Filing bankruptcy is a bit complicated. Several different types or "Chapters" of bankruptcy are available to you. Depending on the state of your finances and the type of debt that you have accrued, you may qualify for one type of bankruptcy, but not another. Learn as much as you can about the topic before you make any decisions regarding filing. This article will give you some of the important facts about bankruptcy.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. 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.
When it gets time to think about bankruptcy, avoid using your retirement or savings to pay off the creditors or even make attempts to settle the debt. Leave your retirement accounts untouched unless there is absolutely no other alternative. You may have withdraw from your savings every now and then, but try to leave yourself some financial security for the future.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. You wouldn't want to unexpectedly lose any possessions you treasure.
Don't pay for an attorney consultation and ask him or her anything you want to know. Since most attorneys offer free consultations, meet with a few attorneys before deciding who to hire. You should make a final decision only once all of the questions or concerns are sufficiently attended to. You don't have to make your decision right after this consultation. If you're unsure, don't hesitate to talk to multiple bankruptcy lawyers.
This article has hopefully made it clear that declaring bankruptcy is a big decision that should be considered at length. If it's the best course of action for your current financial situation, then be sure to find an attorney with a lot of experience with personal bankruptcy so that you may be able to have a better financial future.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. 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.
When it gets time to think about bankruptcy, avoid using your retirement or savings to pay off the creditors or even make attempts to settle the debt. Leave your retirement accounts untouched unless there is absolutely no other alternative. You may have withdraw from your savings every now and then, but try to leave yourself some financial security for the future.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. You wouldn't want to unexpectedly lose any possessions you treasure.
Don't pay for an attorney consultation and ask him or her anything you want to know. Since most attorneys offer free consultations, meet with a few attorneys before deciding who to hire. You should make a final decision only once all of the questions or concerns are sufficiently attended to. You don't have to make your decision right after this consultation. If you're unsure, don't hesitate to talk to multiple bankruptcy lawyers.
This article has hopefully made it clear that declaring bankruptcy is a big decision that should be considered at length. If it's the best course of action for your current financial situation, then be sure to find an attorney with a lot of experience with personal bankruptcy so that you may be able to have a better financial future.
