Sadly, bankruptcy is an increasingly widespread phenomenon of late. If you are considering bankruptcy, you are not alone. Before you file for personal bankruptcy, educate yourself about the subject, so you make the right decisions. The following article will get you up to speed on all things concerning bankruptcy.
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. 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. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
Credit History
Before you file for bankruptcy, carefully consider if it is the right option for you. There are plenty of other options open to you, like consumer credit counseling. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
It is possible to keep your home. You do not have to lose your home in the process of a bankruptcy. You might be able to keep your home, contingent on certain factors, such as your home decreasing in value or having a second mortgage. If you’re not sure, however, you can always study the particular homestead exemption regulations. You will learn everything you need to know.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Not only is hiding income and assets wrong, it is also a crime.
It is imperative that you know for sure that bankruptcy is the option you need. You might be better off consolidating your debt or availing yourself of some other remedy. Bankruptcy is a long process that can be stressful. Your future credit will be affected by these actions. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.
As previously noted, bankruptcy is very common today, particularly because of the current economy. If you want to know that you are doing the right thing when dealing with your bankruptcy be sure to put the information you read in this article to use.