Monthly Archives: September 2017

What Happens to My Retirement in Bankruptcy?

Retirement plans are one of the few assets that are mostly or completely exempt from the bankruptcy estate. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 protects most types of retirement accounts. If you have a 401k, 457(b), 403(b) or any other ERISA-qualified plan, then your retirement funds are exempt. Government retirement plans and pensions may also be completely protected during bankruptcy. During a Chapter 7 bankruptcy, retirement funds are not used to pay off your creditors. In a Chapter 13 bankruptcy, your retirement funds are not part of the three to five-year repayment plan. These funds do not factor into how much you pay back creditors during your Chapter 13 bankruptcy. However, there are exceptions. With traditional and Roth IRAs, only a portion of the retirement funds are excluded from the bankruptcy estate. As of 2016, this amount is $1,283,025. The amount exempt from bankruptcy changes every…
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How Can I Avoid Business Communication Problems?

Communication problems between your employees are typically a symptom of other major issues at your company. Your workers should feel as if they are on the same team and fighting towards the same goals. Problems communicating, rampant infighting and unhealthy competition can derail operations. In the worst-case scenario, it can ruin the reputation of your business and lead to rapid turnover. There are multiple ways you may avoid common communication problems. Set clear expectations and goals. Your employees should have a clear understanding of what your business is trying to accomplish. All employees should also understand how you intend to accomplish these goals. Put your goals and expectations in writing. Clearly define job duties and responsibilities. Avoid leaving employees in the dark. You should share critical information with employees. When you keep secrets and fail to share information, it leads to fear and distrust. Employees who do not receive critical…
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Should I File Bankruptcy If I Lose My Home in a Natural Disaster?

The aftermath of a natural disaster is a chaotic time where people rightfully so are more concerned with survival and safety than protecting their financial interests. However, as people begin to pick up the pieces and assess the damage left behind by the disaster, including the loss of a car, home and/or small business, the financial hit may be too much for them to handle. Therefore, in some instances, filing bankruptcy after a natural disaster may be the best option. How Can Bankruptcy Help Me Rebuild My Life After a Natural Disaster? Bankruptcy has a negative stigma attached to it. People tend to see it as an easy way out or something that hurts you financially. However, nothing could be further from the truth. Bankruptcy is a tool that people and businesses can use to rebuild their lives after the worst has happened, including a medical emergency, death in the…
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How Can My Small Business Recover After a Natural Disaster?

When starting a small business, entrepreneurs must take into account every scenario, including what to do if they decide to buy out their business partner to how to handle paying taxes to protecting their intellectual property. Still, one scenario that often catches many small business owners by surprise is when a natural disaster, such as a hurricane, wildfire, earthquake or flood, strikes their community, damaging or even destroying their business. Rebuilding Your Small Business After a Natural Disaster As Hurricane Harvey and Hurricane Irma have recently shown, natural disasters can strike suddenly and devastate communities in an instant. The Denver Post recently published an article on what happens to small businesses following a hurricane. According to the article in the Post, following a weather-related disaster, approximately 40 percent of small businesses close down permanently. Even if a small business does reopen following a natural disaster, it can take years before…
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How Can I Rebuild My Life After Bankruptcy?

People who are struggling financially are often reluctant to file for bankruptcy, because bankruptcies have a negative stigma. However, that could not be further from the truth. Bankruptcy is a tool that can help individuals, families and businesses regain control of their financial future. Following Chapter 7 or Chapter 13 bankruptcy, there are several ways that people and companies can get their finances back on track. NerdWallet recently featured an article with tips for how to rebuild your credit after bankruptcy. What Can I Do to Rebuild My Finances After a Bankruptcy? You should see signs that your finances are improving right away. Creditors want you to be able to make enough to pay your debts and have at least a little leftover. In addition, lenders know you cannot file bankruptcy, because you will not be able to file for bankruptcy again for another eight years. Therefore, it is a…
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