Miami Bankruptcy Law Firm Archives - Page 2 of 3

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Judge Cancels Loan Debt for Man Who Upgraded Car for Uber

Posted on March 25, 2016by Admin

An Illinois insurance salesman who became an Uber driver to improve his financial situation will be able to eliminate a nearly $10,000 auto loan debt. Federal Judge Jacqueline Cox agreed to discharge $9,786.61 of debt that Oswaldo Rodriguez owes to auto lender GM Financial for the new Chevrolet SUV he bought in October 2014.

“He genuinely thought that he could earn enough money through Uber to finance the debt,” Judge Cox said in a six-page opinion filed earlier this month in U.S. Bankruptcy Court in Chicago.

The ruling comes after Uber has become one of the most visible companies behind an emerging “gig economy,” where a number of Americans are making money through platforms like Uber, Etsy and Airbnb. But while almost 1% of U.S. adults earned income that way during September 2015, a recent study of bank transactions found that the work only supplemented, not replaced a full-time job.

The average monthly income for someone who provided labor via one of these platforms was $533, representing a third of that person’s total income, the study found. People often think they can take on side jobs to avoid bankruptcy.

U.S. bankruptcy law allows borrowers to cancel some of their debts, but lawyers for GM Financial argued that the fine print does not allow a borrower to cancel a debt of more than $650 that came from buying a luxury item or service less than 90 days before the filing.

The Judge ultimately ruled against the lender, pointing out that in her opinion the term “luxury goods” does not include items that a bankrupt person needs for their “support or maintenance.”

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, Credit, Debt Relief, Timothy Kingcade Posts

10 things you should NEVER do before Filing for Bankruptcy

Posted on March 7, 2016by Admin

Run up credit card debt. Credit card charges that exceed a certain amount are considered abuse under bankruptcy law if they are made within 70 to 90 days of the bankruptcy filing. A bankruptcy trustee can exclude that debt from your bankruptcy case.
Purchase a luxury item. If you purchase a luxury item within 90 days of filing for bankruptcy for at least $500, it is considered abuse under bankruptcy law. This means, the bankruptcy trustee has the authority to exclude that purchase as well.
Take out a large cash advance. Cash advances that exceed $750 and are made within 70 days of a bankruptcy filing are presumed to be an abuse and will most likely be thrown out by the bankruptcy trustee.
Sell valuable property. Bankruptcy trustees have the authority to revoke any fraudulent sales or transfers made before a bankruptcy filing. Transferring property raises a red flag because the trustee will assume the transfer was made to avoid losing the property.
Pay off a debt to a relative. In bankruptcy cases, relatives are considered “insiders.” Bankruptcy trustees can force “insiders” to return payments or rescind property sales that were made just before a bankruptcy filing.
Access funds from your retirement. Federal bankruptcy law protects retirement accounts. Florida is one of seven states where all IRA’s are considered a bankruptcy exemption. Under Florida Statute 222.21, IRAs and Roth IRAs are completely protected by debtors in bankruptcy court. Another exception in most states is if a living spouse is the beneficiary of the IRA, they are allowed to treat it as their own in bankruptcy court and it is therefore, exempt. If you try to use money from your retirement account, you may still end up filing for bankruptcy and drain your retirement savings.
Foreclosure, garnishment or repossession. Bankruptcy can protect you from collection actions, but only if you file before a collection action has begun in court. If you wait too long, you risk losing your home or car.
Utilize a secured loan. Secured loans are considered non-dischargeable debts in bankruptcy. If you are searching for alternative solutions before filing for bankruptcy and take out a secured loan against your vehicle or home, you may ultimately lose them if you cannot make the payments.
Take out loans or make credit purchases you don’t intend to repay. Bankruptcy trustees have the authority to look back a year or more to decide if a purchase on credit was an abuse because the filer never intended to repay the cost of the item.
Not consulting with a bankruptcy attorney. You should talk to an experienced bankruptcy attorney who can look at your financial situation and provide advice on whether or not bankruptcy is the right step to take. These consultations are oftentimes free of charge. Do not rely on friends, family or your own judgment. Seek expert advice.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

How to Resolve Your Tax Debt

Posted on February 2, 2016by Admin

Nobody wants to get behind on their taxes, but if you are unable to fulfill your tax obligation at the end of the year it’s important to know that you have options. When the Internal Revenue Service (IRS) determines you owe money, it assesses you a tax. This happens either when you file a tax return or when you do not pay your full balance.

Sometimes the IRS assesses your taxes after an audit in which it does not agree with portions of the tax return, most often because you miscalculated the amount owed. The IRS has 10 years from the date of assessment to collect the taxes owed, although you may be able to extend the statute of limitations.

If the IRS determines that you owe the government money, you will receive a notice of assessment that asks you to pay your tax bill. If you fail to pay it within 30 days, you will receive another notice. If you still do not pay, you will continue receiving these notices until you finally receive a Final Intent to Levy notice. This notice tells you that the IRS is issuing a levy against your state tax refund because you have a balance due.

If you do not immediately pay this amount or appeal the amount of taxes that you owe, the IRS will begin searching for other assets on which to place a levy. The IRS will likely place a lien against you. This means it can legally seize your property to satisfy your debt by garnishing your wages, levying your bank accounts or taking other measures.

Below are three options to resolve your tax debt and avoid a lien or levy from the IRS.

Establish an installment arrangement

The most common way to address your tax debt is to ask for an installment arrangement. This is a repayment plan for up to 72 months or until your tax debt is paid off. You can file a Form 9465 with the IRS to request an installment arrangement.

Be aware that penalties and interest accrue while you pay off the debt. It is better to take larger payments over a shorter span than 72 months to eliminate your balance.

One term of the installment arrangement is that you promise to file your tax returns and pay any associated debts on time. Failure to do so will nullify your agreement. An installment arrangement also extends the statute of limitations for the IRS to collect on your debt by two years.

Receiving ‘Currently Non-Collectible’ Status

If you are granted currently non-collectible (CNC) status, all IRS collection actions will stop. For example, the agency will not be allowed to file a lien against you.

You may qualify for CNC status if paying your tax debt would leave you with not enough money to cover your basic needs. Most often, debtors must be out of work or underemployed to be considered CNC. While you are on CNC, the statute continues to run.

CNC status is temporary and the IRS reviews your case every year. If you become ineligible, you will have to make other arrangements to satisfy your tax debt.

Providing an offer in compromise

Depending on your financial circumstances, the IRS might settle your tax debt for less than you owe. This is known as an Offer in Compromise (OIC).

To file for an Offer in Compromise, you file Form 656, which includes Form 433-A (OIC). These forms require you to list all of your assets, including: bank, retirement or brokerage accounts, your home and automobiles and any other assets. It also requires you to list all of your liabilities, income and expenses.

It takes between six months and one year for the IRS to accept OICs. If you request an OIC, your statute of limitations is extended by the amount of time the IRS considers your offer. The IRS offers an online pre-qualifier tool that can give you a better idea of whether or not your offer will be accepted.

If your OIC is accepted, you will pay the amount you proposed in a lump sum or installments. If your offer is denied, the IRS will move to forcibly collect the debt.

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 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

U.S. Supreme Court will Hear Puerto Rico’s Appeal to Restructure $72 Billion Debt

Posted on February 1, 2016by Admin

In December, the U.S. Supreme Court agreed to hear Puerto Rico’s bid to reinstate a law that would allow restructuring of the debt burdened U.S. territory’s public agencies.

The U.S. commonwealth has nearly $72 billion in debt. Puerto Rico will get to argue before the top U.S. court that the proposed restructuring law is the best way to pull the island out of a nearly decade-long recession. The court will decide whether or not the previous ruling that the 2014 Recovery Act conflicts with U.S. federal bankruptcy law will stand.

Governor Alejandro Garcia Padilla is calling for a compromise from creditors due to the island’s “unpayable” debts. However, Puerto Rico’s creditors argue that the bankruptcy mechanism is unfair and would impose deep repayment cuts.

U.S. statutes that allow states to put cities, towns and agencies into bankruptcy, do not apply to Puerto Rico because it is a U.S. territory, not a state. The goal of the Recovery Act of 2014 was to seek similar authority to put Puerto Rico into bankruptcy agencies.

Mutual funds giants such as Franklin Advisors and OppenheimerFunds were first to challenge the law, saying that the Act contradicted the U.S. bankruptcy code even though the code excludes Puerto Rico.

A U.S. federal court in Puerto Rico nixed the law in February and an appeals court affirmed the decision in July.

The court will hear arguments in the spring and rule by the end of June. If the decision is reversed, the territory could place companies into bankruptcy agencies such as, the Puerto Rico Electric Power Authority (PREPA), and the Puerto Rico Highways & Transportation Authority (PRHTA). Together the two companies hold more than $12 billion in debt.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

First-of-its-kind Study Shows How Parental Debt Affects Children

Posted on January 29, 2016by Admin

A new study conducted by Lawrence M. Berger, a professor at the University of Wisconsin-Madison, revealed a direct correlation between certain types of parental debt and children’s social and emotional well-being. The study used data from 9,011 families from 1986 to 2008. To track behavior problems, researchers used scores from the Behavior Problems Index responses filled out by the children’s parents either every year or every two years.

The study has shed new light on the link between debt and family well-being, as previous research on debt has focused on how debt affects the mental health and well-being of adults. The findings revealed that families with large amounts of debt often have children who struggle with behavioral problems.

However, not all types of debt were linked to children with behavioral problems. For example, the data showed that parents whose debt was from a mortgage or a student loan were less likely to have children with behavioral problems than those with unsecured debt. Unsecured debt is debt such as credit card debt, medical debt or a payday loan that is not secured by assets.

Researchers said debt that can help improve your social status in life is less likely to cause parents stress and anxiety. Unsecured debt that is not tied to an investment has a greater likelihood of causing stress to parents, which in turn, can have a negative impact on their parenting.

Related Resources:

http://www.medicalnewstoday.com/articles/305439.phphttp://www.foxnews.com/health/2016/01/22/parents-debt-may-influence-childrens-emotional-wellbeing.htmlhttp://time.com/money/4190285/parental-debt-effects-children/

Debt Relief, Foreclosures, Timothy Kingcade Posts

Updates to the Reverse Mortgage Program Provide Positive Benefits for Seniors

Posted on January 11, 2016by Admin

Recent updates to reverse mortgage laws provide a more secure retirement for Americans looking to borrow against their home after leaving the workforce.

Many retirees have turned to reverse mortgages in recent years to alleviate financial stress. Reverse mortgages allow retirees, 62 and older, to borrow against the existing equity in their home and not have to repay the principal balance or accrued interest until after they pass away. At which point, their home is sold and used to pay off the remaining balance, interest and any additional fees owed to the lender.

The Reverse Mortgage Stabilization Act of 2013 helped retirees who were approved for a reverse mortgage avoid predatory lending. However, many applicants were approved for a reverse mortgage without the lender ensuring the retirees could afford to stay in their homes. Ultimately, many were unable to pay their property taxes, home insurance and other annual maintenance fees, which forced them into foreclosure.

The program’s recent updates will ensure that anyone who is approved for a reverse mortgage is able to pay the bills associated with the property. Although credit scores and income are still non-factors in the approval process, steps will be taken to ensure the insurance, taxes and other fees are paid. Another update to the law allows the non-borrowing spouse to stay in the home if the spouse who borrowed the loan passes away, first.

Experts say the new rules to the Reverse Mortgage Stabilization Act of 2013 will not only allow retirees to stay in their homes longer, but will allow for a more secure retirement.

Click here to read more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

5 Financial Lies that keep you in Debt

Posted on December 31, 2015by Admin

To get out of debt and start planning for the future, you need to take an honest look at your financial situation. Start by owning up to these five common financial lies in the New Year.

I’ll put back the money I took out of savings. If you have to tap into to your savings to afford a new pair of shoes, a TV or other item- you probably can’t afford it. It’s even more unlikely you will put the money back into your savings account. Avoid impulse purchases and save for the future, instead.

I still have time to save for retirement. When it comes to retirement, the earlier you start the better. Timing is key. For example, if you’re 30, and save 10 percent of your $50,000 salary in a tax-deferred account, you will have $1.1 million by age 67, assuming a 6 percent rate of return and salary growth of 1.5 percent and including Social Security. However, if you start at age 35, you will only have $717,021 by age 67.

I don’t need to worry about my credit score. While you shouldn’t obsess about your credit score on a daily basis, you should check it once a year. Look for any discrepancies, like suspicious activity or inaccurate reports of late payments. Fixing these issues can make a BIG difference when it comes to the interest rate you’re offered on a mortgage, car loan, or even on a washer and dryer you choose to finance.

The bank is the best place to keep my money. Having a savings account set aside for emergencies is a sound choice. However, many people put far too much money into these low-interest savings accounts. With these type accounts, when you take into consideration inflation, you’re actually losing money. Consider alternatives such as money market accounts that yield higher interest rates.

I will never be able to pay off my debt. As you consider your budget, put additional money toward paying down your loans and debts. Consider alternatives like transferring your current credit card debt to a zero percent introductory interest rate.

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

The Jury is still out on the New Student Loan Repayment Solution REPAYE

Posted on December 28, 2015by Admin

The new federal student loan pay-off solution known as REPAYE (Revised Pay As You Earn) is supposed to fix the shortcomings its predecessor, PAYE (Pay As You Earn) failed to do. The new program allows borrowers to cap their monthly payments at 10% their discretionary income regardless of when they borrowed or how much they owe. Another benefit is that after making 20 years of payment- 25 years for graduate students- any outstanding loan balance will be forgiven under the program.

The goal is to ease financial stress and subsequent loan default. The effect of defaulting on student loans can last long after graduation. It can impact a borrower’s credit history; make qualifying for any new loan (for example, a mortgage or car loan) more expensive or flat out impossible.

But like all new plans, just because it’s new does not mean it’s a perfect fit for all borrowers. The downside to this repayment option is that for some borrowers, the monthly payment may not cover both interest and principal payments, which mean the loan balance, could keep growing. That makes it harder to obtain other personal credit (i.e. – credit cards, mortgages, etc.) because the borrower’s credit capacity is exhausted.

Another risk is that the lower monthly payments will lead the borrower to pay substantially more over the life of the loan when compared to a standard repayment plan. Borrowers must also be aware of the consequences of REPAYE if their salary eventually increases. With REPAYE, payment will always be 10% of your monthly discretionary income, even if it amounts to more than the original payment under the ten-year plan as income rises.

There are now a total of eight income driven repayment plans to choose from. The key is to select the one that’s best for your situation and know the pros and cons of each.

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, 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.

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.

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.