Miami bankruptcy attorney Archives - Page 85 of 102

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Eight Signs your Landlord is Breaking the Law

Posted on May 20, 2016by Admin

From non-refundable security deposits, which are technically illegal, to the lousy upkeep of rental properties, some landlords refuse to adhere to the landlord-tenant law. If you encounter any of these warning signs, it may be a sign you need to keep looking.

Your landlord will not let you see a Certificate of Occupancy (i.e. – CO). Some rentals require landlords to have a certificate of occupancy (CO), but in certain circumstances — like when you are renting a condo or a single-family home, for example — you are probably safe to assume that your new home is covered by one. But if you are considering renting a basement, attic, or garage apartment, you should make sure it is a legal dwelling before you enter into a lease agreement. If it is not, there is a chance that it may not be up to code, meaning it is not safe. Dangers can include potential fire hazards.
Your landlord asks if you were born in another country. Landlords cannot legally ask about your national origin, how many children you have, if you have a girlfriend (or boyfriend), or any other questions that could point to ulterior motives. Denying applications for discriminatory reasons, like race, religion, sex, sexual orientation, or disability are illegal.
You are expected to pay a nonrefundable deposit. This should raise a red flag. A deposit is always refundable unless there are reasons not to refund it. For example, a pet deposit is refundable if no pet damage is done when the tenant moves out.
The security deposit is REALLY high. Most landlords charge a security deposit before a tenant moves in, and that is perfectly legal in all states. However, landlords are often limited as to how much of a security deposit they can charge. The security deposit is a way for a landlord to cover any damages that may occur during a tenant’s stay, but make sure you shop around before simply handing over too much cash up front.
The terms of the lease do not sound right. You should understand everything in your lease agreement. If not, you need to ask for an explanation from your landlord. Just because it is in the lease, does not make it legal. For example, saying a tenant waives the right to sue or has to pay the landord’s attorney fees in the event of any type of dispute is unlawful.
Your landlord stops by… a lot. Beware of a landlord who lives nearby and stops by often. Outside of an emergency, under no circumstances can landlords use their keys to enter your apartment. When you become a tenant, you have a right to privacy. Landlords are allowed only after they have given you notice, which is usually 24 hours.
Your landlord raised the rent in the middle of your lease. Raising the rent is not illegal, if it is done the right way. If you have a signed lease, your landlord cannot raise the rent until lease-renewal time. And if you live in a rent-controlled unit or are a Section 8 tenant, your landlord has further limitations on how much rent can be raised.
Your landlord wants to sell and wants you to move out immediately. Property owners can sell their property at anytime. But if they are also renting it out, they cannot simply kick their tenants out whenever they like. They must give tenants proper notice. If you have a lease, for example, unless there is an early-termination clause that allows your landlord to break the lease early, you have the right to live out the lease in the unit.

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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, Debt Relief, Student Loans, Timothy Kingcade Posts

Court Revives Lawsuit over Fraudulent Student Loans

Posted on May 19, 2016by Admin

A federal appeals court has determined that former beauty school students can pursue claims that the U.S. Department of Education violated federal law by collecting student loans it knew may have been fraudulently obtained.

The U.S. Court of Appeals for the Second Circuit brought back the lawsuit by former students of Wilfred Academy over the Department of Education’s alleged failure to abide by two federal laws requiring student loan holders to be told that their loans could be discharged if issued under fraudulent premises.

Plaintiffs in Salazar v. King, 15-832-cv, claimed the agency had knowledge, as evidenced by its conclusion in 1996 that misconduct at Wilfred Academy was widespread and that students enrolled improperly. As early as 1988, the U.S. Justice Department brought charges against Wilfred employees for misuse of federal funds and falsifying loan applications.

The plaintiffs argue that to this day they are burdened with loans from education and job training that did not prepare them for a profession.

Judge Gerard Lynch, writing for the panel, found that the Department of Education did not provide notice about the possibility of discharge that is required by the Federal Family Education Loans and Direct Loans statutes.

“Plaintiffs plausibly argue that the fact that the DOE has already determined that any Wilfred borrower who presents a facially valid application alleging false certification will automatically receive a discharge is powerful evidence that the DOE has in its possession reliable information all such Wilfred borrowers ‘may’ be eligible for discharge,” Lynch wrote.

Plaintiffs are also asking the court to compel the department to do something that is not a discretionary function of the agency: comply with the two loan laws and stop collecting loans from the students.

“The presumption in favor of judicial review applies to this case, because plaintiffs challenge what they contend are unlawful actions that the agency has taken, and continues to take, against the plaintiffs themselves,” Lynch wrote. “Such challenges are at the core of the judicial review function.”

According to the Department of Education’s investigation of Wilfred Academy in the 1990s and to the circuit’s ruling, the question of fraud surrounding the student loans focused on whether the school ever certified that students who did not graduate high school had an “ability to benefit” from its program. The plaintiffs allege that they were never asked if they had a high school diploma or given any test to determine if they had an “ability to benefit.”

It is unclear how many former Wilfred students would be involved in the putative class, or how many are still paying loans arranged through Wilfred that could be discharged. More than 61,000 Federal Family Education Loan program loans were issued to Wilfred students between 1986 and 1994. When the action before the Second Circuit was filed in 2014, lawyers for the plaintiffs estimated that there were 40,000 or more students who took out federally guaranteed loans to attend Wilfred campuses.

At its height in the late 1980s, Wilfred operated 58 schools and had an annual enrollment of 11,000 students. Its advertisements featured an eager young student promoting the tagline, “That Wilfred winner—she knows where she’s going.” The Wilfred American Educational Corporation filed for Chapter 11 bankruptcy in May 1990 and the last Wilfred school shut down in 1994.

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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

FBI Arrests 8 in Miami accused of hiding assets before filing bankruptcy

Posted on May 18, 2016by Admin

Eight people were arrested this week and charged with concealing more than $3 million in assets from federal bankruptcy court in Miami. The five cases allege that eight individuals hid or illegally transferred assets out of their name before filing for Chapter 7 bankruptcy.

The neighbors of one of the couples could not believe a small army of FBI agents arrived at their Miami high rise condo building early Tuesday morning, and escorted them out in handcuffs.

One of the accused couples liquidated a certificate of deposit worth approximately $141,829 in 2010, then filed a joint petition for Chapter 7 bankruptcy in 2011, according to the allegations in the indictment. Another one of the indictments allege a Pinecrest man transferred and concealed a Jeep Wrangler, a 34-foot boat, The Isabella, approximately $41,200 in cash and his interest and roles in companies he owned. The fraudulent transfer of these assets was valued at more than $160,000.

A Boca Raton woman is accused of liquidating approximately $102,445 from her IRA account and transferring the money into a family member’s account. A Miami couple is accused of concealing assets they held in a divorce settlement. Among the assets concealed: Properties in North Carolina, valued at $336,300; $36,000 in cash to purchase a Jaguar valued at approximately $80,000; and $100,257 in cash from the sale of a condo in the Bahamas.

This should come as a warning to anyone who plans to hide assets from the bankruptcy court. Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to hide assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing. In addition, the potential penalty for bankruptcy crimes includes fines and imprisonment of up to five years.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Auto and Credit Card Delinquencies on the Rise in the First Quarter

Posted on May 17, 2016by Admin

Delinquency rates for auto loans and credit cards increased drastically in the first quarter of this year, according to TransUnion. The serious delinquency rates for auto loans (60 days or more past due) reached 1.12 percent in the first quarter, marking the first time the figure exceeded 1 percent in the first quarter since 2011.

Serious delinquency rates for credit cards (accounts that are 90 or more days past due) increased to 1.47 percent in the first quarter. This is highest first-quarter amount since the first quarter of 2013, when serious credit card delinquencies were 1.51 percent. First quarter 2014 and 2015 delinquencies remained stable at 1.37 percent. Serious credit card delinquency rates, however, continue to remain below the average first quarter rate of 1.52 percent since the beginning of 2011, according to TransUnion.

The year-over-year growth in credit card balances is at a record high. The total balance for credit cards increased 6.4 percent to reach nearly $644 billion in the first quarter, also marking the highest year-over-year growth observed in more than six years.

The total balance for credit cards was $605 billion in the first quarter last year, according to TransUnion. Credit card debt accumulation increased 146 percent from the third quarter to fourth quarter 2015, or $21.3 billion to $52.4 billion, respectively, according to CardHub. The delinquency rate from the third to fourth quarter increased from 2.18 percent to 2.23 percent, respectively.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

U.S. District Court in NY Grants Debt Collector Motion to Certify Important FDCPA Issue

Posted on May 16, 2016by Admin

In an Order dated this month, a Federal Judge in New York determined that a decision he rendered in the matter of Halberstam v. Global Credit and Collection Corp.(U.S. District Court, ED, NY, 15-cv-5696 (BMC) be certified for an immediate interlocutory appeal.

The Fair Debt Collection Practices Act (FDCPA) case involved leaving a message with a person who answers the debtor’s phone. The issue presented in the case was whether a debt collector, whose phone call to a debtor is answered by a third party may leave his name and number for the debtor to return the call- without disclosing that he is a debt collector – or whether the debt collector must refrain from leaving call back information and simply attempt to make the call at a later time.

In the May 5, 2016 Memorandum, Decision, and Order Judge Brian M. Cogan wrote:

“I had no doubt, and I remain of the view, that the purpose of leaving such a message was to induce plaintiff to return the collection agent’s call without knowing that he was calling a collection agent. Describing the purpose of the call to a third party as a “personal business matter” was at least as suggestive, and probably more, of a business opportunity for plaintiff to make money as it was of its true purpose, which was to cause plaintiff to pay money. I granted summary judgment for plaintiff because I found that by leaving a message for plaintiff with a third party that was calculated to induce a return call without the debtor knowing that he would be calling a collection company, defendant violated section 1692c(b) of the Fair Debt Collection Practices Act (“FDCPA”).

The Fair Debt Collection Practices Act (FDCPA) was designed to help prevent creditor abuse and harassment.

Further, the issue of whether leaving a message with a third party violates the FDCPA has the potential to impact a large number of other cases, as well as debt collection practices more generally.”

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The FCC Wants Debt Collectors to Stop Calling So Much

Posted on May 11, 2016by Admin

The Federal Communications Commission (FCC) recently approved a proposal that would reduce the number of collection calls consumers receive. A budget deal was approved last year that provided government exemptions from the Telephone Consumer Protection Act that blocks solicitors from sending automated calls to cell phones under certain conditions. Congress called on the FCC to limit those exemptions.

The proposal limits government debt collectors to three calls per month, which can only be made if an individual is late on making a payment. It also allows calls informing people about payment plans, though borrowers can request to opt out.

With taking this first step toward implementing the requirements, Congress recognizes the importance of collecting debt owed to the U.S. and respecting the consumer protections allotted in the Telephone Consumer Protection Act. It is still subject to two rounds of comments- the first on June 6, and the second on June 21.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Payday Loan Changes Coming to Florida

Posted on May 9, 2016by Admin

Payday loans are quick cash that come with steep consequences, oftentimes the interest rate on payday loans can easily reach triple digits. However, for many individuals and families living paycheck-to-paycheck, it’s the only way to make ends meet. Tens of thousands living in Florida rely weekly on payday loans.

Payday loans are short-term and often paid off as soon as the borrower receives their next paycheck. But between the high interest rates and fees, this quick cash comes with a hefty price tag. Annual percentage rates can soar as high as 400%! This month the federal government is expected to impose national standards and limits on payday loans.

Consumer counselors agree that payday loan rules not only keep lenders in check, but protect people from getting in over their heads. In Florida, about 7% of the population relies on payday loans. That is one of the highest rates in the nation. There is also concern that if federal guidelines make the rules too strict, people who actually need the cash in a crisis – for example, to pay for a car repair or medical bill – may not be able to get it.

The question now is whether the new federal rules would strengthen, weaken, or leave in place what the state has already established.

Payday lending is limited in several ways in Florida. The law places limits on:

the amount of the loan ($500);
the number of loans you can have outstanding (only one at a time);
the length of the loan term (cannot be for less than seven days or more than 31 days);
the fees and costs that can be charged (interest is capped at 18%), and
the collection process if you do not pay.

To learn more about Florida’s payday loan laws, click here.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Lawsuit Alleges Orlando law firm violated rules on bankruptcy fees

Posted on April 29, 2016by Admin

The KEL law firm is facing a lawsuit alleging it routinely allowed clients to pay bankruptcy legal fees using credit cards, a violation of bankruptcy law. Credit card purchases are considered new debts and new debts are prohibited in the days before filing for bankruptcy and during the bankruptcy process. That is because bankruptcy courts often erase a filer’s credit card debt, which means the nation’s banking system would be on the hook for KEL’s legal fees.

The suit, which seeks class-action status, contends that KEL “uses standardized procedures when attempting to collect attorney’s fees by charging credit cards prior filing Chapter 7 bankruptcy.” It seeks the return of all bankruptcy fees paid by credit card—the amount of which is cited at $1,700 in the suit—and $1 million in punitive damages.

The lawsuit states an Orlando resident paid his bankruptcy fees to KEL using a Discover credit card and a BJ’s credit card. During the course of the filing, the debtor decided to switch to a new law firm, which noticed the prior fee payment on the credit cards to KEL. Jacksonville law firm Mickler & Mickler filed the proposed class action on behalf of the debtor.

Related Resources:

http://www.abajournal.com/news/article/ex_client_sues_law_firm_says_it_allowed_bankruptcy_fees_to_be_paid_by_credi

http://www.orlandosentinel.com/business/brinkmann-on-business/os-kel-firm-bankruptcy-fees-lawsuit-alleges-20160420-story.html

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Florida Governor Signs Bill Aimed at Curbing Unexpected Medical Debt

Posted on April 25, 2016by Admin

Governor Rick Scott signed legislation this month that may help curb unexpected medical debt. The bill prohibits charges from an out-of-network provider when a patient has covered emergency care or covered non-emergency care services. It also establishes a payment process for insurers to provide reimbursement for such out-of-network services.

The legislation was prompted by complaints patients made who received emergency care treatment at in-network hospitals and subsequent bills from doctors who were out-of-network. Florida’s Chief Financial Officer issued the following statement: “This new law protects consumers by holding them harmless in times of both emergency situations when choosing a provider is not an option and in non-emergency situations when communication may not be made clear regarding out-of-network providers who may be offering care. As a result, consumers are left with a more affordable bill comparable to what they would have paid if the provider had been in their network.”

Under the new law, hospitals are required to maintain information on their websites to include contact information for practitioners and practice groups contracting with the hospital. It also states the hospitals are required to provide notice that care may be provided by entities that issue separate bills and might not work with the same health insurance companies.

Bills from out-of-network providers contribute to medical debt problems among insured, non-elderly adults, according to a Kaiser Family Foundation survey. Nearly 7 in 10 individuals with out-of-network medical bills they cannot afford to pay did not know the healthcare provider was out-of-network at the time they received care.

The bill should take effect July 1, 2016.

Click here to read more on this story.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney 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

Colleges Return Tuition Money to Bankrupt Parents

Posted on April 20, 2016by Admin

Colleges have returned more than $276,000 in tuition payments made for students whose parents later filed for bankruptcy. Villanova University, Ithaca College and the New York Institute of Technology are just a few of the schools that have been sued by bankruptcy trustees, according to a recent Wall Street Journal analysis.

The trustees, who are in charge of recovering money for the debts of the bankrupt parents, argue that financially struggling parents should have paid their own bills instead of their child’s college tuition. Most of the schools have opted to settle the cases and return the tuition money rather than go through an expensive court battle. However, two schools are moving forward with the lawsuits that could lead judges to clarify whether these controversial lawsuits are fair.

Some of the latest settlements include:

Villanova University agreed to pay $10,000 to settle a lawsuit for $12,543 in tuition payments that covered the cost of education for the son of a Durham, Conn., resident who filed for bankruptcy in September.

The University of Maryland agreed to pay $9,999 to settle a tuition lawsuit that demanded $61,595.33 in tuition.

St. Vincent’s College agreed to pay $5,270 to settle a tuition battle over payments of $10,641.45.

The amount of tuition that colleges have promised to return is expected to grow in the coming weeks. U.S. bankruptcy law allows trustees to sue to recover money that a bankrupt person spent but did not get “reasonably equivalent value” in return. These “tuition-recovery lawsuits” are a new phenomenon. Historically, tuition payments were so small that a court-appointed trustee would not waste time pursuing them. But as college costs rise and more parents are chipping in to help their kids, bankruptcy experts predict more of these lawsuits to come.

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