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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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Last Updated on January 18, 2019

7 Ways To Deal With Negative People

7 Ways To Deal With Negative People

Some people will have a rain cloud hanging over them, no matter what the weather is outside. Their negative attitude is toxic to your own moods, and you probably feel like there is little you can do about it.

But that couldn’t be farther from the truth.

If you want to effectively deal with negative people and be a champion of positivity, then your best route is to take definite action through some of the steps below.

1. Limit the time you spend with them.

First, let’s get this out of the way. You can be more positive than a cartoon sponge, but even your enthusiasm has a chance of being afflicted by the constant negativity of a friend.

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In fact, negativity has been proven to damage your health physically, making you vulnerable to high levels of stress and even cardiac disease. There’s no reason to get hurt because of someone else’s bad mood.

Though this may be a little tricky depending on your situation, working to spend slightly less time around negative people will keep your own spirits from slipping as well.

2. Speak up for yourself.

Don’t just absorb the comments that you are being bombarded with, especially if they are about you. It’s wise to be quick to listen and slow to speak, but being too quiet can give the person the impression that you are accepting what’s being said.

3. Don’t pretend that their behavior is “OK.”

This is an easy trap to fall into. Point out to the person that their constant negativity isn’t a good thing. We don’t want to do this because it’s far easier to let someone sit in their woes, and we’d rather just stay out of it.

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But if you want the best for this person, avoid giving the false impression that their negativity is normal.

4. Don’t make their problems your problems.

Though I consider empathy a gift, it can be a dangerous thing. When we hear the complaints of a friend or family member, we typically start to take on their burdens with them.

This is a bad habit to get into, especially if this is a person who is almost exclusively negative. These types of people are prone to embellishing and altering a story in order to gain sympathy.

Why else would they be sharing this with you?

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5. Change the subject.

When you suspect that a conversation is starting to take a turn for the negative, be a champion of positivity by changing the subject. Of course, you have to do this without ignoring what the other person said.

Acknowledge their comment, but move the conversation forward before the euphoric pleasure gained from complaining takes hold of either of you.

6. Talk about solutions, not problems.

Sometimes, changing the subject isn’t an option if you want to deal with negative people, but that doesn’t mean you can’t still be positive.

I know that when someone begins dumping complaints on me, I have a hard time knowing exactly what to say. The key is to measure your responses as solution-based.

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You can do this by asking questions like, “Well, how could this be resolved?” or, “How do you think they feel about it?”

Use discernment to find an appropriate response that will help your friend manage their perspectives.

7. Leave them behind.

Sadly, there are times when we have to move on without these friends, especially if you have exhausted your best efforts toward building a positive relationship.

If this person is a family member, you can still have a functioning relationship with them, of course, but you may still have to limit the influence they have over your wellbeing.

That being said, what are some steps you’ve taken to deal with negative people? Let us know in the comments.

You may also want to read: How to Stop the Negative Spin of Thoughts, Emotions and Actions.

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