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5 Things You Must Know Before Filing Bankruptcy

5 Things You Must Know Before Filing Bankruptcy

It’s the first day of the month and millions of Americans are not only experiencing payday but pay out day. Rent, car payments, mortgages, and so many other bills have many Americans dreading the first few days of the month.

Why is it that paying bills is so dreadful? Perhaps it is because 38.1% of Americans are in debt and every year approximately 1.2 million have been forced to file bankruptcy for a host of reasons including unemployment, large medical expenses, seriously overextended credit, and marital problems.

You Will Still Have to Pay Your Student Loans

Bankruptcy has continued to be a popular trend for those who find themselves in loads of debt and feel as if filing bankruptcy is all they need to do in order to obtain relief. One misconception that many people seem to have about filing for bankruptcy is that it will save them from having to pay off their student loans. While that would be an exciting benefit of filing for bankruptcy, it is not one of them. In fact, a student loan is the one thing that cannot be forgiven in bankruptcy.

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Before jumping the gun, it is vital that you do some research. In fact, many banks offer educational portals online that allow customers and consumers to do their research before making any decisions that can impact their finances. If after all of your research you determine you are ready to file for bankruptcy, there are a few things that bankruptcy lawyers suggest that you avoid doing:

1. Obtaining new Debt

Do not acquire more credit card or other types of debt if you are within 70-90 days of filing bankruptcy. If you choose to obtain new debt and later file for bankruptcy, that creditor has the ability to object to your request.

It can simply be discharged because the creditor can argue that they didn’t approve your loan with the knowledge that you had not intended to pay it back.

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2. Transferring Money

When you file for bankruptcy you are often asked to provide information regarding any assets you have, or will soon have, in your possession. Many people walk into bankruptcy so fearful that they operate in panic and end up selling or transferring assets out of their names in order to avoid losing the few assets they have remaining.

While this may seem smart to the individual who is filing bankruptcy, it is illegal to hide assets. Not only could your bankruptcy be denied but you would be putting yourself at risk for criminal penalties.

3. Paying off any Creditors

Many bankruptcy experts encourage individuals not to pay back loans or other creditors within 90 days of filing bankruptcy. If you do, you may be eligible for a preferential transfer.

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This can easily be undone once you file for bankruptcy. The trustee leading the bankruptcy can use this preferential transfer to help you get money back from the individuals that you paid off prior to your bankruptcy.

4. Cashing out Your Savings

Many people will attempt to cash out their savings as another way to hide money from their bankruptcy trustee or creditor but the joke may, in fact, be on them.

If you are caught cashing out your savings, you risk criminal prosecution. While saving a few assets may be important to you today they won’t serve any purpose if you are a convicted felon.

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5. Delaying the Process

If you have sought professional advice and it has been determined that you should file for bankruptcy, find out how long you should or should not wait and then take action. In some cases, you can run into bigger problems if you delay your filing.

Featured photo credit: economynewswire.com via economynewswire.com

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Stephanie Caudle

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Last Updated on September 17, 2019

10 Simple Ways To Always Think Positive Thoughts

10 Simple Ways To Always Think Positive Thoughts

Positive thinking can lead to a lot of positive change in your life. Developing an optimistic outlook can be good for both your physical and mental health.

But sometimes, certain situations arise in life that makes it hard to keep a positive outlook. Take steps to make positive thinking become more like your second nature and you’ll reap the biggest benefits.

Here are 10 ways to make thinking positive thoughts easy:

1. Spend Time with Positive People

If you surround yourself with constant complainers, their negativity is likely to rub off on you.

Spend time with positive friends and family members to increase the likelihood that their positive thinking habits will become yours too. It’s hard to be negative when everyone around you is so positive.

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2. Take Responsibility for Your Behavior

When you encounter problems and difficulties in life, don’t play the role of the victim. Acknowledge your role in the situation and take responsibility for your behavior.

Accepting responsibility can help you learn from mistakes and prevent you from blaming others unfairly.

3. Contribute to the Community

One of the best ways to feel good about what you have, is to focus on what you have to give.

Volunteer in some manner and give back to the community. Helping others can give you a new outlook on the world and can assist you with positive thinking.

4. Read Positive and Inspirational Materials

Spend time each day reading something that encourages positive thinking. Read the Bible, spiritual material, or inspirational quotes to help you focus on what’s important to you in life. It can be a great way to start and end your day.

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Some recommendations for you:

5. Recognize and Replace Negative Thoughts

You won’t be successful at positive thinking if you’re still plagued by frequent negative thoughts. Learn to recognize and replace thoughts that are overly negative. Often, thoughts that include words like “always” and “never” signal that they aren’t true.

If you find yourself thinking something such as, “I always mess everything up,” replace it with something more realistic such as, “Sometimes I make mistakes but I learn from them.”

There’s no need to make your thoughts unrealistically positive, but instead, make them more realistic.

6. Establish and Work Toward Goals

It’s easier to be positive about problems and setbacks when you have goals that you’re working toward. Goals will give you motivation to overcome those obstacles when you encounter problems along the way. Without clear goals, it’s harder to make decisions and gauge your progress.

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Learn to set SMART goals to help you achieve more.

7. Consider the Consequences of Negativity

Spend some time thinking about the consequences of negative thinking. Often, it can become a self-fulfilling prophecy.

For example, a person who thinks, “I probably won’t get this job interview,” may put less effort into the interview. As a result, he may decrease his chances of getting the job.

Create a list of all the ways negative thinking impacts your life. It likely influences your behavior, your relationships, and your feelings. Then, create a list of the ways in which positive thinking could be beneficial.

8. Offer Compliments to Others

Look for reasons to compliment others. Be genuine in your praise and compliments, but offer it frequently. This will help you look for the good in other people.

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9. Create a Daily Gratitude List

If you start keeping a daily gratitude list, you’ll start noticing exactly how much you have to be thankful for. This can help you focus on the positive in your life instead of thinking about all the bad things that have happened in the day.

Getting in the habit of showing an attitude of gratitude makes positive thinking more of a habit. Here’re 40 Simple Ways To Practice Gratitude.

10. Practice Self-Care

Take good care of yourself and you’ll be more equipped to think positively.

Get plenty of rest and exercise and practice managing your stress well. Taking care of your physical and mental health will provide you with more energy to focus on positive thinking.

Learn about these 30 Self-Care Habits for a Strong and Healthy Mind, Body and Spirit.

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Featured photo credit: DESIGNECOLOGIST via unsplash.com

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