It can be hard, but at times necessary, to file for bankruptcy. It will be easier to go through the process if you have a good idea of what is involved. Keep reading to learn some solid advice for navigating the treacherous world of bankruptcy.
Most people that file for bankruptcy owe a lot of money that they could not pay off. Study the laws in you state to learn what you need to do and what your options are. Bankruptcy laws vary from state to state. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. 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.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
Sometimes declaring personal bankruptcy is simply unavoidable. You should now have some excellent advice from people who have personally struggled with the bankruptcy process. Spending some time learning for others who have gone through the same thing reduce some of your stress.
