New Bankruptcy Law and Financial Planning
(ContentDesk) November 16, 2005 -- Changes to the Bankruptcy Code went into effect on October 17, 2005.
Financial planners may find it interesting that the new law now requires individuals who file for bankruptcy to receive a briefing that outlines the opportunities for credit counseling and that assists the individual in performing a budget analysis.
The briefing must be given within 180 days before the bankruptcy filing.
After the bankruptcy filing, an individual must also complete a financial management instructional course before discharge.
Chapter 7 bankruptcy, which is used primarily by individuals with consumer debts, will now be subject to a means test which determines whether the individual has a level of income that allows for repayment of debts.
If the individual has income exceeding median income for the state, creditors can object to the case proceeding in bankruptcy.
It is left to the court to decide whether the case should proceed. Chapter 13 is designed for individuals with regular income who want to pay their debts in installments over a 3 to 5 year period.
The amount of the debt may be reduced, but some new provisions have made the amount of reduction less than was previously available.
After the payments are completed, the individual receives a discharge.
A Chapter 13 bankruptcy is generally used when an individual has fallen into arrears on mortgage payments, car payments, or tax payments and does not want to lose the house, car, or property in question.
Retirement accounts generally benefited from the changes to the law.
Qualified plans, which were previously exempt property in many states, are now exempt property in all states.
A direct transfer and a rollover of retirement funds are also exempt property.
IRAs are exempt property up to $1 million.
Loans from retirement plans are not treated as bankruptcy debts, and the repayment of loans by withholding income from the individuals wages is not stayed by the filing of bankruptcy. .
Employer contributions to retirement plans are not counted as income to the employee for purposes of the means testing.
Funds contributed to education individual retirement accounts (now called Coverdell education savings accounts) for a child or grandchild are excluded from bankruptcy if the contributions were made at least one year before the filing for bankruptcy.
Similarly, the funds in 529 plans are excluded if the contributions were made at least one year before the filing.
If you would like more information on this please visit our website at www.keirsuccess.com or call us at 1-800-795-5347..
Accidental death policies
Quite naturally, as accidents happen unexpectedly and quickly, you or your family members will not be prepared to face it. No one can predict when or where an accident may occur. But you can prepare for it with proper insurance. The consequence of an accident can be anything. It can be an ordinary wound, which can be cured by a band-aid to an injury that needs serious medical care.
Or it can be a permanent physical handicap or even death. Since accidents occur very often and unexpectedly there is accidental death and dismemberment insurance.
Whether you travel for pleasure or business, the chances of an accident cannot be ruled out. In cars, at hotel or in flight, death can take you in the form of accident. Accident is definitely one major cause for death.
This is where an Accidental Death Policy or insurance becomes useful. An Accidental Death Policy or insurance is a life insurance policy that pays to your chosen recipient if you die as a result...
Financial planning > Accidental death policies
Check Cashing Services
Commercial banks offer a number of services to their customers, but in recent years, many people have chosen to use check cashing services instead of banks. Check cashing services are an alternative service sector to traditional banking service.
This service has proven to take over the role of traditional financial institutions such as banks and credit unions. The service is offers various options. Customers can bring any type of check to cash, including personal checks, payroll checks, government checks, insurance checks, tax Refund checks, settlement checks, and Social Security checks.
The success of these alternative financial services is due to many factors. Partly, it is due to its ability to compose products and operations to meet the needs of households with little or no month-to-month funds.
Moreover, this service is beneficial to customers as well as the financial institutions. It is a "win-win' situation for both the...
Financial planning > Check Cashing Services
William Rucci Elected to MASSBANK Board of Directors
William F. Rucci, Jr., a partner of the Malden, Mass.- based CPA and business advisory firm, Rucci, Bardaro & Barrett, PC, has been elected to the Board of Directors of MASSBANK Corp., it was announced today.????Mr. Rucci, a certified public accountant, will serve as a member of the company's Audit Committee and ALCO Committee.
"Bill's substantial experience in the community banking field will be an important addition to the company," said MASSBANK Corp. Chairman, President and CEO, Gerard Brandi.MASSBANK Corp.
(Nasdaq: MASB) is the holding company for MASSBANK, which operates 15 branches north of Boston in the communities of Reading, Chelmsford, Dracut, Everett, Lowell, Medford, Melrose, Stoneham, Tewksbury, Westford and Wilmington.
The bank's retail products include checking, savings, money market, and NOW accounts, as well as certificates of deposit and individual retirement accounts. The company's loan portfolio is dominated by conventional residential mortgages...
Financial planning > William Rucci Elected to MASSBANK Board of Directors
ConsumerBase Announces New Chief Financial Officer
Evanston, IL (ContentDesk) April 14, 2006 -- Today ConsumerBase announced the addition of Colm Ronan as the companys new Chief Financial Officer. Ronan will be in charge of managing all aspects of the companys finances for both the U.S. and the U.K.A native of Ireland, Ronan has experience working in finance and accounting in that country as well as in the United States. Before joining ConsumerBase, he was Vice President of Finance at DIMS Organizing Print of Lisle, IL. Prior to that he was Financial Controller in the Chicago office of London-based Radius Solutions.ConsumerBase CEO, Larry Organ, cited Ronans previous work for technology companies and his international experience as major factors in the decision to bring him onboard. Colm has a technology background as well as a wealth of experience in international finance.
These are attributes that we needed for this position. I am confident that Colm is going to make a sizable contribution to this organization in short order ...
ConsumerBase Announces New Chief Financial Officer
Financial planning > ConsumerBase Announces New Chief Financial Officer
Risk and Stock Trading Fees: The Two Barriers To Overcome If You Want A Successful Trading Career.
You know the old joke:"How do you make a million in the stock market? Start with two million?"There is no way around it, risk and stock market fees are a part of trading that you can't avoid. But, you can manage your risk. You can also manage the brokerage stock trading fees that eat away at your trading float. All it takes is some planning and making good choices. If you think you're ready to start trading, look carefully at where you're getting your money from.
Maybe you've been considering trading for a while and built up some savings. That's good planning. Or maybe you're considering borrowing money. This is generally a bad idea. Maxing out your credit cards is a quick and easy way to get cash, but the effects can be devastating.
It's hard enough to worry about making trading profits along with the stock market fees you have to pay. But, worrying about the debt servicing on your credit cards builds too much stress. You will be too concerned with making payments to be...
Risk and Stock Trading Fees: The Two Barriers To Overcome If You Want A Successful Trading Career.
Financial planning > Risk and Stock Trading Fees: The Two Barriers To Overcome If You Want A Successful Trading Career.
Second Mortgage Can Offer Fast Cash, Piece of Mind
If used properly, there may not be a more effective financial option a homeowner can exercise than to take a second mortgage on their property. More and more American consumers have become aware of revolving debt and the implications it can have on them and their loved one ? not just now but in the future.Second mortgages can be used for practically anything, but they are most typically pay for outstanding education expenses, repairs ob your home or property, to procure higher value real estate, and to pay off high interest rate credit cards as well as to consolidate or eliminate other debts.Naturally, it wouldn't be fiscally sound to take out a second mortgage if it would not be in your best interest as a homeowner. With so many refinancing, borrowing, and other transaction options available to the modern consumer, when is taking out a second mortgage the right way to go? A second mortgage is a good choice for the homeowner who has a need for a substantial amount of cash and also has...
Second Mortgage Can Offer Fast Cash, Piece of Mind
Financial planning > Second Mortgage Can Offer Fast Cash, Piece of Mind