Timothy Kingcade Archives - Page 37 of 53

Does Florida Law Protect Inherited IRA’s?

Posted on February 8, 2016by Admin

In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act was enacted to protect Individual Retirement Accounts or IRA’s from being seized by bankruptcy courts. Most states’ bankruptcy courts allowed inherited IRA’s to be protected from seizure as well, until a 2014 ruling by the Supreme Court.

The 2014 case of Clark v. Rameker set a precedent when the Supreme Court ruled that federal law does not protect inherited IRA’s because the holder of the IRA cannot invest new money into the account; can withdraw the entire balance at any time and use the funds for any reason without penalty; and must take required distributions from the account no matter how far the holder is from retirement.

In addition, the ruling also means that inherited 401(k)s are not protected in bankruptcy court. IRA’s have a $1.2 million cap on the protected amount, however 401(k)s do not have a limit on account balances that are protected.

There are some circumstances where inherited IRA’s may be protected to an extent. Each state is allowed to establish individual exemptions. 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.

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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 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.

Foreclosures, Timothy Kingcade Posts

Foreclosures and Delinquent Mortgages Decline in South Florida

Posted on February 5, 2016by Admin

A report released by CoreLogic revealed that the housing market is improving in South Florida. Both property foreclosures and delinquent mortgages are down from previous years.

The foreclosure rate in Broward County decreased 2.01 percent in November 2015 compared to November 2014. Approximately 2.55 percent of mortgages in Broward County were in foreclosure this year, down from 4.56 percent the previous year.

Palm Beach County had the lowest foreclosure rate at 1.95 percent. This is down from 3.49 percent the previous year. Miami-Dade County’s foreclosure rate dropped from 4.8 percent to 3.12 percent.

South Florida’s rate of improvement was higher than the average rate in the country. However, the actual number of foreclosures remained substantially higher in the area. The national foreclosure rate fell from 1.49 percent to 1.17 percent.

The number of mortgage loans that were at least 90 days delinquent also improved in South Florida and across the country. Broward County’s delinquency rate was 6.29 percent, down from 9.50 percent; Palm Beach County’s rate was 4.75 percent, down from 7.54 percent and Miami-Dade County’s rate dropped from 10.67 percent to 7.25 percent. The average rate across the country dropped from 4.14 percent to 3.25 percent.

The improvements in the market are good news for today’s buyers. Lenders are using a stricter underwriting process to avoid lending to risky borrowers, which experts attribute to the decrease in foreclosures. Property values are on the rise, restoring equity and confidence among homeowners and buyers.

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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

Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Active Foreclosure Backlog is Clearing Out

Posted on February 3, 2016by Admin

The rate of foreclosures was down in 2015 compared to the previous five years. As a result, foreclosure inventory was down to its pre-recession level, meaning the backlog of foreclosures in the court systems are continuing to clear out at a substantial rate.

Nearly half the residential mortgage loans that were in foreclosure at the beginning of 2015 were either liquidated or returned to current status by the end of the year. Active foreclosures at the end of the year were less than a third of what it was during the peak of the housing market crisis, five years ago, according to a report released by the Black Knight Financial Services.

Approximately 880,000 residential mortgage loans were in active foreclosure at the beginning of 2015. Out of those, 484,000 were at least two years delinquent. By the end of the year, 47 percent of the total number of loans in active foreclosure had either returned to performing status or were liquidated. This is 1.5 percent higher than the previous year.

Active foreclosure inventory went from 880,000 at the beginning of the year to 689,000 at the end of the year. This is the first time the foreclosure rate has ended the year below 700,000 since 2006.

However, consumers are not out of the woods just yet. The remaining foreclosure volume was still two and a half times the “normal” level at the end of 2015, even with the declines.

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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.

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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.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Lower your Credit Card Debt with One Simple Strategy

Posted on January 28, 2016by Admin

U.S. households on average carry a total of $15,355 in credit card debt. Although there is not a universal approach for lowering your debt, there’s one simple strategy that is often overlooked: Renegotiating your interest rate.

You can renegotiate your interest rate by following these three simple steps:

Find out your interest rate and current interest rates with other companies. You can locate your interest rate in the fine print on your credit card statement. If you cannot find it, call the company. When researching the rates of competitors, make sure you tell them you are planning to move your debt to the company that offers the lowest interest rate.

Call your current company and explain that it is too high and request a lower rate. If they refuse, tell them you will be closing your account and transferring your balance to a company that offers better rates. Tell them the name of a competitor to prove you are serious. Your credit card company’s goal is to retain you as a customer and many debtors have their interest rates cut in half by simply asking. If the customer service representative does not seem willing to lower your rate, ask for a supervisor.

Consolidate your debt onto one card. Once you find the company willing to offer the lowest interest rate possible, move all of your debt to that card.

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

State Loan Forgiveness Programs Fall Short of Addressing Student Loan Debt Crisis

Posted on January 27, 2016by Admin

Many states have developed loan debt forgiveness programs in response to the growing student loan debt crisis. But in reality, the majority of these programs benefit only a small percentage of students who accept low paying public service jobs upon graduation.

Experts believe these loan relief programs are not the answer to the student loan debt problem and are in fact; self-serving programs to entice graduates to accept low paying jobs that are not easily filled. New York recently developed a student relief program that is geared toward the graduates’ income in public service jobs rather than debt relief.

Most state-wide programs provide relief to a very narrow segment of the market. Oftentimes these are only offered to healthcare workers or lawyers who are willing to work in a federally designated area with a shortage of workers. The relief programs are essentially luring recent college graduates with high loan debts to state jobs that offer low wages and unfavorable options for career advancement.

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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.

Foreclosures, Timothy Kingcade Posts

Foreclosure Filings Hit Nine-Year Low

Posted on January 26, 2016by Admin

The U.S. reportedly had 1,083,572 foreclosures in 2015, down three percent from 2014, according to RealtyTrac. This is the lowest annual total since 2006. The report includes default notices, scheduled auctions and bank repossessions.

Last year was also the second consecutive year where the annual foreclosure rate was below one percent of all housing units. Data showed that one in every 122 homes or 0.82 percent had at least one foreclosure filing in 2015.

The report also showed data for individual months, revealing that December 2015 foreclosure filings were down one percent from the previous month. It was also the sixth consecutive month foreclosure filings decreased.

RealtyTrac’s Vice President, Daren Blomquist said, “In 2015 we saw a return to normal, healthy foreclosure activity in many markets even as banks continued to clean up some of the last vestiges of distress left over from the last housing crisis.”

Florida was among the top five states with the highest rate of foreclosure in 2015 with 1.77 percent. New Jersey was the only state with a higher percentage of housing units in foreclosure at 1.91 percent. Maryland followed closely with 1.60 percent, Nevada with 1.40 percent and Illinois with 1.26 percent.

Tampa, Jacksonville and Miami reportedly had the highest foreclosure rates of any of the metro areas in Florida.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

IRS Warns of Top 3 Tax Scams for 2016

Posted on January 25, 2016by Admin

The IRS anticipates tax scams to be worse than ever this year, despite enacting new anti-fraud measures. Below are the top three tax scams to watch out for in 2016.

Fraudulent Filing

A common tax scam is where scammers use taxpayers’ social security numbers to file and claim their refunds. One Ohio resident who fell victim to the scam last year said it took her four months to prove to the IRS that she had fallen victim to a tax scam and receive her refund. To avoid becoming a victim of this scam, make sure and file early before scammers can access your information.

IRS Phishing Email

Scammers are sending out phony emails claiming to have information regarding tax refunds. The email says, “Click here for the latest on your refund,” or something similar. But it’s a phishing scam designed to get you to enter your social security number. Just clicking on the link can invite malware onto your computer. The IRS will never contact you via email requesting you download files or click on links.

IRS Phone Scam

The most common tax scam in recent years is the scam where taxpayers receive a call from someone claiming to be with the IRS or the Treasury Department who tells you that you are behind on your tax bill. The scammers threaten to arrest or deport you unless you pay immediately. Hang up if you receive a call like this. The IRS would never make these type threats.

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Debt Relief, Foreclosures, Timothy Kingcade Posts

Florida’s First-Time Buyers Program is finding its way to Previous Owners

Posted on January 22, 2016by Admin

When Florida received its portion of the Hardest Hit Fund, the goal was to help first time home buyers fund their down payments. However, it is now being used to assist those who have previously owned a home.

Unfortunately, thousands who are behind on their current mortgages in Florida are still waiting for assistance from the program. After five years, only 24,000 of the 116,000 who applied for assistance from the Hardest Hit Fund have received aid. There is reportedly $1 billion in unspent funds that has to be used by December 2017 or it must be returned to the U.S. Treasury Department.

Florida’s Housing Finance Corp. is in charge of the state’s program and says the purpose of the down payment assistance portion is to bolster the real estate market in areas hit hardest by the foreclosure crisis.

One Spring Hill resident said he has been waiting for assistance from the program since August so that his home of 30 years does not go into foreclosure. “You give the guy down the block money to buy a house and then this one has to go into foreclosure. It makes no sense,” he said.

Troubled Asset Relief Program’s (TARP) Christy Romero said, “Florida has not done a good job of getting this money out to homeowners and rather than do a better job on existing programs, they create other programs to spend on someone else.”

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