Building a Career in Banking Law

 What Is Banking & Finance Law?

Before you even think about embarking on a career as a banking and finance lawyer, you should be familiar with what banking and finance law is all about. It involves a broad array of financial transactions that include small-scale personal loans to multi-billion-dollar business transactions. Here are some of the basics that you should know before looking further into banking and finance law as a career opportunity.

One of the main areas of focus of banking and finance law is the contractual arrangement between the lender and the borrower. The financial lawyer’s goal is to make sure that both sides of the financial transaction have their interests represented and that both parties are in compliance with commercial norms and government regulations. Below is a further breakdown of the areas of specialization that banking and finance lawyers can specialize in.

Bank lending is a vast field in banking law that involves banks lending money to individuals through personal loans and to businesses through business loans. The banking lawyer helps craft documents that spell out the loan terms and what constitutes repayment and default.

Another common field in finance law is property finance. It involves loans sought by individuals or businesses to obtain property to live in or develop. The vast majority of property finance transactions are called mortgages. A mortgage is where a person is given money to get title to the land or building and must repay the lender the loan plus interest. The lender usually holds the property as collateral until the mortgage is paid off.

Besides bank lending and property finance, there are many other fields in banking and finance law. Project finance involves the financing of public projects such as roads and bridges. Acquisition finance is when money is given to one firm to help it acquire another firm. Capital markets are when corporations issue bonds in exchange for cash to be used for company operations. The field of banking and finance law is vast and offers plenty of opportunities.

Where The Route To A Career In Banking & Finance Law Starts

Regardless of which field in banking and finance law you will want to specialize in, you will need to have a legal education and background to practice as a banking and finance lawyer. Besides a legal education, a banking and finance lawyer should have a good understanding of the different kinds of loans and be able to comprehend the fine print contained in financial transactions. Being able to explain the terms of financial deals to clients coherently is another requirement that banking lawyers must do. If you have the legal education and knowledge or think you can obtain it, becoming a banking and finance lawyer might be the career path for you.

How To Rebuild Credit After Bankruptcy

Many consumers mistakenly believe filing for bankruptcy forever ruins credit scores. The reality is people can repair their scores during and after bankruptcy. This is not to say bankruptcy does not damage scores. It does hurt a person’s credit in a big way. However, many consumers can get their financial lives back on track despite filing for bankruptcy protection. Here are some proven ways to rebuild credit scores.

Pay Existing Accounts on Time

Bankruptcy does not protect all accounts, so it is imperative to pay those accounts on time to rebuild credit scores. If the monthly obligation is not met after filing, there is little chance of repairing credit scores.

Additionally, consumers should never ignore any accounts that show up on their credit reports. If it is a legitimate account, it must be paid. If not, it must be removed.

Apply for a Secured Credit Card

Consumers can improve their credit scores by applying for secured credit cards. This form of credit requires a deposit before consumers can access any funds, and the initial deposit represents the maximum credit limit.

By paying secured credit cards on time, consumers will start to see their credit scores improve with each timely payment. Additionally, many secured card issuers will switch it to an unsecured card with repeated on-time payments.

Limit New Credit

Consumers should limit the number of credit card and loan applications they submit. If at all possible, people dealing with bankruptcy and credit issues should not apply for any new unsecured credit until their scores start to improve.

When consumers apply for new credit, it shows up on credit reports as hard inquiries, which lowers credit scores. When creditors deny applications, it has an even more significant impact on scores.

Avoid Scammers

Many credit repair companies and other organizations claim they can remove bankruptcies from credit reports. Unfortunately, this is not possible. Once a bankruptcy gets reported to the credit bureaus, it cannot be removed for a minimum of seven years.

There is nothing any organization or company can do to remove a bankruptcy from a credit report early. These companies usually just file a dispute on behalf of consumers after they have taken a significant amount of money. The dispute, however, will go nowhere.

This article was originally published on HenryComteVelasquez.net

Tips For Filing Your Taxes After Bankruptcy

People filing for bankruptcy must still pay their taxes. Whether they file for chapter 7, chapter 11 or chapter 13 bankruptcy, tax forms must include both individual returns and bankruptcy estate returns. Here are a few helpful suggestions for bankruptcy filers who want to know how to pay their taxes:

Filers May Need to Ask Their Attorney for Assistance

Since most people filing for bankruptcy file via the help of an attorney, their lawyer typically files tax forms for the client’s bankruptcy estate. This estate is created to pay back creditors with nonexempt assets. The person who files for bankruptcy, or the person’s trustee, file the necessary tax forms. Bankruptcy filers neglecting to pay their taxes by the deadline may find that their cases are dismissed.

Bankruptcy Filers Must Pay their Taxes

Taxes after filing for bankruptcy are viewed as new debts. Debtors are not permitted to have brand new debts. A debt includes any money owed to the Internal Revenue Service (IRS). Asking a bankruptcy attorney for assistance involves providing the lawyer with previous tax records. Additionally, a client should tell their bankruptcy attorney about any tax refund check.

Chapter 7 Tax Form

A person filing for Chapter 7 bankruptcy needs to file an individual Form 1040 tax form. A chapter 7 bankruptcy is not viewed as a debt. However, the trustee still needs to file Form 1041 for the bankruptcy estate.

Chapter 11 Tax Form

Filing for chapter 11 bankruptcy means that the filer controls their assets and does not need a trustee. Instead, the filer is the bankruptcy trustee and files an individual Form 1040 and Form 1041.

Chapter 7 and Chapter 11 Bankruptcy Require Two Tax Forms

Although there is a difference as to which person is viewed as the trustee, chapter 7 and chapter 11 bankruptcy filings require submitting Form 1040 and Form 1041. Unfortunately, many people filing for bankruptcy do not know they need to file both tax forms.

Chapter 13 Bankruptcy and Taxes

People filing for chapter 13 bankruptcy still need to file Form 1041. The difference is that chapter 13 filers must give all tax returns to their trustee who then furnishes the tax refund to creditors.

This article was originally published on HenryComteVelasquez.com

Surviving A Windfall

Receiving a financial windfall sounds like a great thing, and it can be. However, many people who receive inheritances, insurance settlements or lucrative bonuses find that the windfalls can slip through their hands quickly. The good news is, there are ways to protect a lump-sum settlement or other financial windfalls.

Experts recommend getting tax advice before finalizing the terms of a settlement. Knowing how much of a tax hit will come with the money means being able to negotiate with a clearer head. Most settlements are subject to federal taxes, if not also state and local ones. Financial advisors are good sources for information about the tax rate for different types of settlements.

The first step anyone should take after receiving a windfall is to pay down bad debts. Everyone agrees on this. High-interest debt like payday loans or credit cards will continue to accrue lots of interest. Spending a settlement, or putting it in a low-interest savings account, means that the pace of the debt will continue to outstrip any earnings. That means that the settlement won’t have a positive impact on someone’s financed that it otherwise could. Occasionally, there are some more nuanced takes on this advice. For example, some student loans carry a very low interest of 1-2%, so people may still make timed payments on those while earning higher interest on an investment. But generally, it’s a better idea to pay debts down and wipe the slate clean.

After a financial windfall, it can be a good time for the recipient to take stock of what’s missing in their life. For example, if someone rents, it can be a good time to invest in a home. If someone is trapped in low-paying work, it may be a good idea to pursue a new career qualification through education. Some people also decide to start their own businesses or invest in their family and friends’ businesses. It’s a good idea to vet these ideas in a clear-headed way with help from a professional. The best investment decisions are made with dollars and cents, not relationships, in mind.

Finally, charitable deductions not only make settlement recipients feel good about giving. They’re also tax-deductible. Charitable donations should be part of any financial plan, too.

This article was originally published on HenryComteVelasquez.net