Great Tips For People Filing For Bankruptcy

August 23, 2013

TIP! If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS.

Having to file for personal bankruptcy is never a positive experience. Bankruptcy can indicate financial troubles, and is a generally embarrassing topic to discuss with others. If you decide to file bankruptcy, research the laws in your state and retain the services of a qualified attorney.

TIP! Don’t be reluctant to remind your lawyer about specific details he may not remember. Lawyers are people too, and sometimes they forget important information and need to be reminded.

Most people that file for bankruptcy owe a lot of money that they could not pay off. If you have unmanageable debt, you need to familiarize yourself with regional bankruptcy laws. Laws differ from one state to the other. Some states may protect you home, and some may not. Do not file before learning about the bankruptcy laws in your state.

TIP! Before you file for personal bankruptcy, be sure that you are cognizant of all current laws. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws.

Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. If the tax can be discharged, so can the debt. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.

TIP! Safeguard your home. Bankruptcy doesn’t always mean you’ll lose your home.

Be persistent in researching information about filing for bankruptcy and consult a qualified personal bankruptcy attorney. Many times you can get repossess property back once bankruptcy has been filed. You may be able to get your property back if fewer than 90 days have passed between the repossession and are filing for bankruptcy. Talk to your lawyer to find out how to go about properly filing a petition.

TIP! There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses.

Clearly, filing for personal bankruptcy is not your only option. The tips written in this guide can lead you to the right path in avoiding bankruptcy. Use the information you have learned here, and see how you can revamp your finances and protect your valuable credit history.