Personal Injury Claims and Bankruptcy

If you have unfortunately been injured in a car accident, injured at work or at a business you were shopping at you could have a personal injury, or PI, claim. So if you have filed a lawsuit or are planning on filing a lawsuit what happens to your personal injury claim if you file for bankruptcy protection with the help of an experienced bankruptcy attorney under Chapter 7 or Chapter 13 of the Bankruptcy Code?

The first issue is do you actually have a PI claim? There have been many attempts to bootstrap other types of causes of action as exempt under a personal injury theory. For purposes of this article the person filing for bankruptcy was in fact injured in a car accident and suffered damage to their arm requiring surgery. This hypothetical person is also thinking about suing the person who hit their car and caused the injury. Unfortunately they are also thinking about filing for bankruptcy since they have not been able to keep up with their credit card payments given that they cannot work as much due to their injury. This is a personal injury in which the California exemptions can be applied, either Section 704.140 (a-b) or Section 703.140(b)(11)(D).

So if you receive a multi-million dollar settlement can you keep every penny and still get rid of your debts in bankruptcy? The answer is it depends. Under the 703 California Exemptions you can protect a personal injury claim up to $22,075. This is only for your injuries and not for pain and suffering or pecuniary (financial) loss. Under the 704 California Exemptions a PI claim is exempt up the amount reasonably necessary for the maintenance and support of the judgment debtor’s spouse and dependents. Which set of exemptions you use will depend upon the nature of the injury and the possible recovery. If you were unfortunately seriously injured and require around the clock care you will most likely need every penny of a personal injury recovery. Keeping every penny would be reasonably necessary for your support and maintenance. The other extreme is if you are in a car accident and merely break an arm and do not have any long-term problems as a result. If you receive $30,000 somehow it may not all be reasonably necessary for your care and support.

Hopefully you will not be injured so severely that you are entitled to millions of dollars of compensation. There are personal injury awards that can be protected when filing bankruptcy. It all depends upon your circumstances at the time you file for bankruptcy protection. The good news is that there are exemptions to protect personal injury awards and claims.

How to Pay Off Credit Card Debt Quickly

Christmas and holiday spending can be brutal on any household budget, considering most families significantly overspend during the holiday season. It is estimated that the average American household has more than $8000 in credit card debt. After all the fun and festivities are over, you should take control of your household budget and expenses. Unfortunately, one of the biggest yet most controllable expenses for most individuals or households is their revolving debt. The payments may not only handcuff your spending ability, but they can limit your financial options to purchase a car or house. In order to escape from the trap of credit card debt, you will need to determine the best way to pay down and eliminate your debt. The following is a list of suggestions on how to pay down your debt and improve your financial situation.

• Collect Your Information – Gather your last pay stub and all your latest credit card statements. Write down the name of the creditor, balance, interest rate, due date, and the minimum payment for each card. Then add up all the minimum payments for each account. Based on your disposable income after you pay your mortgage, utilities, and other necessities; do you have enough money left over each month to make the minimum credit card payments? Also, write down how much interest you are paying monthly and annually. This is the amount of money that is being wasted.

• Make a Plan – Once you have a basic budget that includes your income and debts, you can then decide if you want to consolidate your debt, start to reduce your debt by paying off the cards with the highest interest rates first, or start by paying off the cards with the lowest balances first. Choose a plan you can stick to, no one knows your financial situation better than you do.

• Consolidate Your Debt – Turn your revolving debt into a term loan. If you close your credit cards after consolidating them, you will no longer have the ability to add to your debt. Also, part of your payments will be reducing the principal balance of your debt, unlike minimum credit card payments that are usually just paying the interest on the outstanding balance. Therefore, you will be paying down your debt and the consolidation loan should be paid off within a certain number of years. If you are financially capable, it would benefit you to make more than the minimum payment, thereby reducing the principal balance on the debt faster. If you decide to consolidate your credit card debt, take the time to thoroughly compare your options and shop for an interest rate that is lower than your credit card interest rates. Also, set up an automatic payment arrangement for your consolidation loan. This will prevent you from falling behind in the payment and potentially facing penalties and/or a higher interest rate.

• Debt Settlement – This is the program that is an alternative to bankruptcy. When you go through your finances, if you find out that your monthly payments exceed your financial ability, you will need to seek alternative options, such as: working with a financial institution to consolidation your credit, discuss your options with a bankruptcy attorney, or talk to the credit card companies directly to reduce the principal balances owed on your debt.

• Stop Charging – Once you make your plan to pay off your debt, you will need to be committed to stop charging on your credit cards and creating new debt until your finances are under control. Your plan will not work unless you reduce your spending.

Taking control of your finances may create short-term hardships and limit your ability to purchase items over the next few years, such as: a new car, new house, or a vacation. Nevertheless, it is imperative that you control your spending, so you can improve your finances and get out of debt. Once your debt is paid off, you will have a significant increase in disposable income. In addition, you should have higher credit scores and a lower debt to income ratio; therefore in the future, you should qualify for preferential rates on auto and home loans.

Debt Relief Grants to Pay Your Medical Bills

Debt relief grants are a blessing in disguise, especially for those with limited financial support and a crunched bank balance. Medical expenses consume a major portion of every family’s budget and the rising bills can really be a matter of concern for all. Substantial funds get consumed which also leads to huge debts.

The ever-rising cost of health care have caused a toll on monetarily deprived families, particularly for those with no insurance or those that only cover a portion of the medical costs. The U.S. government, states, recognized authorities, institutes, charities and nonprofits offer many debt relief grants that cover the expenses of the medical costs and also pay for your insufficient medical insurance.

Debt Relief Grants to Apply for Paying Medical Bills

Government assistance grants: the federal government offers some debt relief grants for medical assistance.

Medicaid: monetarily depressed families can get medical coverage for their overpriced bills from the Medicaid. It is a joint program of the federal and the state and is administered by the Health and Human Services Commission (HHSC). This national social insurance program is for aged Americans of 65 years or above and people with disabilities or specific health problems. Medicare is another such program.

Federal Government Health Resources and Services Administration (HRSA): this organization offers medical care and support even without any insurance. Almost $386 million was given in 2015 for medical assistance, treatment, free checkups and prescriptions. Disadvantaged people, pregnant women, single mothers, disabled people, elders and young children can all avail this medical aid.

State Assistance Grants: Every state sets aside funds for their insurance plan for the low income families with children. You can contact your local or state level offices for medical grants. Moreover, states have provision for free health care programs for their residents that offer funds, fee checkups and medicines. Visit the site for all the required information.

Local assistance grants: Many local governments and states run programs to help people who need assistance with high medical bills. There are also a few non-profit private groups which offer financial help in offsetting medical expenses.

Hospital’s financial aid programs: Many hospitals and nonprofit medical clinics have various charity care programs which help families in compensating or reducing medical bills. Families are usually selected based on income and savings eligibility.

Programs to cover insufficient Insurance: Most patients have options to avail assistance from various programs for cases where treatment cost is not covered by the health insurance plan or the coverage provided by the employer is very limited. Programs like co-pay assistance plans and other government programs provide assistance in payment of medical bills and coverage of health care expenses.

Non-Profit Organizations: there are various organizations which support cost and provide assistance to people suffering from specific illnesses or health conditions. Some important names like Community Action Organizations, American Red Cross, Jewish Federation of North America, The Aubrey Rose Foundation, Net Wish, United Way and others offer assistance with paying off debt relief for medical bills.

If you are in need of debt relief grants to pay medical bills then you need to apply and qualify the stated eligibility criteria. Keep your medical bills, document and other essential papers ready to claim your money. Now get the best medical care, forgetting about your debts.

Kaushikee is an avid grant writer. She writes for many grant sites & blogs, doing thorough research work and accumulates all essential information that makes the blogs informative.

From Checks to Cash: The Basics of Check Cashing Services

The idea of using and issuing check has gotten a notch higher. Now, people are no longer required to head to banks to have the check cleared, deposited, or encashed to the individual whose name bears it. A growing industry that offers check cashing services is now gaining ground to help people have a quick access to cash when a check has been issued. The money service industry has gotten larger and this is one of the latest additions to the range of services one can avail.

So, how does this check cashing system work?

Well, it is relatively simple. A person whose name appears on the check can go directly to any of these check-cashing providers. The business will then have to make the necessary verification of the identity. The person may be asked to provide at least two identification cards and/or a bank account. Upon verification, he will be asked to endorse the check and the business will then deposit the amount, less all the deductions and processing fee directly to the bank account. Most of the check cashing business also offer affiliate businesses such as payday loans, bill payments, and money order cashing. The processing fee may vary and some check cashing enterprises may likewise impose a minimum amount.

Advantages of using Check Cashing Services

• This method is advantageous to people who do not have any existing bank accounts. As banks tend to be relatively stricter in handing out cold cash, having to endorse the check to a legitimate business would be more convenient.

• Queues in banks can be extremely time-consuming. Having to spend the entire morning at a bank is not only inconvenient but would require so much effort especially for those who work during banking hours.

• You can have quick access to your money even on a bank holiday. Most check cashing businesses are open seven days a week. They also usually have online portals where your questions can be accommodated any time of the day.

• If there is no check cashing businesses close to your house, simply head to Walmart. They offer check encashing for a minimal fee. A $3.00 fee is deducted to checks, payroll checks, money orders, and tax checks amounting to $1000 or less. For larger amounts, a fee of $6 is deducted. Note that they only encash checks with a maximum amount of $5000. If you live far from Walmart, you may opt to check with major retailers close to your area such as 7-11.

• If you do not have a bank account where the money can be deposited, ask if the check cashing business offers pre-paid card loading system. This is another option. However, this would require activation fee of usually less than $10 per card.

Disadvantages of using Check Cashing Services

• The fees may be quite high. For instance, losing 3% of the check amount of $5000 could instantly mean losing $150 dollars instantly.

• Bounced checks can result to a major legal problem for the person who requested for the check endorsement.

• Not having the right identification card may likewise be a problem. Misspelled names and illegible penmanship on the check can also be questioned by the cashier.

How to put up a check cashing business?

As any type of business, registration and licensing are paramount. There are federal policies as well as local or state policies that have to be considered. As a general policy, any business that entails cashing for a fee fall under the Money Service Business or MSB. The business is required to use approved and checked bookkeeping methods. You are likewise expected to provide your list of agents and any reports that may be associated to money-laundering cases. Having a lawyer to help you with the process is highly recommended. Note that aside from the federal and state laws, the business must comply with the Patriot Act and Bank Secrecy Act as well.

As part of the business establishment process, you also need to identify your own check policy, especially if you intend to branch out someday. The policy fundamentally offers a quick list of which type of checks are you willing to cash out. Examples are money orders, payroll, personal, business, out-of-state or government checks. On top of these, you also need to identify which ID you would require your customers to show – driver’s license, government-issued, passport, or company ID’s.

As money service businesses are also considered high risks, you only need to conceptualize which type of cashing method you would employ. It is encouraged that ‘cold cash’ not be used for any transaction. Debit cards and other PIN-enabled cards are good options, too. Loading ATM or pre-paid cards are advised. In addition, ensuring that your establishment is equipped with 24-hour security system, surveillance cameras, sensor-sensitive doors, and bullet-proof glass would also help.

Bankruptcy Prevention

Bankruptcy can be America’s best weapon in the rebuilding process. Looking on the bright side you realize there are many things in life you can do to prevent decisions from repeat results.

Chapter 11 bankruptcy is the most common form of bankruptcy. When you file for bankruptcy you will find it not be an easy choice. CEO’s and their companies are similar to father’s and their family. Bankruptcy is the last thing you want to do for a company because everything is lost. The biggest problem associated with bankruptcy is the number of jobs which were lost. Job loss becomes a huge problem when there is no company to replace the company. When you decide to make big plans future companies best interest to plan thoroughly. Bankruptcy is usually caused by lack of a relevant business model.

When you planning your company your business model the best thing you can have going forward. Business models are the only thing one can do when wanting to succeed in life. Unfortunately, there is no one size fits all business model. Personally, the best business model is the one which lack flexibility.

A business model which lacks flexibility prevents you from making too many decisions too quickly. When you make quick decisions you cause confusion at lose the trust of your market. There is a clever way to avoid losing a market with a simple mentality purchase investments. Purchasing investments are easy but difficult. Bankruptcy prevention can take place if you are willing to part ways the mega salaries.

Bankruptcy prevention will not be easy since there is no real way to execute the plan. However, you can actually take precautions when you build your business. Hiring the right people is the most important step when executing the right moves. One of the main culprits is usually change in consumer behavior no matter how great the company’s business model. As an entrepreneur there are so many challenges they quickly go up and they quickly go down. When you make the right call you can find breathing room.

In conclusion, you want to stay away from bankruptcy but then again so many good things come from bankruptcy. When bankruptcy happens you realize what on the books make have nothing to do with the inevitable. Bankruptcy is the greatest to shape the economy without it we would not be able to move forward. The best thing to in case of bankruptcy is accept and reward yourself. Never build a company on the number of employees but the number of value.