Benefits and Drawbacks of Bankruptcy

Written by John Mussi


Outlined below are some ofrepparttar benefits and drawbacks of bankruptcy. It should be noted that bankruptcy is not to be entered into without first having sought professional advice.

There is more to bankruptcy than as a way of finally putting an end to harassing debt collectors and creditors. One big side effect of bankruptcy being that your life is likely to be subjected to intense scrutiny.

These are some ofrepparttar 145744 benefits of bankruptcy:

Relievesrepparttar 145745 stress caused by dealing with numerous creditors.

Once a bankruptcy order is made, a third party takes overrepparttar 145746 administration, decision making and payment process ofrepparttar 145747 debts.

Creditors forced to recognise that they must accept less money than is owed.

Debtors typically pay less with a bankruptcy order than with an Individual Voluntary Arrangement.

Once discharged, most debts are written off and creditors cannot pursue them.

Here are some ofrepparttar 145748 drawbacks associated with bankruptcy:

The debtor will lose any realisable assets of value.

Ifrepparttar 145749 debtor owns equity in a home, this will almost certainly be sold.

If a business is owned, this could be sold and any employees dismissed.

Bank current accounts can be difficult to obtain.

It is a costly process. All fees forrepparttar 145750 insolvency service, courts and any trustee are taken out ofrepparttar 145751 debtor's assets.

If trying to obtain credit of more than £250repparttar 145752 debtor must disclose his status as an undischarged bankrupt.

Senior Life Settlements-A New Financial Dawn Emerges

Written by Jon Thomas


When delving deeper intorepparttar market-driven research onrepparttar 145743 myriads of reasons, motivations, and/or rationales for senior life settlements – seniors selling their life insurance policies have surfaced in recent years. According to studies by key industry players, policyholder rationales for selling life policies are to be identified on one of three levels, due to a combination of them OR influencers from all three levels working together to result in senior life settlement transactions:

Individual: cash-need for major expenses, outlived need for coverage, needing different coverage or features, financial distress

Family / Estate: Change in beneficiaries (e.g., divorce, death of dependents), Second-to-die policyholder (i.e., spouse) has passed away, material change inrepparttar 145744 value of estate

Business: Change in key executives / partners, change in succession plan (e.g., family business) or needing cash / seeking to monetize assets

(Source: Bernstein Research Call, Sanford C. Bernstein & Co., LLC, a subsidiary of Alliance Capital Management, 2005)

Other sources (Milestone Settlements, 2004) confirm that senior life settlements appeal as solutions to individuals most likely to consider a life settlement, because they, for one reason or another, no longer needrepparttar 145745 insurance they purchased. A number of reasons may include:

•Seniors whom have insurance and/or estate needs that have changed, making their current policy(s) inadequate or exceedingly adequate for their current or future needs •Seniors who are not satisfied withrepparttar 145746 performance ofrepparttar 145747 insurance product(s) they have chosen, or are aware of newer, better performing insurance products •Seniors who choose to realizerepparttar 145748 value of their policy(s) now, rather than continuing to pay on a policy they will never receiverepparttar 145749 benefits of •Individuals, or owners of a company, who own key man policies that are no longer needed, or elect to userepparttar 145750 sale ofrepparttar 145751 policy(s) to enhance a buy-out or create severance packages •Seniors who wish to live outrepparttar 145752 remaining years of life without a change in lifestyle •Individuals who need capital to pay for medical treatments or procedures •Any senior who realizes that there is now a greater tangible asset value to their life insurance policy, and wishes to take advantage of this added value

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