Monday, September 29, 2025
Home Blog Page 31

Compare Life Insurance Options Universal Vs. Variable Life

Muzahed I.
-
0
Compare Life Insurance Options Universal Vs. Variable Life

When you begin to (compare life insurance) policies, you may feel overwhelmed by the sheer number of choices available. Unlike in past decades, today’s life insurance policies offer a wide variety of features in addition to a standard death benefit. Some types of policies, such as universal life policies, can be particularly complex.

If you ask an agent about buying a universal life policy, she may ask if you are interested in traditional or variable universal life. Both types of policies are similar; however, there are important differences.

Similarities Between Universal Life and Variable Life

Both traditional universal life and variable life, like all life insurance policies, feature a stated death benefit. If you die before the policy expires, your beneficiary will receive the death benefit amount. This feature is important for protecting your loved ones against financial struggles they might otherwise face if you are no longer alive to earn income. You typically choose the stated death benefit amount when you purchase your policy. Some policies allow you to increase or decrease the death benefit as your circumstances change.

Cash value accumulation is another feature of traditional universal and variable life. When you start the policy, it will have no cash value; however, as you continue to pay premiums, the cash value increases over time. The cash value might also increase if it earns interest based on investments the policy tracks. The better the investments perform, the more quickly your cash value will grow.
Both types of policies provide you with access to your cash value after your policy has been in force for a certain amount of time. You can access the cash value through a policy loan – this helps you avoid paying taxes unless you fail to repay the loan. You can also withdraw cash value from your policy; however, you will typically incur income tax on the portion of the withdrawal attributable to interest gains.

Traditional and universal life insurance policies also typically contain provisions that allow you to use a portion of the accumulated cash value to pay the death benefit portion of your premiums. This feature can be advantageous because, if you encounter financial difficulties later in life, you can use the cash value to keep your policy in force and retain financial protection for your loved ones. Of course, you can only use this provision to pay your premiums until the cash value in your policy is exhausted.

Differences between Traditional and Variable Universal Life

The primary difference between traditional universal life and variable universal life policies lies in the manner in which these policies earn interest on the cash value. Traditional universal life policies typically track a major index, which determines the interest rate these policies earn. Typically, policy provisions establish a maximum interest percentage rate per year, which means that your potential earnings are capped. In most cases, though, there is no financial downside – you cannot lose previous years’ earnings or paid-in premiums.

Variable universal life offers greater flexibility when it comes to choosing the investments that determine the interest rate your cash value earns. Maximum interest rates, if any, are typically higher than for traditional universal life policies.

With variable universal life, there is also an earnings downside. If the investments or markets you choose decline in value, you may lose interest gained during previous years. You might even lose some or all of the paid-in premiums used to build cash value. This could affect your ability to borrow or withdraw money from your cash value to take care of future expenses or meet future financial needs. Although this type of policy offers higher upside potential than traditional universal life, the substantial downside risk makes some consumers hesitant to purchase variable universal life policies.

Choosing a life insurance policy to meet your family’s needs is a complex process and should be taken seriously. Choosing the wrong kind of policy for your individual situation can compromise your finances down the road and can even leave your loved ones without the level of protection they need. After you (compare life insurance) policies, you should talk to a financial adviser or licensed insurance agent to determine which kind of policy is right for you.

3 Common & Costly Life Insurance Mistakes

Muzahed I.
-
0
3 Common & Costly Life Insurance Mistakes

At the end of the day, life insurance is about taking care of your loved ones after you’re gone.  While it’s not easy to discuss, it’s important to purchase.

As a Certified Financial Planner®, I’ve spent a lot of time clearing up messes and confusion others have made when purchasing life insurance.

There’s no question there’s a lot of misinformation today about life insurance. My purpose with this article is to clarify three common mistakes I see others make when purchasing life insurance.

If you can manage to avoid these mistakes, you’ll be well ahead of others, when it comes to providing security for your family.

Mistake # 1 – The Wrong Amount

A general rule of thumb in the financial planning world for decades has been the 4% withdrawal rule. Essentially, you’re able to withdrawal 4% from your portfolio in the first year, and then increase the amount withdrawn by the inflation rate every year. Doing so, your savings would last about 30 years.

Well there’s much to be debated about the rule, as stock market volatility has increased, it can be useful when determining one’s life insurance needs. If using the 4% withdrawal rule, to meet the same income needs as before (assuming that’s the goal) one would need 25 times their current income rate.

So is that the end all be all? Not necessarily.

The original 4% withdrawal study was composed of someone having their funds in a tax-deferred account. There are also other problems as well:

  • It fails to take into account the beneficiaries lifespan
  • Will the beneficiary ever return to work
  • And so on…

The point is there is no perfect rule of thumb for deciding how much life insurance you need. There are too many variables in the situation.

So, how about a calculator?

Those can be better. My preferred calculator of choice is through the LIFE Foundation’s website.

No calculator is perfect but I find them a much better starting point than a general rule of thumb.

Mistake # 2 – The Wrong Reason

As dreary as it sounds, the main purpose of life insurance is for income replacement for a loved one, if you were to die.

For the majority of individuals whose income supports a family, a term life insurance policy is the safer choice.

Term is very cheap for healthy, non-smoking individuals. Obtaining a $1,000,000, 20 year policy can cost you as little as $35 to $40 a month.

While there are of course other types of policies that are useful for specific situations, such as estate planning, business planning, etc…start your search with term.

Mistake # 3 – The Wrong Person

One common mistake I see others make is purchasing life insurance for children. Going back to its purpose, life insurance is meant to replace the income of someone who was to pass.

As dreadful as losing a child could potentially be, you don’t have to replace the income.

In the same category, in a one income household, life insurance is sometimes only purchased for the working spouse.

While they should certainly have life insurance, what would happen if the spouse who stayed at home were to pass? Often, the working spouse would have to leave their job or take on additional expenses by hiring child care.

In this scenario additional income would be needed to support the family, therefore, it would make sense to purchase a life insurance policy on a non-working spouse.

R.J. Weiss is a Certified Financial Planner®, who specializes in individual insurance planning, at Weiss Insurance Agencies. You can follow him on Google +.

Does the Economy Affect the Insurance Business?

aprilroseconsult
-
0
Does the Economy Affect the Insurance Business?

U.S. economic pressures are vital to the health of an insurance organization’s survival. The impact of the economy on the insurance business impacts the entire consumer population which can greatly be affected by various economic factors. All population is affected, ranging from businesses, consumers, taxpayers and to employers. The insurance companies itself are also directly affected.

Insurance Business

The insurance business and U.S. economy have recently held many pressures nationwide. Companies in this sector and the entire industry are impacted from economic downsides. Insurance firms have to adjust according to economic conditions to areas such as collecting premiums from its customers, paying taxes and having to deal with various issues of concern. The state insurance companies affect the entire state’s economy as well. Property loss also affects the state population significantly. The insurance industry has had major impact to its state because of the power of it offering financial protection.

Economic Impact

The economic concerns are significant in contributing to the outcome of gross state product revenues. The insurance industry pays high tax rates and invests in various bonds for the state. The percentage rates make up a great portion to gross state product. During the economic crisis in 2008, property insured losses reached to the billions in some states. Life insurance and other claims also reached up to billions.

Economic Security

Insurance companies also contribute to the security of its consumers such as individual customers and businesses. When catastrophes or natural disasters occur, the policy owners are affected. Insurance covers such sums as security disasters. Security is crucial to recovery of such tragic incidents and events that can occur. Economic security is secured through claims payments. Claims such as life, business or home insurance are also common. There are property claims which can reach up to billions of dollars annually.

Insurance Companies Today

Insurers should also be concerned of the rise of Big Data, competition, industry regulations and their customers demands for the future. Being strategic and having the right understanding for analytics and business intelligence is also important. Insurance companies knowing what to anticipate for analytics and thinking ahead for long term outcomes will have better competitive advantages. Data is very critical to the Insurance Industry.

Today, the insurance industry is more sensitive to economic recovery and its nationwide exposure making the industry vulnerable to any significant downturn in the global economy. Insurance companies collapsed badly during the financial crisis. Insurance companies are considered to be for the most part, efficiently run, but it can’t overcome weakness in its core demographics and economic factors.  The delay in consumer payments, increased claims and increasing of premiums has affected their business.  Present economic success for insurance can be due to unprecedented demand.

Image License: All rights reserved by lifeinsurance89441

10 Tips On Saving Money After Moving In To A New House

Mike Jordan
-
0
10 Tips On Saving Money After Moving In To A New House

Moving to new house calls for a few checks to ensure you don’t lose money in few minute things that are usually ignored. Moving is an expensive task and you have already spent a lot while moving, you definitely need to go through few of the following points which can help you save your hard earned money. When you have just started unpacking and placing things, the whole house is empty for you, so this is the perfect time to go through a checklist that can help you save money and energy.

  1. Check the insulation: Insulation helps in keeping your home warm. It lets your heater to be set at low temperature that consumes less energy. Look around, if you have unfinished attic, then you must get at least a four inch insulation fixed up there. The thickness of the insulation can change as per the area you are living in. In far northern part of United States six inches are required.
  2. Water Heater Blanket: Get a blanket for the water heater, though most of the modern heaters are well insulated, but some are better insulated than the others and many are not insulted at all. Blankets help in maintaining the water temperature. This will gradually help you save money by lowering your electricity bill.
  3. Lower the Temperature of the Hot Water Heater: The optimum temperature of the hot water heater is 120 degrees Fahrenheit (55 deg Celsius). Lower the temperature and help reduce the size of your bills.
  4. Check the water pipes: Exposed water pipes lose heat while they move water from your heater to your faucet. Insulating them makes a difference of almost two to four degree in the temperature of the water.
  5. Programmable Thermostat: You would find all these pretty expensive when you have already spent a lot on house removals Bristol and Frome, but these expenditures will definitely help to save money and will gradually payoff. The programmable thermostat,, for instance allows you to schedule automatic increase and decrease in your home’s temperature. This helps you to save quite a bit of energy. This device will help you control cooling in summers and heating in winters
  6. Say No To Clothes Dryer: Clothes dryers very convenient but eat a lot of energy. You can avoid the use of clothes dryer and think of placing clothes dryer in the laundry room.
  7. Water Leakage: Check all pipes, faucets and under sink plumbing for leakage. Water is a precious liquid that supports life, you must never waste water. Leakage check will help you save water and also save on water bill.
  8. Air Handling Filter: Always replace you air filter when you first move your air handling filter.
  9. Look for vents: Make sure that your vents are unobstructed and dust free. Blocked vents lead to heating and cooling overtime. This ultimately can cause an increase in energy bill. Also air seal your room, look for the places in the room from where the air is leaking. This can decrease temperature of room in winters and increase temperature in summers.
  10. CFL/LED Lights: CFL and LED bulbs help you save a lot of money on energy. This is worth an investment. You have to pay little more than the other bulbs upfront for long term profits.

Image License: All rights reserved by Photoshopdpi2012

Negotiating Commercial Real Estate Leases

Muzahed I.
-
0
Negotiating Commercial Real Estate Leases

Let’s take a quick look at commercial real estate; how a professional broker comes into play and the value they bring to the table for you as a tenant. Commercial Real Estate uses some tricky phrases and terminologies that most businesses are not familiar with unless you deal with this on a day to day basis. You should know as a business owner that commercial real estate can be a big expense to your bottom line and it is critical that you make sure the costs that are involved are reasonable and inline so you can maintain your profit margins.

When a tenant is looking to lease a commercial property such as warehouse space or office space, they will inevitably come upon some phrases, let’s look at some. The first one is called “Free Rent” or “Abated Rent”. This can be confusing because some tenants believe that the free rent is totally free meaning their free rent period is equal to zero. With NNN leases, the landlord is always passing through the operating expenses to the tenant. These operating expenses are not nullified during your lease term and they still have to be paid.  Free rent and abated rent will extend a tenant’s lease term; these periods tend to be outside the main lease term and not within the lease term. Example, a 3 yr term with 2 months of abated rent is 38 months, not 36.  What is a fair market negotiation for this type of concession? The answers would fall upon the market knowledge of a professional commercial real estate broker.

A tenant will also encounter terms like commencement date or lease execution versus occupancy date. The difference between these terms is when a tenant physically occupies the premises versus when the lease is executed.  Unless this is spelled out differently in the lease, this is how it should be interpreted.

Common area is another factor if you are leasing a commercial office space. Landlords can make up what the common areas are, hence allowing them to get more rent than what is truly there. What come into play is the measurements of the space and how they were calculated.  When you as a business owner work with a tenant representative, you have coverage between them and their fellow brokers. Think about what it is like going into a transaction where you do not have the knowledge base to cover the transaction the best way, how would it turn out for you?

A lot of tenants do not understand the usable rent area versus the rentable area of a commercial space. Remember, the landlord is charging you for the rentable area not the usable area. As a example if you are leasing a 2,000 square foot space and there is a strange configuration or a beam in the way that does not allow you to “use” the whole space, you are still paying for the whole 2,000SF.

Another key factor where your broker comes in is in negotiating for you tenant improvements. What is reasonable, what will be fair? A broker who is involved in the commercial real estate market every day has a good grasp of this and what it is going to take. Tenants at times make a mistake thinking they can improve a space and in the end they tend to mis-calculate what it is going to take. Also, a lot of tenants do not understand leverage when it comes to lease term versus tenant improvement negotiations.  For retail space the tenant improvements are done differently typically than an office or a warehouse space. For retail it is not uncommon for the tenant to come out of pocket with the improvement dollars first and then get reimbursed from the landlord up to a certain dollar amount. What happens if your contractors go over budget? What happens if your contractors cause major delays and they eat into your lease term. Is it better to use your own contractors or the landlords? All of these questions are pertinent and need to be addressed.

 

Image License: All rights reserved by propertiesoption

Life Insurance For People Over 50 With Blended Families

Muzahed I.
-
0
Life Insurance For People Over 50 With Blended Families

Successfully blending two families together can be a struggle. Regardless of whether parents remarry due to a previous divorce or the death of a spouse, the new blended family will experience occasions that are awkward at best. Even blended families that have adjusted well will encounter challenges from time to time. Many parents of blended families have found that problems can often be avoided or lessened by planning ahead and talking about potential pitfalls before they occur. If you are over 50 years of age with a blended family, you should talk to your spouse about life insurance and the beneficiaries of any policies.

Under normal circumstances, life insurance is intended to ensure that your spouse and dependent children will continue to maintain a similar lifestyle after you are gone. Life insurance money can be used to pay a mortgage, finance children’s education at a university, pay for future weddings, and to assist the remaining spouse in paying living expenses. Basically, life insurance is a way to make sure any dreams and goals you have set for your family will continue to be a possibility if you aren’t there to help.

By the time most people reach their fifties, their finances have stabilized. Their children are out of the education system, and they may even have families of their own. Many people in their fifties have paid off their mortgage. They probably have cash in savings and are thinking about what they will do when they stop working in 10 to15 years. For many people in their fifties, the reasons they originally chose to buy life insurance no longer exists. Sure, people in their fifties still want their spouse to have a reasonable income after they die, but in many cases, the spouse’s financial needs have been drastically reduced. With a single-marriage family, a person’s fifties is a time when they might want to consider reducing their life insurance. However, spouses in a blended family may want to reconsider that thought.

Although life insurance is not intended to serve as an inheritance, parents in a blended family may want to consider life insurance as a way to make sure their children get at least something after they die. While both you and your spouse may intend to share your estate equally with both children and stepchildren after you are gone, situations may change. Once you are dead, your spouse could change their will, and any stepchildren could be disinherited. The same thing could happen to your stepchildren if your spouse dies before you. Even with the best intentions, no one can guarantee what will happen after you are gone.

In the case of a blended family, a possible solution might be for both spouses to get an additional life insurance policy with their children as the beneficiaries. This would guarantee each other’s children get at least something if their parent dies. Having a life insurance policy made out to your children does not mean they would not share in their stepparent’s estate after both spouses are gone. However, it does mean that even in a worst-case scenario, each spouse’s children would certainly get at least some financial recompense for the loss of their parent. Naturally, you will also want to take care of your spouse, but that can be done with separate policies if desired.

For the most part, spouses in blended families can trust each other to share their estate with both their children and stepchildren after both spouses are gone. However, a quick search on the Internet will quickly reveal situations where relationships in a blended family significantly deteriorated after the death of one of the spouses. Almost all of the relationship problems occurred because one or both spouses failed to make a will before they died, or their spouse’s will was changed to disinherit their stepchildren after the death of their spouse. Having your children as beneficiaries on a life insurance policy can help avoid hurt feelings in those situations.

Not everyone in their fifties can afford an extra life insurance policy for the benefit of their children. However, for those who can afford it, a life insurance policy can help ensure peace in the family after you are gone.

Image License: All rights reserved by oldpeople-lifeinsurance

How To Make Your First Business Succeed

Muzahed I.
-
0
How To Make Your First Business Succeed

The business world is full of inspirational stories of successful people who finally made it having failed with previous ventures. Giants of the entrepreneurial landscape like Richard Branson and the late Steve Jobs, among many others, have history involving a failed initiative or bad idea before making it big.

While there is nothing wrong with failing, indeed, it is usually the best place to learn and become better, the entrepreneurs of today can arm themselves with the knowledge of the past in order to make sure their first business, as well as any subsequent ones, are nothing but a huge success. Here are some of the things you should focus on before getting started to ensure you’re going to succeed.

Do You Have the Money?

We’re not saying the money needed for a business start-up is ideal, but the reality is that the strain on finances at this time is likely to be huge. If you have a business idea you think could work, don’t be hasty in getting started if you don’t have the capital behind you.

Even if you’re able to top up your finances with early sales, that is money you want to be using as cash flow within the business rather than playing catch up with start-up costs.

What you need to do is have enough money to take care of your early commitments, and then you can draw a line under your initial outlay and move forward.

Listen to Feedback

Television shows like Dragons Den and American Inventor aren’t perfect by any means, but they do a good job of representing a cross section of the modern business world. Specifically, they can really open your eyes to what happens when you don’t listen to feedback. How many times do we see people receive criticism and then respond with, “I’ve heard that before?”

It doesn’t matter how much the criticism stings, or how much you believe in your business; you owe it to yourself to look carefully at all the feedback you receive, and then consider what you’re doing. This is especially true when it comes to evaluating market research or any feedback that you’ve received having specifically asked for it.

Put Your Focus Online

There are articles everywhere talking about the importance of your website, especially when launching a business. However, many are choosing to ignore this, meaning that by doing it you have an opportunity to take advantage and make your mark immediately.

The big challenge for you is going to be ensuring that every aspect of your website is perfect, from finding the best vps host services provider to ensuring your design and SEO is where it should be.

Looking Elsewhere

Of course, the internet is not just about your website. Social media is your number one tool for reaching out to your audience today, whatever your industry. Ensure you’re maximizing your social media presence and driving traffic to your website this way; if you’re not doing this, then your business isn’t going to be a success.

Putting these four points into practice will ensure your first business has a great platform from which to grow and succeed. Yes, you will still learn lessons along the way, but they will be born from the inspiration of success rather than the frustration of failure.

Image courtesy of Boians Cho Joo Young /FreeDigitalPhotos.net

Could Increased Exports Help Save The U.S. Gas Market?

Muzahed I.
-
0
Could Increased Exports Help Save The U.S. Gas Market?

Like all commodity markets, gas prices are based upon margins – the highest price a person is willing to pay. The marginal buyer, the one who is willing to pay an inflated price, sets the price for everyone else. Their buying power inflates or deflates the market depending upon supply and demand.

Increased Sales Beyond U.S. Borders Mean Increased Gas Prices

When it comes to the U.S. gas market, sales beyond our borders have raised the cost of gas and are continuing to do so. Supply and demand is making the marginal buyer willing to pay more.

Where specifically beyond our U.S. borders is the demand occurring? Mexico is currently one of the largest buyers.

Mexico’s Increased Imports Bringing Gas Prices Up

Between 2003 and 2008, Mexican drilling companies increased their production from 4.5 billion cubic feet per day (Bcf/D) to 7.5 Bcf/D. But, when the bottom fell out of the market in 2008, the Mexican government made a strategic decision – rather than filling their domestic needs with drilling from their own local companies, they began importing.

Since then, gas production from the large Mexican gas companies has fallen at a steady pace. Lack of production has also significantly decreased Mexican gas reserves, dropping it from 60 thousand cubic feet (Tcf) in the late ’90s to only 17 Tfc today.

Coincidentally, Mexican gas consumption has consistently risen. Since 2007, it has jumped 16.7 percent. A large part of this consumption is for power generation due to the country’s shifted from their oil-fired power generation. Now, 50 percent of their power is produced by natural gas.

U.S. Exporting to Mexico

Currently, the U.S. is exporting 3 percent of our natural gas production to Mexico. As of March 2013 that equals roughly 69 Bcf/D. But, with at least six new pipeline projects slated to send even more gas south of the border, this percentage is predicted to increase to 5.5 percent.

How big are these numbers? What does this really look like for you? In 2012, when the power sector created an extra 5 Bcf/D demand for natural gas, U.S. natural gas prices doubled. They went from $2 per thousand cubic feet (Mcf) to $4 per Mcf.

Even with the new pipelines projects in the works, large players in the U.S. gas market predict the demand in Mexico will ride beyond capacity. As supply and demand continue to shift, the marginal buyer’s price point will increase.

Regulations Could Get in the Way

While it’s natural to correlate increased supply with a growing U.S. gas market, there are still a few potential wrinkles of which you should be aware. Most of these are regulatory.

Up until now, the U.S. Federal Energy Regulatory Commission has steadily approved permitting for expansions. But, other groups are looking to make these projects more difficult.

For example, in early June of this year Calpine Energy Service filed a Motion to Intervene in the hopes of stopping (or at least delaying) an export expansion project in southern Texas. Why does Calpine Energy Service not want the export expansion to happen? Money. While their Motion to Intervene does not explicitly state that they are worried about the currently low prices of natural gas rising, it’s a safe bet this is a major concern for them.

Will these U.S. groups continue to try and stop the increase of exports? Yes. Will it do any good? Maybe. In all likelihood, mining pumps in the U.S. will keep working at full capacity. Gas companies will keep selling to the buyer who is willing to pay the most. And, gas exports to Mexico will increase.

Image courtesy of smarnad /FreeDigitalPhotos.net

What To Look For In A Bankruptcy Attorney

Muzahed I.
-
1
What To Look For In A Bankruptcy Attorney

Filing for bankruptcy is complicated as well as, by definition, emotionally trying. It can be even more complicated if somebody may challenge your bankruptcy or if you are missing crucial tax documents. Understandably, hiring a bankruptcy attorney with an intimate understanding of Chapter 7 as well as Chapter 13 bankruptcy is probably a wise move to make.

Look for a Specialized Bankruptcy Attorney

While anybody with any decent amount of legal training will probably have a better chance of helping your case than somebody with no legal training, you should still look for an attorney who focuses specifically on bankruptcy law. Any honest attorney will admit that a personal injury attorney, for example, simply cannot perform as well on a bankruptcy case as a bankruptcy attorney can (and vice-versa).The law is just too broad and diverse for you to bet on somebody whose practice is not focused exclusively on bankruptcy law and related areas.

What a Bankruptcy Attorney Can Offer You

An experienced bankruptcy attorney will be able to help you stay on top of all the documentation and paperwork that will be associated with your case. The lawyer will have infinitely more inside knowledge than you do on the local courts’ typical procedures and practices. Above all, the backing of a competent bankruptcy attorney will mean the peace of mind that comes with the support of somebody who can accurately and thoroughly every question you will have during this difficult time.

However, the great paradox of bankruptcy attorneys is this: (1) you probably cannot afford to spend a ton on legal fees, and (2) you probably have too little legal experience to know what makes one bankruptcy attorney better than another. Below, you’ll find tips you’ll need on an attorney search if you ever consider filing for bankruptcy protection.

Picking the Best Bankruptcy Attorney Possible

While you will be better served by a bankruptcy attorney than by a general practitioner or a lawyer who focuses on an unrelated area of law, you should still try to find the most experienced bankruptcy lawyer possible. The plain truth is that not all bankruptcy attorneys were created equal. Solicit recommendations from people you are close to, or referrals from other attorneys and bar associations.

Board certified attorneys have being vetted by a third party and proven themselves as experienced and successful lawyers in the field. Even if you cannot find a board certified attorney, you should still be on the lookout for somebody who is familiar not only with federal bankruptcy laws, but with local regulations. Look for an attorney that is sufficiently experienced and cost effective for a case of your complexity.

After experience and reasonable fees, you should consider that character of your attorney. The sad fact is that some attorneys are just no good at returning calls. In a bankruptcy case, there is a ton of legal paperwork to file and strict deadlines to meet. Even if the attorney is highly experienced, do not hesitate to look elsewhere if he or she seems difficult to get in touch with.

Image courtesy of David Castillo Dominici /FreeDigitalPhotos.net

7 Tips For Successfully Filing For Bankruptcy

Muzahed I.
-
0
7 Tips For Successfully Filing For Bankruptcy

Filing for bankruptcy can be a difficult time in anybody’s life, and many aren’t sure what they should do to help them get through this time. They may not be sure what they are going to do next, and it can be horrible for a person’s credit score. Families might be in danger of losing some of their property. Successfully filing for bankruptcy can seem confusing, but a few simple tips and tricks can get people through.

Get A Lawyer

While it is possible to file for bankruptcy without an attorney, a legal professional will know all of the necessary steps to easily file. They will make the entire process less confusing, and make this a less frightening time for families. Many of them even offer pay as go options for those who have financial difficulties.

Organize Paperwork

Another important step is to get all of the financial paperwork organized, and keep everything from bank statements to credit card bills. These will come in handy when filing for bankruptcy, and they may be needed to prove the case.

Decide on a Type of Bankruptcy

When choosing between filing for chapter 7 and chapter 13 bankruptcy, people need to decide what works best for them. Chapter 7 will allow people to have all of their debt discharged, but they are going to lose their valuable property. With chapter 13 bankruptcy, they may be able to keep more of their property.

Never Lie

Nobody needs to lie when filing, as most people are going to qualify. Any property that is not listed will be seized, and leaving this information out is a crime. Always remember to disclose all important information, and avoid doing anything that could end in trouble.

Set Specific Goals

Remember that there are certain types of debt that can’t be discharged, such as student loan debt. Consider how this all going to play out, and what is going to be done different going forward. Those who are starting over fresh need to consider what they need to do in order to improve their situation.

Talk to Co-Signers

In many cases, those who are going through a bankruptcy aren’t the only ones involved. If there are other people who have co-signed on loans, they could be put in an uncomfortable situation during this bankruptcy. Talk to a lawyer about what the best option is, and how to create the best situation for both people.

Create a Complete List of Debts

Take the time to sit down and write out all of the current debts. That will let people know exactly what they are dealing with. It will be the basic basis for the bankruptcy in court, and it will make it easier to work everything else out. Always look into the rules regarding paying back creditors, as many states won’t allow it for ninety days.

This is always going to be a rough time, so take some time to deal with the stress as well. A lawyer could make this a less confusing process, and they will have your best interests in court. Always look for a lawyer who has a lot of experience in this field, and who has a good track record with other clients.

Image License: All rights reserved by Framingham Bankruptcy Lawyer

1...303132...53Page 31 of 53

EDITOR PICKS

POPULAR POSTS

POPULAR CATEGORY

ABOUT US

we are about helping you find financial freedom, which in turn will allow you to achieve higher financial and personal success. Writers and freelancers share their stories, expertise, experiences, and more on this website, to help people find the answer to any financial question that they may have.

Read More!

Contact us: muzahed@gmail.com

FOLLOW US

© Newspaper WordPress Theme by TagDiv