Are you having trouble with money? Are you starting to consider the possibility of bankruptcy? Fear not, you are in good company. Millions of people, each year, have chosen bankruptcy as their only option for financial freedom. The piece that follows includes useful ideas for ensuring that the bankruptcy process goes as smoothly as possible.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. You can learn a lot on the U.S. Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. 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.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. If the tax has the ability to be eliminated, the debt can be too. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Make sure your home is safe. It isn’t inevitable that you will lose your house when you file for bankruptcy. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
As you can see by now, you do have the option of filing bankruptcy. Given that fact, it should be your last resort due to the consequences involved. Arming yourself with knowledge is a good way to protect assets and approach the process wisely.
