| April 18th, 2012, Mark Williams Bankruptcy can seem like a simple cure-all. Filing for bankruptcy appears to offer a clean slate, wiping away all of your debts. If the debt is wiped out, you may ask yourself, “Should I max out my credit cards before I file bankruptcy?” The short answer is “never on purpose”. If you run up credit card debt before filing bankruptcy, the bankruptcy trustee can dismiss the bankruptcy case for suspected fraud. If someone uses credit card debt to buy exempt assets, the case will be dismissed for fraud. However, if you have lost your job and have little or no savings, running up credit card debt to pay for living expenses instead of tapping into a 401K will not be counted against you. If you used your credit card to pay for college tuition instead of taking out federally backed student loans that are not discharged under bankruptcy, this will probably not be counted against you. However, if you pay bills with your credit card while continuing to maximize contributions to a 401K, IRA or exempt retirement account, the bankruptcy court may force you into a repayment plan or reject the bankruptcy petition altogether. If you were reaching a financial breaking point and took vacations paid for by credit cards, you’ll find little sympathy or relief with the bankruptcy trustee. If you are reaching a financial breaking point, contact a Minnesota bankruptcy attorney before you max out your credit cards in an effort to stay afloat. Filing for bankruptcy sooner may allow you to enter a manageable payment plan or keep more of your property in bankruptcy. Chapter 7 bankruptcy is called liquidation. In this type of bankruptcy, the debtor gets to keep all exempt property while all non-exempt property is sold to pay off the debts. Chapter 7 bankruptcy eligibility is limited to those who pass a means test. The means test is based on the mean income for your area and the size of your household. The means test is based on local average incomes which vary widely across the state and even zip code to zip code. For example, a family of 4 in Jackson County can file for Chapter 7 bankruptcy only if they make less than $7,021 per month. Consult with a Minnesota bankruptcy attorney to determine whether your income and household size qualify your case for Chapter 7 bankruptcy. If you make more than the median amount for your area, you will be required to enter a debt repayment plan under Chapter 13 bankruptcy. → Read More November 11th, 2011, Mark Williams Imagine that one day you get a notice in the mail from the Internal Revenue Service (IRS) giving you the bad news: YOU ARE BEING AUDITED. You put on a brave face and say, “No problem!” You gather up all the necessary items, meet with the auditor, and say, “Whew! Glad that’s over.” But it ain’t over. You soon get another IRS notice in the mail that says that the IRS has classified your activity not as a business, but as a hobby! “What?! That’s ridiculous!!” you exclaim. Yes, it may be ridiculous, but it happens more than you think. How can you keep this from happening in your business? One critical technique is to start writing a business plan. What is the Purpose of a Business Plan Anyway?
The purpose is quite clear and simple: it proves that you are doing business to make a profit. You aren’t just having fun, playing around, or looking for a way to save on taxes. No, you are in this thing to turn a profit and make a part time or full time income for yourself. 5 Steps to Writing a Business Plan
I was reading the book “Lower Your Taxes – Big Time!” by Sandy Botkin. Botkin is a Certified Public Accountant and former attorney and trainer for the Internal Revenue Service. He says that one of the IRS’s favorite tactics is to classify your business as a hobby – if they can! While he suggests a variety of strategies to prevent this from happening, the first thing he recommends is to develop a business plan. And here are the 5 vital ingredients: 1) Projected estimate income – What volume of sales do you expect?
2) Projected estimated expenses – What expense will be incurred as you generate revenue?
3) Projected estimated profits – How much profit do you expect after subtracting expenses from revenue?
4) A solid basis for the projections – What strategies and marketing will help you achieve steps 1 – 3?
5) Dates spanning 5 to 10 years by which you plan to reach these projections Don’t Make Excuses -Do It Now!
Some might say, “I don’t have any idea how to come up with those kinds of numbers.” Well, try telling that to an IRS agent and still convince him that you are serious about your business! → Read More November 1st, 2011, Mark Williams You must be asking yourself where you can get money. You might be very worried now not knowing where you can get additional funding with the emergency situation you are dealing with. I need money today! That is what is in your head and you might already be thinking of just getting a loan. However, before you apply for a loan, there are some questions you should ask yourself first so that you do not run into problems later. Do I really need to make the purchase now? If you need money because you want to buy something, you need to ask yourself if you really need the item you are thinking of buying or if you just want it. A lot of people often confuse needs and wants. A need is something you absolutely will not be able tom live without like food. On the other hand, a want is something which is not really necessary for your existence, like those high-heeled shoes on your feet. Is it really necessary to get a loan for the item or can you wait longer and save enough money to buy it in cash? If your answer is the latter then refrain from getting that loan. There is really no need to do so. Is there something less expensive than what you want to purchase? Most often, when people buy big ticket items, they often go for the most expensive brand but do you really need to? If there is something more affordable, go for it. Why waste extra dollars when you will be getting the same thing. If you wish to buy a car, do not forget to consider used cards. There are reasonably priced used cars which are still in very good condition. → Read More September 17th, 2011, Mark Williams  In order to determine if downsizing hurts productivity, a case study on the Hampton Fire Department was conducted following its first-ever layoffs in April 2005. Although productivity and morale suffered following the layoffs, there was some uncertainty as to whether this came about because of the downsizing alone or if there was some other cause or contributing factor. For anyone who has been through a layoff, whether personally affected or not, it should come as no big surprise to learn that the study found that downsizing directly affected the productivity of the employees. A survey was conducted as part of the study. Thirty-six fire service personnel who had been working at an organization while it was downsizing took part in the survey. Here are some of the pertinent statistics: - The percentage of respondents who were not very satisfied with their jobs went from 3% to 44% after the layoffs.
- The percent who were very satisfied fell from 72% to 11%.
- Forty-seven percent of those who kept their jobs through the layoffs thought about looking for new jobs elsewhere.
- Eighty-one percent believed that morale was lower as a result of downsizing.
- Seventy-two percent thought that productivity had been negatively impacted.
Losing a job is one of the most stressful things that can happen to a person, so it’s no wonder that employee morale would decrease. Those employees who were not downsized most likely feel like they came close to losing their jobs, and they may still fear that the worst is not over, that more layoffs are yet to come. → Read More August 31st, 2011, Mark Williams  Many people dream of living in another country after retirement.Here’s a very brief over view of 3 places – Panama, Thailand & Argentina. Panama could be the best place in the world to retire. The cost of living is small with rent for an apartment starting at $200, while groceries will cost you about half of what they cost in the United States. There is plenty of fascinating things to do and see in Panama. The people are friendly, and the weather is fantastic. It’s a small country covering about the same area as South Carolina, and Panama has no taxes on foreign income and they offer outstanding
programs for retirees. One of the things that make Panama so popular for retirees is that, except for the spoken language, it’s not much different than the United States. In contrast, Thailand is quite different. It’s an exotic land with a totally different culture than in the US. Industrialization is new to Thailand, and it’s a popular tourist destination. Thailand has a tropical climate and a remarkably low cost of living. → Read More March 16th, 2011, Sharon-GA This is a pivotal moment in modern American history. The entire legacy of the New Deal and the Great Society programs that we have fought for, supported and expanded – the programs that make life more secure for not only the poor, but for the middle class in America – is under savage attack. I want to take this opportunity to give you a brief update of what’s going on in Washington, what I’ve been focusing on, and how we’ve got to work together to defeat the growing right-wing Republican attacks against the working families of our country. Also, as perhaps the most progressive member of the U.S. Senate, I am writing to ask for your financial and political support. I will be running for reelection in 2012 and there is no question but that the big money interests – Wall Street, the insurance companies, the drug companies, the big banks and hedge funds, the military-industrial complex, etc. – will do all they can to defeat me. Their job is made easier by the disastrous “Citizens United” Supreme Court decision that enables corporations to contribute as much as they want without disclosure. I intend to mount a vigorous grassroots campaign in Vermont in support of the work I’ve done, and your financial and political help will make that possible. → Read More February 28th, 2011, Sharon-GA Success! Over 120,000 Americans took to the streets yesterday to rally against the Republican-led assault on middle class families and jobs. That’s over 70,000 people who rallied in front of the capital in Madison, Wisconsin, who were joined by over 50,000 Americans in more than 60 cities nationwide — every single person standing up in solidarity for the America Dream and against the Republicans trying to destroy good-paying jobs. Let’s face it, 2011 is turning into the year of the rally. From unseating a president in Egypt, to shaping the budget debate in Madison, rallies have become a pillar tactic for our current political climate. It’s also the subject of our first Night School online training of the year. → Read More February 20th, 2011, Carlo Gabriel Simbajon  Pro-life members of the U.S. House of Representatives passed a measure that seeks to end federal funding of Planned Parenthood – the pro-choice provider of reproductive health and maternal and child health services. Largely supported by Republicans, the bill was passed on a 240 to 185 vote with ten Democrats crossing party lines to support the bill and seven Republicans crossing party lines to oppose the measure, a report by The Christian Post said. The measure is seen by many as the first major step for pro-life legislators and advocates to stop federal funding of abortion providers nationwide, the report said. House supporters and opponents of the bill offered their testimonies on the eve of the voting. → Read More | Listen to Mike Colliss Interviews |
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