Bankruptcy: Some Tips You Should Know About

July 16, 2013

TIP! Do not despair, as it’s not the end of the world. When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed.

It’s never great when someone needs to file bankruptcy. Bankruptcy can indicate financial troubles, and is a generally embarrassing topic to discuss with others. So do not think that bankruptcy will solve all of your problems, use this guide in order to fix your financial situation if possible.

Credit Cards

TIP! If you can afford to pay your bills, bankruptcy is not a wise option. Sure, bankruptcy can get rid of that debt, but it comes at the price of poor credit for 7-10 years.

Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.

TIP! Go ahead and file for personal bankruptcy as soon as you realize it is necessary. A lot of people ignore their financial problems, thinking they are going to go away; that is a big mistake.

Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. 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.

TIP! Don’t stress about trying to determine whether bankruptcy is something you must do. As with anything in life, putting off important things such as debt repayment can snowball quickly out of control.

Don’t hesitate to give your attorney a heads-up about something she has missed. Don’t assume that he will remember something you told him weeks ago. Speak up. This is your life, and your future depends on it.

TIP! A lot of people who file for bankruptcy swear they will never use credit of any kind ever again. This isn’t necessarily a good strategy to follow since establishing good credit goes hand-in-hand with getting, and handling, credit in a responsible manner.

Determine which assets won’t be seized before filing for bankruptcy. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. This will ensure that you do not have any surprises once you have filed bankruptcy.

TIP! Remember that just because you have filed for personal bankruptcy it will not cause you to lose everything you own. You can often keep personal property.

As you can see, you do not have to resort to bankruptcy. The tips laid out here will guide you toward the right road so you can avoid bankruptcy. Apply the guidance you just received and see what it can do to improve your financial circumstances and bolster your credit record.

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