How to Decide if Bankruptcy is Right for You and Your Situation

There are several things bankruptcy can do and several things it cannot do. Bankruptcy can discharge most unsecured debt such as credit cards, past due utility bills, business debts, medical bills, and civil court judgments. 

Secured debts such as mortgages and auto loans can be discharged if you no longer want to retain the property. Bankruptcy cannot discharge debt for child or spousal support, student loans in most cases, restitution owed for damages or injury to others, payroll taxes, and more.

Qualifying for Bankruptcy

Debts discharged in bankruptcy can depend on the type of bankruptcy you file. Chapter 7 discharges all allowable debts and leaves you with a clean slate. Chapter 13 is debt-consolidation that allows you to pay off your debt within a few years. 

Chapter 11 is similar to chapter 13 except it's applicable to businesses. For the best information on dischargeable debts that are specific to your situation and the type of bankruptcy you should file, you should contact a bankruptcy attorney. 

Professionals, like those at the Law Office of Barbara B. Braziel, realize that The Bankruptcy Reform Law of 2005 tightened the filing eligibility by establishing a means test for filing bankruptcy. 

As a result, fewer people are now eligible to file for bankruptcy. Your income must be less than the median for your state in order to file. If it exceeds the median for your state and you have money to pay some of your bills, you are ineligible to file.

Determine if Bankruptcy is the Solution

If you're eligible to file, you might consider a few more criteria to determine if this is indeed the best solution for you. Bankruptcy has long-lasting ramifications, so it should be the last option rather than the first one. 



You'll be required to obtain financial counseling and the negative impact will be on your credit report for at least 10 years. You must be comfortable with the concept of walking away from legitimate debts and realize that you may feel guilty for doing so.

Consider Other Options

There may be options other than bankruptcy that would work for you. Instead of filing for chapter 7, you may be able to file chapter 13 and pay off most of your creditors. 

This would be significantly less detrimental to your credit score. If you can foresee an improvement in your financial situation in the near future, you might want to delay filing bankruptcy.

Make Permanent Changes

Often, filing bankruptcy is only a temporary solution because an individual's poor financial habits don't change. 

If you decide to file, you should seek credit counseling so that you don't end up in the same financial quagmire in the future. Making positive changes to your financial attitude is the best solution to avoiding bankruptcy.

Sometimes, situations occur that necessitate filing for bankruptcy. Often, it's circumstances over which you have no control, such as a catastrophic illness or accident. 

If filing for bankruptcy is the best solution for you, then by all means avail yourself of it, but realize that it's a temporary solution and do your best to change your future financial habits.

Learn How Smartphones Can Help You Grow Your Retirement Nest Egg

Your retirement may be close, but you've got plenty of time to grow that nest egg. Your smartphone is a potentially untapped resource for growing your retirement money, so make sure you take advantage of the opportunities it presents.

Use Investment Apps

Personal finance apps like E*Trade let average people invest in the market without a broker. Before you jump on personal finance apps, do some research about the types of investments you want to make. 

Many people later in life prefer safer investments, though there is definitely an advantage to short-term investments that could bring higher returns. As long as you understand what investment strategy you're comfortable with, you're ready to try out an investment app.




Start slowly until you get the hang of how it works. Investing is difficult even for the pros, but one piece of advice endures: invest in businesses and people, not in market trends. 

If you know about or can learn about a business, entrepreneur, or an industry, center your investments there. Industry information will be more helpful than trying to analyze what the market is doing.

Save Spare Change

Getting the money to invest can be a struggle. If you have kids in college, have medical bills to pay, or are on a fixed income, you may not have much saved for investing. 

A spare change app rounds up every debit card transaction you make and puts the spare change into a separate account. Then, most of those apps, like Acorns, invest or save that spare change for you.

You don't have to put in a lot of effort in the investments, because the app companies have financial advisers creating portfolios for the app users to invest in. Spare change apps have another advantage: the minimums for investing are very low. 

You don't need $1,000 to open an account; the amount is more like $5 or $10, an easy amount to accumulate in spare change over a month.

Create a Budget

You're no stranger to making a budget, and you've probably had money pulled from your paycheck for your 401k for years. When you reach your 50s, it's time to make a more aggressive investment budget. 

Take a look at your finances, especially your expenses and how much you're saving. If you're not saving much each month, try to trim some of those expenses so you can put away more money. 

Switching from digital cable to a streaming service like Hulu can save you almost $100 each month, for example.

Use a budgeting app like PocketGuard to keep track of exactly where your money is going. A visual will help you discover places you could be spending too much. When you set aside savings each month, remember to invest some. 

However you decide to invest, whether on your own or through a financial adviser, make sure some of that money is going into a higher-yield account than your savings.

Video Chat With Financial Advisers

We don't all have time to visit a financial adviser's office in person, especially with kids in high school, doctor's appointments to go to, and homes to care for. 

But fitting in an appointment with a financial adviser becomes easier when you do that appointment via video chat. Let your adviser explain your financial information face to face instead of over an impersonal phone call.

For a successful video chat experience, use the right equipment and the right network. Let's face it, using new technology isn't always the easiest, and focusing on a small screen while trying to talk to another person can be frustrating. 

Focus on finances, not on a bad video connection, by connecting with a quality smartphone on a good network. The Galaxy S8, paired with T-Mobile's 4G LTE network, for example, is a great combination. 

The Galaxy has a 5.8-inch infinity screen with a sharp display, and 4G LTE will give you a high-quality video connection.

It's never too late to start saving for and investing in retirement. Personalize your investment strategy with your smartphone, whether you use it to connect with a financial adviser or choose to manage your own investment apps.

Impact of GST on Insurance Premium

Goods and Services Tax (GST) and Insurance

The implementation of GST is aimed at reducing the burden of double taxation from the price of goods and services was a positive move to restructure India’s current tax system. However, this restructuring has impacted various sectors of the economy, including insurance, in different ways.

The insurance sector is a buzz and concerned with the hike in the percentage of taxes to be paid on the premium component of a policy. 

Earlier the highest tax percentage for a policyholder was 15%; with the implementation of GST, the percentage has increased by 3% resulting in levying a maximum of 18% of taxes on premium value.

Insurance Sector in India

Insurance Sector is an upcoming area in India and only a small percentage of population opts for insurance policies. In 2016, the fraction of people opting for insurance saw a dip in overall percentage and recorded a low of only 2.6% in insurance subscription or renewal from existing policy holders. 



Therefore this increase in percentage of taxes from 15% to 18% is seen as a great concern from the insurance sector.

Impact of GST on Insurance premiums

Tax on health insurance, family health insurance, auto insurance, travel insurance, corporate insurance and various other non-life plans would be 18%. For general insurance, corporate insurance holders can enjoy input tax credit on the GST paid on their policies.

Future of Insurance for policy holders

Though the increase in tax percentage is likely to create short term inflation, this change must not undermine the importance and benefits of insurance for the policyholder and their loved ones. 

Financial and health cover for an individual and their loved ones is of utmost importance and must not be neglected. Such covers protect a policyholder with facilities like cashless hospital services in case of individual health and family health insurance.

GST and India

GST is implemented to eradicate the twofold taxation on the price of goods and services. Indirect taxes will have an impact because of GST and a comprehensive restoration of taxation is about to happen in India. 

Though it proves to be difficult for the time being to bear a higher tax value, Indian economy will surely benefit from the implementation of GST. Simplified taxation on cost price and reforming the indirect tax plan is the prime objective of bringing GST to the forefront.

To conclude, GST is a way to control and simplify the confusion in the Indian tax sector. Always insist on knowing the premium value excluding GST to know the exact amount of premium paid. Take help from online aggregators to compare various policies and arrive at the desired cover.

Investing Insight: Pros And Cons Of Condos Vs Homes

If you're thinking about purchasing a condominium unit or a home then there are a number of differences that you should be aware of before making your decision. 

You need to understand what a condominium actually is and how it differs from an apartment or home for starters. There are a number of personal and financial considerations that can tip the scale in favor (and against) condo ownership, so let's get started.

Condo Pros And Cons

The first upside that a lot of consumers appreciate about owning a condo is that their mortgage payments are far more manageable. 

Even with a 30-year home mortgage you could be talking about monthly mortgage payments in the thousands, which would seldom be the case with a condo in most areas.

With a condo you also don't have to worry about landscaping and trash collection as you normally would with a home. Those kinds of services are usually covered by the condo association and taken care of with your monthly condo assessments. 





With both condos and homes you may pay property taxes. A lot of people might also have a problem with all of the condo association's rules - like what you're allowed to renovate in your unit or the kinds of pets that you're allowed to have in your condo unit.

On the plus side condo ownership can mean an attractive urban unit in the heart of the city at relatively little monthly expense in terms of mortgage payments and biannual property taxes.

Pros Of Home Ownership

The first pro with a home is that there's usually much more space for you to entertain your guests and do what you like. 

You can have as many pets as you want without worrying about condo association rules, and you can have guests stay into the wee hours of the early morning. You'll have more indoor space too with most homes. Any upgrades you make will increase your curb appeal and likely home re-sale value as well.

Cons Of Home Ownership

The downside is that, although you'll have fewer rules to negotiate, you'll have to maintain your own lawn unless you go with a lawn service. 

You might also pay more on a monthly basis as far as mortgage payments or taxes go. It's possible your home could depreciate in value over the lifetime of your investment.

The amount that you're willing to pay towards your mortgage and property taxes, the amount of independence that you need, and the kinds of opportunities in your area will likely determine whether you become a condo or home owner. 

Checking in with real estate professionals, like those at RE/MAX Associates San Antonio, can make the decision easier. If you're still struggling, though, remember that a condo comes with rules and monthly assessments. 

Home ownership, on the other hand, likely means more maintenance but the chance to make a healthier profit at closing when you go to sell and independence until you go to do so.

7 Late-Stage Retirement Techniques That Allow you to Play Catch Up

If you’re fast approaching the retirement stage of your life with minimal savings, you may have cause for worry. But taking the necessary precautions now with the following 7 retirement techniques can help increase your nest egg and without a lot of sacrifice. 

Work Your 401(k)

Benefits such as an employer matching retirement program equate to a valuable perk when looking for a job. If your employer offers a 401(k) program through work, you need to fund it to the highest level you can afford. 

After paying your mortgage, utilities and other household expenses, place the remainder of your funds into this account. If you’re 40 years-of-age and put away close to $17,000 each year, you could accumulate over $1 million by the time you reach 65.

Know Your Healthcare Options

Healthcare coverage is integral at any age as it covers important health services such as doctor, emergency and hospital visits. With the right plan, you also won’t have to use your retirement savings to pay for medical expenses incurred as you age. 

 During your employment, your employer may pay the majority of the premium and leave the responsibility of the deductible to the employee. If you’re 65 and older or you receive social security disability insurance or end-stage renal disease, you’re eligible for Medicare.

Re-Tool Your Budget

Savings can add up quickly if you re-tool your household budget. Take a look at your spending for the previous month to determine the areas where you can tweak. If you normally enjoy a latte at your local cafe, skip the coffee run and make your own blend at home. 



Dining out can be another major household expense. Instead of going out to eat regularly, whittle it down to once each month or on special occasions.

Bank Additional Money

The rewards of working hard at your job are usually shown through a holiday bonus and raise. While you may want to spend the additional income on frivolous things such as a T.V., bank the additional money instead. You’ve never had this amount of money before, so you won’t miss it. 

The same advice can used if you get a tax refund from Uncle Sam. As long as you can live comfortably and pay your loans and bills on time, putting the money away for your future will help boost your retirement nest egg.

Eliminate Debt

Debt placed on credit cards quickly can add up. If you can’t afford the items that you’re placing on your charge cards, don’t make any new purchases. If you’re looking to pay down debt, begin by paying off cards with the highest interest rates. 

You may also be able to take advantage of transfer balance cards with zero interest. The sooner that you stop overspending and pay down the amounts on your credit cards, the sooner you’ll have more money to save for your retirement. 

If you feel like your debt is at the point where you will never be able to catch up, you can look at benefits of Chapter 7 bankruptcy. Although this type of bankruptcy discharges most debt, typically, there are income limitations. 

It’s imperative you look at all your options before you lean towards a bankruptcy. Some people even look into getting a 0% APR credit card to give them more time to pay off their credit card debts.

Downsize

As parents age, their lives change. While you were once consumed with raising your family, you may now see yourself as empty nesters. As your children leave the home to go off to college or get married, you don’t need as big a dwelling as before. 

This is the ideal time to downsize your living arrangements. From a condo and townhome to a smaller house, the possibilities are endless. If your home is paid off, use the funds to pay for your new dwelling. Additional money left from the sale will all go toward your retirement account.

Convert Assets

Assets such as jewelry, antiques and other collectible items may be worth a lot of money. This type of collection could be converted into a proper retirement investment. 

Make a list of the items that you have such as a boat you no longer use, vacation home that’s too far or expensive hobby that’s collecting dust. Do your homework to determine fair market value for the items. Once sold, you can boost your retirement savings significantly.

Whether you were a procrastinator or you had other outlets for your money such as putting your kids through college, your retirement account may have taken a hit. The good news is that with the above techniques, it’s never too late to play catch up.

5 Priceless Personal Finance Tips for Millennials

Since 2008, with the economic crisis hitting hard worldwide, many people have been struggling to make ends meet. 

Nowadays, these battles await millennials who are faced with different and bigger challenges compared with the previous generation. One of them would definitely be dealing with their financial future, e.g. paying off college debt or becoming independent.

Here are some simple tips for all the brave millennials on how to handle their finances and get ready for their future:

Make Your Budget

First things first, make your budget and don’t ignore your bank account. In case you are receiving any payments from abroad, find out which banks are the most profitable for you. 

Some banks offer good deals for student bank accounts such as freebies or low fees for unexpected spending. Therefore, if you are a still a student, take advantage of these privileges. 

In case none of them is to your liking or fits your budget, turn to e-banking. Many companies offering digital online services have affordable fees like Payoneer. In addition, paying your bills online is less time-consuming, so you will be saving your time and money.

Get Around

Unlike the previous generations, millennials have had a great advantage throughout childhood i.e. an easy access to information by Internet. 

Don’t forget that it can also come in handy for your finance, not only for your posting tweets. So get around! Consider searching for stores that can offer you products for domestic use at a bargain price. 

They could be right around the corner. Discounts and vouchers will help you cut expenses. Not to mention that numerous free apps can help you sort out your budget.

A Plan B Just in Case

Regarding job opportunities, for most millennials the future remains uncertain. Whether you are ahead of your class or not is no longer the most important question. 

The requirements of getting a well-paid job have changed and it’s getting harder to get one. The question that you need to ask yourself is ‘’Do I have a plan B just in case?’’. 

Many people are turning to their B plan that sometimes becomes their main source of income. Getting a part-time job as an online language tutor or making a passive income by writing e-books, blogs or launching tutorials can also help your finances increase.

Stick Together

By working as a freelancer, you will definitely earn some money and get experience. However, working at your home can often be frustrating. 

Consider calling up fellow freelancers and renting a co-working space together to cut the expenses. Having an office will help your productivity and working with other freelancers will get you some valuable connections. 

Moreover, make the co-working space a real workplace. Getting notice boards or whiteboards can be useful for announcements. Promote your common workspace by getting brochures holders and displays from office suppliers, e.g. DisplayMe. Your professionalism will attract more co-workers and clients.

Turn Bad Habits Into Gold

If you have a bad habit of overspending, it’s high time you changed. Think about the extra expenses that you make and ask yourself whether it is worth your while. 

It is always good to invest in yourself, but do you really need pay so much money for brand new clothes? Instead, wouldn’t you rather save some money and get a new laptop? 

The public transport is cheaper if you get a season ticket, cycling can be a good alternative as well. In the end, by simply turning off and unplugging some electrical appliances, you will save money and won’t need to pay so much on your monthly bills.

Find a Balance

In the end, your future is in your hands. Whether you choose to take action concerning your financial future now or later, you will see that there are many options that you can profit from. 

Of course, you cannot control what is inevitable in the market, but you can take these few steps that can help you balance out your life and your bank account.