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Bankruptcy Offences

Financial distress is a legally declared state in which an individual or business is in a financial crisis. There are alternatives to this situation, also known as bankruptcy. Among them is the individual voluntary agreement in which the debtor makes an agreement on how to settle the debt. The other option is the fast track individual voluntary agreement in which case the case can be nullified.

There are actions that are considered bankruptcy offences when committed while one is still under financial distress. One of this is borrowing money while still under insolvency without letting the lender know that you are insolvent. One is also not allowed to operate a business under a new name without revealing the original name under which they became financial distressed. One cannot also act as a director of a company in cases where they have been declared insolvent.

Other insolvency offences include gambling, not keeping proper records on financial affairs and getting money for trade from lenders with no intention of paying even when its clear that the borrower cannot pay. Other offences include not cooperating with the court officials or failing to take a court summon seriously. It is also considered a criminal offence in cases where the debtor pays some creditors over others before the court has issued a discharge.

If the debtor decides to hide some of the assets so that they cannot be taken over by the court, they risk being charged in court for this offence. Bankruptcy offences may lead to the period within which a discharge may be given to be extended to fifteen years. Normally a discharge order which relieves the debtor from responsibilities towards the property is issued after one year after filing a petition.

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Article Source:http://www.articlesbase.com/personal-finance-articles/bankruptcy-offences-893691.html

Money Management- Right from school days

Adhering to money management through out your life helps in keeping a track record of your finances and living a debt free life. This habit should be followed right from your early age. The best source of imparting money management comes to mind is ‘school days’. Understanding the financial need, money managementshould be taught as a separate subject, right from the first class.

Some important points while teaching money management in schools are as follows:

1. As the kids grow older, their need increases. For this they get pocket money from their parents. The teachers should make them understand how to use pocket money more wisely. The kids should also be encouraged to save some amount of money. Teachers should make kids realize ‘how hard the parents work to earn money?’ This will help the kids to know the value of money and what all hardships it takes to earn.
2. Another important factor which the teachers should keep in mind is ‘peer pressure.’ Quite often the kids’ complaint their parents about their limited pocket money as compared to their friends at school. For example “: Dad, nick was showing me his brand new bike, What about me?”

   Since these things mostly arise in school, therefore it becomes the responsibility of teachers to make the kids understand this particular situation. Every family is different in their living style, financial background etc. The children should be encouraged to have a positive attitude while dealing to such issues. In the future the kids will not indulge themselves in spendthrift habits.

3. Teachers should accentuate on the fact that most of the things have a price tag attached to it. The kids should be taught not to damage the things such as books, desks, walls etc. Not only in school but everywhere as we live in a society and it’s our duty to protect it.Making this a habit, the kids will save more money in the long run.
4. In higher grades the children should be taught money management concepts that will help them in dealing with situations such as recession, inflation, job retrenchment etc.

Teaching money management as a separate subject will help the kids to live a smooth financial life. In the future the kids will respect the money more, live a debt free life, can enjoy every thing without sacrificing on their basic needs, can save more even from a limited income for the rainy days and live to the fullest without any financial worries. Irrespective of the future financial situation, the kids will not have to worry about managing their finances.

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Article Source:http://www.articlesbase.com/personal-finance-articles/money-management-right-from-school-days-894088.html

Setting Reachable Financial Goals

Creating a budget is a common need for everyone to tackle in order to put their money to work. However, before a budget is established, financial goals need to be set in order to provide a basis for the budget. The financial goals provide the long term motivation to stay with the budget.

Clear and concise

Any goal-making should be done in a clear and easy to understand manner. Specific goals should look something like this: retire by age 65 with $1,000,000 in retirement investments. If you say “I am going to go on a vacation in the Caribbean” with no details behind it, then that does not qualify as a goal. It is only a simple assertion of your intentions.

You need to take time to think about what you want your goals to be and then write them down on paper. Even if they are somewhat unclear or lack adequate details, you can add those after you have them committed to paper.

Short, Mid, Long term goals

Once you have your goals on paper and have taken the time to add the details about them so that they are goals and not just statements of your desires, then you need to separate them into groups based on the duration it will take to reach them. This way, you will know what you need to begin to work on right away, and what can wait.

Once you have them segregated in this manner, you can look at your short and midterm goals to see if there is a natural progression towards your long term goals. Must they all be this way? No, but if you have those goals which are progressive, then you will be able to perform the short term before long term. A good example of this would be a goal to obtain a degree in nursing before you can reach your goal of being a nurse in a hospital.

Reachable goals

Realistic goals are reachable goals. For example, if you are ready to retire, but have a goal to begin to work towards making a billion dollars by the time you are 70, then this would be considered unreachable. If you make goals this way, you will become disillusioned and stop paying attention to goals at all because you never reach those which you set.

Take a look at your goals and see if you can break the individual goals into smaller ones that will help you see some progress towards the larger goal.

Flexible goals

Because of life events, sometimes our goals must change. If there is a passing of someone who was a major part of one of your goals, you might have to change that goal. Do not be afraid of changing goals if circumstances dictate. Only be concerned about wanting to change them in order to satisfy an emotional and temporary feeling or desire. You might not be able to forgive yourself for breaking that goal and taking yourself out of your dream.

These tips work for not only financial goals but any other goals that you make in life. Use them to help propel yourself towards your dreams.

Elizabeth Williams, Editor-in-Chief for CreditCardFlyers.com

CreditCardFlyers.com makes it easy to compare and apply for a variety of credit card offers featuring low balance transfer rates. We are the leading source for searching 0 apr balance transfer offers online.

Article Source:http://www.articlesbase.com/personal-finance-articles/setting-reachable-financial-goals-894335.html

Debt Costs You Money – Break the Cycle with These Steps

It is a vicious cycle in which you might have found yourself: getting into debt is now costing you money which you do not have. It steals your peace of mind and replaces it with stress-filled days. It is always hanging over your head like a dark cloud. This is why you need to take the steps necessary to break the cycle and begin to reduce or eliminate your debt.

Here are suggestions for getting yourself out of this situation.

Balance transfer

If you perform a balance transfer to get you out of the cycle so that you can focus on paying down balances, this might help you temporarily. Six months of no interest building up on your balance will give you the time you need to make some headway on your other balances. Be sure to avoid using this new card to charge other items with in order to keep the balance as low as possible and not incur new interest charges on new purchases. Also, if you can pay down the balance to zero but keep the account open, you will avoid the drop in credit score that this will bring about on your account.

Pay down higher interest cards and loans. Trying to obtain a new loan with a lower rate is probably out of the question for most people. Come up with a plan to make your payments on time on your highest interest cards in order to make your credit score rise. Then, if you need to apply for a new loan, you will be able to get a better rate.

Make on-time payments

Late fees and penalties are the things that drag your credit score down along with your attitude. Make a listing of all of your credit cards and loans and list the ones with the highest rates and fees and begin to work on getting those to the point that at the very least you are paying minimums until you can get some others paid down enough to free up some cash to address the others. It is not an easy task, but one that must be done in order to move past where you are and towards debt reduction.

Communicate with creditors

If you have an unsecured personal loan or even an auto loan with the same creditor, you might be able to get an extension of 90 days in which you can use the time to get back on track with your payments. True, the 90 days gets added to the back end of your loan, but that is better than drowning in a sea of payments that you cannot make. You should use the time wisely by making headway in eliminating payments on a few other cards and loans to free up some cash to use elsewhere.

Making an effort to confront your debt is a good thing to do in spite of the stress that it might cause. You have to focus on the positive outcome instead of the mountain that represents your debt. This is accomplished by taking small but effective steps like the ones outlined above. Then, you must stay with your plan no matter what comes along to throw you off. Loss of a job, medical bills, etc. will be things that will try to force you out of your plan. If you face these things and make a plan to work through them by suspending your plan until you can get things worked out, you will feel less like you are without hope.

Elizabeth Williams, Editor-in-Chief for CreditCardFlyers.com

CreditCardFlyers.com makes it easy to compare and apply for a variety of credit card offers featuring low balance transfer rates. We are the leading source for searching 0 apr balance transfer offers online.

Article Source:http://www.articlesbase.com/personal-finance-articles/debt-costs-you-money-break-the-cycle-with-these-steps-894343.html

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