There is no doubt that the current economy is a challenging one. The result of the dreadful economy is that many people are losing their jobs and falling into uncontrollable debt. Because more people are falling into debt, more people are filing for bankruptcy. If you’re in danger of going through bankruptcy, then the below article can help you in getting out of it.
Bankruptcy Laws
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. 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. Bear this in mind; if the tax can be discharged, then the debt can be as well. There isn’t any reason to use a credit card to pay the tax bill since the bill can be discharged anyway.
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. If you have unmanageable debt, you need to familiarize yourself with regional bankruptcy laws. Most states differ in their laws governing bankruptcy. You may find your home is safeguarded in one state, while in another it isn’t. Become acquainted with local bankruptcy laws before filing.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. The main thing to remember is that dischargeable taxes are the equivalent of dischargeable debts. Because of this, transferring the debt to your credit card is pointless.
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. Avoid touching your retirement accounts whenever possible. Using your savings is necessary, but decimating it and leaving yourself dangling with no future financial security is not a good idea.
Don’t fear reminding your attorney of any specific details of your case. Lawyers are people too, and sometimes they forget important information and need to be reminded. Speak up. This is your life, and your future depends on it.
Always be honest with the information you give about your finances. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. You may find yourself unpleasantly surprised when the things you value the most are taken from you without warning. This is why it is very important the familiarize yourself with this list.
Even as the economy begins to recover, many people are still in difficult financial straits. If you lack a steady job, you still may be able to prevent the need for a bankruptcy filing. Hopefully, this article has given you information that you can use to avoid having to file for bankruptcy. Take this information and apply it to your personal financial situation.
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. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Talk to a lawyer for help with the petition filing process.