Timothy Kingcade Archives - Page 40 of 54 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Bankruptcy or Divorce: Which should you file first?

Posted on January 1, 2016by Admin

Filing for bankruptcy can be further complicated when the parties involved are in the middle of a divorce or considering divorce. Clients in this situation wonder whether they should file for divorce or bankruptcy, first. Unfortunately, there is not a clear-cut answer, as every divorce and every bankruptcy filing is unique. However, there are a variety of factors one should consider when making this decision.

Income of the parties. If one party has significantly more debt, and the other party makes a substantial income, it will be difficult to file a joint Chapter 7 bankruptcy. This is due to the fact the court will have to consider the total household income when determining whether or not to grant the bankruptcy petition. In this case, it is likely more beneficial to file for divorce before filing bankruptcy so the household income is not considered in bankruptcy.

Both parties must agree to file bankruptcy. Filing a joint bankruptcy requires both parties consent to the filing. One spouse cannot force the other to file, even during a divorce proceeding. The party who wants to file for bankruptcy may be eligible to do so individually, but filing individually will not discharge the other spouse’s debt. Therefore, in this case it may be advisable to file for bankruptcy before the divorce so both parties’ debt can be discharged before the divorce proceedings begin.

How has the debt been distributed? In certain instances, one of the parties may have substantial property and assets, separate from the spouse, possibly received through a gift or inheritance or acquired before the marriage. In this situation, the party wanting to file bankruptcy should do so individually, since the spouse’s assets (if filed jointly) could prevent a bankruptcy discharge.

Property of the estate during a divorce. After a bankruptcy petition is filed, all of the debtor’s property becomes the property of the bankruptcy estate. This means the property cannot be divided in a property settlement agreement during a divorce unless permission is received from the bankruptcy judge or if the bankruptcy is over. This can delay a divorce proceeding significantly.

Considering the variety of factors involved , it is very important that anyone with questions about bankruptcy who is also going through a divorce be able to provide complete and accurate information about their assets and liabilities, so your attorney can best assess your situation.

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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.

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

Student Loan Debt Discharge- Another WIN for Consumers in Bankruptcy Court

Posted on December 30, 2015by Admin

Another consumer has successfully had their federal student loans discharged in bankruptcy court. The topic of student loans and bankruptcy is gaining more attention and although not every court district offers the same considerations as this one- it should not be assumed that discharging your student loan debt in bankruptcy is impossible.

Bankruptcy can help mitigate your student loans in a variety of ways, including a full discharge of the debt owed. There are even private student loans that can be easily discharged in bankruptcy; for example, loans for schools or education that was obtained at an “ineligible education institution.”

In this specific case, the debtor was an unmarried woman in her mid-thirties with no dependents. She had suffered a variety of mental issues since her mid-teens, including eating disorders, anxiety, depression and self-harm (i.e. – cutting), which had adversely affected both her academic endeavors and her ability to maintain employment. She obtained educational loans totaling approximately $204,525.00, which included $57,489.11 owed to the U.S. Dept. of Education, $47,900.00 owed to Educational Credit Management Corporation, and $99,136.00 owed to Iowa Student Loan.

She filed for Chapter 7 bankruptcy on April 15, 2010. On July 23, 2010, she filed a complaint to determine whether her student loans could be discharged. The matter was tried, and on December 1, 2010, the bankruptcy court entered a memorandum decision in which it concluded, “excepting the educational loan debts Debtor owed to the United States Department of Education, Iowa Student Loan, and Educational Credit Management Corporation from discharge would impose an undue hardship on Debtor and a judgment determining those debts were discharged.”

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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, Credit, Debt Relief, Timothy Kingcade Posts

How to Get Rid of Holiday Debt FAST

Posted on December 29, 2015by Admin

We all have a vision of what constitutes “the perfect holiday.” For many of us, it means countless presents under the tree, our children’s smiling faces on Christmas morning and that perfect meal with our family and loved ones all gathered around the table. For some of us, making that vision a reality means putting it on credit cards.

If that was you this year, you’re probably wondering the next steps to take before the bills arrive and the interest starts mounting.

Here are some immediate steps you can take to help manage holiday debt in the New Year:

Make January and February lean months for spending. With the plentiful holiday season behind us, it’s a good idea to start reeling in the spending and extravagance. That doesn’t mean starve yourself, but it does mean sacrificing on splurges you would normally enjoy (i.e. – dinners out, visits to the salon, shopping, vacations, etc.)

Channel savings directly into those big credit card payments. Take a look at all of your credit card bills and determine which one has the highest interest rate. Make the biggest payment you possibly can afford towards that card, while still allotting enough money to pay your other bills and cover monthly expenses.

Look for zero-interest balance transfers. BEFORE you send off that big payment, research credit card offers for balance transfers that allow you to pay 0 percent interest on the transferred balance for a certain period of time. Just make sure you get the transferred balance paid off before the zero interest offer expires.

Sell unwanted items. You will likely find that after the dust settles, you have some unwanted items and gifts around the house you no longer use or want. Utilize Craigslist and eBay to sell these items and earn some extra cash. This money can go towards making bigger payments towards your high-interest credit cards.

Start a savings plan for next holiday season. The best time to start saving for the next holiday season is right now! If you save just $10 a week (the equivalent of a lunch out or a week’s worth of Starbucks runs) for 50 weeks, you will have more than $500 saved for next year’s shopping. If you save $20 a week, you will have over $1,000 set aside for holiday shopping next year. The easiest and most effective way to do this is by setting up weekly automatic transfers through your bank.

Make the holidays more realistic. Discuss sensible downsizing when it comes to purchasing gifts next year. Have a budget for gifts and stick to it. Move to drawing names with family members for gift giving purposes (i.e. – Secret Santa) and discuss arrangements that reduce the challenges on travel for everyone. The spirit of the holiday season should be about togetherness and giving thanks for all of the blessings we have- not something that causes you to go into debt.

Bankruptcy Law, Debt Relief, Student Loans

Three Questions to Ask about the New Student Loan Repayment Program

Posted on December 24, 2015by Admin

Some financial counselors are advising caution when it comes to the federal government’s new income-based student loan repayment program. If you do not plan ahead, the lower monthly payments under this option could have long-term financial consequences.

The REPAYE program (Revised Pay As You Earn), which launched December 16, gives those Americans with Federal student loans the option of capping monthly payments at 10% of disposable income. For example, someone earning $30,000 a year would see payment capped at around $103 a month. It also includes a forgiveness feature- Any loan balance remaining after 20 years of payments will be wiped away for undergraduate loans. If you have loans from graduate school, the forgiveness comes after 25 years.

To make sure you weigh all the costs and benefits of the new plan, here are three questions to ask before you sign up for REPAYE:

Will your monthly payment reduce your balance? Check to see whether your monthly payment will cover both the principal and interest due on the loan. If it does not, your balance will keep growing, which can mean financial trouble in the long run.

How much more in interest will you pay? By stretching out your loan, you inevitably pay more in interest, which is money that could have been saved for your financial goals. This can also hurt your credit score if the loan balance keeps growing.

Will you be able to handle a large tax bill? Under current law the loan amount that is wiped out will be treated as taxable income. If the forgiven debt is a large amount, wiping it out may push you into a higher tax bracket, so you could end up paying the tax at an increased rate.

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Bankruptcy Law, Debt Relief, Student Loans

Student Loan Debt: The Next Crisis Facing Elderly Americans

Posted on December 23, 2015by Admin

The number of student loan borrowers age 60 and up has increased to 2.2 million, from 700,000 in 2005, according to the Federal Reserve Bank of New York. Twenty-seven percent of education loans held by people age 65-74 were in default in 2013, which means they have not made a payment in 270 days or more. In fact, more than half of education loans held by people 75 and older were in default.

The government has the ability to garnish wages for non-payment of student loans- even take your tax refund, but with seniors they have added leverage- their social security. In 2013, 155,000 seniors lost part of their retirement benefit to repay education debt, up from 31,000 in 2002, according to the GAO.

This has left many seniors helpless, as most forms of consumer debt can be discharged in bankruptcy- student loan debt cannot. Congress said in the 1970s that such debt can go away only if a debtor can prove repaying it would impose an “undue hardship.”

However, Congress never defined undue hardship, so it has been left to the courts discretion to determine just how desperate someone needs to be to qualify for relief. Bankruptcy judges have said that to get education loans discharged, borrowers must show their entire lives would otherwise be characterized by a “certainty of hopelessness” or that repaying the debt “strips [the debtor] of all that makes life worth living.”

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Bankruptcy Law, Credit, Debt Relief

Tips to Avoid Medical Debt- While You Are Still Healthy

Posted on December 22, 2015by Admin

Financial experts are advising Americans to save for a rainy day when it comes to their healthcare costs. The last thing you want to deal with when you are battling a serious illness is financial stress. Consider getting insurance for your credit cards and mortgage. Understand your insurance; know what it covers and what it does not cover.

Prepare a budget while you are still healthy. Know what it costs to run your household and the expenses that are coming out every month. If you spend $1,500 a month on living expenses, experts say you should put six to nine months worth of that money away in the bank.

For example, the treatment for what you have been diagnosed with or a family member has been diagnosed with- you will need to have cash on hand to travel for treatment, get a hotel, see doctors while still covering your monthly bills and expenses.

If you or a family member have been diagnosed with a serious illness, call your creditors and let them know immediately if you are having difficulty paying your bills. There are programs offered that can give you time to make those payments and if you find yourself falling too far behind, reach out to a reputable bankruptcy attorney in your area.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Former NFL Running Back Clinton Portis Files for Bankruptcy

Posted on December 21, 2015by Admin

Clinton Portis, former Washington Redskins and Denver Broncos running back, who made more than $40 million during his NFL career, has filed for bankruptcy. With that amount, most of us would be set for life, but Portis is flat broke. This shouldn’t come as a huge surprise, since studies have shown that a high percentage of NFL players declare bankruptcy after their game days are over. A Sports Illustrated (SI) article from 2009 indicated that after two years of retirement, a whopping 78 percent of former NFL players went bankrupt or suffered financial stress due to joblessness or divorce. Taken in total, almost 16 percent of the players studied declared bankruptcy during the first twelve years of retirement.

The federal bankruptcy filing showed Portis owes nearly $5 million to creditors, including $500,000 to his own mother. Portis, 34, also lists debts of $500,000 to Entertainment Tonight correspondent and former sideline reporter Nischelle Turner, $412,000 in “domestic support obligations” to four different women, and $175,000 in car loans, according to court records.

But Portis’ biggest debt is owed to a mortgage company. The debt is listed as a “mortgage deficiency” of $1,023,020. Portis also owes the IRS $390,000, an amount he is disputing. The MGM Grand Hotel and Casino has also won a judgment of $287,178 against Portis.

Some of the running back’s failed business ventures attributed to his bankruptcy filing, which included sinking $8 million into a casino that went belly-up, and putting $2 million into a ‘wealth management’ firm that was later termed a Ponzi scheme.

Portis rushed more than 1,200 yards during his nine-season NFL career. He finished with 9,923 rushing yards and 80 total touchdowns. Portis’ final NFL game was with the Redskins in November 2010. A hearing is scheduled for Portis’ bankruptcy case on February 4, 2016 at the U.S. Courthouse in Gainesville, FL.

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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, Debt Relief, Timothy Kingcade Posts

This County wants to ease the burden of student loan debt for its residents

Posted on December 15, 2015by Admin

Lawmakers in Montgomery, Maryland are in the process of developing legislation that would allow them to “establish a loan authority,” a move that would give the county the ability to leverage its municipal borrowing power to extend the lowest interest rates to its residents. It’s also a way the county hopes to attract young, college-educated workers and entrepreneurs.

If the bill succeeds in the next legislative session, Montgomery would join a growing list of states entering the student loan market to ease the burden of student loan debt for its residents. Minnesota, Maine, North Dakota, California and Connecticut have passed legislation that allows them to refinance student loans, while politicians in Virginia and Wisconsin are fighting for the same. Proponents say student loan debt has become a significant economic barrier, keeping people from full participation in the local economy.

However, refinancing federal student loans through state authorities could mean forfeiting consumer benefits like income-driven repayment plans and public-service loan forgiveness. At this time, there are few options for lowering interest rates on student loans. Consolidating federal loans will bring down the rate by only a small percentage, because the interest is calculated by taking an average of those rates. Consumers who are considering these programs need to evaluate what they might be giving up. If the interest rate difference is not that much, it may not be worth it.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What is “good debt” and how to make it work for you?

Posted on December 14, 2015by Admin

The word “debt” predominately carries a negative connotation. However, some debts are good for you as all financing is not created equal. So what is good debt? Good debt is “any debt that offers a return on investment.” For example, a mortgage is often considered good debt. Other examples of good debt include: federal student loans (which offer greater protections for borrowers and come with the potential return of a higher salary and improved job prospects), and low interest lines of credit taken in order to invest in stocks or retirement funds.

Bad debt is any credit that you are taking out and using without a clear-cut plan of paying it back. Think of using a high-interest credit card to fund a shopping trip or taking out a payday loan to cover extra holiday spending.

Most credit score models reward consumers for having a diverse portfolio of accounts and revolving debt, like credit cards, depending on how much of the credit you are going to use and pay off each month. Making on-time payments and keeping your balances low on these cards is important when it comes to keeping a healthy credit score.

So how can consumers avoid taking on bad debt? First, remember that you do not have to take every credit card that comes your way. Ask yourself if you will be able to pay off the debt. If you do not have a plan to pay off the debt, it is probably a bad debt.

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