Bankruptcy

7 Signs your Business is about to Face Bankruptcy

All businesses, both large and small, are bound to experience financial difficulties at some point. This is a common occurrence for any company, given that sometimes it’s impossible to predict which market trends or external factors will affect your company’s operations and, as a consequence, its finances. However, in more severe cases, your company may not be financially prepared to deal with the situation and may be forced to file for bankruptcy. If you pay attention, you may see the signs that your business is about to file for bankruptcy well in advance, allowing you to adequately prepare yourself to handle the crisis. If you want to know what these signs are and what to do when you spot them, make sure you read this article in its entirety.

For starters, what is business bankruptcy?

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Although many people believe that bankruptcy marks the “end” of your business’ existence, the reality is that bankruptcy is a legal process through which a business or individual can get rid of most of their unsecured debts, thus having an opportunity to rebuild their finances from scratch.

As far as business bankruptcy is concerned, you should keep in mind that you have three main options. First, you can opt for the reorganization of your debts (and those of your business) through Chapter 13 bankruptcy, if you are the sole owner of your company. On the other hand, if the business does not have a viable future or if it has few assets, you can also opt for Chapter 7 bankruptcy. Finally, Chapter 11 bankruptcy is designed to help businesses reorganize their debts and stay afloat, and many times that may be your best option.

If you want to know which type of bankruptcy is best suited to your specific case, you may want to consult with a bankruptcy attorney In California, you can find many law firms ready to help you, such as KTBankruptcyLawyer.com. This bankruptcy law firm has years of experience helping individuals and businesses get out of debt and get a fresh financial start.

1. You can’t keep up with the competition

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If your business operates in an extremely competitive market, such as retail for example, and a competitor emerges that offers prices you can’t match or offers conveniences that would be impossible for you to implement, your company may be in trouble. You may lose most of your customers to this competitor before you can devise a strategy to get back in the game, in which case bankruptcy is almost inevitable.

2. Decline in demand

Few products are useful forever. If a novel and more efficient alternative to the products and services you offer emerges, your business may eventually become unsustainable as more and more people adopt other products in place of the ones you offer. If your company fails to adjust quickly, there will be no way to avoid bankruptcy. A recent example is Kodak’s bankruptcy filing due to reduced demand for film photography.

3. Loss of a major client

The loss of a significant client can be catastrophic for any company, regardless of its size. For example, if you have a company that offers security services, and 80% of your revenue comes from a large corporation that you provide services to, and that corporation decides to hire another company that offers more competitive prices, it is almost a certainty that your company will have to file for bankruptcy either to be liquidated or to restructure its finances and get a second chance at success.

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4. Loss in revenue

As mentioned above, it is normal for businesses to experience fluctuations in revenue over time. But if over the past few months, or years, your sales have continued to decrease exponentially and your earnings are getting lower and lower, your business may reach the point where it doesn’t have enough cash flow to pay the bills and operate properly. This factor alone could cause your business to eventually file for bankruptcy.

5. Increase of operating expenses

If the operating costs of running your business increase, and your company lacks the cash flow to withstand the impact, bankruptcy may be the only alternative. For example, when oil prices rise, airlines often have to take the loss of tickets that were pre-sold before the increase. For smaller companies, the slightest price increase in the supply chain can completely destabilize their finances.

6. Your company has too much debt

Source:corporatefinanceinstitute.com

Ideally, you should try to run your business debt-free. But in many cases, you will have to take on multiple loans to get your idea off the ground and have a chance to succeed in the highly competitive modern economy. However, if your business fails to generate the required returns to repay the loans, you may have to file for bankruptcy to have a chance to try again in the future.

7. Your business went through a catastrophe

If your business is struck by a catastrophe from which it cannot recover quickly, bankruptcy may be the only viable alternative. Catastrophes can have many faces, such as the loss of an essential person to the company, either a partner or even the owner, a natural disaster such as a flood or an earthquake (in cases where your company doesn’t have insurance against these types of incidents), the theft of equipment critical for the company, or other types of unexpected situations that can impact the company’s bottom line.

A clear example of an unexpected catastrophe is the Covid-19 pandemic. No one was properly prepared for it, and as a result, the finances of many businesses have been severely affected, and for some, the only alternative has been to file for bankruptcy to deal with their debts.

What should you do next?

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If you have noticed any, or several, of these signs in your business, it is quite likely that you should start considering what to do next. A good first step is to contact a Los Angeles business bankruptcy attorney with the knowledge necessary to guide you every step of the way.

An attorney will increase your chances of success, which translates into your business possibly having another chance to be successful further down the road.

Over the years, many companies that have filed for bankruptcy have taken advantage of the process to restructure their finances and get back on the road to success once again. Some notable cases include General Motors in 2008, Texaco in 1984, and even the incredibly successful Marvel Entertainment in 1996.

If you are looking for more useful information about bankruptcy, or want to contact a business bankruptcy lawyer near you, visit Legalfacts.org. Here you will find articles on various types of legal topics, which will help you learn about the law in a matter of minutes.

6 Things To Know About Buying and Selling Real Estate in Bankruptcy

Most people make money by selling real estate. And this is a really great opportunity to make a lot of money. However, there are different ways in which real estate can be sold. A real estate agent encounters various cases. One of the most common is the sale of real estate in bankruptcy and it can pay off the most if you know how to deal with it. If you belong to this group of people, you know for sure that you can find great discounts on the market.

Of course, as in any other business field, you need good tactics and some luck. If you need a little help when it comes to tactics, we have made a list of things you need to know when you are in this business. This refers to tips that will help you go great in buying or selling real estate in bankruptcy.

Source:robinsonandhenry.com

1. You can find a lot on the internet

Like everything else, you can learn a lot online on this topic. However, we do not mean any basic information. We want to show you ways to find assets in bankruptcy. Of course, it’s not that easy. So, there are properties that are more complicated to buy / sell than others. This mainly applies to their location when it comes to the Bankruptcy Court.

It takes a lot of research to find out who owns the property. It involves a very laborious process. For example, to search for property within a state, you need to search the database of all district courts. Since there can be a large number involved, most people give up. However, there is a multiple listing service that represents a large real estate database. This is a place where brokers cooperate so that everyone else can access the list and thus connect with as many properties as possible.

Another way that will benefit you is to list the previous sale of the property. Here you can find some useful information about the area you are interested in. This can be a guide for further portions.

2. Contact the bankruptcy attorney

Source:bartolonelaw.com

If you are very interested in a certain area, there are a few more tricks that can help you find several business opportunities in one place. So, contact a law firm like Friscia and Associates who deals with such cases. He will certainly know the brokers he has worked with before or he will refer you to some of his clients and the like.

3. Bankruptcy trustees are very useful to you

Also, most bankruptcy attorneys already have a regular list in their office with which you can contact bankruptcy trustees and find out more about them. So, once you have found a particular debtor and his assets, you can get in touch with bankruptcy trustees. However, in order to find their names, it would be good for the above-mentioned lawyer to help you.

Trustee manages this property of the debtor and that is why you need it. Another great thing is that sometimes you do not have to contact the debtor but directly from the trustee if he is interested in cooperation. This way of cooperation takes place without intermediaries and the trustee thus avoids commission.

4. Avoid complications with unforeseen circumstances

This applies to any contingencies you wish to bring to the bankruptcy trustee when selling a particular asset. While you might immediately accept your offer for even more money than your proposed amount, after your presentation you could imagine. So, situations imply problems with financing, inspection and the like. Such circumstances are not welcome to any trustee even if there is money for all the costs of potential real estate repairs.

On the other hand, all these repairs generally have to be approved by the court and this incurs some other costs. This refers to lawyer’s time, which costs a lot. Keep this in mind and try to avoid these complications so that your offer is better and accepted as quickly as possible.

Source:legalsquireforhire.com

5. Customers should protect themselves

Anyone who buys property in such conditions should insure themselves in the form of deposits and inspections. This behavior is a precaution in case you buy something that is not compatible with your previous expectations. Such cases usually occur when buying at auction when the property is taken immediately.

While the foreclosure trustee immediately takes the money from the buyer in person and then records the money, the bankruptcy trustee leaves room for exchange until the condition is met. This way of cooperation implies a deposit which eliminates the possibility of unforeseen situations. In this case, each buyer can go to the place of the real estate and check everything that comes in connection with the set conditions of cooperation. In this way, the customer can terminate the cooperation if he does not like something.

6. Duration of closing the transaction

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Whether you are buying / selling a property, the court must approve the sale. So, you need to wait a certain period of time after you have posted the contract and signed the contract. When it comes to a list of priority claims in court, you don’t have to worry about waiting long. This requirement is taken into account very quickly and therefore you will not have to wait too long for the outcome.

It will take about a month, but it will also depend on several factors. The type of request as well as the court’s calendar schedule are generally taken into account. In most situations, the agreement cannot be established immediately, because it is mostly too high a price. Then comes the auction, which takes place when the request is approved. The venue of this event is a formal environment such as a courtroom, but can sometimes be held in an expert’s office.

It is important to note that sometimes there may be a rejection of the request and the submission of a new one to change the court order. This usually happens when an escrow officer requests a change. Because of this, the process can take a few more weeks.

Conclusion:

We hope that all the procedures and principles have helped you to better develop your business strategy. Keep in mind the background of bankruptcy, obstacles during the sale or purchase of property and find your recipe for success. We are sure that you have gained the necessary understanding of the functioning of bankruptcy and that you will succeed in your goal.

7 Tips to Keep Your Wealth and Assets Safe

If you have worked hard to reach your financial goals and you’re finally living the lifestyle you’ve always dreamed of, it can be scary to consider the prospect that it could all be taken away.

Don’t lose sleep at night wondering if the money you’ve worked so hard to accrue will be yours as long as you need it! There are ways to protect your wealth and assets, so even in unforeseen circumstances or an emergency, you won’t lose everything you’ve worked so hard to earn. It would be advisable to consult legal financial services such as Caple Royalty to address your concern.

Know When to Hire the Right Attorney

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It is extremely important to know when to hire the right attorney. Dealing with legal issues can get expensive fast, so making sure you have the right person on your team can go a long way towards protecting your wealth.

For example, If you’re injured in an accident, much of your money could go down the drain on medical costs. Hiring an attorney is important, but you have to make sure you hire the right one. According to Attorney Brian White, “Since most personal injury attorneys work on contingency, you may end up receiving less money if you hire a mediocre or inexperienced attorney.”

Going through a divorce? Even if it’s relatively civil, you should still hire an attorney. Struggling with a business partnership? An attorney can help you find a resolution that doesn’t require you to pay more than you should. When in doubt, schedule a consultation from a reputable law firm like Kania Law Office to see how an attorney can work to protect you and your assets.

Plan Your Estate and Keep It up-to-Date

When you think of estate planning, you probably think about what is going to happen to your money and your assets after you pass. This is an extremely important thing to think about. Proper planning can prevent family squabbles and issues, but it’s not the only kind of plan you should have.

If you have multiple assets and multiple streams of income, it is extremely important to plan how they will be used throughout your lifetime. For example, a trust might be used to pay for a child’s education, while earnings from stocks may be used to pay certain bills.

Make sure you revisit your strategy often. This ensures that you’re keeping money in high-yield accounts and you’re covering all of your costs without any shortfalls.

Hire a Financial Advisor You Trust

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For those with wealth and multiple assets, hiring a financial advisor is a no-brainer. They can provide you with services that include:

  • Guidance on developing an investment strategy
  • Asset allocation
  • Minimizing taxes
  • Rebalancing a portfolio
  • How to time retirement account withdrawals

They can also provide you with support when making decisions that make you feel uncomfortable. An advisor can keep your fears and emotions in check, which is extremely important when making decisions that will affect your assets, your income, or your portfolio.

Don’t Put Primary Assets in Your Name

There are many reasons to start a trust. It can allow your family to avoid probate when you pass, it’s a great way to pay for a child’s education, and it can be a great way to support a charity that you feel passionate about.

It can also protect your assets while you’re alive. For example, putting a sizeable investment in a trust with your children as beneficiaries can keep you from losing the money if you’re sued. You can also hold other things, like an expensive car, in a trust in order to keep your name out of public records.

It’s also important to separate personal and professional assets. That way, if you’re ever sued professionally, they can’t come after your personal assets, and vice versa.

Diversify

A lot of people talk about diversification, but it can be more tempting to put all of your eggs in one basket. When the possible returns seem massive, you may want to go all-in, but a more restrained approach is always the best approach.

Diversification means utilizing a variety of investments to get the biggest return on your money, but it also means diversifying other aspects of your wealth. For example, having a financial advisor is important, but you may want to add a stock broker to your team. You may want to have traditional accounts in the United States, but you may also want to consider trying an offshore account. Diversifying in a variety of ways can help you best protect your wealth.

Don’t Rely Upon Homestead Exemptions or Bankruptcy

It’s surprisingly easy to get reckless with your money, even if it doesn’t seem reckless at the time. That’s because declaring bankruptcy often meant that you could clear away your debts while keeping many of your assets. At least, that’s what it used to mean. Those declaring bankruptcy today aren’t so lucky.

Today, homestead exemptions are limited and changes to the bankruptcy code mean you’ll end up losing a lot more of your assets than in the past. Not to mention, it leaves the future of your wealth in the hands of a bankruptcy judge, which means you aren’t going to fare so well.

Don’t Be Overly Flashy

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Protecting your assets and wealth often involves complicated legal documents and in-depth strategizing, but it also includes common sense. You’re just as at risk of theft as you are of suffering a bad day at the stock market.

Don’t be overly flashy with your wealth. That doesn’t mean you can’t buy that boat or the Ferrari that you’ve always wanted, but it does mean that you should keep pictures off of social media. It’s also a good idea not to bring up your purchases or your wealth with the wrong crowd. Even family can get greedy and do something rash to affect your wealth and assets in a negative way.

Just because your money is sitting in a high-yield savings account doesn’t mean it’s safe. From houses to cars to cash, there are many things you should be doing to keep your wealth right where it is so you can enjoy it for a lifetime.

How to Recognize When Your Debt Is Too High to Repay

How much debt is too much? If you’re asking yourself that question, it’s a major warning sign that you’re probably already at that point. The best thing you can do for yourself is find a way to reverse course and start paying it all back. Taking the path to financial freedom is a great goal, but what if it’s just not possible?

It’s possible to get into more debt than you can reasonably pay back. But that doesn’t mean you have to spend the rest of your life in debt. Instead, you can explore options such as a consumer proposal or even bankruptcy. A Licensed Insolvency Trustee can help you evaluate your financial situation and identify the best way to move forward. You can visit Debthelpbc.ca to learn more about what Licensed Insolvency Trustees do, and how consumer proposals and bankruptcies work.

But how do you know it’s time to talk to one? You need to be able to recognize when your debts are out of control or too much to pay back without help.

Source:wsfcu.org

1. Your Balances Keep Getting Higher

It’s easy to “add to the pile” when you don’t keep track of how much you spend each month. Even if you’re trying to make progress by making more than minimum payments, unless you’re paying close attention to your expenditures, it’s easy to wind up covering for shortfalls by leaning on your credit cards.

One step you can take is to stop using credit cards altogether until they’re paid off. Otherwise, the temptation to use them to make ends meet can be too great.

2. You’ve Borrowed Money to Cover a Bill

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Borrowing to cover another bill is a sure sign that you’re in a tight spot and that something needs to change. It can put a strain on your relationships when you borrow from friends and family. You want to pay them back as soon as you can, but it’s only a matter of time before you’re hit with another big bill. Meanwhile, other sources of fast credit come with high interest rates that can leave you deeper in the hole.

A sign that you’re in deep trouble is taking out a cash advance on a credit card to make another payment. The interest charges on cash advances are higher than the APR for regular purchases, and while you may scrape by in the short-term, you’ve made the long-term problem worse.

3. You’re Thinking About Draining Your Savings

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For some, high debt levels come after they’ve had years to save. When credit card bills start to get out of control, they start looking at their savings and wondering if they should drain it all just to stop paying interest rates.

Before you act, consider your options. In many jurisdictions, registered retirement savings are exempt from bankruptcy proceedings. You could keep your retirement savings and still clear your debts. Alternatively, if you have significant non-exempt assets, such as a secondary property or multiple vehicles, a consumer proposal allows you to settle with your creditors without liquidating any assets.

This is a difficult situation to be in, and the right answer will be different for everyone. Get a credit counselling consultation with a Licensed Insolvency Trustee to talk about the right way forward.

If there’s already nothing left in your savings account, you’re in a precarious situation. Any loss of income could upset the tightrope you’re walking. The sooner you take action, the better off you’ll be.

4. You Can’t Balance Your Budget

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One of the problems with the easy accessibility of credit is that lenders may offer you bigger loans and limits if you meet their criteria for it, but they don’t know what your budget is like. Just because your bank has approved you for a higher borrowing limit doesn’t mean you should take advantage of it.

Can your budget balance? The 50/30/20 budget rule is a useful rule of thumb for personal finances. It says that 50% of your after-tax income should go toward needs, 30% on wants, and the remaining 20% should go toward savings (or paying down debt). If more than 20% of your personal budget is going to credit card companies, it might be worth looking into alternative solutions – though changes to your budget may still be enough to conquer debt.

5. You’ve Applied for New Credit and Been Denied

Sometimes you can’t see the problem until someone else points it out to you. If you’ve applied for new credit, such as an auto loan, a mortgage, or a new card, you might be surprised to learn that you’ve been denied. Before you apply somewhere else, take a look at your credit history and score, which you can request from a bureau like Equifax or TransUnion.

There are many reasons you may have been denied. Besides your history with repaying debt, lenders also look at your credit utilization rate: the percentage of your available credit that you’re currently using.

6. You’re Getting Collection Calls

This is one of those big red flags. Once debt collectors start calling you, it’s because you’re considered delinquent on your debts. Though they may begin with annoying phone calls, that also means they can take legal actions such as suing you, which can lead to options like garnishing your wages or levying your bank account.

7. More than Half Your Income Goes to Payments

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If, say, 25% of your after-tax income is being siphoned off by creditors, you could be doing better, but you’re not in deep trouble. Once you reach this point, you are very likely in over your head, and you would be a prime candidate for bankruptcy or a consumer proposal.

Bankruptcy can seem like a major life decision and a last resort, but there are times when it is the best course of action to move forward. There are also alternatives, like the consumer proposal. There are situations in which you have to recognize that you just can’t get out of debt on your own. If any of these situations apply to your finances, it may be time to try something different.

What Company Insolvency Means and How to Notice it Early

It is almost impossible for a company to totally avoid debts; in fact it is usually seen as an important part of financing a business. However, most of us make the mistake of thinking all debts are bad. This is wrong because there are debts, and then there are bad debts. How can debts be bad? Debts become bad when the amount you have borrowed becomes overwhelming to the point where cash flow issues arise. Not just debts can cause cash flow problems, a number of other factors could lead to this, but when these factors become consistent, it can lead to a serious issue. Also, we often confuse the term “insolvency” and “bankruptcy” as meaning the same thing. First of all, we will explain the difference between these two terms, and how best to identify them and properly avoid them.

Insolvency and Bankruptcy

Insolvency is a term used by financiers to describe the situation of a company when this company is unable to pay its own debts. It means the company is unable to pay bills when due, and it has more liabilities than assets. As a limited company, experts have adviced that trading should stop the moment the company begins tilting towards insolvency. Also, it is against the law and is called Wrongful Trading. This is a situation whereby the company continues trading in the event of an insolvency in spite of the damaging effects it will have on creditors. This is defined in the Insolvency Act of 1986.

Source:lpc-law.co.uk

When the authorities find out about this, and Wrongful Trading is proved, henceforth the directors will be responsible for the debts of the company from the moment they knew about the insolvency status of the company. Another term that exists in Fraudulent Trading, and this refers to a situation whereby directors continue trading while having no intent to repay debts.

Bankruptcy on the other hand is when a company makes a legal declaration of its inability to repay debts. Naturally, bankruptcy can be a solution to insolvency. There’s another term that is closely related with these terms, and it is Liquidation. Liquidation occurs when a business pays off its debts by selling off its business assets after being audited.

Source:westbrooklawtexas.com

After a year (sometimes more) of applying for bankruptcy, the debts of a company are written off. A company can apply for bankruptcy, or a private individual, even a creditor can do so on your behalf. But before you can apply, you must owe at least £5,000 or more. The petition for a bankruptcy gives the court a right to take your assets and sell it to pay your debts.

Now, let’s circle back to the subject, how can my business survive being insolvency? First of all, you should know that insolvency is not the end of the world, or even the end of your business. Your biggest motivation should be not to enter liquidation, because that is the point of no return.

Here are a few things you could do:

1. Speak with all creditors and see if you can secure an agreement off the books: This means you should try to secure an informal agreement that states that the debt will be paid on an agreed date, this could be full or part payment. This works even better when you are going through a temporary financial problem.

2. Hand the company over to an administrator: Be rest assured that this does not mean selling your company, or choosing to be              liquidated. What it means is handing your company over to the hands of an insolvency practitioner or an administrator. The job of this administrator will be to help you manage your company’s debts and even find a way to prevent liquidation. Most times, these experts try to pay your debts from your assets.

Source:bestdealfor21.life

Now that we have identified how to tackle insolvency when it rears its ugly head, it is important that we also discuss ways you can avoid bad debts in the first place. There are several precautions you can take to prevent your company from having a bad debt (which is a kind of debt that you are incapable of paying to your creditor and vice versa.

According to a survey conducted by Reporting Accounts with 100 businesses. It was discovered that 68% of these businesses have had a late payment issue, while another 53% have been in a position where they had to write off a bad debt.

Also, a great way to prevent an issue of a bad debt is to run a comprehensive background check of companies before you work with them. The most important is the credit check which companies can also use to check their own business, and see how healthy its finances are. Credit reports provide you with comprehensive and detailed information filled with graphs and reports of assets and liabilities over a period of them. You can also check your Credit Risk Score which is a score that tells you the likeliness of your company becoming insolvent in the next one year.

Source:debt.org

Checking your credit report can also be used to discover potential customers. A credit report also gives you the general “health status” of your business. It tells you how much debt the company is in, and how much the company is making in terms of profit, plus the company’s level of liabilities in comparison to assets. Whatever these reports suggest to you, it is important that you take steps on it.

New Employee Background Check Laws

With the New Year arises the latest crop of Employment Background Check Laws by each state or country. Bosses must familiarize themselves with the latest and new laws and regulations or risk disrupting the law in almost every state in the country. Potential employers have used to a treasure trove of exceptional detail, both online and offline, which can be the aspect in their recruiting decisions. Here are some employment background check laws and regulations that you must know about it.

The latest background check laws ban employers from using various kinds of information, comprising military and medical data, while drug screenings and credit data need a company’s agreement. Alternatively, job candidates frequently share awkward personal details with prospective employers via social networking websites and other Internet resources or social media.

Source:pre-employment.com

Peopleg2.com  helps corporations discover facts regarding potential recruits and ensure that an applicant does not have problems lurking in their past, which may harm the work or make a safety threat for the other workers. As a job hunter, it makes logic to handle your online status and publicly reveal only that information you will be eager to deliberate in a job interview. Read this article to know about the new Employee Background Check Laws.

Criminal Offenses

Criminal faults in the earlier cause logic of mistrust and endanger a person’s application for a specific job. There are various laws in place to ensure that they achieve a fair opportunity without causing too much harm to the company. Here are some of them:

  • Companies cannot ask candidates about an arrest that does not give rise to a conviction.
  • You cannot ask your potential selection regarding their appointment or to participate in a retrial or post-trial departure program.
  • You can request detail regarding the arrests that are expecting trials.
  • Any job-related queries related to any sentence are acceptable.
  • EEOC instructions now call for the appraisal of the candidate’s actions since the crime.
  • No data of crimes will consider if they come with above the particular number of years before the application.
  • Other features that contribute are the severity of the offense and the rehabilitation struggles of the candidate.

Credit Reports

Source:perkstreet.com

It is essential to trust employees in situations dealing with personal information of your consumers and finances. Credit history shows very much about an applicant’s morals and general nature. Though, there are many restrictions on how far you can go while you expose an applicant’s credit past. The company must have an acceptable purpose of dragging up a candidate’s credit data. Some instances of this can be:

  • An administrative designation
  • Oath peace officer or other law execution job
  • An appointment for which the detail needed by law
  • A situation that comprises access to identified personal detail
  • If the person is a named signatory on the employer’s bank or credit card account
  • If an applicant has personal or exclusive information
  • A situation that comprises regular use to $11,000 or more of cash
  • Without an allowed reason, rejecting employment to an applicant based on personal credit history does not affect and may disturb state law.

Other Laws

The companies should obtain a written agreement from the candidate to execute such a background screening trial. They will also have to notify the candidate that it may be rejected based on the details accepted in the background check data. The companies are supposing to give a copy of the report to the applicant. The candidate can then deny the information in the data for reassessment by the employer.

If the company then selects not to recruit the candidate based on the report, then they should notify the candidate of this hostile action. The best company can assist you with extremely effective background screening solutions and offer you with applicable data.

Background Checks: Limited Details

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When a prospective company organizes a background check, laws in many states ban the use of particular information in recruiting decisions. While public records state that use to information cannot be limited, the use of suitable open data may prohibit hiring decisions. The following kinds of data generally are off-limits to companies:

Qualification Records: College records are frequently considered applicable to a job application and may get with the candidate’s agreement.

Criminal Data: It differs broadly from state to state or country to country, frequently depending on the type of work (like child care conveniences and law execution). Some states permit use to criminal data only with the candidate’s agreement, while others do not.

Military Records: It reflects personal data under the Federal Privacy Act.

Bankruptcy: While bankruptcy case is a problem of public data, they may not implicate the decision to recruit them.

Medical Records: When appropriate to the job, companies may need a physical test. Or else, medical records are personal.

Compensation of Employees: A problem of public data; these records only may use if related to the particular responsibilities of the job.

Why Is It Important?

Nowadays, in an extremely competitive job market, though, many candidates elaborate details, hide detail or operate the data on their resumes or CV. Background screening is, therefore, becoming a command for companies that wish to appoint ‘the best employee’ every time. It is significant to understand, though, that there are lawful restrictions for getting background information.

Except for certain limitations associated with medical and genetic details, federal laws or regulations do not prohibit a boss from asking questions regarding a candidate’s or employee’s background, or to need a background check. Though, whenever you use a candidate or employee’s background detail to make an employment judgment, you must follow federal laws that defend candidates and workers from discrimination.

That comprises discrimination based on race, shade, national origin, or religion, disability, genetic detail (containing family medical history), sex, and age (40 or older). These rules are implemented by the EEOC (Equal Employment Opportunity Commission). Background checks can give necessary information before deciding to appoint an employer. Though, maintaining the requirement for details with confidentiality rights and evading discrimination maybe a gentle procedure.

How Can A Bankruptcy Attorney Help You

Bankruptcy is probably the worst thing that can happen to a business person. When filing for bankruptcy, you can do that with or without a lawyer. However, its considered bad practice to chose the latter option, and we’re going to tell you why.

The first and most important reason as to why is down to the fact that filing without, or filing for Chapter 13 bankruptcy, will cost you far more if you choose to go “pro per” or “pro se”.

But there are far more reasons as to why you should always get an attorney’s help when doing so. So let’s start discussing why.

1. Planning For Bankruptcy

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The most important thing is to plan your bankruptcy with the help of an attorney. This is probably the best thing you can do, as the attorney can help you consider the alternatives.

Namely, the only way to achieve financial peace isn’t through filing for bankruptcy. There are alternatives out there which you and your attorney can discuss about.

When doing so, you can choose either Chapter 7 or Chapter 13, but both do completely opposite things. Chapter 7 will indeed wipe your entire debt, but you will lose some possession, such as your home, in the process. This happens only if you’re late on your payments, so the house will be taken as collateral. On the other hand, Chapter 13 is a reorganization plan that only the individual can file. This bankruptcy plan is only viable if you have some income and wish to pay back some of the debt through a reorganized repayment plan.

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With the help of an attorney, you can file for the most suitable plan based on his recommendation after taking a look at your situation.

2. Prepare You For Bankruptcy

As soon as the attorney would’ve taken a look at your situation, he would have you take the “means test”. The “means test” is taken by the individual filing for bankruptcy to determine whether he can qualify for eighter Chapter 7 or Chapter 13 plan.

The next preparation step is to evaluate your property and everything else you own. A bankruptcy attorney will know how to realistically evaluate all of your assets, so don’t expect any favors.

However, one thing that your lawyer will help you as much as he can with is the exemption system. The exemption system is a system for keeping a property in the case of filing for bankruptcy. Every state in the U.S. has a different exemption system and your lawyer will know exactly how to assist and protect your assets as much he can in the case.

The 4th step of your preparation comes in the form of discharging of debts. Namely, not all of your debts get wiped out, and others only if certain criteria are met. Your lawyer knows the ins and outs of the system, so he can explain to you what this means, which debts can get eliminated, and which will stick to your case.

As suggested by bankruptcy attorneys from Trust WT, in 2018, 9.2% of all Chapter 7 filing, and 8.5% of all Chapter 13 filings were done “pro per” (without a lawyer). You’d be surprised to find out that only 2% in both Chapters managed to get a repayment plan. That’s a 98% lose rate going without a lawyer, so why should you go without one? The rest of the cases that filed with a lawyer saw nearly 70% of them getting a repayment plan. Always contact a bankruptcy attorney for filing both Chapter 7 and Chapter 13.

3. Help You During Bankruptcy

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It’s safe to say that once you file for bankruptcy, things won’t get better for a short time. Under penalty of perjury, you will be asked to file financial paperwork and data of everything you own. This goes from debts to income, to assets, to transactions.

If you choose to hire a lawyer for your case, he will know what you can and cannot disclose. He also knows the value of your assets, what considers and constitutes income, which of your assets can and should not be given to pay off the debt, as well as a host of other issues that he has expert knowledge in.

His expertise is not only valuable to you but indispensable as it is the only support you have in your case. We mentioned about preparations and planning, and your attorney will know exactly how to plan and prepare you for the hard times ahead. Furthermore, your lawyer will guide you through the entire bankruptcy case, the judge, the trustees and everything else.

Once everything goes into motion, you will be taken before a judge and ask to swear to tell the truth. You will also have a meeting with the creditors and asked to speak nothing but the truth as well. During these two processes, your lawyer will be there to guide you through. Everything you say will be backed up by your attorney, and he will testify in your defense.

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However, probably the single most important reason why you should have a lawyer by your side is when dealing with creditors. Namely, creditors don’t know when to end, and some of them might continue taking assets that violate your lawyer’s automatic stay. If this happens, your lawyer will have the power to demand compliance and even ask the court to hold the creditor in question under the circumstances in play.

4. Negotiate the Deal

In most bankruptcy cases, the defendant can negotiate a deal with the creditors. We mentioned Chapter 7 and Chapter 13 earlier. Well, in Chapter 7, your lawyer will negotiate a deal in place with your creditors, which will allow you to keep your house and even a car. In the other case, Chapter 13, your attorney will negotiate the terms of your repayment with the creditors. Both Chapters are very complicated and require experts to run the entire ordeal.

If you choose to without help, then you will fail miserably in most cases. So do not neglect the importance of a bankruptcy attorney.

7 Important Things You Need To Know About Bankruptcy

Uttering the word “bankruptcy” was once taboo. Anyone that found themselves over their head in debt without any way out would only consider such an option in total secrecy. However, as more people find their way deeper in debt the stigmatism associated with these words is quickly evaporating.

So, if you find that you are over your head financially and cannot see a way out, you should consider taking the help of professionals from accrediteddebtrelief.com as they might be able to find a way that is better than filing for bankruptcy. However, if you are sure to file for bankruptcy, you should also know that you will suffer some backlash for years and your credit will be affected badly. Here are some things you should consider before filing for bankruptcy.

1. There Is More Than One Bankruptcy

There are at least two different types of bankruptcies for individuals. Chapter 7 allows an individual to completely liquidate their assets and then use the money received to pay off their creditors. In Chapter 7, some physical assets you own can be excluded from the process (car, home, and personal possessions). In Chapter 13, your debt is reorganized with the courts help so you can pay off most of it.

2.  It’s A Long Process

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Going through bankruptcy proceedings is not as cut and dry as it seems. It is not like you will file and the next day and it’s all over. Expect to spend a minimum of four months going through the entire process if you are filing for Chapter 7. Chapters 11 and 13 could easily take years before it is all over.

3. Your Finances Are Opened Up For Public Scrutiny

Usually, when people are in serious debt, they try to hide their personal financial situation. When you file for bankruptcy though, get ready to go public. Your financial record will be exposed to the public listing all of your debts, assets, expenses, and income – mistakes and all. You will be asked probing questions in front of creditors, which can be very embarrassing.

4. Some Debts Cannot Be Discharged

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When filing for Chapter 7, some debts like credit cards, repossessions, medical bills, and unpaid rent may be discharged, but there are some debts that cannot. If it is revealed that you made excessive use of your credit just prior to filing bankruptcy, creditors can challenge the request to eliminate them. You may not be able to get rid of some debts and end up footing the bill for them anyway. If you are unsure about the entire procedure, you may seek advice from the professionals from kanialaw.com. They would be able to help you in such stressful situations.

5. It’s A Complicated Process

Filing for bankruptcy is not easy. You will be required to fill out many confusing and difficult forms, that contain complex questions in relation to your finances. It is not a process that can be rushed so make sure you have adequate time to understand and fill everything out honestly and as accurately as possible. This is why most people opt to use a bankruptcy attorney to walk them through the process.

6. It Will Affect Your Credit Score

While there are many factors that go into determining your credit score, expect that you will get at least some negative impact. On average, a person’s score could expect to drop as much as 200 points, which could be very damaging. This could kick you off a good credit rating for several years after you file.

7. It Is Not Cheap

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The cost of filing for bankruptcy can vary depending on individual circumstances, but it will cost you. Some people can save on bankruptcy fees by filing all the forms themselves, but even then, there are expensive filing fees that need to be covered. If you hire an attorney to do much of the grunt work for you, then expect to pay anywhere from several hundred to several thousand dollars, depending on how much work is involved.

Filing for bankruptcy is one way, but it comes with many challenges. Before you file, make sure you fully understand everything that is involved so you can navigate safely through the complex process.