5 Financial tips for the last week of December 2012

January 09th 2013

Check out the 5 financial tips for the last week of December 2012

Tip no 1: Always include the operational costs in your real estate business plan.     

You need to include operational costs in your real estate business plan. Operational cost can be divided into 2 sections – fixed and variable. Fixed cost remains same irrespective of the fact that the business stays afloat or remains closed. On the other hand, variable cost can increase depending upon the level of production. You also need to estimate how much will be your equipment operating costs. This is mainly the cost of operating the equipment.

Having a fair idea about the operational costs will enable you draft a realistic and practical real estate business plan.

Tip no 2: When you are in the process of filing bankruptcy, list your exempt property under Schedule C.    

You need to enlist properties that are legally exempt in Schedule C. This is an important form and you need to fill it out irrespective of the type of bankruptcy you file. You can get the form from the official website of US court. If you need any help in filling out the form, then browse through various websites. You will get detailed instruction on the way you should fill out the Schedule C form.

There are certain things that you need to state in the form. These are (a) description of the asset (b) law pertaining to exempt property (c) value of the exempted property, etc.

Tip no 3: Tax liens are considered as secured claims while filing bankruptcy.        

Creditors file claims to receive payments on the debts on which the bankruptcy petitioner owes money. Only a few claims will be paid, that too partially. All claims don’t receive similar kind of treatment. Secured claims are given the first preference by the bankruptcy court. These claims are likely to be satisfied first through bankruptcy.

Usually, secured claims are backed by the asset of the bankruptcy petitioner. Creditor has a lien on the asset of the bankruptcy petitioner. The creditor can use the asset to recover the owed money. Tax lien is regarded as secured claims while filing bankruptcy.


Tip no 4: While dealing with illegal payday lenders you need to revoke ACH authorization as well as voluntary wage assignment. 

Illegal payday loan lenders often try to take away money from the account of the borrowers when they stop making payments. Moreover, they try to withdraw more money than what they are entitled to. Due to this specific reason, borrowers should revoke ACH authorization after completing the necessary paperwork. The illegal payday loan lenders won't be able to withdraw money from the bank account of the borrower.

There is yet another thing which a borrower should do while working with an illegal payday loan lender. He should revoke wage assignment after talking with the HR. The illegal payday loan lender won't be able to garnish the wage of the borrower.


Tip no 5: CFSA affiliated lenders are required to offer every individual borrower at least one EPP every year.

If a borrower fails to make payments on a payday loan, then CFSA affiliated lenders need to give the EPP option to borrowers. This option is very beneficial for the borrowers since they can repay the loan within a certain period of time. Borrowers can opt for this option only once in a year. Usually, borrowers get to pay off the loan in 4 equal installments. Borrowers won’t have to pay any extra money for taking advantage of this option. However, if the borrowers fail to make payments as per the EPP, then the lender can ask them to pay a fee.

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