Debunking 7 Notorious Bankruptcy Myths


23 July 2018


Bankruptcy Myths

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.

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.

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Financial Advisor

Choosing The Right Financial Advisor

There are plenty of financial advisors out there; you can never have trouble finding one. But, like buying any product, you need to find the right one. Deciding the type of advisor you should hire can be challenging. With poor research, you may end up losing a large sum of money from carelessness and ineptness. Thus, it is essential that you determine which advisor will help you meet your goals. The following are five steps to selecting the best financial advisor. Choosing the Right Financial Advisor: 1. Know your financial needs: There are various reasons why you would want to hire a financial advisor. For instance, you may need help in managing an inheritance, a retirement fund, or a loan. Financial advisors have diverse experience and expertise. Thus, not every advisor will be able to meet your needs.This is why you need a financial adviser that can help you in every step of the way. Since the requirements of each individual are different, you need someone that can help create personalized investment solutions for you and your financial needs. Make sure to share and discuss your expectations from the adviser in advance.Ensure you identify and rank your financial goals. You should be clear on the amount of capital you’re investing. Also, you should state your financial objectives and how much risk you are willing to sustain. It will help you select the right advisor. 2. Expertise: Always go for certified financial advisors because the fact that they are licensed will help ensure you that the advisor you are about to hire is qualified and that they know exactly what to do and how to help you. Besides, credentials issued by independent bodies can be another evidence of qualification. Find a financial advisor in West Des Moines with a CFP (Certified Public Planner). It is the most significant credential. Its members must pass the tests administered by the CFBS. Moreover, find out whether he/she takes the annual courses required by the law. 3. Experience: Experience is vital if you are to entrust this person with your dreams. Most financial advisors ventured in other fields before getting into a financial career. It equips them with knowledge about financial investments in different areas.But you should remember that everyone has to start somewhere. Intelligence, responsibility, and passion can, in some cases, make up for the experience. 4. Cost: Fees and commissions can end up making your investment, not so fruitful.  Discuss the advisor’s compensation before closing the deal. It will avoid any conflicts on payment. You need to study the record of the adviser and your anticipated future record. For example, if your stock portfolio is 8%. You agree that the advisor gets 4%. Then, your net return will be 4%. 5. Compatibility: Your financial advisor should have a personality that makes you comfortable. If you do not like your advisor, you will find it so difficult to open up about your financial concerns. Find a financial advisor in West Des Moines who has the patience to answer your questions.Face-face meeting is a great way to assess your advisor, giving you a better impression. Would you marry a person who you meet at an online dating service without a face-face meeting? The same case applies here; you should not give your financial future to a stranger. Bottom Line: Remember how much you worked hard to earn the capital. Pick the best advisor and protect your wealth. Also, ensure he/she has the expertise needed to provide the best advice.Read Also:How To Start Your Career As A Financial Advisor? How Artificial Intelligence Is Helping Banking And Financial Institutions?

Listed Investment Companies

A Beginners Guide to Listed Investment Companies

Investing can be a daunting task for anyone, especially for those who are new to the game. With a plethora of options available, it can be challenging to know where to start and what investment vehicles to choose.One option that has gained popularity in recent years is listed investment companies (LICs). In this beginner's guide, we'll take a closer look at what LICs are and how they can be a valuable addition to your investment portfolio.What are LICs?LICs are publicly traded companies that invest in a diversified portfolio of assets, such as stocks, bonds, and real estate. They are similar to mutual funds, but instead of investing in the fund directly, you buy shares of the company that owns the assets.This allows you to gain exposure to a variety of investments through a single stock, making it an easy and convenient option for those who want a simple and diversified investment portfolio.Benefits of Investing in LICsDiversification: As mentioned earlier, LICs offer a diversified portfolio of assets, which helps to spread risk and minimize the impact of any single investment.Professional Management: LICs are managed by professional fund managers who have the expertise and experience to select and manage investments on your behalf.Liquidity: LICs are listed on stock exchanges, making it easy to buy and sell shares, and providing you with the flexibility to make changes to your portfolio as needed.Potential for Higher Returns: By investing in a diversified portfolio of assets, LICs have the potential to deliver higher returns than investing in individual stocks.Lower Costs: Compared to other investment vehicles, LICs often have lower fees and expenses, which can result in higher returns for investors.Risks of Investing in LICsMarket Risk: As with any investment, LICs are subject to market risk, which means that the value of your investment can go up or down depending on market conditions.Credit Risk: LICs may invest in bonds, which are subject to credit risk. This means that if the issuer of the bond defaults on their debt, the value of your investment may decrease.Management Risk: The success of a LIC depends on the ability of the fund manager to make good investment decisions. If the fund manager fails to perform, the value of your investment may be negatively impacted.How to Invest in LICsResearch: Before investing in a LIC, it's important to research the company and its portfolio of assets to ensure that it aligns with your investment goals and risk tolerance.Consider the Fund Manager's Track Record: Look at the fund manager's track record to see how they have performed in the past and whether they have a history of delivering good returns.Diversify Your Portfolio: As with any investment, it's important to diversify your portfolio to minimize risk. Consider investing in multiple LICs to achieve a well-rounded and diversified investment portfolio.Monitor Your Investments: Regularly monitor your investments and make changes as needed to ensure that your portfolio remains aligned with your investment goals.In conclusion, LICs can be a valuable addition to your investment portfolio, offering the benefits of diversification, professional management, liquidity, and the potential for higher returns. However, it's important to understand the risks involved and to do your research before investing. By following these tips, you can ensure that you make informed investment decisions and achieve your financial goals.Additional:5 Reasons Why Bitcoins Are Considered Reliable InvestmentsTop 5 Investment Decisions You Need To Make In Your Thirties4 Key Concepts on Making Signage an Effective Strategic InvestmentWhat Investors Should Know about Investment in Gold and Silver Assets

Royal Bank

What To Know About The Royal Bank Of Scotland?

Scotland-based NatWest Group plc is a holding company for British banking and insurance. The firm manages a wide range of banking brands. NatWest Markets, Coutts, National Westminster Bank, and Royal Bank of Scotland are its principal subsidiary companies in the United Kingdom. Recently, showed that the RBS share prices surpassed their 200-day moving average. A wise investment involves more than merely purchasing a stock at a discount. It is the result of a thorough investigation of the state and prospects of a firm. For those who are considering purchasing RBS stock, it is worthwhile to emphasize three areas of interest:Overview:Unstable historyRebrandingShares owned by the governmentRead further to decide whether you should invest in RBS shares or not.Unstable HistoryUnder the leadership of its CEO, Fred Goodwin, RBS expanded quickly, even compared to its rivals. With assets of £1.9 trillion, it acquired a portion of Dutch bank ABN Amro in 2007 and rose to the position of the largest bank in the world. As the money supply was ending, RBS massively overextended itself. The government's pressure failed. So, the state was compelled to intervene and acquired a 79% stake in the bank. Then Goodwin was fired in October 2008.RebrandingTo manifest the "beginning of a new era" for the bank, RBS changed its name to NatWest Group. RBS was understandably eager to get past its connection to the 2008 financial crisis and its £45 billion public rescue. According to reports, the name change won't affect the services offered to present clients.NatWest Markets, its loss-making investment banking subsidiary, is being reorganized and simplified to increase profitability.Shares Are Owned By The Government.In 2008, the UK government purchased 82% of the Royal Bank of Scotland shares with that £45 billion state rescue. As a result of the government selling up some of its interests over time, public ownership made up about 62 percent of the total. However, it had recently returned shares worth 1.2 billion pounds to the bank, now called NatWest Group, reducing the government's ownership to 48.1% from 50.60%.How Do They Currently Manage Your Investments?The Coutts Asset Management team is in charge of looking after the investments of Royal Bank Premier clients. Before the market crash, they had previously decided to limit their holdings in smaller companies, such as small and mid-capitalization stocks, since they can be riskier. They added to their holdings of UK equity, which included 'value' stocks in the financial and healthcare sectors. Your investments will still be monitored and diversified to reduce risks and seize opportunities.ConclusionThe stock market has had an erratic year. The Ukraine conflict, rising inflation, and the potential for a recession have spurred the further fall of share prices. The RBS share price has been no exception, and it saw an all-time low price in February 2020. However, in May 2021, it again started gaining traction and today holds a good price position. Read Also:Can I File Bankruptcy Without an Attorney?Are Commercial Banks A Good Career Path In 2022?How Artificial Intelligence Is Helping Banking and Financial Institutions?