There are some common myths about bankruptcy that many people hold to be true but they simply aren’t and you may even be surprised to find that you hold beliefs about bankruptcy that aren’t true as well.
Myth 1: Bankruptcy fixes everything
Many people hold the belief that bankruptcy will fix everything but that simply isn’t the case. In 2005 congress changed the bankruptcy laws which made things more strict when it comes to debt forgiveness and bankruptcy. Prior to 2005 the same truth was still in play. Going bankrupt does not fix everything to do with financial woes. It was never put in place for that purpose to begin with. If you are considering filing for bankruptcy, talk to a good Arlington bankruptcy attorney to see if bankruptcy is the right option for you before you actually file. Sometimes bankruptcy is not the best option.
Myth 2: If You charge up a storm right before filing you won’t have to pay
Some people believe if they are going to file for bankruptcy that they can go on a shopping spree right beforehand and be absolved of their shopping spree debt. That is considered fraud by the courts and fraudulent debt is not forgiven in bankruptcy proceedings. So be careful not to get caught in this myth. It could come back to bite you.
Myth 3: Bankruptcy Clears All Debt
Another common myth believed by people is that a bankruptcy will clear all their past debt. This is not the case. Certain debts are not forgiven when filing for bankruptcy. These include student loans, past due taxes, fraudulent debt, alimony and child support and even restitution for a crime ordered by a court are all examples of debts that will not be removed by filing for bankruptcy.
Estate planning can be complex or it can be simple. The factors that determine how complex your estate planning will be are the diversity of assets and how you want your assets handled when you are gone. You can have a simple base of assets with complex plans for their use after your passing or you may have a diverse array of assets with a simple plan for their use after you are gone. Whichever situation you find yourself in, you should find a reputable Katy TX estate planning attorney to help you with your estate planning and here are some tips to make the process smoother.
Start with a will
Start with a will and don’t forget to include who will get the items that aren’t considered valuable like that piece of jewelry that has been in the family since your great-grandmother gave it to your mother or that vintage collection of oil cans sitting in the garage. Even if they don’t have considerable monetary value, determining who should get the items with sentimental value will ensure they wind up in the hands of the right person decided by you prior to your death. If you don’t indicate who gets those items, the court will decide and the bickering among family members will most likely become heated. The will isn’t just about splitting up the items with monetary value.
If you believe you will be hit hard with estate taxes or that the beneficiaries of your assets will be hit hard with income taxes upon receiving the assets, talk to your estate planning attorney about setting up a trust to help minimize tax burdens. This may not be suitable for your situation and that’s why you should look to your estate planning attorney for guidance to help minimize any taxes that will eat up the value of assets left behind. Just let your attorney know that taxes are a concern of yours and they will advise you on the best course of action.
There’s no denying that the laws governing our society have changed significantly in the last ten years to encompass digital media and other technological advances that weren’t around a few decades ago. With over a billion people worldwide using social media platforms like Facebook alone, not to mention the hundreds of millions of profiles owned by people worldwide on Twitter, Linkedin and other social media outlets, the laws are starting to catch up when it comes to governing the ownership of these social media profiles upon death.
Lawmakers in New Hampshire are leading the way in this largely uncharted territory of social media and the legal repercussions of what happens to someone’s profile once they die. New Hampshire isn’t alone in addressing these issues. Idaho, Indiana, Oklahoma, Rhode Island, and Connecticut also have legislation in the works that addresses issues like cyber-bullying and who gets control of accounts once someone dies. Most of the legislators are pushing for ownership of these accounts to be passed to the executor of the estate in the case of death.