephone Dialing System (ATDS) to contact customers’ cell phones without their consent.

The case Markos v. Wells Fargo Bank, N.A. was originally filed on April 14, 2015. The Plaintiffs are asking for preliminary approval of a nationwide class action settlement reached with Wells. The original lawsuit alleged that Wells had called Plaintiffs and Settlement Class Members on their cell phones through the use of an ATDS or by using an artificial or prerecorded voice without Plaintiffs’ or Class Members’ consent, a violation of the Telephone Consumer Protection Act (TCPA). The calls at issue were all non-emergency, debt-collection calls and texts made in connection with Home Equity Loans and Residential Mortgage Loans.

Wells Fargo will pay a cash sum of approximately $16,319,000, to be distributed to the Class Members who file qualified claims. Based upon the size of the fund, the number of class members, and Class Counsel’s experience with over a dozen similar large settlements, the expected per-class-member cash award, while dependent upon the number of claims, may range between $25 to $75.

The proposed Settlement Class is defined as:

All users or subscribers to a wireless or cellular service within the United States who used or subscribed to a phone number to which Wells made or initiated one or more Calls during the Class Period using any automated dialing technology or artificial or prerecorded voice technology, according to Wells available records, and who are within Subclass One and/or Two.

Subclass One consists of “persons who used or subscribed to a cellular phone number to which Wells Fargo made or initiated a Call or Calls in connection with a Residential Mortgage Loan.”
Subclass Two consists of “persons who used or subscribed to a cellular phone number to which Wells Fargo made or initiated a Call or Calls in connection with a Home Equity Loan.”

Plaintiff’s attorneys are seeking 30% of the settlement fund (or approximately $4.8 Million) for their efforts on the matter while class member awards will receive be between $25 and $75. The Class Representatives could pocket $20,000 for “time and effort they have personally invested in the case.”

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Former Duke Basketball Star Faces Bankruptcy

Posted on July 4, 2016by Admin

Christian Laettner, Duke University basketball legend is facing bankruptcy. Several creditors filed an involuntary Chapter 7 petition against him alleging he owes $14 million. The nature of Laettner’s debts was not described in the petition. However, according to The Wall Street Journal Mr. Laettner and his business partner in several real estate deals faced civil lawsuits seeking repayment of loans valued at about $30 million, including to sports celebrities like former Chicago Bull, Scottie Pippen. The two played on the 1992 Olympic men’s basketball team together.

Laettner, who made the famous game-winning shot against Kentucky in the 1992 NCAA Tournament East Region finals, has 21 days to respond to the involuntary petition.

Laennter’s attorney said the involuntary bankruptcy is related to the West Village real estate development in Durham, N.C., a downtown project that crumbled during the economic recession. The involuntary petition stems from two creditors who are fighting to recover money from the project and that Mr. Laettner plans to negotiate a deal that will lead the chapter 7 filing to be dismissed, he said.

Laettner led the Duke University Blue Devils to two NCAA championship titles in the early 1990s. He also played in the NBA for more than a dozen seasons.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

OJ Simpson’s defense attorney F. Lee Bailey, Files for Bankruptcy

Posted on July 1, 2016by Admin

F. Lee Bailey, part of O.J. Simpson’s “Dream Team” of defense attorneys, has filed for bankruptcy in an attempt to discharge an IRS debt of more than $5 million. IRS debts are typically non-dischargeable in bankruptcy, but the 83-year-old Bailey said they can be discharged if the debtor abides by certain conditions, such as filing and paying taxes on time since the original taxes and penalties were assessed.

The debt stems from a dispute of Bailey’s reported income from 1993 to 2001, according to The Portland Press Herald.

Bailey was disbarred in Florida in 2001 over mishandling client assets, and Massachusetts issued a reciprocal disbarment in 2003. Bailey’s attempt to gain admission to the Maine bar failed in 2014, when the Maine Supreme Judicial Court reversed a judge’s ruling that would have allowed him to practice law in Maine.

Bailey served as one of Simpson’s attorneys during the 1995 high-profile murder trial, which ended in the former NFL star’s acquittal in the 1994 murders of his ex-wife, Nicole Brown Simpson and Ronald Goldman.

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

Common Sense and Compassion enter the Student Loan Bankruptcy Arena

Posted on June 30, 2016by Admin

In the case, Nightingale v. North Carolina State Educational Assistance Authority, the debtor, Alice Nightingale, 67 years old, suffered from “intractable foot pain,” hypothyroidism, obstructive sleep apnea, and chronic fatigue, all of which had worsened over the course of her chapter 13 bankruptcy. The condition prevented her from engaging in employment and from taking part in many day-to-day activities.

She was granted full disability from her teaching job by the County School Board. In a hearing in October, 2015, the court found Ms. Nightingale had established the first and third prongs of the Brunner test with evidence that she had attempted to repay the student loan, that she was “elderly” and unlikely to find future employment and that she suffered from significant medical problems. Although Ms. Nightingale’s testimony concerning her medical disabilities was credible, the second prong of the Brunner test still needed to be satisfied.

Over the lender’s objection, the court held a second hearing in which Ms. Nightingale presented medical documents to corroborate her testimony, including letters to Ms. Nightingale’s attorney from two of her doctors, a medical report for disability eligibility, and a physician-provided list of Ms. Nightingale’s current medications.

The subsequent hearing specifically addressed the second prong of the Brunner test: whether there existed “additional, exceptional circumstances, strongly suggestive of continuing inability to repay [the debt] over an extended period of time.”

While the court agreed with the lender that Ms. Nightingale could have presented evidence of recent tests and evaluations, it found that it was not necessary that she “provide every possibly available piece of evidence that could further corroborate the unrebutted evidence in this case.”

The court concluded: “Taking into consideration the Plaintiff’s age, current living situation, inability to walk or stand for long periods of time, chronic fatigue, lack of stamina, lack of strength, diminished cognitive ability, and the likelihood that these conditions will all last for a significant period of her possible repayment period given her age and the duration of her illnesses, the Plaintiff has demonstrated that exceptional circumstances exist in this case and has met the second prong of the Brunner test.”

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Related Resources:

http://www.ncbrc.org/wp-content/uploads/Nightingale-Bankr-MD-NC-opinion-April-2016.pdf

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

Co-signing a loan puts more than your name on the line

Posted on June 29, 2016by Admin

Co-signing is an all too common practice, and gives you the opportunity to help another person. However, this responsibility comes with great risk, and little reward.

For example, you might co-sign for a car you never drive, a house you never live in or even a student loan for someone else’s college education. When you co-sign a loan, you essentially agree to repay the loan yourself.

A survey from CreditCards.com reveals the dangers of co-signing and why you SHOULD NOT do it.

28 percent of co-signers saw a drop in their credit scores because the primary borrower paid late or not at all.
38 percent of co-signers had to pay some or all of the loan payments because the primary person did not pay.
If your income is not high, you are more likely to be pulled into a co-signing nightmare. The survey found that 58 percent of co-signers who make less than $30,000 a year had to pay some or all of a credit card bill or loan they co-signed.
Most co-signing requests were for auto loans, followed by personal loans, student debt and then credit cards. About half of the people who co-signed were parents.

Here are some additional dangers of co-signing a loan.

You are not considered a backup borrower. You are equally responsible for the first payment to the last.
If the loan or credit card is not paid, the lender can start collection actions on you right away. Do not believe that lenders first go after the primary borrower and then the co-signer. Most likely, lenders will target “the person with the better potential to pay.”
If collection actions are pursued, you could end up paying late fees and even have your wages garnished.
Late payments and collection actions are reported on your credit report.
This may limit your ability to borrow because, as a co-signer, you are on the hook for the debt.
Even if the person you are co-signing for is responsible with money, you cannot predict what the future holds for his or her finances. What if the person becomes unemployed or unable to work?

As one consumer wrote, “I have told more than one relative that while I can guarantee their willingness to pay, I cannot guarantee their health or employment.”

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Donald Trump’s Companies have Declared Bankruptcy not once- but SIX times

Posted on June 28, 2016by Admin

Hillary Clinton recently mocked Donald Trump’s business failings in a speech and stressed to the public how disastrous he would be for our nation’s economy if he were to become President.

“He’s written a lot of books about business. They all seem to end at Chapter 11,” Clinton said.

Here they are one by one.

Bankruptcy No. 1: The Trump Taj Mahal, 1991

Trump funded the construction of the $1 billion Trump Taj Mahal casino in Atlantic City, N.J., which opened in 1990. A year later, the casino was nearly $3 billion in debt, while Trump had accumulated nearly $900 million in personal liabilities. It was at that time Trump decided to file for Chapter 11 reorganization, according to the New York Times. Trump surrendered half his personal stake in the casino and sold his yacht and airline.

Bankruptcy No. 2: Trump Castle, 1992

Within a year of his first Chapter 11 filing, Trump found himself in bankruptcy court again for Trump Castle, which opened in 1985. In March 1992, the Castle filed a prepackaged bankruptcy plan, and Trump gave up his 50 percent share in the casino for lower interest rates on $338 million worth of bonds.

Bankruptcy No. 3: Trump Plaza and Casino, 1992

The Trump Plaza Hotel and Casino in Atlantic City, which opened in 1984, declared bankruptcy at the same time as the Castle. The casino had racked up $250 million in debt by 1992, after an 80 percent decline in cash flow. Trump Plaza filed for bankruptcy that spring as well.

Bankruptcy No. 4: Plaza Hotel, 1992

That same year, Trump filed bankruptcy on another Plaza in New York. Trump purchased the Plaza Hotel in Midtown Manhattan for $390 million in 1988, but it accumulated more than $550 million in debt by 1992. In December 1992, Trump forfeited a 49 percent stake in the Plaza to a total of six lenders. Trump remained the hotel’s CEO, but did not earn a salary and had no say in the hotel’s day-to-day operations, according to the New York Times.

Bankruptcy No. 5: Trump Hotels and Casinos Resorts, 2004

Trump Hotels and Casinos Resorts filed for bankruptcy again in 2004 when his casinos, including the Trump Taj Mahal, Trump Marina and Trump Plaza casinos in Atlantic City, and a riverboat casino in Indiana, had accrued an estimated $1.8 billion in debt. Trump agreed to reduce his share in the company from 47 percent to 27 percent in a restructuring plan, but he was still the company’s largest single shareholder and remained in charge of its operations.

Bankruptcy No. 6: Trump Entertainment Resorts, 2009

Trump Entertainment Resorts (formerly Trump Hotels and Casinos Resorts) was hit hard by the 2008 economic recession and missed a $53.1 million bond interest payment in December 2008, according to ABC News. It filed for Chapter 11 bankruptcy in February 2009. After debating with the company’s board of directors, Trump resigned as the company’s chairman and had his corporate stake in the company reduced to 10 percent.

Trump has filed for Chapter 11 bankruptcy, four times within two years in the 1990s, once more in 2004 and once more in 2009. But experts agree Trump should not bear all of the responsibility, as Clinton’s speech suggests, as the majority of bankruptcies happened as the overall casino industry struggled.

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