Related to Financial Planning – Bankruptcy

Posted by admin
on June 26, 2014

When can you be made a bankrupt?
When the amount of money you owe reaches an excess of $10,000 and you are unable to pay up. When this happens, a bankruptcy application can be made against you to the court. If the amount you owe in debt is below $100,000, you will be referred instead to the Insolvency and Public Trustee’s Office. There, you will be assessed and if eligible, you will be put under the Debt Repayment Scheme (DRS).

What happens when you are officially declared a bankrupt?
The Official Assignee (OA), which refers to the person in-charge of administering a debtor’s bankruptcy affairs, will begin by taking stock of all your assets that you have in your possession. Your assets will be sold off so as to pay your debt.
If you do still continue to have income while you are a bankrupt, you are required to declare and disclose it to the OA. A portion of your income will be channelled into the bankruptcy estate and will be used to pay off your debts.
Needless to say, bankruptcy is something you would really want to avoid at all cost, because it can change your life drastically and may even affect your friendships and kinships. Bankruptcy can cause you many unwanted worries and may even affect your career.

Restrictions during Bankruptcy:
• You will not be allowed to leave the country unless otherwise approved by the OA.
• If you are currently a public servant, you will not be allowed to continue. You will also not be allowed to take up public office.
• You will be relinquished of any company director position unless otherwised approved by the OA or the Court.
• You cannot sue any persons in court without seeking the OA’s permission (unless it is an action for personal injury).

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Financial Planning – 3 Steps

Posted by admin
on June 17, 2014

Taking charge of your finances is important because you will have a much better idea of where your money is coming from and going to. And also how much money you should and should not spend.

Below, we have identified three key steps of financial planning:

1) Identify both your short-term and long-term needs and identifying your goals.
– Short term needs are immediate necessities that you need in your life.
– Long-term needs may be things like getting a health insurance policy or paying for household expenses.
– Goals will be things you aspire to have such as a house of your own and how well you would like to retire.

2) Evaluating the resources you currently have to meet your short-term and long-term needs and to achieve the goals you have set for yourself.
– Your resources may come in many forms such as your income, your savings and even bursaries or financial assistance schemes that you qualify for.

3) Managing and growing your resources.
– Manage your resources by drawing up a plan. Always have a spending budget to ensure you do not overspend on unnecessary items.
– Grow your resources through investments
– There are financial products available for you to help you manage and grow your resources so that you can meet your needs and your goals.

Get started today and make sure you plan ahead!

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