Things to judge before investing in any company

Suppose you have handsome amount of money in your hand and you want to invest it to earn profit. But you are worried about some scam companies or some fraudulent business spreading around the market. If you are the first time investor then it is an obvious thought that will strike you. But what is the best way to come over that risk? Very simple, gather knowledge about the area where you want to invest. Here I am trying to suggest some points which can help you to choose the area and best company to invest.

You must be aware about fraud and scam companies. And if you have a plan of investing money online then it needs lots of attention. First of all verify the legality of the company where you are going to invest your money. Here comes the question what are the things that are important to judge the legality of the company? Judge the following points:

1) Check the companies’ registration number to check its legality. Here you can check the license number as well.

2) Existing customers can help you to judge the companies authority. Ask for any feedback or comment of that company. Try to know whether they are satisfied investing in that company or not.

3) Check out whether the customers are earning profit from that company or not.

4) Go through the company website. Check out their prospects and business motives; also try to find out their online presence. Go through their FAQ (frequently asked questions) page. Still if you have any question in your mind then don’t hesitate to check out their customer support department.

Reasons of filing bankruptcy

Everyone has heard about bankruptcy. Some people think that a person gets poor when he gets bankrupt. This is not the truth, in fact, not even close to the case. Most of us believe that when a person goes bankrupt, he is irresponsible and lazy. In the true sense, it can be one of the most responsible actions a person can take according to his real situation. It is not an easy decision to make, but it is the best one for certain situations.

When you are declaring bankruptcy, you put a picture in front of your creditors that you are not able to repay the debts. You will have to declare bankruptcy with the help of a lawyer. Once you have filed bankruptcy, you don’t have any legal obligation to pay the debts to your creditors. All the creditors to whom you owed money now don’t have any rights to ask you to pay the debts. This may sound awesome at the first thought; however there are some drawbacks as well.

Bankruptcy appears on the credit report for ten years. This is going to hurt your financial identity when you are looking for new credit. No credit card or loan company will be willing to offer credit after seeing bankruptcy in big, bold, red letters on your credit copy. In the beginning, you will have a very tough time in getting new credit. You will have to start rebuilding your credit. It takes a couple of years to get back to normal financial life. You have to prove making some real strides with your financial situation and see your future improving. Not to mention, you will feel a great big burden being lifted off your shoulders.

One thing you need to be careful before filing bankruptcy is that you don’t do anything that makes your creditors suspicious about your financial crisis. Suppose, if you have decided to file for bankruptcy, just because you can’t pay to your creditors and on the other hand, go out on a vacation and do some huge shopping, used a credit card while being unemployed, or spent money after consulting with a lawyer, the creditors might object in your filing for bankruptcy. The creditors might be able to prove against you in the court that you are trying to avoid their payments and hence your case might be dismissed by the judge. It is always best to consult a lawyer or debt counselor before you really take the plunge and declare bankruptcy.

Your decision to file for bankruptcy should be because of your not being able to pay the debts due to your bad financial situation, not just to avoid paying the debts.