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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 July 18, 2019

What Makes People Happy? 20 Secrets of “Always Happy” People

What Makes People Happy? 20 Secrets of “Always Happy” People

Some people just seem to float through life with a relentless sense of happiness – through the toughest of times, they’re unfazed and aloof, stopping to smell the roses and drinking out of a glass half full.

They may not have much to be happy about, but the simplicity behind that fact itself may make them happy.

It’s all a matter of perspective, conscious effort and self-awareness. Listed below are a number of reasons why some people are always happy.

1. They Manage Their Expectations

They’re not crushed when they don’t get what they want – or misled into expecting to get the most out of every situation. They approach every situation pragmatically, hoping for the best but being prepared for the worst.

2. They Don’t Set Unrealistic Standards

Similar to the last point, they don’t live their lives in a constant pursuit towards impossible visions of perfection, only to always find themselves falling short of what they want.

3. They Don’t Take Anything for Granted

Happiness rests with feeling fulfilled – those who fail to stop and appreciate what they have every now and again will never experience true fulfillment.

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4. They’re Not Materialistic

There are arguing viewpoints on whether or not money can really buy happiness; if it can, then we know from experience that we can never be satisfied because there will always be something newer or better that we want. Who has ever had enough money?

5. They Don’t Dwell

They don’t sweat the small things or waste time worrying about things that don’t really matter at the end of the day. They don’t let negative thoughts latch onto them and drain them or distract them. Life’s too short to worry.

6. They Care About Themselves First

They’re independent, care for themselves and understand that they must put their needs first in order to accommodate the needs of others.

They indulge, aim to get what they want, make time for themselves and are extremely self-reliant.

7. They Enjoy the Little Things

They stop to smell the roses. They’re accustomed to find serenity when it’s available, to welcome entertainment or a stimulating discussion with a stranger when it crosses their path. They don’t overlook the small things in life that can be just as important.

8. They Can Adapt

They’re not afraid of change and they work to make the most out of new circumstances, good or bad. They thrive under pressure, are not overwhelmed easily and always embrace a change of pace.

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9. They Experiment

They try new things, experience new flavors and never shy away from something they have yet to experience. They never order twice from the same menu.

10. They Take Their Time

They don’t unnecessarily rush through life. They work on their own schedule to the extent that they can and maneuver through life at their own relaxing pace.

11. They Employ Different Perspectives

They’re not stuck in one perspective; a loss can result in a new opportunity, hitting rock bottom can mean that there’s no where to go but up.

12. They Seek to Learn

Their constant pursuit of knowledge keeps them inspired and interested in life. They cherish information and are on a life-long quest to learn as much as they can.

13. They Always Have a Plan

They don’t find themselves drifting without purpose. When something doesn’t go as planned, they have a plan for every letter in the alphabet to fall back on.

14. They Give Respect to Get It

They are respectful and, in turn, are seen as respectable; the respect they exude earns them the respect they deserve.

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15. They Consider Every Opportunity

They always have their eyes open for a new road, a new avenue worth exploring. They know how to recognize opportune moments and pounce on them to make the most of every situation. Success is inevitable for them.

16. They Always Seek to Improve

Perpetual self-improvement is the key towards their ongoing thirst for success. Whatever it is they do, they take pride in getting better and better, from social interactions to mundane tasks. Their pursuit at being the best eventually materializes.

17. They Don’t Take Life Too Seriously

They’re not ones to get offended easily over-analyze or complicate matters. They laugh at their own faults and misfortunes.

18. They Live in the Moment

They don’t live for tomorrow or dwell on what may have happened yesterday. Every day is a new opportunity, a new chapter. They live in the now, and in doing so, get the most out of every moment.

You can learn how to do so too: How to Live in the Moment and Stop Worrying About the Past or Future

19. They Say Yes

Much more often than they say no. They don’t have to be badgered to go out, don’t shy away from new opportunities or anything that may seem inconvenient.

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20. They’re Self-Aware

Most important, they’re wholly aware of themselves. They self-reflect and are conscious of their states of mind. If somethings bothering them, they fix it.

We’re all susceptible to feeling down every now and again, but we are all equipped with the necessary solutions that just have to be discovered.

Lack of confidence, inability to feel fulfilled, and susceptibility to stress are all matters that can be controlled through the way we handle our lives and perceive our circumstances.

Learn about How Self-Reflection Gives You a Happier and More Successful Life.

Final Thoughts

The main philosophy employed by the happiest includes the idea that life’s simply too short: life’s too short to let things get you down, to take things for granted, to pursue absolute and unrealistic perfection.

For some, employing these characteristics is a second nature – they do it without knowing. For others, a conscious effort must be put forth every now and again. Self-Awareness is key.

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Featured photo credit: Charles Postiaux via unsplash.com

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