Timothy Kingcade Archives - Page 28 of 53

Debt Relief, Foreclosures, Timothy Kingcade Posts

Millions of Americans are making a Come Back after the Housing Crisis

Posted on July 8, 2016by Admin

Millions of Americans who lost their homes to foreclosure during the housing crisis are now getting a second chance at home ownership. Fortunately for our nation’s economy, time heals credit reports. The improvement in credit scores means more Americans will have the ability and means to once again apply for loans, and not just home loans.

“Improving credit scores might entice households to start borrowing more in general,” said Ralph McLaughlin, chief economist at real estate search engine Trulia.

That, combined with an improved rate of employment and bigger increases in pay, could give consumer spending, which accounts for almost 70 percent of the U.S. economy, an increase over the next couple of years.

The number of consumers with a new foreclosure added to their credit reports peaked at about 566,000 in the second quarter of 2009, according to data from the Federal Reserve Bank of New York.

The home ownership rate for consumers who are 35 to 44 years old, which includes members of the generation most hurt by the housing crisis, has risen for two straight quarters on a year-over-year basis, U.S. Census data show. That is the first time this has happened in two years and another sign some of the previously foreclosed-upon buyers are returning to the market.

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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

Debt Collector on Trial for Targeting Financially-Struggling Consumers

Posted on July 7, 2016by Admin

A Georgia man who prosecutors say organized a scheme that victimized more than 6,000 consumers nationwide is set to go to trial. Prosecutors say John Williams spearheaded efforts to defraud at-risk consumers from 2009 to 2014 into paying approximately $4.1 million by misrepresenting the status of their debts and consequences of not paying. John Williams’ debt collection agency Williams, Scott & Associates LLC was shut down in 2014.

The trial comes when there is a time of heightened regulatory attention toward debt collection, which the Consumer Financial Protection Bureau (CFPB) considers the No. 1 most-complained about area of consumer financial services.

Debt collection firms, like the one in this case, purchase delinquent debts, oftentimes for pennies on the dollar, then attempt to collect the full amount the original lender claimed. These firms claim they are simply seeking recovery on a rightfully-owed debt. However, regulators say many of these firms engage in abusive tactics while targeting financially-struggling individuals.

Prosecutors at Williams, Scott & Associates contacted consumers and falsely referred to themselves as “detective” or “investigator,” claimed to be tied to government agencies and even threatened arrest.

Scripts employees read on the calls included legal-sounding language, like the “statute of limitations” on the consumers’ “civil legal rights” had expired, according to prosecutors. The six employees arrested with Williams have pleaded guilty. Williams has pleaded not guilty to the charge of conspiracy to commit wire fraud. He has been held without bail since his arrest and faces up to 20 years in prison.

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

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

Even Death does not Meet Threshold for Student Loan Debt Forgiveness

Posted on July 6, 2016by Admin

Grief stricken after her son’s unsolved murder, a New Jersey mother faced an endless list of tasks- helping the police track down his killer, cancelling his credit cards, bank accounts, cell phone and planning a funeral.

And then there were his college student loans she co-signed.

When she called about his federal loans, an administrator offered condolences and assured her the balance would be written off. However, she received a far different response from a New Jersey state agency that had also lent her son money.

“Please accept our condolences on your loss,” explained a letter from the Higher Education Student Assistance Authority of New Jersey. “After careful consideration of the information you provided, the authority has determined that your request does not meet the threshold for loan forgiveness. Monthly bill statements will continue to be sent to you.”

These loans also carry higher interest rates than similar federal programs. Most significant, New Jersey’s loans come with a hurdle that even the most predatory for-profit players cannot avoid: the power of the state.

New Jersey can garnish wages, rescind state income tax refunds, revoke professional licenses, and even confiscate lottery winnings— all without having to get court approval.

Some consumer attorneys compare it to “state-sanctioned loan-sharking, a program that is set up so that you fail.”

Like many states, New Jersey administers a student loan program designed to help students further their education in order to be competitive in today’s workforce. Where New Jersey differs with other states is the degree of difficulty in getting out from under burdensome loan payments despite extreme poverty, illness and even death.

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

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Former Duke Basketball Star Faces Bankruptcy

Posted on July 4, 2016by Admin

Christian Laettner, Duke University basketball legend is facing bankruptcy. Several creditors filed an involuntary Chapter 7 petition against him alleging he owes $14 million. The nature of Laettner’s debts was not described in the petition. However, according to The Wall Street Journal Mr. Laettner and his business partner in several real estate deals faced civil lawsuits seeking repayment of loans valued at about $30 million, including to sports celebrities like former Chicago Bull, Scottie Pippen. The two played on the 1992 Olympic men’s basketball team together.

Laettner, who made the famous game-winning shot against Kentucky in the 1992 NCAA Tournament East Region finals, has 21 days to respond to the involuntary petition.

Laennter’s attorney said the involuntary bankruptcy is related to the West Village real estate development in Durham, N.C., a downtown project that crumbled during the economic recession. The involuntary petition stems from two creditors who are fighting to recover money from the project and that Mr. Laettner plans to negotiate a deal that will lead the chapter 7 filing to be dismissed, he said.

Laettner led the Duke University Blue Devils to two NCAA championship titles in the early 1990s. He also played in the NBA for more than a dozen seasons.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

OJ Simpson’s defense attorney F. Lee Bailey, Files for Bankruptcy

Posted on July 1, 2016by Admin

F. Lee Bailey, part of O.J. Simpson’s “Dream Team” of defense attorneys, has filed for bankruptcy in an attempt to discharge an IRS debt of more than $5 million. IRS debts are typically non-dischargeable in bankruptcy, but the 83-year-old Bailey said they can be discharged if the debtor abides by certain conditions, such as filing and paying taxes on time since the original taxes and penalties were assessed.

The debt stems from a dispute of Bailey’s reported income from 1993 to 2001, according to The Portland Press Herald.

Bailey was disbarred in Florida in 2001 over mishandling client assets, and Massachusetts issued a reciprocal disbarment in 2003. Bailey’s attempt to gain admission to the Maine bar failed in 2014, when the Maine Supreme Judicial Court reversed a judge’s ruling that would have allowed him to practice law in Maine.

Bailey served as one of Simpson’s attorneys during the 1995 high-profile murder trial, which ended in the former NFL star’s acquittal in the 1994 murders of his ex-wife, Nicole Brown Simpson and Ronald Goldman.

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

Common Sense and Compassion enter the Student Loan Bankruptcy Arena

Posted on June 30, 2016by Admin

In the case, Nightingale v. North Carolina State Educational Assistance Authority, the debtor, Alice Nightingale, 67 years old, suffered from “intractable foot pain,” hypothyroidism, obstructive sleep apnea, and chronic fatigue, all of which had worsened over the course of her chapter 13 bankruptcy. The condition prevented her from engaging in employment and from taking part in many day-to-day activities.

She was granted full disability from her teaching job by the County School Board. In a hearing in October, 2015, the court found Ms. Nightingale had established the first and third prongs of the Brunner test with evidence that she had attempted to repay the student loan, that she was “elderly” and unlikely to find future employment and that she suffered from significant medical problems. Although Ms. Nightingale’s testimony concerning her medical disabilities was credible, the second prong of the Brunner test still needed to be satisfied.

Over the lender’s objection, the court held a second hearing in which Ms. Nightingale presented medical documents to corroborate her testimony, including letters to Ms. Nightingale’s attorney from two of her doctors, a medical report for disability eligibility, and a physician-provided list of Ms. Nightingale’s current medications.

The subsequent hearing specifically addressed the second prong of the Brunner test: whether there existed “additional, exceptional circumstances, strongly suggestive of continuing inability to repay [the debt] over an extended period of time.”

While the court agreed with the lender that Ms. Nightingale could have presented evidence of recent tests and evaluations, it found that it was not necessary that she “provide every possibly available piece of evidence that could further corroborate the unrebutted evidence in this case.”

The court concluded: “Taking into consideration the Plaintiff’s age, current living situation, inability to walk or stand for long periods of time, chronic fatigue, lack of stamina, lack of strength, diminished cognitive ability, and the likelihood that these conditions will all last for a significant period of her possible repayment period given her age and the duration of her illnesses, the Plaintiff has demonstrated that exceptional circumstances exist in this case and has met the second prong of the Brunner test.”

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Related Resources:

http://www.ncbrc.org/wp-content/uploads/Nightingale-Bankr-MD-NC-opinion-April-2016.pdf

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Donald Trump’s Companies have Declared Bankruptcy not once- but SIX times

Posted on June 28, 2016by Admin

Hillary Clinton recently mocked Donald Trump’s business failings in a speech and stressed to the public how disastrous he would be for our nation’s economy if he were to become President.

“He’s written a lot of books about business. They all seem to end at Chapter 11,” Clinton said.

Here they are one by one.

Bankruptcy No. 1: The Trump Taj Mahal, 1991

Trump funded the construction of the $1 billion Trump Taj Mahal casino in Atlantic City, N.J., which opened in 1990. A year later, the casino was nearly $3 billion in debt, while Trump had accumulated nearly $900 million in personal liabilities. It was at that time Trump decided to file for Chapter 11 reorganization, according to the New York Times. Trump surrendered half his personal stake in the casino and sold his yacht and airline.

Bankruptcy No. 2: Trump Castle, 1992

Within a year of his first Chapter 11 filing, Trump found himself in bankruptcy court again for Trump Castle, which opened in 1985. In March 1992, the Castle filed a prepackaged bankruptcy plan, and Trump gave up his 50 percent share in the casino for lower interest rates on $338 million worth of bonds.

Bankruptcy No. 3: Trump Plaza and Casino, 1992

The Trump Plaza Hotel and Casino in Atlantic City, which opened in 1984, declared bankruptcy at the same time as the Castle. The casino had racked up $250 million in debt by 1992, after an 80 percent decline in cash flow. Trump Plaza filed for bankruptcy that spring as well.

Bankruptcy No. 4: Plaza Hotel, 1992

That same year, Trump filed bankruptcy on another Plaza in New York. Trump purchased the Plaza Hotel in Midtown Manhattan for $390 million in 1988, but it accumulated more than $550 million in debt by 1992. In December 1992, Trump forfeited a 49 percent stake in the Plaza to a total of six lenders. Trump remained the hotel’s CEO, but did not earn a salary and had no say in the hotel’s day-to-day operations, according to the New York Times.

Bankruptcy No. 5: Trump Hotels and Casinos Resorts, 2004

Trump Hotels and Casinos Resorts filed for bankruptcy again in 2004 when his casinos, including the Trump Taj Mahal, Trump Marina and Trump Plaza casinos in Atlantic City, and a riverboat casino in Indiana, had accrued an estimated $1.8 billion in debt. Trump agreed to reduce his share in the company from 47 percent to 27 percent in a restructuring plan, but he was still the company’s largest single shareholder and remained in charge of its operations.

Bankruptcy No. 6: Trump Entertainment Resorts, 2009

Trump Entertainment Resorts (formerly Trump Hotels and Casinos Resorts) was hit hard by the 2008 economic recession and missed a $53.1 million bond interest payment in December 2008, according to ABC News. It filed for Chapter 11 bankruptcy in February 2009. After debating with the company’s board of directors, Trump resigned as the company’s chairman and had his corporate stake in the company reduced to 10 percent.

Trump has filed for Chapter 11 bankruptcy, four times within two years in the 1990s, once more in 2004 and once more in 2009. But experts agree Trump should not bear all of the responsibility, as Clinton’s speech suggests, as the majority of bankruptcies happened as the overall casino industry struggled.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

‘Dance Moms’ Star Will Plead Guilty to Bankruptcy Fraud

Posted on June 27, 2016by Admin

Abby Lee Miller, star of the Lifetime network reality show, “Dance Moms” is scheduled to plead guilty to bankruptcy fraud and failure to report more than $10,000 worth of Australian currency she brought into the country.

Miller is accused of violating a law that requires people to report bringing more than $10,000 worth of foreign currency into the country. Court documents also seek to have her forfeit at least $120,000- although prosecutors would not confirm whether that is the value of Australian currency she failed to report.

The outspoken reality star was first charged last year with illegally trying to hide $775,000 worth of income from “Dance Moms” and spinoff projects during her Chapter 11 bankruptcy.

The investigation was prompted after the bankruptcy judge in Miller’s case was channel-surfing one night and saw the reality star on TV in December 2012 and figured she had to be making more than the $8,899 in the monthly income she was claiming.

The FBI and other agencies determined Miller hid more than $228,000 of income from appearances on “Dance Moms” and a spin-off, “Abby’s Ultimate Dance Competition” and nearly $550,000 more from personal appearances, dance sessions and merchandise sold through her personal website.

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

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Debt Relief, Foreclosures, Timothy Kingcade Posts

RealtyTrac Reports Foreclosure Activity “Flat” in May

Posted on June 24, 2016by Admin

Foreclosure filings, which include default notices, scheduled auctions and bank repossessions were reported on 100,841 properties in May, a number virtually unchanged when compared to April and a decrease of 21% from a year ago. RealtyTrac’s U.S. Foreclosure Market Report reveals May was the eighth consecutive month with a “year-over-year” decrease.

Florida, New Jersey, Maryland, Delaware and Nevada were the states with the highest number of foreclosure filings for the month.

A total of 42,279 properties started the foreclosure process in May, down 3% from the previous month and down 18% from the previous year, according to RealtyTrac’s report. It was the 11th consecutive month with a year-over-year decrease.

A total of 34,014 bank repossessions were completed in May, up 1% from the previous month but still down 24% from a year ago. It was the third consecutive month with a year-over-year decrease in bank repossessions.

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

Certain Private Student Loans Eligible for Discharge in Bankruptcy

Posted on June 23, 2016by Admin

Just because your so-called private student loan uses the term, “student loan” it doesn’t necessarily mean it is one. In fact, for purposes of the U.S. Bankruptcy Code, a student loan must be from an “eligible educational institution” to be considered non-dischargeable. If it does not qualify, discharging the loan can be easier than you think.

A student loan must meet specific bankruptcy code requirements. U.S. Bankruptcy Code states a private student loan must be a “qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986.”

The student loan must be from an “eligible educational institution.” The Department of Education publishes a list every year of the qualifying schools. If an institution is not on the list, the loan is not considered a “student loan” under the Bankruptcy Code. Therefore, it can be automatically discharged in bankruptcy.

So how do you know whether your student loans are from a qualified educational institution?

Make sure you know what type of loan you have. This argument only works for private student loans. Just because your loan is with Sallie Mae or Navient does not signify whether it is a federal or private loan. Go to the National Student Loan Data System, and check if your loan is there.
If your loan is a private rather than a federal student loan, the next step is to see if the loan is from an “eligible educational institution.” The Department of Education publishes a list every year. You will need to locate the list for the year you received your student loans and see if your school is on there.
The law is not always “black and white” when it comes to discharging student loan debt. Oftentimes, it is left to the interpretation of judges on a case-by-case basis. Private student loan debt is the most problematic debt in America. Many courts are finding private student loans should also be considered as an “educational benefit” as that term is understood in the Bankruptcy Code.

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