Bankruptcy is very common in today's economic climate. Not only the economy, mind you, but people's spending habits are also to blame for the increase in claims filed. If you decide to file, it's crucial that you are well educated on the subject of personal bankruptcy, so you are able to make proper choices. This article can help you with that.
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. Most of the time, you won't be able to discharge this debt, and you could make things worse with the IRS. If the tax can be discharged, so can the debt. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. Chapter 7 is the best option to erase your debts for good. Your responsibilities to your creditors will be satisfied. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. Do some research about these options so you can choose the best one. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
As you learned from the introduction of the article, bankruptcy is growing a lot these days, especially since the economy is slowly rebuilding. By following the advice presented here, you can make sound decisions in regards to your relationship with personal 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. Most of the time, you won't be able to discharge this debt, and you could make things worse with the IRS. If the tax can be discharged, so can the debt. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. Chapter 7 is the best option to erase your debts for good. Your responsibilities to your creditors will be satisfied. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. Do some research about these options so you can choose the best one. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
As you learned from the introduction of the article, bankruptcy is growing a lot these days, especially since the economy is slowly rebuilding. By following the advice presented here, you can make sound decisions in regards to your relationship with personal bankruptcy.
