Miami bankruptcy attorney Archives - Page 90 of 99

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

Law School Grad Tries to Discharge Student Loan Debt in Bankruptcy

Posted on November 26, 2015by Admin

A recent law school graduate with close to $300,000 in student loan debt is asking for the U.S. Supreme Court’s help in getting it discharged in bankruptcy. Courts including the U.S. Courts of Appeals for the Seventh and Eighth circuits are split on what constitutes “undue hardship,” the determining factor as to whether a debtor is eligible for a bankruptcy discharge. The U.S. Court of Appeals for the First Circuit is also on the fence with the issue.

Law school debt has been getting more attention recently. Lawmakers on both sides have “sharply criticized U.S. law schools” for burdening students with crushing debt and non-marketable degrees, according to Bloomberg Business.

This particular student’s alma mater – Florida Coastal School of Law in Jacksonville, FL – has received some negative press about its graduates’ debt. Those in the 2015 graduating class that had debt (93 percent) carried a balance of almost $163,000. In addition, the median Law School Admission Test (LSAT) score for Florida Coastal students was in the bottom 25%.

This student has failed the bar exam for the third time and is living at home with his parents below the poverty line. According to the debtor’s petition, he has struggled with depression and misdemeanor convictions, which make it difficult to find work in the legal field.

It is extremely difficult to prove undue hardship in the Seventh Circuit, without the presence of a serious medical condition, like Alzheimer’s disease or being paralyzed in a car accident. The bankruptcy laws are supposed to be uniform, but there is a split on what the courts consider undue hardship.

The Eight Circuit uses a “totality of the circumstances test,” which is a more flexible standard. It allows bankruptcy courts to consider a variety of factors when determining undue hardship. As a result, if a debtor lives in Arkansas – in the Eight Circuit – like in this case, there is a good chance the high court will grant the certiorari.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tax Scams on the Rise

Posted on November 25, 2015by Admin

Tax scams are on the rise and small businesses are just as vulnerable as consumers. Authorities report that there have been a rise in calls across the country from scammers claiming to be affiliated with the Internal Revenue Service. In case you are not aware of how the tax scam works, criminals use fear and intimidation practices to coerce victims into sending them money. They basically call victims and leave a threatening voicemail message stating you have a warrant out for your arrest because of a tax violation.

Here is what you need to know to protect yourself and your business from falling prey to this scam.

Get armed with the facts. Remember that these types of scams work on fear and the victims lack of information. Verifying facts is the greatest weapon against these criminals.

Don’t be fooled by professionalism. The scammers sound professional, going as far as to provide phony IRS badge numbers and altering the caller ID numbers to appear as if the calls are coming in from an agency. They also have personal information on their victims to make the scam sound more legitimate.

These tax scams have cost around 4,550 victims more than $23 million since October 2013. And these are just the ones who report it, many victims of scams are afraid to report the crime, which means the loss is likely much higher.

The IRS has released the following facts regarding how the agency contacts individuals.

1. The IRS does not call and demand immediate payment. The agency only calls after first sending you a bill in the mail.
2. The IRS does not demand you pay taxes without letting you question or appeal the amount you owe.
3. The IRS does not require you pay in a specified way, such as a prepaid debit card.
4. The IRS does not ask for your credit or debit card numbers over the phone.
5. The IRS does not threaten arrest for not paying.

If you receive calls for these types of tax scams, hang up and report it to your local law enforcement agency immediately. You can visit “Tax Scams and Consumer Alerts” on IRS.gov to get additional information.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

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

‘Doctors’ Loophole’ in Student Loan Debt-Forgiveness Helps more Americans than Intended

Posted on November 24, 2015by Admin

The federal government is getting ready to forgive billions of dollars in student loan debt for doctors and other professionals with expensive educations, under a law designed to help “modestly paid” workers in public service.

At issue is the 2007 student loan forgiveness program that allows borrowers who have made a decade of payments and work for government or nonprofit entities, have the rest of their debt forgiven. The program was designed to encourage young Americans to pursue traditionally hard-to-fill positions, such as: public defenders, social workers, teachers and modestly paid doctors in underprivileged areas.

However, the program is helping far more than intended, many of the borrowers being well-paid. Thousands of workers with expensive graduate degrees are set to discharge five- and six-figure student debt amounts as they approach typically lucrative careers.

The biggest beneficiaries will be med school students, who owe an average of $180,000 upon graduation and are increasingly working for nonprofit hospitals to qualify for the program. What is being called the “doctor’s loophole,” financial advisors estimate that many will have 80% or more of their original balances forgiven.

The government will not start forgiving loans under the program until 2017, a decade after it was signed into law. But the estimated tab is growing quickly as enrollment surges. As of September, about 295,000 borrowers in all fields had submitted paperwork and were on track to have debt forgiven under the program, according to the Education Department. That is an increase of 368% from two years prior, likely reflecting growing awareness of the program and a boom in higher-education attainment during the recession. The agency projects a total 600,000 borrowers will have loans forgiven over the next decade.

Supporters of the program note it is achieving the goal of increasing interest in jobs that are tough to fill, like public defender positions. A surge has been reported in applications for legal positions, partly linked to lawyers hoping to shed their law school debt.

The typical borrower in the program owes between $60,000 and $70,000 in student debt, with 1 in 4 owing more than $100,000, according to a Government Accountability Office report. This suggests most enrollees are workers with postgraduate degrees. Critics say the program does little to help the millions of Americans who truly need the relief from student loan debt, like those borrowers who did not complete college and have much smaller loan balances or who graduated with degrees that pay far less in today’s economy.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

New Bankruptcy Paperwork May Result in More Inaccurate Filings

Posted on November 23, 2015by Admin

As we discussed in an earlier blog, the paperwork that people and businesses have used to file for bankruptcy protection since the 1980s is being replaced effective December 1, 2015. Perhaps the biggest change with the new forms is that people and business owners will use two different sets of paperwork to file for bankruptcy. Historically, they have used the same three-page petition.

Bankruptcy experts have expressed concern that the new forms with clearer and more concise instructions (free of legalese) will encourage more people to file for bankruptcy without the help of an attorney. This could lead to people making BIG mistakes.

It is estimated that approximately 10% of bankruptcy filers nationally file without an attorney. While you may think you are saving money, the results can be devastating- jeopardizing your chances of a successful bankruptcy discharge. Studies have shown that filers who hire an attorney to file their Chapter 7 bankruptcy obtained a discharge 95% of the time. By contrast, those debtors who filed “pro se” only received their discharge in 61% of cases.

There are other benefits to hiring an attorney when filing for bankruptcy. A bankruptcy petition incorrectly or untimely filed can negatively affect a debtor’s future, rather than provide them with a much-needed financial fresh start. Bankruptcy is not about filling out forms, it is about understanding the rules, statutes and case law that determine how these forms are completed.

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Bankruptcy Law, Student Loans, Timothy Kingcade Posts

More Lawsuits being filed over Student Loans

Posted on November 20, 2015by Admin

Lenders are taking more extreme measures when it comes to collecting student loan payments- they are taking borrowers to court for the money. It used to be that if you fell behind on your student loan payments you would receive collection calls and threatening letters, now borrowers are being sued.

The number of lawsuits filed over delinquent student loans has significantly increased in the past two years. The lawsuits come as the student loan industry finds itself under heightened government scrutiny over complaints involving paperwork errors and deceptive collection practices.

Why the increase in these lawsuits? One explanation is that many lenders are now able to sue because bankruptcy cases filed by borrowers around the recession have been resolved. Another reason is the sheer amount of money at stake- billions of dollars in delinquent loans. Another possible reason for the rise in lawsuits: Loan companies are more efficient at producing the thorough documentation some judges are now demanding.

Litigation has become a more accepted (and effective) collection practice. Lenders typically go to court to try and garnish the borrower’s wages or force the person to make a certain payment every month. Student loans backed by the federal government come with rules that allow the lender to take such action without going to court, while holders of private loans must get a judge to sign off on such steps.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all 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.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

New Bankruptcy Forms Effective December 1, 2015

Posted on November 18, 2015by Admin

The majority of the bankruptcy forms are being replaced effective December 1, 2015. This change is in an effort to improve the official bankruptcy forms and the interface between these forms and available technology. In creating the new forms, surveys were conducted to determine the problems with the current forms and input was utilized at the design phase from practitioners, trustees, along with software vendors.

It’s important that bankruptcy attorneys do not assume these are the same forms as the old ones. Read the questions and instructions thoroughly. Make sure and get your clients to disclose all of their assets and claims, including the contingent ones.

One of the key features of the new forms is that there is a separate case-opening form for individuals, new Form B101, Voluntary Petition for Individuals Filing for Bankruptcy, and a new form for non-individual debtors, new Form B201, Voluntary Petition for Non-Individuals Filing for Bankruptcy.

The new form for individual debtors would also be used for married debtors. Only business entities would use the non-individual form. The non-individual debtor’s form reflects how businesses keep financial records. The new forms also remove questions relevant only to individuals.

There’s been concern that because these forms are reportedly easier to use, it will encourage more pro se filings. There are warnings throughout the new forms against pro se filings, but these are always a reality.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Three Times Bankruptcy is the Right Decision

Posted on November 17, 2015by Admin

Bankruptcy can have significant consequences to your credit score, but sometimes the hit can be worth it if it means getting out from under a mountain of debt and gaining a fresh financial start. Filing for bankruptcy should not be taken lightly, but if paying down the debt would leave you with no money to put food on the table and pay the mortgage, filing for bankruptcy makes sense.

Here are some additional circumstances when it makes sense to file for bankruptcy.

Your liabilities are more than your assets. Bankruptcy is often the best option when debtors owe so much that their liabilities far outweigh the value of their assets. In such cases, it’s often impossible to ever get caught up.

Negotiations didn’t work. Before filing for bankruptcy, it’s a good idea to try and negotiate with your creditors. There is a possibility they will settle the debt for less money than you owe if you can prove that you are struggling financially. But if your creditors are unwilling to negotiate with you, the only other option may be to file for bankruptcy protection.

A job loss, medical emergency or other financial disaster has eliminated your ability to generate monthly income. Medical bills are the number one cause of U.S. bankruptcy filings. Even having health insurance does not shield consumers from overwhelming medical debt. Bills and debt can pile up quickly without the monthly income, leaving consumers with no way out.

Related Resources:

http://www.csmonitor.com/Business/Saving-Money/2015/1116/Three-times-bankruptcy-is-the-right-decision

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What’s Considered Bankruptcy Fraud? The Supreme Court will decide in New Case

Posted on November 11, 2015by Admin

Bankruptcy relief is not available to those who defraud their creditors, but what is the definition of fraud? The Supreme Court is getting ready to decide this in a new case. Bankruptcy laws require debtors pay back the money they owe if it was obtained by “false pretenses,” “false representation” or “actual fraud.”

Two circuits have broadly interpreted “actual fraud” as when a debtor obtains money through a scheme that is intended to cheat creditors. However, another appellate court, ruled that it is not “actual fraud” unless a debtor actually lies to the creditor. As a result, the Supreme Court will have to decide between the narrow and broad definitions of “actual fraud” to determine when certain debts will be discharged or must be dealt with in bankruptcy.

The case involves business owner Daniel Lee Ritz Jr., whose company, Chrysalis Manufacturing Corp., purchased $164,000 worth of goods from Husky International Electronics Inc. between 2003 and 2007. During the four-year period, Chrysalis never paid for the goods, and Ritz funneled more than $1 million of Chrysalis’s funds to other companies under his control.

Husky later sued Ritz to hold him personally liable for Chrysalis’s debt, but before a judge could rule on the suit, Ritz filed for Chapter 7 bankruptcy protection. Husky countered and sued Ritz in bankruptcy court, arguing that he should pay the debt because he defrauded Husky by moving Chrysalis’s funds out of its reach. A bankruptcy court found in 2011 that although Chrysalis did not benefit from the transfer of its funds, and although Ritz was not a “credible witness,” his conduct did not meet the definition of “actual fraud” for one reason: He did not lie to Husky.

A lack of misrepresentation from Ritz to Husky is what also caused a district court and appellate court to each conclude that there was no “actual fraud” and therefore Ritz could be set free from the debt he owed Husky. Husky has requested the Supreme Court take the case, which they agreed to last week.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Bankruptcy Filers Targeted by Scammers

Posted on November 10, 2015by Admin

Bankruptcy Filers Beware: Telephone Scam Soliciting Wire Transfers

The National Association of Consumer Bankruptcy Attorneys (NACBA) is warning its members to remain in contact with current and past clients regarding “scammers” posing as bankruptcy attorneys. The elaborate scam targets people who have filed for bankruptcy and those who are just starting the process. The scammers use software that “spoofs” the caller ID system to appear that it is coming from the phone line of a consumer bankruptcy attorney.

Victims of the scam are being instructed to wire funds to satisfy a debt, supposedly outside of the bankruptcy proceeding. Some consumers have even been threatened with arrest if they do not wire the money. These calls come in after business hours, making it hard for consumers to verify their authenticity. In addition, to make themselves sound even more legitimate, these scammers are pulling consumers’ personal information from public records.

NACBA has been in contact with the courts and media regarding this complex scam. Warnings have been issued by the Office of the Attorney General in New Hampshire and by Virginia Eastern District bankruptcy clerk William C. Redden. However, despite these warnings, incidents continue to be reported- one coming from a client of ours last week!

It is important for consumers to know that under no circumstances would a bankruptcy attorney or staff member ask a client for an immediate wire transfer to satisfy a debt nor would they threaten arrest if the debt is not paid.

Members of the NACBA Legislative Committee will soon approach the Department of Justice to not only request a more thorough investigation into how consumer information is being compromised but also recommend steps that can be taken to further protect the identity of those going through the bankruptcy process.

You can click here to learn more about the consumer bulletin sent out by NACBA.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

A WIN for Consumers! FTC Announces Major Enforcement Action against Debt Collectors

Posted on November 5, 2015by Admin

The Federal Trade Commission and other law enforcement authorities around the country have announced the first coordinated federal-state enforcement initiative targeting deceptive and abusive debt collection practices. This nationwide crackdown encompasses 30 new law enforcement actions by federal, state and local law enforcement authorities against debt collectors who use illegal tactics. These tactics include, but are not limited to: harassing phone calls, phony impersonations, false threats of litigation, wage garnishment – even arrest.

It has been documented that collectors even tried to collect on so-called phantom debts – phony debts that consumers do not actually owe. The illegal practices also included the failure to give consumers legally required disclosures and notices, or to follow state and local licensing requirements.

“Being in debt is stressful enough for many Americans without also being subjected to intimidation and false threats,” FTC Chairwoman Edith Ramirez said. “Debtors have certain rights and rogue collectors that step outside the law will face the consequences of illegal behavior.”

According to the complaint, the defendants also failed to identify themselves to consumers as debt collectors, falsely portrayed themselves as process servers or attorneys, and falsely threatened arrest or litigation. The defendants unlawfully disclosed consumers’ debts to third parties in an attempt to embarrass the consumers into paying them. All of these are in violation of the Fair Debt Collection Practices Act (FDCPA), which was designed to help prevent creditor abuse and harassment.

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