Debunking 7 Notorious Bankruptcy Myths

23 July 2018

Bankruptcy is a serious step in anyone’s life and can have serious consequences. However, in many cases, bankruptcy is the only way out for some and can bring about the much-needed change as it helps them get rid of old debts. Understanding how bankruptcy affects you is key when deciding whether to file for bankruptcy with the help of experienced attorneys such as the BK Lawyers.

People often turn to familiar people who have been through the same thing or try to find answers regarding bankruptcy on the internet. And while in some cases this might provide the answers they seek, in others, it may bring a lot of misinformation.

There’s no reason to turn to unreliable sources for advice when in most cases bankruptcy attorneys don’t charge the initial consultation during which they can provide answers to all the questions you may have about the process. Therefore, we recommend consulting an experienced attorney before consulting the internet.

To help you better understand bankruptcy, we are going to debunk some of the most common myths.

You Can’t Travel Overseas after Filing :

Many people believe filing for bankruptcy prevents you from traveling overseas. However, the truth is that a trustee will let you travel overseas as long as you make the required payments and provide the required information. You’ll also need to provide financial information regarding the trip, for example, who’s financing it, where you’re traveling, etc.

Filing for Bankruptcy Costs a Lot :

As we mentioned, the initial bankruptcy consultation is usually free. Reliable sources you can consult about bankruptcy include trustees, insolvency experts, and AFSA.

You’ll Love Everything :

One of the most common myths is that filing for bankruptcy means you’ll lose all your assets in order to pay off your debt. Depending on the debt, you may be allowed to keep a lot of assets including your household items, furniture, and appliances. You may keep a significant portion of your balance to cover the costs of living.

In some cases, you may be allowed to keep your vehicles to a certain value, as well as tools of the trade. However, most people worry about losing their home. And even if your home has to be sold to cover your debts, you may arrange to purchase it from the bankruptcy trustee.

Your Earning Will be Limited :

There are no limits to your earning when you file for bankruptcy. However, if you earn more than a certain level you’ll need to make some contributions every year during the period of bankruptcy.

The Debts you leave off the Bankruptcy Form are Not Included :

When filing for bankruptcy you need to submit a form listing all your assets and debts. This form is called a Statement of Affairs form. Leaving information out of this form is considered an offense for which you may be criminally prosecuted.

While you need to fill out the form as precisely as possible, leaving out a debt unintentionally will not affect whether that debt will be included in the bankruptcy.

You Have to File for Bankruptcy if You Can’t Pay Your Debts :

There are other ways to cover your debts, but in most cases, bankruptcy is the most effective one. Bankruptcy has a minimal impact on your finances if you’re not able to cover your debts through selling assets and earnings. IF you have a higher income or have reasons to avoid bankruptcy (if you’re a CEO) you can refinance your home, arrange a debt agreement or make informal arrangements to cover the debt.

You’ll Never Get a Loan Again :

While your bankruptcy is recorded in the credit report seven years after filing and it’s recorded in the NPII, there are still ways to help people with bankruptcy get back on their feet. Credit providers are willing to assist individuals who filed for bankruptcy to get a loan despite that.

Ariana Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

View all posts

How To Choose The Best Auto Insurance Company?

The auto instance is something, which one can be devoid of, and if someone is doing the same then you are putting your automobile at risk. Whether it is a home or whether it is a matter of life or whether it is the matter of automobile, one should have the insurance cover. For having the best insurance cover, it is important to have the best insurance company. If you have purchased any insurance cover in past times then you must be having the idea of how to buy it but if you are buying it for the first time then you should consider some important things, which are mentioned below So, basically here are the important things to consider before choosing the apt insurance company for you. Experience: If an auto insurance company is in any business then it is important to have the experience. Experience does not mean that having the experience of six months is enough. In fact, an auto insurance company is considered as experienced only if the company has the experience of three to four years or more than that. Although the experience may vary from company to company, so it is you who can decide the company on the basis of experience. Mouth recommendations: Mouth recommendation means that your friend or family or any other person is suggesting the insurance company to you. Although it is good to choose the company on the basis of mouth recommendation it does not mean that you have to completely rely on the mouth recommendation. Along with this, you should do the research on your own. Try to know more about the company: Getting the general insurance quote should not be the only necessity. People get the insurance quotes from the different companies and after comparing the quotes, they select the one. Although knowing about the insurance is good but it does not mean that it is more than enough. Try to know about the present, past, and future of the company. If any company is holding its place in the market for the past several years then it is good to go with the same company. Reputation: The reputation and status of the company amongst the people are almost interrelated. If any company is having a good reputation in the market and in the customers then it is always good to go with the same company. Always try to get in touch with the prior customers of the insurance company and such customers can guide you in the best possible way. If any company is having a good place in the people’s hearts then it means that the company has done something good for the customers. Online existence: Nowadays, people believe in online businesses as compared to offline businesses. The online existence of the company is helpful for the customers also because there is no need to go to the different insurance companies for having the insurance cover. In addition to this, either the people get the costly insurance cover or the people get stuck into the traps. So that is why it is advised to get the insurance cover from the companies which are having an online existence. Reviews: If any company is having an online existence then it is for sure that the company will have the reviews. The reviews of the companies vary from their status to status. The better reviews of the company suggest the better qualities of the company and the poor reviews of the companies have the poorer quality. In short, people can make their search accordingly. Affordability: There are several companies, which offer different insurance coverage to their customers, but the price of the insurance cover varies from the company to company. So, always try to find the company, which offers the best insurance cover at the affordable prices. Si, in this way you can make your search in the way of finding the best auto insurance company. Read Also: Your Simple Guide To GAP Insurance Is Telecommunications Equipment A Good Career Path In 2021?

8 Factors That Play a Role in How Long-Term Disability Premium Is Calculated

Even if you know how beneficial long-term disability insurance can be, you may not know what to expect as far as rates are concerned. It’s not easy to just throw out a few figures; rates vary from one person to another, and they depend on various factors. Below, we’ll explain some of these factors in greater detail. 1. Your Age As we age, we’re more likely to suffer a long-term disability. Because of that unfortunate fact, insurance rates increase with age. Keep in mind that your cost for long-term disability insurance will never be as low as it is today, and consider purchasing a policy as soon as possible. 2. Your Income In the long-term disability insurance niche, the terminology is a bit misleading; it should really be known as ‘income insurance’. Because it is designed to protect or replace your income, it pays more if you make more. Therefore, rates are higher for those with elevated incomes. In most cases, long-term coverage costs from one to three per cent of your gross yearly income. 3. Whether You Smoke Those who smoke are more likely to become disabled in the future. Not only do they pay more for health and life insurance, but they also pay more for disability coverage as well. If you smoke, consider quitting; if you don’t smoke, don’t start. 4. Your Job As a worker, your long-term disability insurance rate is determined based on your job’s risks or physical demands. For instance, if you’re an office worker, you may pay less than a manual labourer would pay. 5. The Definition of a ‘Disability’ Every policy has a unique definition of the term ‘disability’. Most question whether you can do your previous job, or whether you’re unable to do any work at all. The looser the definition, the more you’ll pay for coverage. A policy covering ‘own occupation’ disabilities will pay out if you can’t do the same work, even if you could hold a different type of job. However, a policy covering the ‘loss of earnings’ will bridge the gap between your pre- and post-disability income. Finally, an ‘any occupation’ policy will only pay out if you cannot perform any type of work. By considering this from Darras Law, you will get the help needed to encourage your insurer to fulfil its obligations. 6. The Potential Payout While your policy’s cost will, of course, depend on your income, not all long-term disability policies pay 100% of what you make. Some pay just a fraction of that amount; the closer the policy comes to a 100% payout, the higher the rate you’ll pay. 7. Elimination Period Length A policy’s elimination period is sometimes referred to as a waiting period. It’s the time that has to pass between the onset of your disability and when the policy starts paying out. A policy may come with a 30-, 60-, or 90-day elimination period, and those with shorter periods will cost more. 8. The Benefit Period A disability insurance policy’s benefit period is the length of time it will pay out following the waiting period. Two- and five-year policies are common, as are lifetime policies and those that pay out until retirement age. The longer the benefit period, the more the policy will cost. In Conclusion Now that you’ve gained an understanding of the factors affecting your long-term disability insurance rates, your next step should be to determine how much coverage you need. While an insurance agent can help you find a new policy, a local disability attorney will help you get the benefits to which you’re already entitled. Read Also: 4 Expert Tips For Finding The Cheapest Insurance For You Your Simple Guide To GAP Insurance Tips For Breaking Into Finance And Banking

How to Select the Best Investment Plan for Your Child?

As parents, you want many things for your child - happiness, health, and a secure financial future. You also want that your child should excel in his/her career. Just imagine your kiddo becoming a star athlete or a budding biologist or a successful entrepreneur who appears in headlines from time to time. Your joy will know no bounds! However, when you want to provide the best of everything to your child, you will have to move beyond the basic parenting skills and contribute to his/her holistic growth. For that purpose, it is sensible to save money for your child’s future and keep him/her financially secure, even in your absence. A good way to start is to invest in an Online Savings Plan, popularly known as ‘Child Investment Plan’. An online savings plan serves the dual purpose of investment and insurance. Most importantly, it fulfils two major requirements: It secures your child’s future financially It provides financial aid at various stages of your child’s life such as higher education, starting a business, or getting married However, with several child investment plans available in the market today, it can become difficult to choose the plan that best meets your child’s needs. Following tips will help you make an informed decision: Determine the Monetary Value Attached to Your Child’s Dreams As a responsible parent, your first step should be identifying and prioritizing your child’s goals and the monetary value attached to them. The two main goals for which you would need significant financial funding is your child’s education and marriage. As far as education is considered, for the time being, decide your child’s goal on behalf him/her and know for sure when the cash is required. Reach a decision, for instance - "I am saving for my son’s engineering degree in 2025, and I may require 20 lakhs for the same". Along these lines, calculate the required funds while taking into consideration the year of the requirement for the respective milestones. Also, with respect to your child’s education, don’t just consider funds for primary and higher education, but also plan for extracurricular activities. In short, make estimates of the amount you intend to spend on your child’s education or marriage. Doing so will help you choose the premium amount and the policy term for the best child investment plan. Go for Equity-linked Online Saving Plans If you have a higher risk appetite for equities and a considerable investment time frame (more than 10 years), you can consider opting for an online savings plan. It is essentially a unit-linked child investment plan that offers you investment as well as insurance feature in a single product. Further, this plan provides multiple investment options like equity, debt and balanced funds. So, if you have a longer investment timeframe, you can go for equity funds as investing in equities for longer duration gives the best returns. On the other hand, if you have a lower appetite, you can go for an online savings plan that offers a balanced mix of growth and debt funds. Remember that just choosing to invest for your child is not enough. Selecting the right investment plan is most important! Therefore, while making your investment decision consider the amount you can spare for investment, your income, cost of higher education, time in hand, and the level of risk. Look for Premium Waiver Benefit Almost all insurers, including Max Life Insurance, offer child plans with premium waiver benefit as a key feature of the base plan. This benefit acts as the most vital feature in case of demise of the parent. In such a situation, the child plan pays a lump sum amount to the nominee. Further, the insurer waives off all future premium, and the plan continues to be active until the entire policy term. This ensures that the maturity benefit remains intact as planned. Check for Provision of Partial Withdrawals Online saving plans also allow partial withdrawals on fixed intervals. The idea behind such partial withdrawals is to allow parents to meet the financial needs of their kids at the key milestones in their life such as admissions for extracurricular activities, admissions in educational institutions, or marriage. This option is also helpful for meeting unplanned expenses in case of medical emergencies. Other Factors to Consider for Child Investment Planning Start investing early. It will help achieve your investment target easily. Also, ‘Power of Compounding’ will play an important role when it comes to investing for your child’s future Know the different premium payment modes. You can opt to pay premiums on monthly, quarterly, half-yearly or annual basis Invest in a plan that offers a well-balanced mix of equity and debt funds Track your investment at regular intervals and make appropriate changes if required Select a tax-efficient investment option Concluding Today many insurers have come up with attractive child investment plans. However, you need to be judicious about what plan you want to opt for. Also, while making your decision don’t forget to consider criteria like time horizon and age of your child. We hope that this guide will help you choose the right plan for your child and make his or her dreams a reality! Read Also: Investing And Trading 101: Investment Ideas For Newbies How Digital Advisors Have Transformed The Investment Sector Pros And Cons Of Oil And Gas Investment

Debunking 7 Notorious Bankruptcy Myths

You Can’t Travel Overseas after Filing :

Filing for Bankruptcy Costs a Lot :

You’ll Love Everything :

Your Earning Will be Limited :

The Debts you leave off the Bankruptcy Form are Not Included :

You Have to File for Bankruptcy if You Can’t Pay Your Debts :

You’ll Never Get a Loan Again :

5 Ways to Become a Profitable Landlord

Hiring a Blockchain Developer

Tags

Ariana Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

Leave a Reply Cancel reply

Popular

Technologies For Creating A Startup Idea

How to Download Facebook Videos on Android?

7 Rules of Effective Ecommerce Web Design

The 10 WordPress Plugins Every Sucessful Blogger Uses

Follow Us

Recent

Role Of Sound Design In Creating Memorable Advertisements

Data-Driven Insights And Enhancing Customer Experience

Simplify Your Conversions: A Powerful Cryptocurrency Conversion Calculator

Choose Quality Car Hoists From The Premium Car Tools Suppliers

Related

How To Choose The Best Auto Insurance Company?

8 Factors That Play a Role in How Long-Term Disability Premium Is Calculated

How to Select the Best Investment Plan for Your Child?

Debunking 7 Notorious Bankruptcy Myths

You Can’t Travel Overseas after Filing :

Filing for Bankruptcy Costs a Lot :

You’ll Love Everything :

Your Earning Will be Limited :

The Debts you leave off the Bankruptcy Form are Not Included :

You Have to File for Bankruptcy if You Can’t Pay Your Debts :

You’ll Never Get a Loan Again :

Share this Article

5 Ways to Become a Profitable Landlord

Hiring a Blockchain Developer

Tags

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

Leave a Reply Cancel reply

Popular

Follow Us

Recent

Related