Get Out!
Ready for more Enron fallout? Prompted by public outcry over the
many company executives who will keep their multimillion-dollar
Texas homes after declaring bankruptcy, Congress is pushing for an
end to state homestead exemptions that shield primary residences
from bankruptcy proceedings. States like Texas and Florida, where
there aren't any limits on the value of the home are primary
targets of legislation that seeks to set a national maximum
exemption of $125,000.
The bill, which passed the Senate and is now before the House,
also calls for debtors to meet a 40-month residency requirement to
qualify for an exemption-a provision that could prove onerous to
anyone running into financial difficulties after relocating.
"And even if the debtor satisfies the 40-month residency
requirement, he may still be unable to take advantage of the
exemption if he has committed one of a number of enumerated bad
acts," says Sen. Herb Kohl (D-WI), who proposed the
legislation.
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Now that's shutting the barn door and padlocking it-too bad
those Enron cows are long gone.
Play Your Cards Right
Likely to spark a new class of plastic, Cleveland-based Charter
One Financial's new delayed-debit card offers what may be the
best of two worlds: the float of a credit card and the
interest-free aspect of a debit card. Instead of deducting debits
on a pay-as-you-spend basis, Charter One debits monthly or
semimonthly. "It gives business owners a quasi-cash-management
tool," says David Bowen, senior vice president of retail
product management at Charter One, noting that the SmartBusiness
OneCard was designed for small businesses.
"It allows you to keep the bulk of your money earning
interest in a savings account while you accumulate debits
throughout the month knowing that they will hit on a particular
date," he explains. "Then you transfer the money over and
everything goes through." Charter One account holders can also
monitor spending and debit clearing dates online at the
company's Web site, where customers can view what their account
balances would be if charges were applied daily. There is a $50
annual fee-waived for the first year-and the card is available in
Illinois, Ohio, Massachusetts, Michigan, New York and Vermont.
Bring on the Competition
Tired of vying for attention at VC forums? Competing in a
venture capital contest can be a good alternative, often offering
both cash prizes and services to help you gain entrée to the
VC community. What's more, recent years have seen contests
targeting virtually every entrepreneurial segment, from national
student competitions sponsored by MBA Jungle and Garage.com to the
Oxygen.com Build Your Own Business grant for women
entrepreneurs.
While you may have to hunt for the one that's right for you,
entering can jump-start your venture, says MBA student Onne Ganel
(above left), one of four partners who won the Wharton Business
Plan Competition. "Along with the prize, we also received
spots in a few area venture fairs and a space in an incubator where
we will have access to helpful legal and financial seminars,"
says Ganel, who plans to use the facilities and the funds to move
forward with his Envisia venture, which markets magnetic resonance
imaging technology.
"Contests are something you can leverage," he adds.
"I can call any VC in the U.S. right now and say, 'Hello,
I'm the winner of the Wharton Business Plan Competition. Would
you give me two minutes?' And they will."
If that sounds like a winning proposition, the following
contests are worth a look:
Contact Source
Jennifer Pellet is a
freelance writer in New York City specializing in business and
finance.