Filing for bankruptcy is not for the faint-hearted. It might be one the last respite to spiraling into a cycle of debt and give you a breathing space and a chance to regroup and refocus on your financial situation.But even though it might save you from losing the things that you value most for you and your family, there are some drawbacks to filing for bankruptcy. Let us first look at what happens when you actually file for it.
You might have to undergo a bankruptcy counseling session to obtain a certificate before bankruptcy can be discharged. You get your creditors off your back as the law dictates that they can’t hold you against past due credits. You also avoid repossession and foreclosure proceedings. You are also issued an Order for Relief by the court, including what is known as an “automatic stay” that basically stops creditor from all collection actions. However, foreclosure actions may be reinstated if lenders file a “motion of relief”.
Your credit cards will be without balance for quite a long time as it has to be declared in the bankruptcy or you could face allegations of committing fraud. If you are a student, you will still have to pay student loan if you have one as they are not included in bankruptcy. However, student’s loan can be discharged if you can prove that you are physically unable to work.
- As soon as you file for bankruptcy, automatic stay is initiated and all creditors, lenders and debt collectors are barred from making any attempt at collection. You can also be compensated if any of them try to make demands or legal threats.
- All unpaid bills are waived but you might file for Chapter 13 that allows you to restructure your debts and secure them in monthly payments. This also gives you the space to re-organize your finances and recover from certain debts.
- Filing for Chapter 7 grants you the bankruptcy exemptions under federal and state laws that exempt your assets from being liquidated. This ensures that you will be able to keep your assets, such as houses, jewelry, cars and a range of other personal possessions that you require to maintain a baseline quality of life.
- Under bankruptcy laws, your employer won’t be able to fire you from your job. This means you can still work, earn money and plan on how to achieve a better financial position.
- However, the real pro of filing for bankruptcy is that is helps you get out of your debts. It lets you relax and plan your life better.
- The first and most important downside to filing for bankruptcy is that it stains you credit score, sometime for over a decade. This means that you won’t be able to secure certain types of loans and even if you get the loan, the interest rates on it will be much higher. It will force you to forego a certain lifestyle. However, the damage caused by not filing always outweighs filing for bankruptcy. Also, the impact of a bad credit report always decreases with time.
- Debts like student loans, alimony, back child support, back taxes and fines will not be eliminated. These debts will have to be cleared and that is a challenging task during bankruptcy.
- Even though some of your possessions might be exempt from liquidation, not all properties are included in the mix. As a result, depending on your financial condition, you still might have to give up some of your belongings like stocks and bonds.
- Filing for bankruptcy is a long process and it is not cheap as it includes a lot of different fees right from filing fees to your attorney’s bill.
- Lastly, filing for bankruptcy might have a psychological impact on you as it is seen as accepting defeat.
SH Capital Ltd launches in Dubai to support SMEs with global banking services
Fintech provider to reconnect businesses with international banking services, digital treasury management solutions, risk management and cash investment products
A new digital treasury services management provider SH Capital Ltd (SHC), launches in Dubai today with a plan to empower small and medium sized enterprises (SMEs & MMEs) by offering world class global banking services, asset management, FX hedging solutions, investment products and services.
SH Capital is a subsidiary of parent company Stanhope Financial Group, which launched with $3.5m funding in November last year. In December, the group also announced the launch of its EU headquarters in Lithuania after obtaining its Electronic Money Institution licence.
The independent fintech firm, which has received its in-principle approval Cat 3A regulatory licensing from the DFSA, Dubai, is set to begin trading as of end of Q2’21, with a mission to help companies meet their financial goals during the Covid-19 recovery.
SHC will act as an intermediary for clients, helping them to access leading and global tier one cash investment products. The Stanhope team of leading industry experts will also advise on commercial paper, money market funds, futures, options, ETFs & FX hedging solutions. Additionally, SHC has already partnered with a number of global counterparties, exchanges and e-trading venues to provide liquidity in the equity, FX, fixed income and commodity markets for all clients.
In spite of recent market volatility due to Covid-19, SHC are also committed to providing bespoke financial strategies for companies as matched principle, designed to meet their risk tolerance and position them ahead of the curve for both short and long-term financial goals.
To do this, SHC leverages the latest RegTech and blockchain technology, which helps to significantly reduce CBR risk and service friction, whilst maintaining a fast, secure and transparent service. More specifically, AML, KYC, trade monitoring and a distributed ledger technology are just some of the technology utilised for an efficient and safe execution of service.
Speaking to Global Banking and Finance Review, Khalid Talukder, Managing Director, SH Capital Ltd, said: “For ambitious businesses within the GCC, getting multi-product access and global reach of investment instruments and solutions will be a critical priority for 2021 and beyond.
“Key to SH Capital’s offering is that we have the ability to aggregate high tier one investment solutions in a single venue, delivered digitally through our platform. This gives clients a greater choice and reach over the instruments that they can invest in, as well as our ability to help create a bespoke portfolio on a client-by-client basis through our holistic approach to client service. “
“Dubai is quickly being recognised as a global hub of fintech and innovation, being home to some of the fastest growing, most exciting firms on the planet. With postponed Dubai Expo launching in the Autumn of 2021, we are perfectly placed to support these business to maximise this global showcasing opportunity.
Many of these businesses struggle to gain access to efficient and high quality digital asset management and investment products globally to support their treasury activities. We aim to provide a fully digital service offering via our platform allowing easy access to various cash asset management products, services and investment products that they need in order to thrive in an increasingly competitive global world.
SH Capital Ltd will change all that, reconnecting these fast-growing firms mid-market corporates which are the backbone of GCC commerce with the products offered by Tier 1 financial institutions, as well as offering treasury consultancy to take them to the next level.
With over 70 years combined experience in our team of financial professionals, shared with quantitative-driven data insight, regulatory technology and blockchain, we are confident we can provide a consistent treasury management service, free from delays, security issues and unfair charging, to all firms in need of assistance during this difficult Covid period and beyond.”
Kevin von Neuschatz, Group CEO, Stanhope Financial Group added, “We’re excited to have received our operating licence and formally launch SH Capital Ltd in Dubai. Our on-the-ground team of experts will begin trading immediately, providing ambitious businesses across the region with tier one banking and payments services to enable rapid growth during an incredibly challenging time.
This is the first of many expansion plans for the Stanhope Financial Group, with similar launches in Europe and other key regions in the first part of 2021.”
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Daily Mail publisher posts 15% drop in quarterly revenue
LONDON (Reuters) – The publisher of Britain’s Daily Mail newspaper said that group revenue fell 15% in the three months to the end of December, dragged down by falls in print advertising revenues at its papers and by cancellations in its events business.
Daily Mail and General Trust said that group quarterly revenue came in at 304 million pounds ($416 million), down 15% on an underlying basis, but excluding the impact of cancelled events it was down 5%.
At its newspapers, print advertising revenues fell 38%, compared to an 8% rise in digital advertising. The group said that the impact of the pandemic meant it was difficult to provide short-term forecasts.
($1 = 0.7301 pounds)
(Reporting by Sarah Young; editing by Michael Holden)
Dollar slides vs. most currencies on optimism about Biden administration
By Gertrude Chavez-Dreyfuss and Saqib Iqbal Ahmed
NEW YORK (Reuters) – The dollar fell against most currencies on Wednesday, as risk appetite held up on optimism about a massive stimulus package under the new Joe Biden administration that will likely bolster a U.S. economic recovery.
The greenback slid against the yen as well as currencies tied to commodity prices such as the Australian, Canadian, New Zealand dollars, and the Norwegian crown. The U.S. dollar dropped to a three-year low versus its Canadian counterpart and sterling, while hitting a two-week trough against the yen.
The S&P 500 climbed to a new all-time peak, while U.S. crude futures gained as the risk rally carried on.
Biden was sworn in as the 46th president of the United States on Wednesday, vowing to end the “uncivil war” in a deeply divided country reeling from a battered economy and a raging coronavirus pandemic that has killed more than 400,000 Americans.
The new government is expected to push through Congress a nearly $2 trillion U.S. fiscal stimulus plan.
“Once you are no longer uncertain about something and it materializes, the overall optimism grows and gives way to the global recovery narrative,” said Juan Perez, senior FX strategist and trader at Tempus Inc. in Washington.
“The election and the issues after — all of them played a dramatic role, but now it’s over. Joe Biden is president and stimulus hopes are, like some markets, at a record high,” he added.
In afternoon trading, the dollar fell 0.4% against the yen to 103.54, sliding to a two-week low earlier in the session to 103.45.
The U.S. dollar tumbled to a three-year low versus the Canadian currency at C$1.2607, after the Bank of Canada on Wednesday opted not to cut interest rates. The greenback was last down 0.7% at C$1.2642.
The Aussie dollar rallied 0.6% to US$0.7745, while the New Zealand currency also gained 0.6% to US$0.7167.
Sterling rose to a three-year high versus the dollar of $1.3720, but surrendered some of those gains to trade up just 0.1% at $1.3643.
A combination of heightened risk appetite in global markets and UK-specific optimism lifted the pound on Wednesday.
The dollar index, meanwhile, was up 0.1% at 90.483. Since the beginning of the year, the index has posted a modest 0.5% gain.
Futures positioning data still shows that investors are overwhelmingly short dollars as they figure that budget and current account deficits will weigh on the greenback.
The euro fell 0.2% against the dollar to $1.2106.
European countries are struggling to contain the contagion of the coronavirus amid worries that a new variant could lead to more stringent lockdowns and more economic pain.
Investors are also fretting about the slower pace of the rollout of vaccines relative to the United States and Britain, which may hobble economic recovery in the euro zone.
(Reporting by Saqib Iqbal Ahmed and Gertrude Chavez-Dreyfuss; Editing by Mark Heinrich and Sonya Hepinstall)
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