3 Myths About Car Insurance: Debunked!

Posted by on Aug 7, 2015 in Finances | 0 comments

When getting car insurance, there are a lot of facts that often get tossed around whenever debating about whether or not you should get insurance in the first place. Some facts may scare you off of it, some might get you to go way over budget on coverage that you may not need. Here are a few myths about car insurance, debunked for your benefit!

Myth 1: The color of your car matters? False.

Did you know that a majority of car colors were only created due to the rise of female drivers? While these are pretty dated facts, it was first noted that the various colors were offered merely to provide a more vain option for pickier people and, back in the day, some women were more prone to pick based on look and color while men were more knowledgeable with what went on under the hood. While insurance companies really couldn’t give a hoot on whether or not your car is in the color of the blood of angry men, they do care about the kind of car you have as most policies will show that sports cars tend to have higher rates than, say, sedans do.

Myth 2: My lifestyle can determine my rate? True.

Since quite a lot of coverage policies do have certain specifications for possible circumstances, not everyone has the same kind of rate and policy. If you are a younger driver or one with less experience then, chances are, you would have a higher rate. Some companies also give higher rates to men rather than women.

Myth 3: I don’t need car insurance? False.

There are some people who can get away without car insurance; surely I could too, right? Wrong. While most times it is a legal requirement for people to make sure that their vehicles are insured, it is also the most recommended move for you to make. From information taken from the website of Habush Habush & Rottier S.C. ®, you could be the best and most law-abiding driver on the road and still need insurance because not everyone on the road will make the same safe decisions that you do.

Insurance is necessary as an investment for both your property and for yourself as your own health insurance may not suffice in the event of motor vehicle accident.

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Chapter 11 Bankruptcy: A New Chance for Businesses at Achieving Profitability

Posted by on Oct 26, 2014 in Finances | 1 comment

Insolvency puts the existence of any business firm at risk and no firm will definitely want to end up losing more money than gaining profits. But when debts reach an amount which a firm can no longer pay, then the firm will have to find a way immediately to save itself and not cease operations.

There are actually numerous legal options that individuals and businesses can pursue to get out of debt and regain solid financial footing; one of these is bankruptcy.

The US Bankruptcy Code actually offers people and companies several paths which will help them rise up from a debt crisis. These paths are contained in various chapters of the Code and each chapter is specifically calculated to address the unique tight spot the debtor is suffering from.

Concerning businesses particularly, there are three bankruptcy options these can choose from:

  • Chapter 7, which is a liquidation bankruptcy that requires the business’ operation to stop and all its available assets, sold (by a court-appointed trustee), with the earnings from the sale distributed to creditors.
  • Chapter 13, which is reorganization or restructuring bankruptcy designed for sole proprietorship business structures (this bankruptcy chapter may be filed by individuals with an unsecured debt that is less than $383,175, or secured debt below $1,149,525. These are the present limits set by the federal government, which has complete jurisdiction over bankruptcy matters). In this chapter, the court will require the restructuring of the debt payment scheme, from three to five years – after which all debts should already have been fully paid.
  • Chapter 11, which is actually the most expensive, time-consuming, complex and riskiest bankruptcy chapter, but also the only option for sole proprietors, whose debts exceed the limit set in Chapter 13, as well as for small businesses structured as corporations, limited liability companies or partnerships which owe overwhelming debts but would not want to cease operations (giant corporations, like United Airlines, K-Mart and General Motors have also sought protection under this chapter).

Chapter 11 allows debtors to restructure their finances through a bankruptcy court-approved reorganization plan. This restructuring is specifically intended to keep the business alive and operational (but under the court’s close monitoring), pay creditors and regain profitability. Debtors, however, also have the option of selling a few or all of their assets to downsize their business, if they need to, or to be able to pay some of their debts.

Once Chapter 11 bankruptcy has been filed by a debtor (whether an individual or a business firm), an automatic stay of outstanding debts is provided by the law. The stay will prohibit creditors from making actions, such as collection attempts, foreclosures or repossession of the debtor’s property. The bankruptcy law, however, can prove to be too complex to many debtors; thus, seeking the assistance of an exceptionally competent bankruptcy lawyer will definitely be in their best interest.

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