Debunking 7 Notorious Bankruptcy Myths

Published on: 23 July 2018 Last Updated on: 08 August 2019

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.

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Top Three Investment Platforms For 2023

The ever-increasing interest rates have many people wondering about a potential recession that could be just around the corner. While some might think that there is no good place left to invest your money, we are here to tell you that you can potentially expand your investment horizon and set up this year for better returns later on. Here are three great investment platforms to invest your money and generate profit in the long run. Read on to learn more! What Is Meant By Investment Platforms? An investment platform refers to a digital tool or service that helps investors access as well as manage different financial instruments. It can either be a stock, a mutual fund, a bond, or an exchange-traded fund. Such platforms offer a user-friendly and convenient way for investors to purchase, sell, and monitor their portfolios. Investment platforms can be found in multiple forms, such as online brokerage, peer-to-peer lending platforms, and robo-advisors. Each platform type caters to multiple investment strategies as well as requirements, thereby providing a ton of fees, support services, and features. But as for now, it is significant to opt for the right platform for making investments. Investment Platform Types You Should Know Investments are mostly categorized under closed-end funds, unit investment trusts, and mutual funds. All such investments have their own set of challenges, risks, and benefits. Well, it’s pretty much the same case for investment platforms. Before setting foot, it is significant that you discover its primary types: Robo-Advisors These tend to be the automated investment management platforms that make use of algorithms for creating as well as managing portfolios. Typically, the portfolios are customized according to the investor’s financial goals and risk tolerance. Some popular robo-advisors are Wealthfront, Digital Advisor by Vanguard and Betterment. Platforms For Online Brokerage Digital brokerage platforms refer to online services that let investors buy and sell different financial instruments like bonds, mutual funds, and stocks. Instances of popular brokerage platforms are Charles Schwab, Fidelity, and E-Trade. Cryptocurrency Exchanges Thirdly, there are cryptocurrency exchanges are those platforms that let users trade, buy, and sell online currencies. These can be Ripple, Ethereum, and Bitcoin. To name a few famous Cryptocurrency exchanges, Kraken, Binance, and Coinbase deserve mention. Platforms For Peer-to-Peer Lending These platforms are designed to facilitate loans between businesses and individuals, cross-sectioning conventional financial entities. Such platforms establish connections between lenders and borrowers, leading to potentially higher ROI for investors. Investment Platforms That Are Becoming Popular In 2023 Hold your breath as you are going to discover some smart investment platforms that have been doing the talk in 2023. Due to their ease of use, these platforms are most likely to get popular in the coming years, too. So, check them out here and make a smart investment: Cryptocurrency Suppose you are looking for ways to improve your financial situation. In that case, you might want to look into cryptocurrency, which is essentially digital money that relies on blockchain technology and is secured through cryptography. In case you are new to cryptocurrency, you will want to know how it works, which is what we are about to tell you. Regarding blockchain, the ledger keeps track of transactions, including intellectual and physical assets. The access is distributed amongst the “authorized” users, and all shared information is transparent and instant. Also, the information cannot be tampered with, even by the administrator. If this sounds good, you might want to check out CoinCulture: Your Source for a Detailed CoinSpot Review and find interesting news and reviews about the competitive and profitable industry. Security is a basic part of blockchain, which ensures that your money and profit are completely yours. Invest In Gold Another way to improve your financial situation is by investing in Gold. In fact, investing in Gold and Silver is considered a smart strategy against inflation. Over the long run, Gild doesn’t only maintain its value but also maintains its purchasing cost despite the potential fluctuations in the dollar. Moreover, the high inflation periods serve as an excellent time to boost your allocations to Gold. You might already have an idea about how the stock markets work. When an economy goes into recession, the stock market slumps, too, which means that real estate can lose its value, too. This is where the importance of Gold comes in. During the recession, Gold can establish a diverse portfolio, which further reduces your exposure to riskier assets. High-Yield Savings Accounts In case you haven’t heard about a high-yield savings account before, you should know that it pays the investors interest on their cash balance. Like any other savings account at any physical bank, a high-yield account is instantly accessible for cash. A savings account is a brilliant option for those looking forward to a contingency plan. Also, if you want to avoid the risk of losing your money while investing, then a high-yield savings account might be just the right option for you. However, before you start investing in a high-yield savings account, you will want to assess your finances and create a budget. The key to having a budget is that you will have a clear overview of your incoming and outgoing money. And you will know where you are overspending and how you can cut your expenses. Once you have a better overview of your incoming and outgoing money, you will find it easier to stick to a budget. The Bottom Line Investment platforms have a pivotal role to play in the current financial landscape. Not only does it provide investors with the resources and tools needed to manage their portfolios, but it also builds an opportunity for having a passive source of income. By comprehending the most popular investment platforms, it’s your chance to boost your investments. So, what are you waiting for? 2023, 2024, and the subsequent years have proven lucrative for the investment industry. Make hay while the sun shines, or you can lose great opportunities to circulate your money. Read Also: What Will A Financial Retirement Plan Including Gold Look Like Investors Agree: Gold And Silver Is The Way To Go 5 Fun Facts About The American Eagle Gold Coin

Aligning Your Financial Plan With Your Values

Your financial plan should reflect who you are and what matters most to you. By aligning your money management with your core values, you create a more meaningful and fulfilling financial life. Here's how to make your financial plan match your personal principles: Identify Your Core Values As you consider help with financial planning, start by clarifying what's truly important to you. Reflect on what brings you joy and fulfillment. Consider the causes you care about deeply and how you want to spend your time and energy. Think about the kind of legacy you want to leave. List your top 5-7 core values. These might include family, health, creativity, learning, adventure, or community. Be specific about what each value means to you. Assess Your Current Finances Take stock of your financial situation. Review your income sources, expenses, spending patterns, assets, and debts. Look at your insurance coverage, investments, and retirement accounts. Identify areas where your money use aligns with or contradicts your values. Look for opportunities to better align your finances with your principles. Set Value-Driven Financial Goals Create financial goals that support your core values. If family is a top value, you might aim to build an emergency fund to protect loved ones. For those who prioritize learning, budgeting for courses or travel that expand your mind could be key. Make your goals specific, measurable, and time-bound. Prioritize them based on your values. Create A Values-Based Budget Design a spending plan that reflects your priorities. Allocate more money to areas that align with your values. Cut back on expenses that don't serve your principles. Leave room for both necessary costs and value-driven choices. This approach ensures your day-to-day financial decisions support what matters most to you. Invest According To Your Beliefs Choose investments that match your ethics and goals. This might include socially responsible mutual funds, environmental, social, and governance (ESG) stocks, or community investment options. Research options thoroughly. Ensure your investment strategy still provides proper diversification and returns. Plan For Meaningful Experiences Budget for activities and purchases that truly matter to you. This could include family vacations, skill-building workshops, or tools for a fulfilling hobby. Prioritize experiences over material goods when they align with your values. This approach often leads to greater long-term satisfaction. Build A Value-Focused Career Seek work that resonates with your beliefs and passions. This might mean changing to a more fulfilling job or starting a values-driven side business. Consider negotiating for a better work-life balance or pursuing additional education for career growth. A career aligned with your values can boost both financial and personal satisfaction. Give Back Meaningfully Incorporate charitable giving into your financial plan. Choose causes that deeply matter to you. This could involve regular donations to favorite nonprofits or volunteering your time and skills. Consider setting up a donor-advised fund or planning for charitable bequests in your estate. Tips For Successful Financial Planning Here is how you can begin being a little more responsible with your financial plans. 1. Start Early To Give Yourself More Time Ever heard the expression, "The best time to plant a tree was 20 years ago, but the second-best time is now"? The same goes for financial planning. The earlier you start, the more your money can grow and compound. So why wait? Even if you're starting small, it's never too early or too late to set aside some of your income for the future. Just think, where do you want to be financially in 5 years? How about in 10 years or even 20 years? When you start early, you give yourself some powerful time that can be your best friend when it comes to multiplying your money quickly. 2. Be Realistic It’s great to have financial goals for yourself, but be sure they are also attainable. If you’re constantly chasing a goal that is impossible to meet, you’ll do nothing more than frustrate yourself in the end. For instance, if you want to save $50,000 this year on a salary of $40,000 per year and not change your current lifestyle at all, that isn’t going to happen. Instead, set realistic steps for reaching your ultimate goal and celebrate when you hit each one along the way. 3. Seek Professional Advice Feeling lost? There’s no shame in asking for help. Financial planning can be complicated and confusing, and hiring a professional to assist you is a great way to gain confidence in your plan. Are you investing as much as you could be? Is your tax bill higher than it needs to be? Can you do more with your resources? A financial planner can address these concerns and many others that might arise, from figuring out how to retire when you want to decide how much life insurance is enough or what steps need to be taken after the death of a loved one. Having an expert on call is particularly useful when trying to use money as a tool to get the most out of life. 4. Automate Good Habits Imagine waking up to find your savings account has grown overnight. You haven’t had to do anything. That’s the magic of automation. By setting up automatic transfers from checking to savings or direct contributions to your retirement or investment accounts, you’ll be building good financial habits without even thinking about it. And if all your saving and investing goals are on auto-pilot, you won’t need any willpower at all because a single decision will take care of it for you. This is one of the most effective ways I know of to maintain discipline. 5. Educate Yourself Your best defense to making well-informed decisions is to educate yourself. Are you staying current with financial trends and opportunities that may affect you? The more knowledge you possess, the better prepared you will be when it comes to taking action with your finances. It could be learning about socially responsible investments that match your values or how compound interest actually works. Knowledge enables better decision-making on your part and helps alleviate any concerns or fears you may have. Read articles, attend webinars, or listen to podcasts just like these so that you can continually tweak and improve upon what’s already working. By aligning your financial plan with your core values, you create a more purposeful and satisfying relationship with money. This approach leads to better financial decisions and a deeper sense of fulfillment in your financial life. Remember to stay flexible and adjust your plan as life changes occur. Read Also: Simplifying Finance: The Role Of UX Design In Financial Services Alternative Business Financing – What Is It And How Do You Do It? Embedded Finance In Online Businesses: The Role Of Account Top-Ups And Currency Exchange

Do Luxury Rehab Facilities Take My Insurance Plan?

What are luxury rehab facilities? Are there non-luxury rehab facilities? What is available at the luxury rehab facilities that is not available to the regular rehabs? Well, a luxury rehab facility offers the highest quality experience for the patient. Whether one is battling drug or alcohol addiction, the kind of experience that one receives while at the facility has a direct bearing on one's recovery. As such, you may want to find the best facilities for your patient. By visiting the altituderecovery.com website, you can find more information about the luxury rehab facilities available in your area. What do luxury rehabs offer? With a luxury rehab, a patient can undergo treatment with cutting-edge facilities. These facilities offer treatment options that include mental health, among others. The good thing about this experience is that patients will have an incredible time that offers them peace of mind in their recovery. There are professional dining facilities and other options. Advantages of luxury rehab option Choosing a luxury rehab gives you a better experience, among other benefits. This does not necessarily have much to do with the quality of the medical services that you receive. Here are some of the advantages that you get at the luxury rehab as compared to the regular rehabs: They are well-staffed when compared to the regular facilities. For this reason, you are sure you can get better-individualized services. The staff can concentrate on specific individuals, which means one has a better chance of recovery and a quick recovery. These kinds of rehabs offer a better sense of privacy than regular rehabs. This means people who are addicted and want to be treated privately can enjoy the services of these rehabs. For clients wanting to remain anonymous, a luxury rehab is the right place to receive services. They have better amenities than the regular facilities. For this reason, luxury rehab centers provide extra amenities such as sports facilities, gardening and spa facilities, and so on. As such, clients will enjoy these luxurious facilities, which can speed their recovery process. Do luxury rehab facilities take my insurance plan? If you plan to enter a rehabilitation center, you need to know if your insurance company will pay for the cost. What kind of insurance plan do you have, and does it cater to the treatment? While some insurance plans cater for luxury rehabs, others do not. In this regard, you should consult your insurer and ascertain this. While not all insurance plans cover rehab treatment, some do cover these services: Medical detox also falls under this to some extent. This means that your insurance can cater to withdrawal management. As usual, the best way to do this is to consult your insurer. Medications that are necessary to cater to the withdrawal symptoms, as well as for cravings, are included by some insurers. Other relevant treatments include drugs to control cravings for the abused substances. Some insurance policies also cover residential or inpatient treatments. Even though this may depend on the number of days one spends in rehab, it is always important that you write to or call your insurer to be sure of what they will cover. What Does Insurance Companies Check In General? Insurance companies may have particular parameters for the coverage of luxury rehab centers. These include: Medical Necessity: Normally, the medical need for treatment in a luxury rehab facility is a requisite for most insurance providers. This entails that the right to treatment must be essential for the individual’s physical or mental well-being. Pre-Authorization: Insurance providers may require pre-approval of luxury rehab centers for insurance coverage. This implies that your insurance provider needs to give the go-ahead before the treatment can begin. Pre-authorization is the process of submitting all your details, which include your condition, your treatment plan, and the particular luxury rehab facility you wish to attend. In-Network Providers: Insurance companies often have a network of preferred providers, including high-class rehab centers. They can have facilities they are working with and provide coverage. Ensure you get the maximum coverage by checking if the facility is in-network with your insurance provider. Referrals: Some insurance policies may require a referral from a primary care provider. This is either a specialist or a close member to cover treatment at a luxury rehab center. This shows the treatment procedures used are based on the professional assessment of the patient. Length of Stay: Insurers may limit the length of stay at high-end facilities they cover. They would need periodic evaluations and documentation to decide on the ongoing medical necessity to be in the said facility. However, insurance coverage criteria may differ widely among insurance providers and plans. You should contact them directly to understand the specific requirements and criteria for coverage of the luxury rehab facilities, whether it is even part of your insurance plan. Documents to Keep in Handy? Insurance providers often demand certain documentation or proof to see if the rehab hospital is medically necessary. The exact requirements may vary between insurance providers, but here are some common documentation that may be requested: The exact requirements may vary between insurance providers, but here are some common documentation that may be requested: Diagnostic Assessment: Insurers might thus start demanding a professional assessment conducted by either a psychiatrist or an addiction staff. This evaluation not only permits us to deduce the necessity for treatment in a luxury rehabilitation center but also diagnoses underlying ailments catered to by this specialty care. Treatment Plan: A clear outline of specific interventions, treatments, and services an individual will receive while at a luxury rehab center is required. The treatment regimen should be comprehensive, evidence-based, and custom-based to the needs of the individual. Progress Notes: Ongoing progress notes or treatment updates from a luxury rehab center could be requested to establish the continuing need for such rehabilitation. Such notes must encompass the progress, response to treatment, as well as changes, if any, in the treatment plan. Clinical Justification: Clinical justification is a written piece that a health care practitioner will provide. Therefore, advocating for the treatment to be at a luxury rehab facility because the individual will benefit from the program. The medical rationale should give the specific advantages and outcomes anticipated from the care provision at the center. Previous Treatment History: The insurer might want to see the specifics of any previous interventions or rehabilitation programs. Most importantly, how well they worked out. Therefore, this might be an excellent way of showing the necessity for a high degree of care. Supporting Medical Records: Medical records relevant to the patient’s condition are necessary. Not only this help to provide an argument but it also facilitates the medical necessity of luxury rehabilitation. Final Words Being in touch with the luxury rehab facility and your healthcare providers is crucial. Plus, inform them of the required documents, as they should comply with the insurance provider's rules. Every insurer may have specific rules and guidelines, so we advise you to contact your insurance provider ASAP! More Resources: Beyond First Class: Private Jet Charters Setting A New Standard In Luxury Travel How To Get 60 Day Trial For Luxury Beddings Luxury travel on a budget: Is it possible?

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

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Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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Top Three Investment Platforms For 2023

Aligning Your Financial Plan With Your Values

Do Luxury Rehab Facilities Take My Insurance Plan?

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 :

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5 Ways to Become a Profitable Landlord

Hiring a Blockchain Developer

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Follow Us

Recent

Related