Is There Any Specific Debt Amount For Bankruptcy?

Prospective bankruptcy filers often inquire whether they need minimum amount of debt or have a certain debt burden to justify a bankruptcy filing. If you’re fighting with debt, and wondering whether Chapter 7 bankruptcy could help you, one question that often comes to mind is whether you have enough debt to qualify for bankruptcy protection. There is no minimum amount of debt that you must have to file Ch 7 bankruptcy, but there are several other eligibility requirements. If you are unable to pay your debts and are facing lawsuits, wage garnishment, repossession or other threatening actions from creditors, bankruptcy can help you to regain control of your situation. Yet, there is no floor or lower limit to the amount of debts or debt burden a consumer must have to file bankruptcy under either Chapter 7 or Chapter 13. Common sense dictates that a person should not file for bankruptcy protection if the debt is manageable or can somehow be negotiated to a manageable level for repayment purposes.

In today’s down-turned economy, everyone who experiences severe financial difficulties qualifies for some sort of bankruptcy relief or protection. It is also not surprising in this economic climate to see that some individuals file for bankruptcy protection when the reality is that they owe very little to their creditors. There is an upper ceiling or limit on the amount of debt a consumer can possess and still file a Chapter 13 bankruptcy reorganization case. For instance, as of 2007, those limits were $1,010,650 for secured debt figures and $336,000 for unsecured debt totals and. Those debt limits slightly increases over time, to accommodate inflation, cost of living adjustments and the realities of the economy.

What Is the Importance of the Upper Debt Limit?

The significance of the upper debt limits is large. A debtor who owes liquidated and non-contingent debts in excess of either of the aforementioned limits will not even qualify to file a Chapter 13 bankruptcy case. Unfortunately, the game is over before it even has a chance to begin for that debtor. Incidentally, the upper debt limits apply to all individual bankruptcy courts located throughout the country. So, it does not matter where a debtor chooses ultimately to file his or her bankruptcy petition.

How Do You Know if You Should File Bankruptcy Or Not?

First and foremost, a debtor should have a reason prompting him or her to file bankruptcy. Most often the reason is that the debtor cannot afford to pay all of his or her bills on time. Some creditors and frugal-minded, fiscally prudent individuals may be sickened to learn the following reality. Often, there is also no limit to the amount of property a debtor can own and still qualify to file bankruptcy.

While bankruptcy isn’t for everyone, it is an option that you can investigate further with the help of a bankruptcy attorney. You can arrange a no-obligation, free initial consultation with a lawyer to know about various requirements and reasons to file bankruptcy.

Steps To Get Started With Stocks

Investing money in stocks is seen to be the quick ticket to be rich. Well, it is and it is not. Historically, stocks have been a very good way to invest money. The returns are healthy in the long run, and consequently return better than other ways to invest like in bonds etc. But there are risks to it too. Many people see investing in stock market as a form of gambling. It certainly is not. So, how do you get started with stocks?

Understand Stocks

Before you withdraw money from your account and invest in some XYZ company’s stocks, take a pause! Stocks are complicated entities. The only way to make money in the stock market is to understand it well. In your free time, learn a thing or two about the stock market. Learn how it works. First of all, learn the definition of a stock. It all might seem as if you are back to school and taking a class in economics, but hey, that’s the way it goes. Basically a stock is a certificate, which gives you a share of the company’s net worth. So, if you buy 10% share of a company and the company is worth $10 million and then you own $1 million. Of course, you would have to invest $1 million to actually own 10%, but as the company performs well, its net worth will go up, and so will the value of your shares.

How does a company’s worth go up?

This is where things get complicated. A company usually starts with the investment from certain number of people. Then if needs money, it makes something called IPO, initial public offering. Suppose the company offers 10000 shares, and is worth $100, then it values itself at $1 million. Then, people start buying. If many people start buying the shares, the prices would go up, because less number of shares would be available for sale, and one who pays higher would own it. So, it’s basically a demand and supply game.

The most important thing

The thing that would make money for you in the share market is knowing where to invest i.e. which companies are worth investing in. You can’t go after shares which are priced very high. The reason is very simple. You would have to invest a lot of money to buy small number of shares. So, even if the growth is steep you won’t gain a lot of money due to that growth. Instead if you buy shares of a company which is not priced very high, you can buy a large number of them and hence your profit when the prices increase. So, you have to look for companies which have the potential to grow.

There are other details regarding share market, like where you buy it and how you buy it. These things are easy to get through, but the problematic part is to identify whose shares to buy. So, to get started with stock market, work towards learning the market dynamics.

The Right Step To Budgeting

Few things in life have much more value and are important than others. In these days where money can do almost everything, it’s always a top priority to take care of money, i.e. plan your budget well or else your money will evaporate from your purse without your notice and at the end you will be empty handed, however rich you may be. Be you are a student, a house wife, a company owner and whatever your profession may be, a right budget is a must for everyone. Take care of your money and money will take care of you.

Planning the right budget is different for different professionals. A students budget will differ from a company CEO’s budget. There are few rules for making a right budget that applies to almost everyone regardless the profession. We are going to learn those rules.

The first point to consider is planning your monthly expenditure wisely. We all spent money in various ways. You have to figure out how much you are going to spend each month and on what. This should include your house rent, utility bill, vehicle expenditure, food bill, entertainment, shopping and anything else.  Once done, do a revision to see if you can make any change it the plan.  Here you have to use your past experience. See where you can make cuts and what need extra money. Say you are a club member, ask yourself if you are active or not, May be not, while you may like add extra points to your food and gas bill cause they are pretty uncertain. You can always cut your entertainment bills to low. Divide the total bill to weekly and in turn to daily expenditure. Once you are done with planning monthly expenditure, check that with your monthly income to make sure the expenditure does not exceed the income otherwise you may found yourself in vicious circle of debt and may you never get out of it.

Always include your debt in your expenditure bill, may it be student loan or home loan or even debit card payment. All must show up in your budget. Try to put as much money as possible to ward debt recovery. Avoiding additional debt is the smartest choice you can make. If you want to get rid of debt, stop acquiring new ones. It is against the purpose of budget. You should figure out the reason for extra debt and check it with your bill to avoid it.

Have a saving goal for unexpected trouble periods. No one knows about tomorrow, it’s wise to prepare for it. If you don’t have saving plan, create one as soon as possible. Put some money to it regularly. You may divide the saving plan to short term like vacation or buying new vehicle and long terms goals like retirements plans. It won’t cost you much; rather you will be immensely benefited from savings.

Never hesitate to discuss your budget with your spouse or friends. They can help you in planning a good budget. Always have your priority in spending and try to reduce any amount anywhere possible. Remember every single penny counts.

Plan a right budget and follow it as closely as possible but never stick it so much that you spend more time in looking at your budget than actually following it.