Is your debt growing and it’s looking like you may need to file for bankruptcy? There is no need to be stressed out. Plenty of people have gone through this and rebuilt their lives. A lot of people have thought of bankruptcy as the only choice they had to get rid of their financial troubles. You are going to be given advice in this article that will help ensure the bankruptcy process goes properly.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. You have other options available like consumer credit counselling services. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
When it soaks in that filing for personal bankruptcy, don’t use all of your retirement funds, or all of your savings to resolve insolvency or pay creditors. Unless there is no other choice a retirement account should not be used. Though you may have to break into your savings, keep some available for difficult times. You will be glad you did.
Always be honest and forthright when it comes to your bankruptcy petition. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
If you’re filing for bankruptcy soon, be sure you are going to hire a lawyer. You might not understand all of the various aspects to filing for bankruptcy. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
As you can see by now, many people find themselves pondering whether or not to file bankruptcy. But, now that you’ve read this article, you should have more knowledge about the situation. The tips provided above should help you get through bankruptcy.