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How To Get More For Your Property

If you’re looking to sell your property but want to ensure you get the best possible valuation, you’re definitely not alone. Between December 2019 and December 2020, over 619,000 residential properties were sold, the government previously declared on gov.uk.

In order to achieve an excellent valuation, you’ll want to consider the following factors. Neglecting them can have far-reaching consequences, so even if you think they do not immediately apply to you, knowing what your buyer is looking for can be invaluable knowledge.

  1. Kitchen & bathrooms

When a buyer is researching a property, the first factors they will often look for are the number of bathrooms and the quality of the kitchen.

Whether the bathrooms are en-suite, how they are spaced out around the property, and how many there are will be taken into account, so it is important to be prepared. If you are looking to improve the valuation of your property, consider adding an extra bathroom if necessary, or turning an existing bathroom into an ensuite. Even a simple change can make all the difference.

As for the kitchen, ensure that appliances are modern, and the room has a bright, airy quality. As plenty of time is spent in the kitchen, you’ll want to make sure that it gives a great first impression. Even if the kitchen is not going to be furnished, making sure there is plenty of space and good access to adjoining rooms is a definite plus.

  1. Presentability and maintenance

One of the first tasks to undertake when preparing a property for valuation is ensuring it is properly cleaned. This extends to more than just removing clutter and taking out the rubbish, however. 

Make sure to keep a keen eye out for any potential signs of mould, mildew, or dampness. Often these can be indications of a much larger humidity or ventilation issue. Addressing this in advance can help you save time and money. If you can see it, so too can the person providing the valuation.

Presentability also extends to the outside of the property. If there is a garden, is it properly maintained? First impressions matter. The interior of the house can be lovely, however an unkempt exterior can leave a bitter taste in the mouth of your buyer.

  1. What is your properties’ unique selling point?

As the seller of a property, you want to capitalise on anything that can give you the edge, and increase its value. Consider what makes your property truly stand out.

Is it the open-plan design? The modern interior? Perhaps the traditional, historic furnishing? No matter what it is, large or small, it’s likely that your property has something truly special to offer. 

If you can find a way to highlight your properties’ unique selling point and make it the focal point, you’ll be on your way to achieving a better valuation for your property in no time.

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What Causes Businesses To Go Bankrupt

Bankruptcy is one of if not the worst thing that could happen to a business.

Not only can it spell the end for the entire company, but it can affects employees, partnering businesses and directors. However, while bankruptcy is a common term, many still aren’t aware of the primary reasons that can cause it.

If that’s you, please read on as we discuss what causes businesses to go bankrupt.

Top reasons Why Businesses Go Bankrupt

In 2019 over 10,000 businesses in the UK went bankrupt. And that was in a pre-pandemic world.

In the US (as with the rest of the world), the picture looked even bleaker in 2020 and moving into 2021. Covid 19 played a role in a number of big US businesses declaring bankruptcy. While in the UK, it is estimated that 900,000 small businesses are at risk of failing due to the pandemic.

Covid 19 aside, there are some other common reasons why businesses go bankrupt.

Financial Troubles

If a company can’t maintain a positive cash flow and generate enough revenue, it could negatively affect its financial stability. For startups and small businesses, not receiving enough or, worse, any funding from VCs or investors can lead to failure, thus bankruptcy.

And it’s not just funding. Startups need to keep an eye on expenses to make sure they don’t start accumulating debt.

Unwise Corporate Decisions

As a business is about management, making bad decisions and unwise strategies can lead to bankruptcy. It could be a pivot to a new market, manufacturing processes, or focus for a particular goal. Whatever it may be, every decision counts and can affect its stability and position in the market.

Having bad agreements in place or not putting agreements into writing can cause significant legal headaches. Agreements could be with partners, directors and employees.

Market Instability

Since the market is volatile, it’s uncertain what product will boom next, what company will rise, and what type of business will hit a snag. Accordingly, new competitions, failure to adapt to the market, and sudden economic changes can potentially make a business close.

For businesses in the UK, much instability was (and still is) caused by Brexit as businesses and consumers try to navigate any new regulations around trade.

Some startups have already reported significant increases in paperwork due to Brexit.

Tax Issues

If a company can’t manage its tax correctly, it could highly affect its financial position. Filing late or inaccurately can incur additional fees and penalties. Lastly, due taxes in the past months can add up.

Accidents

Accidents like fire, theft, storms and other external causes can, unfortunately, lead a business to go bankrupt. When an accident destroys the office, damages tangible assets, and renders essential tools and machines useless, it can take time for a company to recover. While some can survive with insurance or investor’s help, many will still choose or cannot take action to avoid bankruptcy.

Final Words

Bankruptcy can happen due to financial issues, market instability, tax irresponsibility, ineffective strategies, and unwanted accidents. While many businesses gave up, others also strived to stay afloat. With careful planning, good market strategy, punctuality, and considerations for the future, a company can succeed and have enough resources to avoid bankruptcy.

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Is It Better To File Bankruptcy Before or After Divorce?

A divorce can be a challenging experience in your life. It can be even more stressful if you are going through bankruptcy at the same time.

Whether you should file for bankruptcy before or after your divorce will depend on the situation. You could go through both at once, but some jurisdictions will focus on one point over another.

When To File For Bankruptcy Before a Divorce

  • You can file for bankruptcy first if you have substantial marital debts. A bankruptcy can cancel out some of these debts that would be divided during the divorce proceedings.
  • Filing first is also best if you have various properties that might be divided between you and your partner. By liquidating some of these assets, the divorce process will be easier to manage and less expensive.
  • You can also file before the divorce if you have concerns about legal fees. Filing a joint bankruptcy will be more affordable than if each person filed separately.

When To File For Bankruptcy After a Divorce

  • You can file for divorce first if you could qualify for a Chapter 7 declaration after the divorce. You will qualify for Chapter 7 if your income is below the median in your state. It is easier to get here if you don’t earn as much money as your partner.
  • You may also have an easier time paying off a Chapter 13 declaration after a divorce, as the amount you would spend each month in the repayment process will be minimal. This point works if you earn a consistent income and have enough money on hand to handle some of these expenses.

Check the total values of your debts and assets before deciding when to file for bankruptcy. Look at the types of debts you have and your income to see what can work the best.

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How UK Startups Can Avoid Bankruptcy?

Careful prioritisation of products and services, controlling your expenses and getting the right legal advice from the start are all great ways to avoid bankruptcy for startups.

Ways Startups Can Avoid Bankruptcy

1. Control expenses

Spending less than you earn sounds like a simple principle, but it’s easier said than done. There are a number of up front costs including fees to suppliers, premises and even production costs of new products.

Keep an eye on your expenses daily, weekly and monthly – ideally planning ahead to see what you are likely to spend. If you aren’t a numbers person, it’s worth getting someone else to look at it for you.

Keep the non-essential gatherings, events, and other related expenses to a minimum. Lastly, it’s also better to check whether the office upgrades, service subscriptions or memberships and in-house meals are essentials that add value or not (probably not).

An accountant for startups can help you control your expenses.

2. Prioritize improving products or services

Ensuring the quality of products and services is also a way to avoid bankruptcy. When you provide an exceptional product or service, you can exceed the expectations of consumers, resulting in more revenue. Additionally, this will help you to stay competitive in a challenging industry.

While improving the products and services are the primary goals, understanding the current and future market trends is also essential. You can learn about what is in demand or is growing in popularity to adjust advertising, production focus, and build out a plan accordingly.

3. Repay debts

Debts are a big reason why companies go bankrupt. Due to high payment responsibilities and market struggles, founders often sell or give up their businesses to fulfill debts. Furthermore, while established companies can manage these obligations well, startups might find it challenging and overwhelming, especially in the later periods.

Instead of suffering the consequences, it’s best to prioritize paying debts, especially secured or debts with collateral. Also, clearing ones with higher interest first would help in saving money in the process. However, if it’s possible to avoid borrowing all together, then that’s always a good idea.

4. Get the right legal advice

An experienced commercial solicitor can provide your startup with the best legal advice from the start, ensuring you have the right contracts in place with partners, suppliers and customers as well as advising on how best to go about getting funding.

You may even need advice on how best to structure your startup for success.

For commercial legal advice check out Crest Legal.

5. Hire and keep excellent employees

Take care of the existing employees. If a startup has excellent employees, it can efficiently attain goals, deliverables and compete in the industry. Good employees contribute to a great culture.

If a company can’t provide high salaries to attract top-performing prospects, offering equity or stock grants with a lower wage is a compelling offer. Lastly, having an ideal environment, ethics, and perks, makes employees happy, satisfied, and excited to work daily.

Create an environment where staff care!

6. Take action quickly

Taking immediate actions to existing and possible issues and matters helps in avoiding bankruptcy. While solutions are not always quick to arrive at, having enough time to handle things allows a startup to adjust and develop plans. Also, this way, one can evade future repercussions that can affect the business. Finally, ensuring deliverables, fulfilling payables on time, and staying on track helps a startup survive, grow, and succeed.

Achieve Startup Success

Running a startup is both a challenging and rewarding process. While bankruptcy can arrive at almost any business, controlling expenses and debts, resettling contracts, making use of assets, and having an excellent workforce helps avoid it. Above all, taking immediate actions and ensuring products or services quality are both recipes for success.

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Does bankruptcy clear divorce debt?

When a divorce happens, the spouses often have a divorce agreement, a marital settlement, or any contract of the sort. These types of arrangements mean financial responsibilities for the parties involved. That’s why it is a common sight to see bankruptcy happen not long after a divorce.

However, because bankruptcy means being excused of many of your debts, does this mean that you are also relieved of your divorce settlement? The answer is YES.

Any financial settlement enforced by the court can be jeopardized by bankruptcy. Divorce is no different. You can discharge your separation agreements by filing for a Bankruptcy Chapter. There are two of them, Chapter 7 and Chapter 13.

Choose Chapter 13

Here’s why.

Without a unique argument, which is mostly very challenging to have, Chapter 7 will not pardon you of any dissolution-related debts.

On the other hand, Chapter 13 bankruptcy, also referred to as a wage earner’s plan doesn’t ask for that. And, it covers various types of debts.

Responsibilities That Will Remain

Even with all its perks, Chapter 13 doesn’t free you from all of your obligations. Here two of the most common responsibilities you can’t escape from.

Child Support

Most of your fiscal responsibilities as a former spouse may go away, but your accountability as a parent stays. Child support is a priority debt that can’t be diminished.

Alimony

Alimony, the financial support that the court orders a person to provide for their spouse after a divorce will also remain. Any debt in the nature of support, maintenance, or alimony is excepted from discharge.

Bankruptcy Validity

Just like all cases, the court needs to make sure your bankruptcy is valid before they approve of it. Do not abuse the function of Chapter 13 bankruptcy. Because if you do, the court will cancel your case. This will consequently allow your former spouse to make his or her claims.

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How does bankruptcy stay on your credit report?

Being bankrupt is such a mess and a hassle for an ordinary person like you. Bankruptcy is caused by the non-payment of debts of an individual or entity to their lenders or official receivers. The debtors filed a relief in some or most of their unpaid or unsettled debt.

You are also wondering if how long does bankruptcy stays on your credit report. You are worried that if you don’t pay your debts on time, you will not lend again or apply for mortgages and other related matters. Sometimes, your new employer or new landlord will ask for your credit profile to know if you can pay. In the United Kingdom, your bankruptcy records will show up to 6 years. Although, for usual circumstances, your history will stay in your profile for 12 months after you have correctly settled your unpaid dues. Your lenders will take you to court if you are unable to determine your debt, and they will require you to pay it, therefore, prolonging your bankruptcy record in your credit profile

How long does bankruptcy stay on your credit report.

After 12 months of bankruptcy

In the United Kingdom, particularly in England, Wales, and Northern Ireland, your lender will let you pay for 12 months to settle your dues. During these months, you are restricted from borrowing and give ample time to pay. After paying for 12 months, your lender will discharge you from bankruptcy, and therefore, your record is removed from your profile. Although, you take note that you should be honest about your previous financial history as some companies require you to disclose your current financial situations.

After 15 months of bankruptcy

If you are dishonest with your financial statements, your lender or official receiver will take you to court to have you included in the Individual Insolvency Register (IIR). IIR is the list of bankruptcy restrictions and debt relief register in the UK, which will let you pay your dues after 15 months from your date of bankruptcy.

After 27 months of bankruptcy

If you cannot pay your dues after 27 months of bankruptcy, your lender will put more restrictions on you. They will put up your property for sale, and worse, they will decide more on what to do with your property every after nine months should you continue to break their rules on payment.

After six years of bankruptcy

Dishonesty and breaking your lender’s rules will not do you good. After six years of non-settlement of your dues, your lender will apply for Bankruptcy Registration Undertaking (BRU). BRU is an order where the lender will further give restrictions to you for two to 15 years, depending on the severity of your disobedience to your lender.

Your bankruptcy records will stay in your credit report for 12 months up to 6 years, depending on the severity of your actions to your lenders or official receivers. You should settle your debts with your lender within 12 months of your bankruptcy so you will be discharged after. Therefore, less hassle and worry for you should you decide to borrow money again.

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What Is the Downside of Filing For Bankruptcy?

Filing for bankruptcy can help you discharge your debts and will produce an automatic stay against creditors. Some of your debts will also be written off after your bankruptcy is discharged.

But there are problems that come with filing for bankruptcy. Here are a few of the more prominent concerns to note before filing:

  1. You could lose various assets in court. A bankruptcy court can seize assets like a car or a house. The court could sell these items to pay off your creditors, especially if they are valuable enough.
  2. It may be difficult for you to obtain a loan, a mortgage, or a credit card after declaring bankruptcy. Your credit score will experience a substantial hit.
  3. You might also struggle to find a job or a new home. Employers and landlords might notice a bankruptcy in your name and will ask about the situation at hand. These people may find you irresponsible, reducing your risk of being accepted as a tenant or landing a new work position.
  4. You cannot discharge all your debts through bankruptcy. You cannot discharge student loans, alimony, child support, or any criminal restitution charges.
  5. Your bankruptcy will stay on your credit report for years. It can remain for at least six years in most cases. The timeframe will vary by state or country, but it can be extensive.
  6. The only financial services or products you will qualify for will be more expensive ones. You can find unsecured credit cards and other items that can help you rebuild your credit. But these often come with exorbitant fees and lofty interest rates.
  7. Your bankruptcy will be disclosed to the public as part of your record. You may request a court order to avoid releasing your address data if you are concerned about being a victim of violence. You’d have to provide proof of your concern in this situation.

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Difference Between Bankruptcy and Insolvency

Bankruptcy and insolvency are related. Most people who find themselves in either state are able to address their finances in such a way that they eventually leave these situations behind them. This article will explain how bankruptcy and insolvency are different.

Chief Difference Between Bankruptcy and Insolvency

Bankruptcy is used to refer to a state that an individual is in, where they cannot repay their debts to their creditors and are seeking relief from all or some of those debts. Insolvency is similar but it is used for partnerships and limited companies. In fact, insolvency can be used to accurately describe all types of financial failure.

Types of Insolvency

With insolvency, a company or individual is unable to pay their debts when they become due. if two partners in a business are unable to pay the debts of the business, they could be described as insolvent but they could not jointly be described as bankrupt. If a public or private company has liabilities that exceed what they own, they are described as insolvent.

Liquidation is a particular type of insolvency that is used for limited companies or partnerships when they can no longer pay their debts. The company is brought to an end and its assets are redistributed. Administration and debt relief orders are other types of insolvency which are applied to businesses.

Personal Insolvency

Bankruptcy is not the only type of personal insolvency. Other kinds of personal insolvency include debt management plans and individual voluntary arrangements. Some people try to avoid bankruptcy and enter into a debt management plan.

A debt management plan doesn’t have the negative effect on their credit that bankruptcy does and they can often get back on a solid financial foundation more quickly. Bankruptcy involves legal proceedings and you can ask a lawyer who specializes in the area for help with the entire court process.

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Bankruptcy Advantages

Sometimes it’s difficult or impossible to avoid a personal or business financial crisis. In some cases, your last resort for relief may come from filing for bankruptcy.

Are you unable to meet your financial obligations that you risk wage garnishment? Are you receiving harassing calls from creditors or facing lawsuits for unpaid debts?

If so, you might want to consider declaring bankruptcy.

Well, here are the bankruptcy advantages:

1. Trigger the automatic stay provision

The provision temporarily halts actions by the aggressive creditors, collection agencies, and government agencies to recover the money you owe them in debt.

Once you’ve been granted an automatic stay, the creditor won’t call you again, send any letters, file a lawsuit against you, or repossess properties you put up as collateral.

A bankruptcy order can also prevent foreclosures, evictions, and wage garnishments.

However, certain exceptions may apply.

2. It is possible to wipe out some debt obligations

If a court gives you a bankruptcy discharge, it relieves you of the responsibility to repay some of your dischargeable debts. In other words, the debts get eliminated for good.

The dischargeable debts you’re most likely to benefit from include:

  • Medical bills
  • Credit card debt
  • Utility bills
  • Personal loans from friends, colleagues, family members, etc.

3. Credit score benefits

Bankruptcy records can stay on your credit history for up to 10 years. But think about the negative impact defaults, missed payments, lawsuits, and repossessions will have on your credit.

Declaring yourself bankrupt can help improve your credit rating, especially after the dischargeable debts have been wiped out.

4. Gives you a chance for a fresh start

While filing for bankruptcy won’t clear your debt burden, you will have time to put things in order and rise again.

It is mentally freeing, and you can seek financial counseling to come up with a practical strategy to repay and balance your debts.

Declaring bankruptcy is not for everyone, though. It is best to consult with an experienced bankruptcy trustee or lawyer to evaluate your case’s unique financial circumstances. That way, they can advise you on the best course of action.

Links

https://www.rocketlawyer.com/gb/en/quick-guides/advantages-and-disadvantages-of-declaring-bankruptcy

https://www.arnoldsmithlaw.com/advantages-and-disadvantages-of-filing-for-bankruptcy.html

http://thebankruptcyservice.co.uk/bankruptcy/advantages

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Understanding bankruptcy

Going bankrupt is never easy – but it does not have to be a hard thing to understand.

There are both good things and bad things about it, and you should know about them to make smart financial decisions.

Find out what is and how does bankruptcy work down below!

What is bankruptcy?

Bankruptcy is a complex process that helps an individual deal with his or her debts. Depending on where you live, declaring bankruptcy could help you get rid of all your debt or a percentage of it.

The point of bankruptcy is to help people troubled with debts to get a clean, fresh start. Even though it is not a free-get-out-of-jail card, declaring bankruptcy could work as the first step towards a new beginning for a lot of people.

How does bankruptcy work?

Depending on the type of bankruptcy you declare, there are two possible scenarios:

  • The first, and most common one, is when you declare bankruptcy and you get liquidated. The state will appoint a person to oversee your assets, debts, and to communicate with your creditors. You will lose most if not all of your assets. Most if not all of your debt will be forgiven.
  • The second, and less common one, happens when you request time to pay your creditors. You’ll usually get a 3- to 5-year plan to restructure your financial situation. If you decide to follow this option, you’ll get to keep certain assets and manage to eliminate all your debt.

What happens after I declare bankruptcy?

Bankruptcy is far from over once you declare it. There’s a long period (that can take several years) where you won’t be able to get loans, credit cards, and other financial-related stuff.

After that time period is over, you’ll usually have to build your credit back up. You’ll be debt-free and ready to start a new life.

Keep in mind certain debts, like alimony, won’t be forgiven when you declare bankruptcy.

Links

https://www.uscourts.gov/services-forms/bankruptcy

https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics

https://www.investopedia.com/terms/b/bankruptcy.asp

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