Miami bankruptcy attorney Archives - Page 99 of 99

Bankruptcy Law, Credit, Timothy Kingcade Posts

Avoid Getting Audited this Year: 10 Tax Audit Red Flags

Posted on March 18, 2014by Admin

1.) You’re “very” charitable. Be careful not to exaggerate your good deeds. The IRS has pre-calculated a donation level for each income range, so anything that exceeds those amounts could cause the IRS to take a second look at your return. Keep in mind- you are required to keep receipts for any donations exceeding $250 and to fill out form 8283 for any non-cash donations exceeding $500. Non-cash donations are where a lot of people end up exaggerating and get into trouble. So remember, items that you are giving to Goodwill should be valued at the price someone would actually pay for them today- not the amount you purchased them for 10 years ago.

2.) You deduct your home office. The home office deduction is one of the most complicated and abused deductions in the tax code. Starting this year, you can claim $5 per square foot of workspace, up to 300 square feet. The deduction will be capped at $1,500 per year. The IRS’s definition of a home office remains the same. Your home office must be your primary place of business and used exclusively for work. So if you check your emails from the kitchen or work from home a couple times a week, this does not constitute a home office.

3.) You claim bizarre deductions. These can spark suspicion with the IRS. When in doubt, ask a tax professional before claiming these deductions.

4.) You’re a millionaire. Being rich has its benefits, but not during tax time. The more income you report, the higher the likelihood you will get audited. Be sure and keep up-to-date records of all income, donations and other transactions. The better documentation you have and the more organized you are, the less headaches you will have down the road.

5.) You claim the same child someone else does. If your ex files taxes before you do and claims your child as a dependent, the IRS is going to be very suspicious if you claim the same child as a dependent. This often happens when a couple gets divorced and one parent has primary custody, but the other still tries to claim the child as their dependent. Even if you are in the right, the IRS may force you to provide extensive documentation proving this.

6.) You have money abroad. The IRS has made it a mission to retrieve money that is illegally being stashed in overseas accounts. So even if you have money in a perfectly legal account abroad, you better report it. Failing to disclose this can result in penalties, including a fine of up to $100,000 or 50% of the account balance- whichever is greater.

7.) You claim the earned income tax credit. This refundable credit can be as much as $6,000 depending on your income and how many children you have. That’s why the IRS tries to make sure that this credit is only given to those who truly deserve it. If you claim this credit, make sure and have documentation including the Social Security numbers of all of your children and proof that they live with you (i.e. – letters from their schools or doctors that were sent to your address).

8.) You deduct gas costs. Most employers reimburse you for driving-related costs like gas and mileage. So if you are deducting hundreds or thousands of dollars of automobile costs as a business expense that is going to raise suspicion from the IRS. If you own a business, you can only deduct business-related costs. The gas you purchase for personal trips cannot be combined with that.

9.) Your “business” is really just a hobby. The general rule of thumb is that if the venture has not earned a profit in three out of the last five years, it’s usually not a legitimate business.

10.) You fail to report income. For those who earn money from a variety of different sources, it can be easy to forget an account. Some clients forget about small brokerage accounts they have and since the IRS receives information from brokerage firms directly as well, there is a good chance you will be contacted if your records do not match up with what the IRS receives. If you worked side jobs and earned more than $600 at any one of them in a year, those employers should send you a Form 1099 so you can report that income on your taxes as well.

Click here to read more on this story.

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

Quiznos Files for Bankruptcy

Posted on March 17, 2014by Admin

First Sbarro now Quiznos- it’s been a tough week for fast food chains. Executives at the chain restaurant, known for its toasted sandwiches, agreed to a restructuring plan that will reduce its debt by more than $400 million.

The company has lined up $15 million from investors to help keep the business running during the bankruptcy. All but seven of Quizno’s 2,100 restaurants in the U.S. and 30 other countries are independently owned by franchises, will remain open and operating as usual.

Quiznos once had more than 5,000 stores and was a competitive player in the sub market. But now, Subway has nearly 20 times the number of stores. Quizno’s CEO, Stuart Mathis has devised a plan of action that will help increase sales for its franchise owners moving forward. This strategy will look to reduce food costs, invest in local advertising, and in some circumstances, make loans available for restaurant improvements.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

4 Tax Changes you Should Know about in 2014

Posted on February 24, 2014by Admin

As many of us are sorting through tax documents for the 2013 filing season, there are some important changes coming up in 2014 that will affect the way you plan your finances and budget for the coming year.

1. Additional 2013 taxes for high earners. Tax year 2013 marked the start of two new taxes for high earners: a 0.9% Medicare tax and a 3.8% tax on unearned/investment income. If you are subject to these, be prepared to pay them by April 15, 2014. Good planning throughout the year can go a long way.

2. Joint returns for same-sex couples. Since the recent Supreme Court ruling DOMA, married same-sex couples can now file joint federal returns. It is also possible to amend past returns (from up to three years) to reflect the filing status.

3. Tax breaks expiring at the end of 2013. If you have relied on certain tax breaks the last few years, you may be disappointed to find out that some are expiring at the end of 2013.

These include:

• Credits for certain energy-efficient home improvements
• Deduction for university tuition and fees
• Deductions for teachers who purchased classroom supplies out of their own pockets
• Deduction for PMI payments

4. Changes from the debt-ceiling battle. Tax changes are inevitable if there is another debt-ceiling battle. If there is another government shutdown, delays could be seen during the tax filing season. The best advice is to get your tax return prepared as early as possible so you are not trying to figure out what to do when delays become a problem.

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Bankruptcy Law, Credit, Timothy Kingcade Posts

Medical Debt: The Number One Cause of Personal Bankruptcy

Posted on February 10, 2014by Admin

This year it is expected that 1.7 million American households will be forced to file for bankruptcy due to overwhelming medical debt. This makes medical debt the largest cause of personal bankruptcy filings- surpassing credit card bills and unpaid mortgages, according to new data. Even having health insurance does not shield many Americans from the weight of medical debt.

According to recent data, 25 million Americans hesitate to take their medications in an effort to control medical costs. However, delaying the needed medication is only a short-term fix which can often result in expensive emergency room visits or worse.

More than 20 percent of the population between the ages of 19 and 64 will struggle to pay some sort of medical debt. High-deductible insurance plans, requiring consumers to pay more out-of-pocket expenses, are the most challenging for Americans. With the average American family bringing home just $50,000 a year, an unexpected medical bill coupled with a high-deductible insurance premium can quickly become unmanageable debt.

Obamacare is not likely to fix the problem. While the Affordable Care Act will give more people coverage, those with year-round coverage are likely to still be overwhelmed with medical debt. The number of households forecast to file for medical-related bankruptcies this year is three out of every five filings.

Data from NerdWallet Health revealed that 15 million people will deplete their savings to cover unexpected medical bills. Another 10 million will be unable to pay for necessities such as rent, food and utilities because of those bills.

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Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Credit Mistakes that Can Wreck your Retirement

Posted on October 10, 2013by Admin

A recent University study found that elderly people are more likely than any other age group to file for bankruptcy. The “boomer generation,” now thinking about retirement can learn from the seven credit mistakes below:

1.) Assuming that you are nearing the end of the road. According to the Social Security Administration, the average life expectancy is 84 for men and 86 for women. Keeping that in mind, treat credit as a long-term asset accompanied with risks, responsibilities and important benefits.

2.) Avoiding Credit. Many seniors are proud of their financial accomplishments. Whether they have finally paid off their mortgage, payed off their credit cards or car. But if you ever need a loan and you have little credit in your name, your credit score could have dropped. This means you will likely have to pay higher interest rates if you ever need credit for a life emergency. Instead, get a credit card. But use it only as you would a debit card, charging only what you can afford to pay at the end of each month. This will help rebuild your score.

3.) Taking on too much debt. A recent study by Demos found that Americans aged 50 and over have an average credit card balance of $8,278, compared to $6,258 for people under 50. Senior debt has many causes. More than a third of people over the age of 50 with credit card debt use their credit cards to cover basic living expenses, which is a big mistake. This makes them vulnerable to debt collection scams and withdrawing money from retirement accounts to pay off credit card debt.

4.) Student Loans. Think twice before signing for any student loans. The average borrower over age 60 owes $19,521 in student loan debt, and 12.5 percent of them are delinquent on their payments. Some took college classes later in life. Others have debt leftover from school days long past or cosigned on student loans for their children and grandchildren.

5.) Co-Signing. To help their children or grandchildren purchase a car, new home or pay for college, many seniors have co-signed loans. Oftentimes, not realizing that lenders and credit reporting agencies do not distinguish between borrowers and co-signers. Instead, lend money directly. This will help your loved one establish credit of their own without endangering your financial future.

6.) Failing to check your credit score. Check your credit score for free once a year with each of the three major credit bureaus and sign up for tools such as Credit.com’s free Credit Report Card, which allows you to see your credit profile and provides free scores that update monthly. 36 percent of seniors who did this found errors which severely damaged their credit scores.

7.) Failing to understand reverse mortgage risks. A reverse mortgage can provide seniors extra money during retirement by tapping all the equity they have built up in their home. The loan is repaid only when they die, sell or move out of the home. It is important that you do your homework. Meet with a certified financial advisor to see whether a short- or mid-term reverse mortgage is right for you.

Click here to read more on credit mistakes that can wreck your retirement.

Bankruptcy Law, Credit, Timothy Kingcade Posts

8 Bankruptcy Myths Disproved!

Posted on September 18, 2013by Admin

Filing for personal bankruptcy still carries a powerful stigma in this country. However, a divorce, death of a spouse, or severe medical illness can place a well-meaning consumer into an endless cycle of debt. There is a sense of shame and failure that allows certain misunderstandings about the bankruptcy process to linger. With that being said, below are the top eight bankruptcy myths- DISPROVED!

1.) I will lose everything if I file for bankruptcy. Not true. Creditors do have the right to get some of their money back, but you will not “lose everything.” Some assets are protected from liquidation. For example, creditors usually cannot touch locked-in pensions, RRSPs or RRIFs. People are also generally allowed to keep modest amounts of furniture, clothing, tools of the trade, and even their car- if there is not too much equity in it.

2.) My friends will all find out that I have filed for bankruptcy. If assets are minimal, creditors are notified by mail and generally there is no notice in the paper. Bankruptcy filings are a matter of public record, but most people are not going to bother, not to mention pay the monetary search fee required. So unless you tell people, there is a pretty good chance that your friends, neighbors and co-workers will never know.

3.) My credit rating will be ruined if I file for bankruptcy. Even though a bankruptcy filing is not desirable on a credit report, if you are months behind on paying your bills and creditors are calling you, your credit score is likely already damaged. Filing for bankruptcy can provide you with a fresh financial start and put you back on track to rebuilding your credit score.

4.) Bankruptcy erases all your debts. Not true. Some debts cannot be discharged in bankruptcy. These include secured debts like mortgages or car loans, alimony, spousal and child support obligations, court fines, claims arising from an assault and student loan debt- unless you can prove undue hardship.

5.) It does not cost anything to file bankruptcy. You may think that you should not have to pay to file bankruptcy, but bankruptcy trustees do not work for free. Their fees amount to around $1,500 and they typically get paid from the money that is freed up from the liquidation of the bankrupt’s assets.

6.) I will never be able to get credit again if I file for bankruptcy. A bankruptcy notation will remain on your credit report for six years following the discharge. But there’s no need to fear, many individuals that have filed are able to get a secured credit and even a car loan shortly after their bankruptcy is discharged. Many lenders specialize in working with clients who have a less-than-stellar credit history.

7.) Filing for bankruptcy will destroy my spouse’s credit rating. A consumer bankruptcy filing is personal to the individual filing it. As long as your spouse did not co-sign or guarantee your credit cards or loans, his or her credit rating will not be affected by your filing.

8.) Filing for bankruptcy is not a big deal. Bankruptcy is a big deal. During the nine- to 21-month-period it takes to complete a bankruptcy and have your debts discharged, you will have to hand over total control of your finances to the bankruptcy trustee. It is important to meet with an experienced bankruptcy attorney who can assess your financial situation and advice you if bankruptcy is your best option. At Kingcade & Garcia, we offer free initial consultations for this. Bankruptcy laws were designed to give people a fresh financial start and wipe their slate clean.

Click here to read more on eight popular bankruptcy myths disproved.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Six Ways to Control Your Spending Habits

Posted on April 25, 2013by Admin

Debt is often thought of in a negative light. However, when it is used wisely, it can provide you with an education, a home, a car and a better life. South Floridians have struggled with some of the most substantial debt in the country throughout the Recession. According to Experian, South Florida’s average credit card debt is the nation’s highest, approximately $4,555 per person.

Below are six ways to better control your spending habits:

1. Determine what you owe and the interest rate each creditor is charging you. After you get a clear picture of what you owe, you should pay off the largest debt or the highest interest rate debts first.
2. Avoid spending money on things you really want. Frequently monitor where your money is going. There is a free website called DoughHound.com you can use to help control your spending.
3. Set a debt-reduction goal. When you are able to reduce your debt, reward yourself. After, you can set a new, higher goal for yourself with a bigger reward.
4. Don’t tempt yourself. Try to avoid leaving an excess of money in your checking account. Instead, you should use your extra cash to pay down your debt.
5. Get support from your family and friends. It is best to look for support from others who share your debt reduction goals. Keep a distance from your friends and family who are big spenders.
6. Beware of debt settlement organizations that offer a lot of promises. Typically, they charge you a lot and deliver less than they promise. Also, stay away from debt consolidation loans.

Click here to read more about the 6 best ways to control your spending habits and reduce your debt.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Top 10 Leading Causes of Bankruptcy

Posted on March 21, 2013by Admin

In the southern district of Florida, 31,989 people filed for personal bankruptcy in 2012 and 36,847 in 2011. However, the factors that cause people to file for bankruptcy can be very different. See below for the top ten leading causes of filing for personal bankruptcy.

1. Medical Bills: Medical debt is the leading cause of bankruptcy in the United States. Studies show that 42% of all personal bankruptcies are the result of medical bills.

2. Job Loss: Approximately 22% of those who file for personal bankruptcy attribute their financial troubles to their unemployment.

3. Uncontrolled Spending: Credit card bills, mortgages and car payments contribute to approximately 15% of bankruptcies in the United States. Many Americans are forced to file for bankruptcy protection every year due to uncontrolled spending habits.

4. Divorce: Divorce can be very expensive when there are legal fees, child support payments, alimony payments and the burden of providing for a household on only one income. Divorce attributes to 8% of bankruptcy filings in the United States.

5. Unexpected Disasters: Around 7% of personal bankruptcies are the result of an unexpected disaster such as an earthquake, flood or hurricane. Many Americans cannot recover from debt surrounding a natural disaster due to a lack of homeowners or renters insurance.

6. Avoiding Foreclosure: Many people have filed for bankruptcy protection in order to avoid their home from being foreclosed on. Approximately 1.5% of Americans reportedly file for bankruptcy to stay in their homes.

7. Poor Financial Planning: Nearly 1.5% of Americans who file for bankruptcy protection are forced to do so because of poor financial planning.

8. Preventing Loss of Utilities: One percent of families file for bankruptcy protection in order to keep their utilities on, such as electricity.

9. Student Loans: Student loans are not typically dischargeable debt when filing for bankruptcy; however, the minimum payments can be so high that the individual is forced to file for bankruptcy to eliminate other debt. One percent of Americans attribute their bankruptcy to student loans.

10. Preventing Repossession: One percent of Americans file for bankruptcy in order to have repossessed items returned to them or to avoid repossession altogether.

Click here to read more about the 10 leading causes of personal bankruptcy.

Click here to find bankruptcy statistics in the United States from 2011 and 2012.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Study Reveals a Growing Number of College Grads filing for Bankruptcy Protection

Posted on October 18, 2011by Admin

A new study done by the Institute for Financial Literacy reveals an increasing number of college graduates are filing for bankruptcy, challenging the notions that an advanced education is almost a guarantee for economic success. In 2006, degree holders accounted for 11.2 percent of bankruptcy protection filers, the study found. By 2010, their proportion rose to 13.6 percent.
Similar trends were observed for holders of two-year associate degrees and graduate degrees. In contrast, high school diploma holders or college dropouts logged a decline in bankruptcy protection applications. Data from the Department of Education showed that before students even leave their university some of them are already defaulting on their student loans. For the fiscal year that ended on Sept 30, 2010, student loan defaults went up to 8.8 percent from 7 percent the previous year. It comes as no surprise that there is a strong link between student default rates and joblessness rates.
To read more on the story visit: http://www.allheadlinenews.com/articles/90059838?Study%3A%20Growing%20number%20of%20college%20grads%20filing%20for%20bankruptcy%20protection
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. 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, P.A. website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Trend Alert: Decrease in Bankruptcy Filings May Signal Financial Struggles

Posted on August 22, 2011by Admin

An eight percent decline in bankruptcy filings nationwide may appear to be a positive economic sign. However, some industry experts attribute the decline to individuals not being able to afford to file for bankruptcy. The result may be a mass of pending bankruptcy filings, not unlike the shadow foreclosures feared in the real estate business. If the economy does not take a sharp turn for the better, those individuals who have been on the brink of bankruptcy will eventually be forced to file.

It is predicted that the number of bankruptcy filings will rise when the employment situation improves. When these individuals on the verge of bankruptcy return to work, they will be able to afford the filing fee and the necessary legal representation.

If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy attorneys at (305) 285-9100. 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, P.A. website at www.miamibankruptcy.com.