Miami bankruptcy attorney Archives - Page 98 of 101

Are Inherited IRA’s protected in Bankruptcy?

Posted on June 16, 2014by Admin

The U.S. Supreme Court recently answered this question. In an opinion written by Justice Sonia Sotomayor the Court found that Heidi Heffron-Clark, who inherited an IRA from her mother in 2001 and filed for bankruptcy nine years later, could not protect the account from her creditors.

The court’s analysis in Clark v. Rameker ruled that there were key legal distinctions between inherited IRAs and those you set up for yourself through annual contributions or company plans. The fact that inheritors cannot put additional funds into the inherited IRA account and the beneficiary can withdrawal money at any time without incurring a penalty make these inherited IRA accounts unique and “suggest that they are not retirement assets,” the court notes.

Another key distinction: Non-spousal IRA heirs must either withdraw the entire account balance within five years of the original owner’s death, or take out a minimum amount each year, starting December 31st the year after the IRA owner died.

The Supreme Court’s decision does not affect bankruptcy protection for retirement accounts of your own, which were expanded by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

The decision does have important ramifications for spouses. A spouse who inherits their husband or wife’s IRA has an option not available to other inheritors. The surviving spouse can roll the assets into his or her own IRA and postpone distributions from a traditional IRA until they turn 70½. However, there is a catch to this. Just like other IRA owners they may have to pay a 10% early-withdrawal penalty if the money is taken out before age 59½ from the surviving spouse’s own IRA.

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

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Miami Bankruptcy Attorney Timothy S. Kingcade Named a Florida Super Lawyer of 2014

Posted on June 10, 2014by Admin

MIAMI – Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade & Garcia, P.A. (www.miamibankruptcy.com) has been recognized as a Florida Super Lawyer in the area of consumer bankruptcy law. This prestigious honor was awarded to only six attorneys in the entire State of Florida.

“It is a true honor to have received this award,” said Timothy S. Kingcade. “It is a testament to the commitment my firm and I make every day to each and every one our clients.”

Attorney Kingcade practices exclusively in the field of bankruptcy law, handling Chapter 7 filings and foreclosure defense cases for the Southern District of Florida. As an experienced CPA and proven bankruptcy attorney, Timothy Kingcade knows how to help clients take full advantage of their rights under bankruptcy protection to restart, rebuild and recover.

Super Lawyers is a listing of outstanding lawyers who have attained a high degree of peer recognition and professional achievement, representing the top 5% of Florida lawyers. The goal of the Super Lawyers selection process is to create a credible, comprehensive and diverse listing of lawyers to be used as a resource to assist lawyers and sophisticated consumers in the search for legal counsel.

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Miami-based Kingcade & Garcia, P.A. was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care. All partners and associates at Kingcade & Garcia, P.A. specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

Bankruptcy Law, Timothy Kingcade Posts

Find out what your Debt is really Costing You

Posted on June 6, 2014by Admin

Thanks to the CARD Act, those who carry credit card debt are reminded on their monthly statements just how long it will take to pay it off in full. For many consumers, this is not a pretty picture. Most do not realize that by being in debt, purchases you make on those credit cards are actually costing more than what you pay the merchant. It’s a vicious cycle. Each dollar you do not pay over the fixed minimum payment ends up costing you much more in the end.

For example, if you have a $1,000 credit card balance at a 20 percent APR and you plan on making a payment of $20 a month until it’s paid off, it will take you just over nine years and you will have paid approximately $1,168 in interest. The key is to make more than just the minimum monthly payment. Even low-interest rate debts like student loans, which can be extended out 30 years, by making only the minimum payment you are increasing the time you carry those balances because of the compound interest.

Here’s some advice…
• If possible, start paying off the debt in full, beginning with those cards that have the highest interest rates. Also, paying off the smallest debts first can give you motivation to tackle the larger debts.

• Do not let purchases made on credit cards become invisible spending. Switch to a debit card and sign up for balance notifications and alerts on your phone and email.

• Consolidate credit card balances. If you qualify, consolidate your credit card balances to low-interest or 0% interest cards to reduce the cost of your debt. You may also want to consider a personal loan that offers a low interest rate.

• Avoid paying consolidation or consulting fees. Avoid paying fees to credit consolidators. Much of what they are doing for a fee, you can do yourself.

• Understand credit effects. There is a common misconception that carrying debt is good for your credit score. This is absolutely false. To achieve your best possible credit score, it is important to keep your debt ratio to under 30%, 10% is even better.

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

Bankruptcy Law, Credit, Timothy Kingcade Posts

Dept. of Education Urged to Clarify Policy on Student Loan Bankruptcies

Posted on June 3, 2014by Admin

Democratic members of Congress are urging for clarity and leniency when it comes to how the Department of Education forgives student loan borrowers who are bankrupt and unable to pay back their student loan debt. Federal law treats student loan debt as being non-dischargeable in bankruptcy unless “undue hardship” can be proven.

Oftentimes, attempts to prove undue hardship are “aggressively challenged” by the loan service provider and the Department of Education. According to the letter, the department needs to create clear standards for borrowers to qualify for discharging their student loan debt.

“While we recognize the department’s prerogative to fairly collect on student-loan debts owed to it, we do not find it sensible or cost-effective for the department or its contractors to engage in lengthy legal challenges and appeals against bankrupt student-loan borrowers who have demonstrated a clear and legitimate inability to repay their loans,” the letter says.

Other recommendations in the letter include:

• Clarifying the criteria for “undue hardship” to include borrowers who receive disability benefits under the Social Securtity Act;

• If the secretary of veterans affairs has determined the borrower is unable to work because of disability connected with military service;

• If the borrower’s household income has been less than 175 percent of the official poverty guidelines during the five-year period before filing a bankruptcy petition.

The letter states the urgency for action when it comes to the student loan debt crisis. This new guidance would bring consistency to the application of the undue-hardship standard.

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, Timothy Kingcade Posts

Prescription Costs Fuel Medical Debt and Rise in Bankruptcy Filings

Posted on May 30, 2014by Admin

Last year, the federal government reported that Americans had $41 billion in out-of-pocket costs associated with prescription drugs. Experts agree that those prescription drug costs will continue to play a key role in medical related debt and bankruptcies despite the expansion of insurance for millions under the Affordable Care Act.

Even though more people will be getting their medications covered by insurance, there is a growing trend in both the individual insurance market and the employer-provided insurance market toward having insured people pay an increasing share of medical costs, including their prescriptions.

For many Americans, their individual monthly premiums can total a couple hundred dollars a month, combined with annual deductibles ranging in the thousands, out-of-pocket expenses can add up quickly. Yet many people, particularly those with low incomes are unfamiliar with the myriad of health insurance plans that can play a role in how much they pay for their prescriptions. Their lack of knowledge increases the likelihood they will fall into the medical debt trap.

A report from NerdWallet last year found that medical debt was the single leading cause of bankruptcy in the U.S. and that 56 million Americans had problems paying their medical bills. A new report last week by the Consumer Financial Protection Bureau found that 52 percent of accounts sent to collections and placed on people’s credit reports stemmed from medical debt.

Related Resources: http://www.cnbc.com/id/101686432

Bankruptcy Law, Timothy Kingcade Posts

Hiring the Right Bankruptcy Attorney

Posted on May 27, 2014by Admin

After struggling with unmanageable debt and harassing collection calls for too long, you have finally considered bankruptcy as an option. But what should you look for in a bankruptcy attorney? Do not simply choose your attorney from an advertisement. Filing for bankruptcy is a serious decision and should not be entered into lightly.

Make sure your bankruptcy attorney possesses the following qualities:

1. Experience matters. Do your research. Visit your state bar’s website and see how many years the attorney has been practicing bankruptcy law, how much of their business is devoted to this practice area and whether or not the attorney has been peer reviewed by Martindale-Hubbell. These types of credentials provide you with assurance that the attorney has practical knowledge and experience in the area of bankruptcy law.
2. Passion and professionalism. Find out why your attorney chose to practice in this area of law. Many lawyers find this work especially rewarding and this should be apparent in your initial consultation with the attorney. If you feel like “just another number” at the firm, keep looking.
3. They listen to you. For most people, filing for bankruptcy is oftentimes an emotional and sometimes painful process. You will not only want your attorney to have the proper credentials, but also be empathetic to your situation and take the time to listen and address all of your concerns throughout the process.
4. Cheaper is not always better. Would you have a medical procedure done by the cheapest doctor? Probably not. You would likely want the most experienced doctor. Take this same approach when it comes to hiring a bankruptcy attorney. Avoid ultra-low-cost bankruptcy mills that advertise heavily. These type firms usually have a small number of attorneys and a large number of legal assistants. If unforeseen problems arise in your case, you could be in trouble. There can be serious consequences for hiring the wrong attorney and it can cost you far more than what you thought you could save in the first place.
5. Discuss alternatives. Bankruptcy is not for everyone. A complete cancellation of eligible debts may not be the best option. An ethical attorney will present you with all of your options and help you determine whether bankruptcy is the right option for you.

Bankruptcy Law, Credit, Timothy Kingcade Posts

The WRONG ways to eliminate Student Loan Debt

Posted on May 22, 2014by Admin

This month thousands of graduates will be tossing their caps in the air with the excitement and hope of a prosperous future. But upon entering the “real world,” many of these graduates will soon be faced with a monthly burden: student loan debt. For many graduates, the first dose of reality begins with the first job; a job they estimated would pay more when they were taking out their student loans.

Do not make these mistakes when it comes to paying off your student loan debt.

1. Not paying. Many borrowers have tried this tactic, which seems simple enough. The student loan lenders are hoping you will make this mistake. With penalties and interest accruing, this is simply making a bad situation worse. In addition, this approach will hurt you when you try to get a mortgage or even lease an apartment, as these student loan payments tend to be some of the first credit accounts new graduates have in their name.

2. Making payments with credit cards and then declaring bankruptcy. This approach will end up costing you big time. The rates on credit cards are much higher than those on student loans. Not to mention, the bankruptcy court will see right through this scheme and it is unlikely the debt will be discharged.

3. Using home equity to pay off student loans. For borrowers who have returned to school later in life and are homeowners, they may think that using the equity in their home will help them consolidate their student loans and lower their monthly payments. The drawback here is that most student loans have comparable interest rates to what banks are charging homeowners right now. You are not paying off debt, just trading it in for some new debt, which is tied to your home. You can also be putting your house on the line. Missing a student loan payment can result in a late fee, but missing several mortgage payments can put you at risk of foreclosure.

If you’re having trouble meeting your obligations on federal student loan debt there are options out there ranging from Income-Based Repayment and Pay as You Earn plans to Income-Contingent Repayment. There are ways to legitimately satisfy student loan debt.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Sallie Mae Faces Nearly $200 Million in Penalties for Cheating Active Duty Troops

Posted on May 14, 2014by Admin

Sallie Mae and its former loan unit, Navient have struck a deal with federal authorities to resolve allegations that it cheated active duty troops and other borrowers who were being charged late fees.

According to the Consumer Financial Protection Bureau (CFPB), service members have complained that companies such as Sallie Mae and Navient have told them they could not receive protections under the law unless their loans were in forbearance or deferment.

Sallie Mae and Navient more than doubled to $173 million- the amount they have set aside to cover settlements resolving these allegations brought by the Federal Deposit Insurance Corp. (FDIC) and the Dept. of Justice. Navient has acknowledged the federal government’s investigation into allegations the company cheated active-duty troops in violation of the Service Members Civil Relief Act from November 28, 2005 to present day.

Under the Service Members Civil Relief Act, loan companies must reduce the interest rate on student loans to no more than 6 percent upon request by active duty troops. As of 2008, the law extended beyond private student loans to include federal student loans.

In addition, troops have told the CFPB that their servicers wrongly told them the 6 percent interest-rate cap expired annually, and they were required to submit additional paperwork to retain it. Others were discouraged from applying for the protections contained in the service members’ law, while some were mistakenly told that the benefits are only available to those in combat zones.

Furthermore, some service members told the CFPB that they were told to provide end dates for their tours on active duty, a requirement that is virtually impossible to meet, since officers in the armed forces are usually not told when their tours will end.

Rohit Chopra, the consumer bureau’s top student loan expert, told the Senate “that companies that fail to comply with the service members’ law may be cheating borrowers in other ways.”

A settlement resolving the service members’ allegations would need to be approved by the Education Department and require the companies to establish a $60 million fund to compensate troops for violating the service members’ law when it comes to student loans.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Think Cash is King? Not according to a recent study

Posted on May 13, 2014by Admin

A new report from Bankrate shows credit card debt is on the rise. Nearly 8 out of 10 Americans carry less than $50 in cash on a daily basis and nearly 1 in 10 customers do not carry cash at all. This study comes at the same time the New York Federal Reserve is saying U.S. household debt rose by $129 billion in the first quarter, totaling $11.65 trillion.

Many agree that paying with cash makes consumers more conscious of their spending. We are quickly moving to an all-digital age, subject to hackers. But not everyone is seeing the death of paper money as a bad thing. A Chief Risk Strategist for Chapwood Funds says, “Carrying cash guarantees that you are losing money over time with interest and inflation.”

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Seven Mistakes your Credit Card Company WANTS you to Make

Posted on May 9, 2014by Admin

1.) Letting your rewards or miles expire. Letting your credit card rewards points or miles expire is a common mistake. Make sure you read the fine print and know the rules of redemption or you could lose out big time.

2.) Paying only the minimum each month. You know you should pay more than the minimum and cut down on the interest you are paying for “borrowing” the balance. Thanks to the Credit CARD Act of 2009, your bill tells you how much it is going to cost you to pay off the balance over time.

3.) Paying late now and then. The credit card company wants you to pay, but doesn’t mind if you pay late. The credit card company can raise the interest rate on your new purchases as long as they give you 45 days’ notice. Not to mention the late fees of $29 to $39 you can incur.

4.) Ignore the mail. Not paying attention to your statement is a mistake the credit card companies hope you will make. These statements can contain valuable information such as fraudulent charges, which you will not have to pay- as long as you inform the credit card company right away- or notifications that your interest rate has increased.

5.) Using a balance transfer to rack up more debt. You transfer your outstanding balance to a card with a low or zero percent interest rate thinking you will save money. Shifting your debt around does not mean you are debt free. If you decide on a balance transfer, make sure you pay off your balance before the end of the promotional period and avoid adding additional charges to the card. Also be aware of balance transfer fees associated with these cards.

6.) Opting to go over your credit limit. Under the new law, if you do not opt in and you attempt to buy something that will put your balance over your credit limit, the transaction could be declined at checkout. If you opt in to this trap, it can cost you. You can face over-limit fees and higher interest rates on your credit card balances.

7.) Paying more fees than you earn in rewards. The goal is to maximize the rewards offered by your credit card company. If you do not travel, why sign up for an airline credit card? It is best to choose a card with no annual fee even if it has no rewards points program. Keep in mind, if you carry a balance even for one month beyond any promotional interest period, the interest you will pay can quickly diminish any rewards points you may have earned.

Click here to read more on this story.