Deciding to file for bankruptcy is serious and should be looked at seriously. Read the suggestions below to learn what you should expect, and the steps you will need to take as you think through this decision. Research the topic extensively in advance.
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. When you are faced with this issue, begin to familiarize yourself with your state’s laws. Laws differ from one state to the other. For instance, your home might be protected in some states while you might lose it in others. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
Do not use a credit card to pay income taxes and then file for bankruptcy. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. The rule here is that if you can get the tax discharged then you can get the debt discharged. This means using a credit card is not necessary, when it will just be discharged.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The U.S. DOJ, the NACBA, and the ABI all have useful information. The more you know, the better prepared you will be to make the best decisions and ensure that your bankruptcy goes smoothly.
Retirement Accounts
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. Leave your retirement accounts untouched unless there is absolutely no other alternative. Although it is quite normal to use some of your savings, ensure that you leave enough in your account for emergencies.
Before filling for bankruptcy, determine which assets will be exempted from seizure. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. You can determine exactly which of your possessions are at risk by consulting this list before you file. While it might not be possible to protect a particularly beloved possession, at least you will know in advance whether or not you risk losing it.
Don’t hesitate to give your attorney a heads-up about something she has missed. Never assume that they can remember all details without reminders. This is your bankruptcy and your future, so never be nervous about speaking your mind.
After reading the previous article, it is obvious that bankruptcy is not something that takes place on its own. Many steps must be taken, and they must be completed properly. Keep this article’s advice in mind and you will probably stand a better chance of laying all the groundwork for your own bankruptcy properly.