Bankruptcy is stressful, but it can provide financial relief. It is embarrassing having people research into your finances and assets. Yet, once this process is done, you can breathe again because debt collectors will stop calling you. Take a look ahead to figure out more about bankruptcy.
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. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. 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.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. Consider any other options that are available to you, such as consumer credit counseling. Be certain that bankruptcy is the only option you have before pursuing this course because bankruptcy is always evident on your financial and credit history.
Research what assets are exempt from seizure before you decide to declare bankruptcy. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. It’s crucial to read that list before filing to see which of your prized possessions can be seized. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Inaccurate or incomplete information can lead to your petition being denied. Your case and future are affected by the attorney’s action, so never be afraid to communicate.
Even if you have filed for bankruptcy you now realize that this does not limit you in life forever. Establishing a record of saving money and paying your debts on time will increase your credit worthiness. Save as much as you can and you will see the difference when you walk in for a new loan for a car or a home.
