Published on: 13 February 2021
Last Updated on: 26 December 2024
The aftermath of the COVID-19 Pandemic saw a string of businesses file for bankruptcy. The United States saw many B2B businesses including, FTK Worldwide (Jewellers), Contact Transport (Logistics and Supply), and others opt for the bankruptcy route.
Legal experts are of the opinion that no two bankruptcy cases are the same. They differ in terms of their exposure, risks, legalities, and the court judgment. Even if two companies file for bankruptcy under Chapter 7, their judgments and orders can be different.
In this article, we speak to a leading bankruptcy Birmingham law firm that specializes in these issues. we ask them about some important things businesses and their owners need to keep in mind before filing for bankruptcy.
List of Important Things you need to know before Filing for Bankruptcy
1. Chapters 7 and Chapter 13 are Important for Individuals and Businesses
Legal experts suggest that solopreneur ventures and sole proprietorships that are individual-centric should go for filing bankruptcy under Chapter 7. This puts a stay to debt and credit obligations and allows individuals to even retain control over their property.
Businesses that are well-established should opt for Chapter 11. This helps in keeping the business entity alive and allows for a payment restructuring plan that works to ensure complete repayment over a period of three to five years.
2. Hiring Legal Help is of High Importance
It is important to understand that individuals or businesses looking to file for bankruptcy should always avail of expert legal help. If you are trying to use Google to do all the paperwork, you might get into serious trouble in the near future.
Bankruptcy laws are incredibly complex and technical. In particular, Chapter 7 allows liquidation of debt to take care of financial obligations and absolve the individual from repayment. All collection attempts must stop. Subsequently, a bankruptcy trustee collects non-exempt valuable assets and sells them to pay off debt. The law discharges eligible debts, such as credit card loans, medical bills, and old utility bills. So, you need an experienced bankruptcy attorney to help you fend off the debtors, and work with the courts and the banking institutions. At the end of the day, you do not want criminal proceedings to be initiated by any of the parties.
You can hire an expert in your area, such as a Florida Chapter 7 bankruptcy lawyer. A bankruptcy lawyer’s job is to help you overcome debt, so they’ll guide you through the process by offering advice or assisting you in filing for bankruptcy protection.
3. Bankruptcy does not mean All Debts go away
If you were under the impression that bankruptcy is going to help you walk away scot-free think again. Legally, the following are some areas where bankruptcy will not be able to help you-
Alimony Payments
Student Loans
Taxes on Luxury Items
Taxes
Child Support Payments
All the above-mentioned areas and payments are not something that the court can give you relief from. If you miss your payments or taxes, new legal cases can be brought up against you in a court of law. The punishment and legal repercussions for the same will be different.
For this reason, it’s a must to talk to an experienced attorney and a personal financial advisor who can help you determine other options for addressing these problems. Social workers and community leaders can also help. The government and private sectors offer programs for citizens needing financial and social support services. They’ll help you get through difficult times, so don’t hesitate to consult them.
4. Your Credit Score will get Affected Post-Bankruptcy
According to leading legal experts, ten years is the period where your credit score will carry the blemish of your bankruptcy declaration. If you are looking to get loans or credit during the period, the same might get very difficult. You need to be prepared to address the credit score.
Some lending companies may offer you a personal loan. But the interest rates are high. You can take the risk to recover gradually from poor credit standing. However, you’ll have to make sure that you pay your loan on time.
Fortunately, there are some professional services that have come up in recent years that can help you improve your credit score within a short period of time. If you want to get back in the game, you can always avail of such services.
5. Bankruptcy can help you give Yourself a Fresh Start in Life and Business-
It can be stated that most businesses that suffered because of the pandemic did so for no fault of their own. In such instances, legal experts suggest that bankruptcy can be a sound tactical and strategic decision that can be taken by businesses and individuals.
Banks, lending institutions, and even the judges that will be hearing the case are already aware of the drastic and negative economic fallouts of the pandemic. In fact, there have been cases, where the banks have discussed with lenders and worked out a positive restructuring plan to help individuals and businesses affected by the pandemic.
The Bottom Line
Filing for bankruptcy can probably the single hardest decision you would have to take in your entire life. However, rather than make the decision an emotional one, it is best to exercise reason and proper judgment and take help from an experienced legal attorney to find your way.
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Whenever I go ahead with traditional banking, it often feels disconnected from social progress.
Recently, I have been trying to switch from such traditional platforms to more efficient digital ones.
One of my friends suggested a platform called Betterthisworld Money.
Now, of course, I will not use any platform for money before I review it!
So, when I hopped onto the internet, I saw that this platform has emerged to redefine the relationship between capital and conscience.
Additionally, I saw that this movement isn't just about saving or investing. Rather, it is about Impact Investing.
What is that? If I have to explain this in simple terms, I would say that it is the practice of putting your money into a particular sort of project.
These will generate measurable social or environmental benefits. In addition, I will also get a financial return.
As we navigate the economic landscape of 2026, I suggest that you understand how to align your wallet with your values.
I can assure you that it is no longer a niche hobby. Rather, it is a strategic necessity for the modern investor.
In this guide, I am going to break down the core philosophy of Betterthisworld Money.
Additionally, I will also talk about the advantages of ethical banking.
Finally, I would mention the critical safety measures that you will need. This will help you to protect your assets in the impact space.
What Is Betterthisworld Money?
Betterthisworld Money is a financial philosophy and ecosystem. It is centered on Conscious Capitalism.
Additionally, I would say that the platform acts as a bridge between retail investors and global initiatives. These focus on:
Climate Change
Educational Inequality
Sustainable Infrastructure
Also, I would like to add that this platform doesn’t just let your deposits sit in a traditional bank.
There, they might be used to fund fossil fuel expansion. In fact, it can also be used for predatory lending.
Rather, Betterthisworld Money advocates for transparency.
Also, it encourages the use of Green Bonds and Social Impact Notes. In fact, it also promotes Community Development Financial Institutions (CDFIs).
What Are The Core Pillars Of Betterthisworld Money?
To understand how this ecosystem functions, it is helpful to look at its three primary drivers:
1. Transparency
Every dollar is tracked. Investors receive an Impact Report that shows exactly how their capital contributed to tangible outcomes, such as gallons of water saved or the number of low-income housing units built.
2. Sustainability
The focus is on long-term growth.
This approach avoids pump-and-dump schemes, favoring companies with high ESG (Environmental, Social, and Governance) scores.
3. Accessibility
Historically, impact investing was reserved for high-net-worth individuals. Modern platforms have lowered the barrier to entry, allowing users to start with as little as $10.
What Are The Advantages Of Switching To Betterthisworld Money?
Why should I invest through BetterThisWorld Money? How will it benefit me? This was one of the first questions I asked.
Well, it turns out that this lens offers unique benefits. Guess what? It is way better than the traditional portfolios:
1. Resilience Against Market Volatility
If you own or work in companies with high ESG ratings, you would know that they tend to be more resilient during economic downturns.
This is because these firms focus on long-term sustainability. Additionally, they also prioritize ethical governance.
Therefore, they are less prone to scandals. Also, they can prevent regulatory fines that plague less ethical competitors.
2. Personal Fulfillment
There is a psychological advantage to knowing your wealth isn't coming at the expense of others.
Additionally, this alignment of values leads to Financial Wellness.
Therefore, it reduces the stress and guilt often associated with complex financial markets.
3. Competitive Returns
A common myth is that doing good means earning less.
However, I was looking at the data from 2025 and 2026. Guess what I saw?
It shows that impact funds frequently match or outperform the S&P 500.
I think one of the biggest reasons behind this is that the global regulations are shifting toward rewarding green energy.
Also, the shift towards ethical labor practices is another prominent reason.
What Are Some Common Safety Concerns With Betterthisworld Money?
While the intentions behind Betterthisworld Money are noble, the Impact Space is not immune to risks. You must be vigilant to protect your principal.
1. Beware Of Greenwashing
Greenwashing occurs when a company or fund spends more time and money on marketing themselves as environmentally friendly.
But guess what? They barely do anything to actually minimize their environmental impact.
Therefore, I would suggest that you always look for third-party certifications like B Corp status.
Additionally, you must also pay importance to the GIIN (Global Impact Investing Network) verification.
This is an important step before you commit large sums of money.
2. Liquidity Risks
Many impact investments, particularly those in community development or green infrastructure, are long-term plays.
Therefore, this means your money might be locked in for 3 to 5 years.
So, I would strongly recommend that you ensure you have an emergency fund in a liquid high-yield savings account.
When to do this? Of course, before you move your core capital into less liquid impact notes.
3. Platform Security
As these platforms gain popularity, they become targets of cyberattacks.
So, I must assert that you need to ensure any app you use for Betterthisworld Money utilizes AES-256 encryption.
Additionally, I also checked if it offers SIPC or FDIC insurance (or the equivalent in your region) for my cash balances.
4. Higher Expense Ratios
Because impact funds require more research and active auditing to ensure compliance with ethical standards, they sometimes carry slightly higher management fees than passive index funds.
5. Narrower Diversification
If you only invest in green companies, your portfolio might become over-concentrated in the tech and energy sectors.
It is vital to maintain a balanced asset allocation across different industries.
Who Are The Ideal Users Of Betterthisworld Money Com?
I am listing a few categories of people who will genuinely benefit from this platform. Want to know if you are one of them? Read on!
Firstly, if you are a gig worker or a freelancer, I can assure you that this is the platform you have been looking for.
Now, you can manage multiple streams of unicorn without missing a payment.
Secondly, you will really love this platform if you are a young professional.
This will help you maximize your savings. Additionally, you will learn a lot about budgeting.
Additionally, if you are a small business owner or any sort of entrepreneur like me, you can use this to make more informed decisions.
Also, this will help you to oversee cash flow.
Finally, you will benefit from this if you are an investor or a general saver.
This will help you explore low-risk investment scopes. Also, you will be able to optimize your spending.
Is Betterthisworld Money A Sound Strategy For 2026?
Betterthisworld Money embodies a transformative vision for the future of finance.
As Generation Z and Millennials increasingly accumulate and control a significant portion of global wealth, there is a profound shift in expectations around ethical transparency and sustainability.
This generational demand is compelling the entire banking industry to reassess its practices and prioritize transparency, accountability, and responsible investment.
By embracing this progressive approach today, you are not just contributing to positive environmental change.
Rather, you are strategically positioning yourself at the forefront of what is poised to be the next major economic transformation.
Engaging with Betterthisworld Money means being part of a movement that not only aligns financial growth with ethical values but also actively fosters a more sustainable and equitable future for all.
Your participation can influence broader trends and practices in finance, making a lasting impact on the industry and the world.
Bankruptcy means a test is done to determine who can file for chapter 7 bankruptcy. The means test considers everything while determining your current position to pay your debt to the creditors. It goes through your income, expenditure, assets, and family members.
The means test was designed to reduce the number of debtors willing to get their debts erased. It has been seen that most of the debtors who have applied for the means test have passed.
Those people who cannot qualify for chapter 7 or want to keep their assets to themselves can apply for chapter 13 bankruptcy.
How Chapter 7 Bankruptcy Works?
Applying for chapter 7 can be an expensive and lengthy process. The means test helps the government clarify who is eligible for chapter 7. The Means Test has two parts. Both parts are designed to see through your income and assets and determine the current financial standing.
You have to apply for the Means Test only for the primary consumer debts like medical debt or credit card debts. You do not have to apply for this test if your debt is related to business loans.
First Part
The part of the Means Test determines whether your house income is below the state's median income. The means test starts gathering information about your income, expenses, and assets. These data are mostly collected from the past six months. However, there have been cases where this six months time duration can be changed.
After all the reports, if it is being found out that your income is below the median income, you will qualify the Means Test. In a report made by the US government in 2013, more than 12% of the debtors were able to qualify the Means test in the first stage.
Second Part
The second part consists of going through all your expenses. These expenses consist of everything you pay for, starting from paying your utility bills, grocery bills to the travel expenses and education expenses. Out of all the expenses, only the allowable expenses are considered to be used by you. Other expenses that are not necessary are used to pay off your debts.
While you document the list of expenses, be thorough about the things you add to the list. Remember, those expenses will decide whether your petition will be accepted or not.
Allowable expenses are based on the local and national standards used by the IRS. The national list covers items like food and clothing, and local items cover housing expenses and car payments. You need to work carefully to ensure that all your expenses are thoroughly documented.
What's Next After You Qualify for the Means Test?
Passing the means test means you have the green light to apply a petition for chapter 7 bankruptcy. Once your petition is accepted, most of the unsecured debts will be forgiven. That does not mean that this will be the best route for you.
There are also chapter 13 bankruptcy that might give more advantage over chapter 7 in many cases. Chapter 13 will help you put a hold on all your debts, mortgages, overdue loans, and bank taxes.
What Will Happen After You Fail The Test?
Once you fail the Means Test, there are no more appeals for a certain period. You can apply for the chapter, or you can wait for the cooldown time to apply again for the means test.
We have already mentioned that the Means Test goes through all your financial income and expenditure in the last six months. That means, after a failed attempt at the Means Test, you can apply again after six months.
However, if you do not intend to apply for the Means Test again in the future, you will be restricted to chapter 13 and will have to pay off your debt based on the chapter 13 provision.
The Bottom Line
Is it really hard to apply for a loan after bankruptcy? Well, you can say more than hard; it is more complex. You first need to qualify the Means Test, and then only you can apply for chapter 7. It is better to have an attorney while you are managing legal documentation.
Read Also:
8 Simple Tips To Pay Off Your Loans Faster
5 Must-Have Long-Term Goals for A Secure Future
What are the types of debt that can be discharged in bankruptcy?
Using Short-Term Loans to Help Rebuild Your Credit Score
Whether you are a new credit card holder or have been using it for a while, you must have come across some credit card jargon that is hard to decipher. For instance, if you decide to apply for a credit card online, you might need to understand the annual fee, interest rate, and other charges applicable to that card. Even though all credit cards work in the same way, they differ a lot in terms of the benefits and rewards they offer. So, to make it easier for you to understand the basic credit card terminology and choose the best one, here is a quick guide for you.
Annual Fee
Card companies may charge annual fees on credit cards. This might range from a few hundred to a few thousand depending on the benefits you can avail yourself of on the card. However, certain providers may waive the fee for the first year, while others, may offer credit cards that are free for a lifetime. So, depending upon the kind of benefits you seek, you may choose a lifetime free credit card or a card that has an annual fee but may waive it off on spending a certain amount.
Credit Limit
This is the overall spending limit or credit line provided by the card issuer. There are several criteria such as your credit score, income, repayment history, as well as the length of your relationship with the bank that determines your credit card limit. Banks may sometimes offer you higher limits if you already have high limits on your existing cards along with a strong repayment history.
Additionally, when checking your credit card limit, there are further three terms that you must be aware of Total Credit Limit and Available Credit Limit.
Total Credit Limit: This is the credit limit granted by the bank when the card is issued. The total limit can also be increased when you request for the same or if you accept a limit increase offered by the provider.
Available Credit Limit: This is the credit limit that is available on one's credit card at any one moment. In other terms, the available credit limit is the difference between the entire credit limit and the card's current outstanding balance.
Cash Limit: Card issuers also offer a certain portion of your total credit limit as cash limit. This defines the amount of cash you can withdraw using your credit card. However, cash withdrawal from credit cards should be the last resort as cash withdrawal is not eligible for the interest-free period and even a small amount can escalate to a huge debt.
Billing Cycle
The billing cycle refers to the period between the closing of the previous statement and the new statement date. Your credit card provider compiles your statement at the end of your billing cycle, and you have until the due date to make the payment.
Due Date
This is the specified monthly date by which all outstanding payments must be made. To avoid late payment penalties and high-interest charges on unpaid dues, you must make the payment on or before the due date.
Total Amount Due And Minimum Amount Due
At the end of each billing cycle, a new statement is generated and it shows the dues that you owe on your card. Total amount due, as the name suggests, is the total sum that you owe to the issuer, and on making full payment, no charges will be applicable.
However, if you cannot afford to pay the total due, card providers give you the option to pay the minimum amount due to keep your card active and avoid late payment charges. It is usually 5% of the total due and also includes any active EMIs, additional fees, charges, etc. An important thing to note is that on making only the minimum payment, the rest of the outstanding balance starts attracting finance charges and new transactions become ineligible for the interest-free period as well. This is why you should always pay the total due and not just the minimum amount.
Finance Charges And APR
Interest rates on credit card balances are known as finance charges and APR is the annual percentage of interest. It is the rate of interest on all transactions from the date of the transaction until the cardholder's balance is paid back in full. Note that interest on credit cards is compounded on a daily basis.
Being acquainted with these terms will ensure judicious use of the card and help you stay out of debt.
Additionals:
Ultimate Guide On Green Card Renewal
How to Dispute an Error on Your Credit Report
Revolving Debt Vs Installment Debt – Which Impacts your Credit Score
It is important to understand that individuals or businesses looking to file for bankruptcy should always avail of expert legal help. If you are trying to use Google to do all the paperwork, you might get into serious trouble in the near future.
Bankruptcy laws are incredibly complex and technical. In particular, Chapter 7 allows liquidation of debt to take care of financial obligations and absolve the individual from repayment. All collection attempts must stop. Subsequently, a bankruptcy trustee collects non-exempt valuable assets and sells them to pay off debt. The law discharges eligible debts, such as credit card loans, medical bills, and old utility bills. So, you need an experienced bankruptcy attorney to help you fend off the debtors, and work with the courts and the banking institutions. At the end of the day, you do not want criminal proceedings to be initiated by any of the parties.
You can hire an expert in your area, such as a Florida Chapter 7 bankruptcy lawyer. A bankruptcy lawyer’s job is to help you overcome debt, so they’ll guide you through the process by offering advice or assisting you in filing for bankruptcy protection.
If you were under the impression that bankruptcy is going to help you walk away scot-free think again. Legally, the following are some areas where bankruptcy will not be able to help you-
According to leading legal experts, ten years is the period where your credit score will carry the blemish of your bankruptcy declaration. If you are looking to get loans or credit during the period, the same might get very difficult. You need to be prepared to address the credit score.
Some lending companies may offer you a personal loan. But the interest rates are high. You can take the risk to recover gradually from poor credit standing. However, you’ll have to make sure that you pay your loan on time.
Fortunately, there are some professional services that have come up in recent years that can help you improve your credit score within a short period of time. If you want to get back in the game, you can always avail of such services.
