If you declare bankruptcy, you are legally allowed to restructure your debt to reduce it. If you can reduce your debts significantly after declaring bankruptcy, this may improve your financial situation. However, there are debts you will not be able to erase, which are called non-bankruptcyable debts. Here are some debts that you still need to pay even after declaring bankruptcy.

1. Student Loan Debt

If you have any student loan debt, you will still be responsible for paying this after filing for bankruptcy. This student loan includes any federal and private student loans. Even if you have been declared bankrupt, your student loan debt will not be decreased or erased like your credit card debts. This is because it is a federally guaranteed program and requires people to pay back their loans even if they declare bankruptcy to reduce their debts.

2. Credit Card Debts

If you are a responsible borrower, then there is no doubt that you have credit card debt. At first, you may find yourself frustrated because you could not pay off your credit card debt before filing bankruptcy, and now you might feel like it is a losing battle. However, if you declare bankruptcy, it will be tough for your creditors to collect their money from you. Some creditors will try to collect as much money as they can from customers declared bankrupt. They may even sue you and your family in an attempt to collect the debt. However, if you have a good lawyer, these creditors may find it difficult to collect money from you.

3. Court Fines

If you have been in court for any reason, then there is a chance that you owe money to the court. If you were found guilty of a crime or were being sued by someone else, you may be required to pay fines as part of your punishment. You may also be required to pay other court fees related to your case. Even if you declare bankruptcy, these debts will not be erased or reduced like other debts, and there will legally be a part of your debt that you are responsible for paying.

4. Secured Debts

A secured debt is when a creditor holds a lien on your property to be able to claim that money as collateral against your debt. If you declare bankruptcy, this lien will be lost or will not be enforced, and you can sell your property and use the money from that sale to erase or reduce other debts. If a creditor has a lien on your home or property, they can claim this asset and sell it to pay off your debt.

5. Alimony or Child Support

If you have been ordered by a court to pay alimony or child support, this order will remain in place even after declaring bankruptcy. This is because both parties signed a legally binding contract. They are legally obligated to uphold their end of the agreement for as long as it lasts. Even if you have filed for bankruptcy in the past, these debts will not be diminished or erased, and you will still have to pay these fees until the last day of your life if you need to.

6. Debts Obtained by Committing a Fraud

If you have legally committed fraud and obtained money or goods that you are not entitled to, then there is a good chance that you will still be responsible for paying this money back as long as you live. This includes if the creditor can trace your name and find out who has that credit card or account in their name. When you declare bankruptcy, the creditor will be able to recover money that they might have paid to you if they had known that you used deception.

7. Debts Obtained Through Officially Banned Means

If a creditor uses a banned method or deception to obtain money from you, they will take this legal action against the person who did so, and your creditors can sue them. These creditors may take their claim to court, and once proven, these debts can be erased. These debts will not be reduced or eliminated if you declare bankruptcy.

It is a good idea if you want to declare bankruptcy to get out of debt and begin a fresh new life. However, it would be best if you understood the debts that you can’t get rid of might make your life more difficult. If you are going through financial hardship now, it would be wise to discuss your options with an experienced bankruptcy attorney.

Investing your money is one thing you should consider doing. Investing is also a gamble, and the losses are inevitable. However, most people still want to put their money on the line and give it a chance. Here we will discuss how you can lose money from investing.

1. Losses By Investing In The Wrong Company

When you invest in a company that fails, you will lose all of your money. Loses can happen because sometimes the companies go bankrupt or don’t do so well in the market, and their stocks tank. This is unfortunate, but you can’t help it. The best way to avoid losses is to do a lot of research and make sure you are investing in a company that has a good plan and has been in business for a while.

2. Investing Too Much Money In One Company

If you invest too much money into one company, the company will not protect your investments. However, this is important because sometimes, one company can take off and give the highest returns. However, failing is also possible, and you will lose every penny. This is not recommended because almost all companies fail at some point. When this happens, your money will be forfeited, and you have no protection to prevent it.

3. Because Of Lender Misconduct

If a lender misbehaves, then the lender or broker can have an agreement with the company in which the company promises to pay up on the loan if the company goes bankrupt. However, they won’t, and the lender will take your money. Since you are not in control of the stock market, this can happen more often than you think. So the best way to protect yourself is to invest only with a regulated company with a good track record.

4. Not Understanding The Risk

When you don’t understand the risk and investing, this can result in a loss. This is because it is easier to manage and grow your portfolio when you do the research and understand all the troubles. However, if you are investing blindly or don’t know anything about the company, there is a much larger chance of losing your money because you aren’t watching it closely. This can also happen if you are new to investing.

5. Not Realizing The System Is Rigged

This is one of the most common ways that people lose money. When you invest in a company with a good plan and management team and no real competition, you will make a lot of money. However, many companies have this quality but are also a lot riskier. This means that the government or some other group can manipulate the market and make it go down so that you lose all of your money.

6. Investing In Foreign Markets

When you invest in other countries, you are outside of U.S. laws and might lose everything if the market crashes. People don’t always realize this, and they think that investing outside their own country won’t hurt them, but it will if they don’t research and understand how to invest in these markets. There are also extra taxes added to the stock market that make it even riskier.

7. Investing In High-Risk Investments

It is essential to invest in stable things if you want to invest. If you want to get rich quickly, then the best way is to invest in high-risk investments. You won’t make much money on these investments, which are very dangerous. You can lose your entire investment if you aren’t careful.

8. Investing In The Latest Trend

Investing in high risk because everyone wants to invest in the latest trend can lead to a loss. The newest trend can be a bad investment because you don’t know how it will perform and if it will even survive. Many people lose all of their money when this happens instead of making it big time. So the best way to avoid this is by investing in things with a proven track record and a good plan.

9. Lack Of Communication

Sometimes you might have a significant investment, and then you don’t check back on it. This is because some companies give you a small return, but the money continues to accrue in the account. However, if you don’t realize this, your money will continue to earn interest, and you won’t keep track of it and ensure that the company is still doing well. When this happens, then your money will be lost forever.

10. Incomplete Documentation

You are responsible for keeping track of the money you have invested and received in interest. However, sometimes the company will not correctly provide this documentation so that you can keep track of the interest and dividend income. When this occurs, it is easy to lose your money because you don’t know what interest you are receiving, and it is hard to take out dividends.

Though you can lose money in some investments, you do not lose all your money investments by researching, understanding the risks, and investing only with companies in a highly regulated manner. You can ensure that you have some protection in case something terrible happens.

Bankruptcy can have a significant impact on your credit score. This can be more than just an inconvenience; it could affect you in the future when looking to buy a house or car, get financing for college, or even get into graduate school. When you are looking at filing bankruptcy, you’ll want to think about how this will affect your ability to get a mortgage in the future.

Filing Chapter 7

In most cases, if you file for chapter 7 bankruptcy, you will be able to keep your house. This is because bankruptcy law requires that before a creditor can sue for non-payment of debt, they must first file a lawsuit and obtain a judgment in court. Here are some pros of filing a chapter 7.

Automatic Stay Protection

You won’t have to worry about eviction or foreclosure and won’t be forced to sell the house to pay off debts. This is because even though you may be filing bankruptcy, the court will issue an automatic stay that prohibits creditors from continuing to pursue actions against you and your home.

Fair Consideration of Your Credit Report

Because your mortgage lender is involved in the bankruptcy process, they cannot add anything harmful to your credit report. The lender can’t contact any of your creditors, tell them you filed for bankruptcy, or reveal any other details about your case. This is why it’s sometimes a good idea to wait a little while before filing bankruptcy because you’re making payments on your house and don’t want to risk damaging your credit score.

Treatment of Mortgages

Typically, the court will list your mortgage as an asset in the bankruptcy. It will be put into an escrow account, collecting interest until it’s paid off. This is why it’s a good idea to file bankruptcy if you have a mortgage because you can be sure that your creditor will get paid.

Reorganization of Debts

If enough of your debts are not dischargeable, you may be able to reorganize those debts to reduce your total amount owed. A debt will be worth less in bankruptcy but will be discharged. Your expenses and obligations will be combined in your bankruptcy filing, so there will be less total debt.

Filing Chapter 13

In chapter 13, you will most likely not keep your house.  However, the law that creates bankruptcy also allows the court to make exceptions to the standard rule if it would be “unjust or inequitable.” In these cases, the court can create an exception to the law so that some people who filed for chapter 13 bankruptcy can keep their houses. If you are filing Chapter 13, discussing your situation with an experienced attorney is essential. Here are some things you are set to go with when you file chapter 13.

Fall of House Value

The value of your house will be reduced by the amount of debts you can pay. Lenders and debt collectors can’t use information about your bankruptcy case against you until the case is closed. Your creditors don’t know your bankruptcy has been filed or what type it is, so they can’t contact you or send non-performing debt collectors after your home.

More Time To Repay Debts

In chapter 13, you will get to keep your house. However, you will end up paying back the mortgage company over three to five years. The property is protected as long as you are making your monthly payments. If you ever miss a payment, your creditor may seize the house. This is why it is essential to act quickly when filing chapter 13.

More Expensive and More Difficult to Qualify Under New Credit Laws

The bankruptcy laws that protect you from having your debts discharged are based on a formula. This formula requires you to pay a certain amount toward unsecured debts, such as credit cards, out of every paycheck you get from work.

Derivative Property

When your house is in bankruptcy, it may not be possible to obtain credit for a car, develop a business or even graduate school. Credit checks can be done in these areas, and you may be turned down because of the bankruptcy filing. If this happens, you will have to pay for these things out of pocket, which could increase your expenses. This can also affect your credit rating.

Debt Consolidation and Home Equity Loan

Debt consolidation helps you pay your unsecured debts, including your mortgage. Some lenders will even give you a Home Equity Loan to help renovate the house. After making all your payments for three to five years, the mortgage company will release the property from bankruptcy. If this is done before the foreclosure date, it could prevent foreclosure.

If you do file, it’s also essential that you act quickly so that your creditors cannot take any action to help themselves by contacting you or showing up at your home. Some many experts and professionals will help prevent foreclosure. When dealing with foreclosure, you need to be sure you are getting the best interest rate, a lender who will foreclose on properties promptly, and a lawyer who can help you with your court case.