Filing for bankruptcy must not be taken lightly. Digest the information contained herein, so that you are aware of what you can expect and you know what actions to take prior to making that critical decision. You need to gain as much knowledge as you can prior to going through this ordeal.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The United States Department of Justice, American Bankruptcy Institute, along with many other websites can provide you with the information you need. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
Don’t use credit cards to pay your taxes if you’re going to file bankruptcy. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. Unless there is no other choice a retirement account should not be used. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
As you can see from the above article, bankruptcy doesn’t just happen. There are a lot of things that need to be done and done correctly. By following the suggestions above, you can make sure that you have addressed all of the important items that you need to take care of during your bankruptcy.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.