A successful New York bankruptcy filing involves more than just signing a few papers and going about your business. An organization's primary responsibilities have changed and the business philosophy must change as well.

 

The Typical Business Climate

 

A private business is designed to generate profits for the owner. The culture of the organization is built around this idea of benefiting the business owner. All decisions are made for the owner's benefit, whether executives consciously recognize this or not.

 

In most cases, privately held companies issue stock and are owned collectively by hundreds or thousands of individuals. The average corporation in this country is all about what is best for the shareholders and not the executives. This means making decisions that increase stock price and generate dividends. If the management isn't doing things right, the major stockholders can vote them out and put in a team more to their liking.

 

But everything changes after a bankruptcy filing.

 

Duty to the Creditors

 

Part of the philosophy of bankruptcy filing is the corporation's change in duty. Chapter 11 bankruptcy is a commitment to the creditors. The organization is given some breathing room to get stronger financially, but their ultimate goal is to repay their debts.

 

This duty to the creditors supersedes the organization's duty to any shareholders or individual owners. Executives must put the creditors first, ahead of their own interests and those of shareholders. This means they must suspend dividend payments in order to pay debts down faster. Actions which might hurt stock prices should be taken if they will make it easier to pay creditors.

 

Of course the corporation may have other duties that are more important than what is owed the creditors. Tax obligations, legal liabilities and other responsibilities must be met as well.

 

Changing Corporate Culture

 

Businesses can't continue to operate as before after a bankruptcy filing. Past actions led to this state of financial need so changes must be made to ensure future profitability. However there is more to the situation. Officers have an instinctive reaction to preserve stock value, and that instinct must be overcome after a business bankruptcy.

 

Organizations that have emerged from bankruptcy filing successfully are those that have adopted a fundamental change in corporate attitude. They have worked hard to fulfill their obligation to their creditors, met the conditions of reorganization, and come out of bankruptcy stronger than before. Once Chapter 11 bankruptcy is complete, they return to their previous commitment to the shareholders.

 

Corporate officers who understand and embrace this change in philosophy have the best chance of success after a New York bankruptcy filing. Although it may be hard to adopt the new attitude, ultimately it is in the best interest of the shareholders. As the business recovers, share values become strong and shareholders benefit.

Financial reorganization is not a simple matter and any bankruptcy attorney in New York has plenty of stories of businesses that have tried to do their own bankruptcy proceedings and ended up creating more problems for themselves. Here are some of the more common issues a bankruptcy attorney in New York will warn business owners about.

 

Bankruptcy Doesn't Protect You Against Everything

 

It is a common belief that both incorporation and bankruptcy protect executives from personal responsibility for the business's debts. This is true for most things but there are cases where an owner's personal assets can be lost even in a corporate bankruptcy.

 

Businesses are expected to remain current on their payroll taxes and a bankruptcy attorney in New York can't erase unpaid corporate tax bills. This is especially true for payroll taxes deducted from employee paychecks. Not only will reorganization not eliminate those debts, but the owner can be personally liable for the expenses. In a large company this amount can run into millions.

 

Another situation to avoid is the appearance of fraudulently obtained debt. Floundering businesses often seek additional credit, hoping to shore up their finances before bankruptcy becomes necessary. During this time owners must be scrupulous about reporting the company's true financial situation. If any information is omitted or altered, even inadvertently, the government may claim the debt is fraudulent thus exempt from both bankruptcy and corporate protections.

 

Finally, some owners may develop personal attachments to corporate property such as a company vehicle. Transferring business assets to the personal possession of executives or their friends and family to avoid their loss in bankruptcy not only looks suspicious but will be discovered. It could lead to criminal or civil penalties.

 

Know What to Keep Current On

 

Even while engaged in bankruptcy proceedings, it is important to maintain certain payments. A bankruptcy attorney in New York can give a comprehensive list but several things top the list.

If a business lets liability or other insurance lapse during the proceeding, it will be very difficult to find anyone willing to cover the business after bankruptcy. As long as the business pays the premiums, the insurance company can't cancel the policy. Stay current or even pay ahead to ensure coverage is continuous during reorganization.

 

Many rental and utility agreements contain stark warnings about cancellation in the event of reorganization, but any bankruptcy attorney in New York can tell you these clauses are nearly impossible to enforce. However if you miss payments, they are likely to be less lenient than they would be with more solvent companies.

 

Look over the company's leased equipment. Maintain payments on equipment that needs to be retained after reorganization. Any items that won't be needed under the new structure should be returned to the leasing company. While this will incur a deficiency debt of the amount between the current value of the item and the current balance of the lease, this debt will be eliminated by the bankruptcy.

Mounting debt is a frightening situation to deal with. Situations beyond our control such as sudden medical expenses or a loss of income can cause debt to spiral out of control. Desperate borrowers may think their only way out is bankruptcy, but another option is consumer debt settlement.

 

The Problems with Bankruptcy

 

Chapter 7 bankruptcy, also called liquidation, means most of the assets of the borrower are sold off to pay as much of the existing debt as possible. Once the borrower's assets are gone, the remaining debt is forgiven and the borrower can start from scratch.

 

The most obvious negative effect of bankruptcy is the damage to the borrower's credit rating. The bankruptcy appears on the credit report for up to 10 years. The bankruptcy filing is a legal action which becomes part of the public record forever.

 

Borrowers must often give up control of their assets or finances to court-appointed trustees. For some the embarrassment of losing control of their financial futures is worse than the credit hit.

 

Consumer Debt Settlement

 

Lenders are willing to negotiate with borrowers and forgive much of the debt without the impact of a formal bankruptcy procedure. A lender would rather collect some of a debt than have it all wiped away by bankruptcy. Negotiating with a lender to reduce a debt is a process called consumer debt settlement.

 

Typically lenders will reduce a debt by 50% or more. The actual amount of reduction depends on a number of factors such as the lender's history, the borrower's financial situation and the negotiating tactics used. Two borrowers may get different deals in similar situations.

 

Consumer debt settlement when combined with credit counseling allows a borrower get runaway financial problems under control without the stigma associated with bankruptcy.

 

Hire a Professional Negotiator

 

Although it is possible for borrowers to negotiate their own consumer debt settlement, it is seldom a good idea. Most borrowers don't have the skill or experience to be strong negotiators. They don't have the industry knowledge to understand which borrowers will make a deal and which won't.

 

The best results are achieved when consumers use organizations with experience in debt settlement programs. These establishments understand the negotiation process and won't be intimidated by the tactics borrowers use. When a professional represents you, it changes the dynamic. Lenders treat consumer debt settlement professionals with more respect than they treat consumers and that leads to better deals in the end.

 

Whatever you choose to do, do something. The worst option for debt problems is ignore them. Take action to get control over your finances whether that action is cutting back on expenses to make debt payments, negotiating a debt settlement, or filing for personal bankruptcy. Once your debt problem is solved you can move on with the rest of your life.

 

Proper Fees for a Negotiator

 

When selecting a negotiator most settlement companies are most interested in getting lots of your money and as much money as possible upfront.  Beware of these type companies.  The best way to pay for professional negotiations is to pay a percentage of what they can save you as a result of the settlement.  This provides incentive to get you the very best settlement.

 

Secondly, look at the setup fee (sometimes called the program fee).  This fee should not be more than $500.  Many of the agencies that advertise on television and radio with slick commercials need to collect thousands of dollars from you upfront to pay for the advertising.  We have seen fees as a percentage of the total debt which is a very misleading way to calculate the fee. This method leaves you with the impression that the fees aren’t really that bad.  We have seen these program fees well over $3,000 in numerous cases.  Your monthly payment has to pay these fees before you can even start saving up funds to pay for your first settlement.

Everybody knows that we should start planning for our
retirement as early as possible and the days of the state
pension providing for us in old age are well and truly
behind us (in 2008-2009, the full basic State Pension is
just £90.70 a week for a single person and
£145.05 a week for a couple).

We'd all like to imagine that we'll be able to spend our
retirements sunning ourselves on foreign beaches or
pottering away in our gardens, but unless we make provision
above and beyond what the state offers, there's not much
chance of that.

So how much do you really need in retirement and what steps
should you take now to make sure you have enough?

How much will you need in retirement?

Of course the answer to this question will be based on your
own lifestyle expectations. If you want the sunny beaches
then you're going to need and awful lot more than someone
who is content with the pottering around the garden.

If you're just starting to consider a pension

If you're just starting to look at your retirement needs,
it's easy enough to plan out the amount that you'll hope to
have available to you in retirement - and then work
backwards to see how much you'll need to save each month to
achieve that.

For example, if you want an income of £35,000 a year,
an annuity at 7% would need a pension pot of £1/2
million to deliver that level of income. That doesn't
necessarily mean that you'll need to save £500,000
before you retire - interest on your pension fund through
saving and investments should help - but it does mean the
earlier you start the better.

The growth of pension funds can vary, as can factors like
inflation, but your independent financial adviser should be
able to help you get a good working figure to base your
plans on - and find you the best pension product to get you
started.

If you already have a pension

If you're already saving for your retirement through a
personal pension, stakeholder pension or SIPP of some
variety then it's important that you keep an eye on the
performance of your pension to ensure that your initial
calculations are still working out.

Many people are not aware that they can change their
pension arrangements and pension providers if their pension
fund is not performing as well as they had hoped - or not
on course to deliver the retirement income they need.

An independent financial adviser can help you shop around
for the best fund for you - and ensure you get the most
from your money.

If you're just about to retire

The decisions you make just before retirement can have a
huge effect on the amount of money you have at your
disposal in retirement. If you've been regularly paying
into a pension you have two basic choices; either buy an
annuity to provide you with an income for life or an
unsecured pension - whereby you take an annual income but
invest the remainder.

Even something as simple as choosing the right annuity for
you can make a massive difference to the amount of annual
income you can expect - so it's vital to get the best,
unbiased advice you can.

If you've already retired

If you have already retired then it's certainly worthwhile
taking an occasional look at your income and any other
savings or investments you may have. If their performance
can be improved then you'll see an immediate impact on the
amount you have to enjoy in your retirement.

No matter what your current situation, if you want to get
the most from your money in your retirement it's important
that you get the best possible advice and have access to
the best possible products - and the earlier you do that
the better.

An independent financial adviser, especially one who
specialises in retirement planning or has pension advisers
on staff, is well placed to deliver just that.

Real estate has challenges today, but those challenges do
not have to stop you from making money in real estate. A
ten year veteran real estate broker reveals insider secrets
on how to make money in any real estate market.

To keep expenses low you must be aware of your expenses.
Your expenses may be:

1. Property taxes
2. Insurance
3. Maintenance
4. Mortgage

Despite the fact that an investor is not eligible for
exemptions on income property, there are other ways to
decrease the property taxes.

The investor must first understand how property taxes are
calculated by the treasurer. To calculate the property
taxes, the tax rate is multiplied by the assessed value.
The tax rate consists of:

1. Police
2. Fire
3. Schools
4. Library
5. Trash removal
6. Health
The assessed value in most states including Indiana is some
variation of the market value for the property.

The investor can lower his or her property taxes his or her
property taxes by examining what the property is assessed
at. Filing an appeal is recommended when the property is
assessed for more than the investor paid for it or when the
property is assessed more than the current market will
bear. By successfully filing the appeal, the investor will
decrease his or her expenses thereby increasing profit.

The investor can save money on insurance, as well. The
investor can have a higher deductible. Unlike car
insurance, the investor does not pay the deductible first,
then the insurance pays instead the deductible is deducted
from the claim.

The investor can also reduce his or her replacement cost to
80% of the value; therefore, the investor will reduce the
premium for the insurance. This tactic is only advised if
there will be enough available after the deduction to pay
the property's mortgage and/or money available to start on
replacement of the property.

Still yet another way the investor can save money on
insurance is by changing insurance companies. Yes,
shopping around is another way to save money on your
premium. Use caution here make sure you are getting
similar or better coverage than you had before when
changing insurance companies for a lower premium.

By setting aside a certain amount from each rental payment,
the investor can reduce the cost of major repairs. By
setting aside a little of the rent, the investor can be
prepare for major maintenance issues.

Another way an investor can save money on maintenance is by
having a home warranty. To cover most major components in
the investment property, it is recommended to have a home
warranty.

Shopping around is always the best way to save money on a
mortgage.

Making and saving money in real estate is done by
researching and shopping around for the best rates and
values.

Any individual investor who has a successful real estate
investing business knows to never rely on the advice of
others or strictly upon the numbers given about a property.
Once a prospective real estate investment is located, a
close examination of the rental property's income,
expenses, cash flow, rates of return, and profitability are
always conducted.

Regardless what overzealous agents or sellers say, vigilant
real estate investing demands that the numbers are
validated.

To achieve this, smart investors rely on a variety of
reports and rates of return to measure an income property's
financial performance. And we'll consider several of these
reports and financial measures in this article.

Reports

The most popular report used in a rental property analysis
is perhaps the Annual Property Operating Data, or APOD.
This is because an APOD gives the analyst a quick
evaluation or "snapshot" of property performance during the
first year of ownership. Although tax shelter isn't
considered, an APOD can serve as the realestate equivalent
of an annual income and expense statement if done correctly.

A Proforma Income Statement is also popular amongst
analysts. Although comprised of speculated numbers, a
proforma provides a useful way for real estate investors
and analysts to evaluate an investment property's future,
long-term cash flow performance. Proformas regularly
project numbers out over a period of ten to twenty years.

Certainly one of the most important documents for an
investment analysis is the Rent Roll. This is because a
property's sources of income and income stream are vital to
making wise investment decisions. A rent roll typically
lists currently occupied units with current rents along
with vacant units and market rents. Rents shown in the rent
roll should, of course, be confirmed by the tenants during
the due diligence period.

Rates of Return

Capitalization rate, or cap rate, is one of the more
popular rates of return used by investment analysts. This
is because cap rate offers a quick first-glance look at a
property's ability to pay its own way by expressing the
relationship between a property's value and its net
operating income. Cap rate also provides real estate
investors with an easy method for comparing similar
properties.

Cash-on-cash return measures the ratio between a property's
anticipated first-year cash flow to the amount of
investment required to purchase the property. Though cash
on cash return does not account for the time value of money
or for cash flows beyond the first year, this shortcoming
is often overlooked because it does provide an easy way for
individual investors to compare the profitability of
similar income-producing properties and investment
opportunities quickly.

Internal rate of return is more difficult because it
requires a computation for time value of money which in
turn requires a financial calculator or good real estate
investment software. Nonetheless, it is widely used by
analysts because internal rate of return reveals in
mathematical terms what an investor's initial cash
investment will yield based on an expected stream of future
cash flows discounted to equal today's dollars. In other
words, internal rate of return converts tomorrow's dollars
to today's dollars and then computes your return on
investment.

Here's the point.

If you're planning to make an investment in real estate, be
sure to do your homework and conduct a thorough real estate
analysis. Create the reports and returns so you can examine
them in the light. This is the only reasonably certain way
of making the right investment decision on any prospective
real estate investment. If you do your property analysis
correctly, you'll know whether the investment makes good
financial sense (or not) and almost certainly guarantee
your real estate investing success.

Credit has been under attack lately, and in a state of
change. Thus, the new "Red Flags Rule" that went into
effect on May 1.

This rule directs car dealers to play "snoop" in order to
prevent ID theft. So, if you apply for a loan to buy a car
- new or used - the dealer may ask you questions that you
feel are none of his or her business.

For instance: "Do you always use your middle initial?"
"What's the balance on your American Express Card?" These
are questions designed to trick someone who isn't you.

Here's how: They ask about the American Express Card
because your credit report shows you don't have one. That's
something you would know, but a thief probably wouldn't
know. So if "you" stutter and say you aren't sure, because
your spouse is the one who keeps track of such things, it's
a clear sign that "you" aren't you.

Dealers are also looking for other inconsistencies, such as
a name and address on your application that doesn't match
your driver's license or the address listed in your credit
report.

Dealers will now be required to document the steps they've
taken to assure that the person buying the car is the same
person whose credit is being used for the car loan - or
lease. If they fail to do so, they will be subject to fines.

So that you don't become suspect when using your own
credit, make sure to take these steps:

If you move, be sure to notify all of your accounts and get
your driver's license updated. If you move to a different
state, get a new driver's license in the new state Check
the photo on your driver's license - if it doesn't look
like you, either request a new photo or take along
additional photo ID that does look like you. Driver's
license photos are notoriously bad to begin with - but if
you've changed your hair color, shaved off a beard or
moustache, lost or gain weight, or have just recovered from
a long illness, the picture might not resemble you at all.

Use of stolen identity at car dealerships is relatively
rare - but now that the definition of "financial
institution" has been expanded to include any business that
includes loans and leases, dealerships are subject to the
same regulations as other financial institutions. Your
credit's your life, treat it as such.

It pays to be careful when guarding your private information but sometimes even the best efforts aren't enough. If you have had your identity stolen and are a victim of credit theft, you need to deal with the situation before it gets worse.

The national debt in America is at an all-time high. Millions of Americans are struggling to make bill and loan payments and still have enough money for day-to-day living, and the current economic recession is expected to last well into 2009. So how should people cope with the recession and the debts associated with it?

t almost goes without saying that in today’s current worldwide economic crisis, many people are in debt. Credit card bills, mortgage payments, car loans, college loans, and more can add up, making people feel like they’ll never be able to be debt-free. Credit counseling, debt settlement programs, and consumer debt settlement are some of the solutions people seek to fix their debt problems. Qualified professionals can negotiate with creditors to meet in the middle and agree on a reduced balance that will be regarded as payment in full.