You may feel quite frightened of the IRS if they threaten to repossess the things that are important to you, such as your jewelry or your car. When your debt situation gets serious enough, you may want to consider personal bankruptcy as a way to save yourself. The following article contains advice to assist you in dealing with the process.
If you suspect that bankruptcy filing may be a reality, don’t try to discharge all your debt in advance by emptying your retirement or saving accounts. You should make every effort to leave your retirement accounts untouched until your retire. Dipping into savings may need to happen, just don’t totally wipe it out, or you might not have much financial security later.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. Generally speaking, debt incurred to pay taxes and the tax bills themselves are treated the same in a bankruptcy. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. The person you choose to file with needs to know both the good and bad aspects of your finances. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.
Do what you can to keep your home. Filing for bankruptcy does not mean you have to lose your home. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Even though our economy is slowly improving, many people still do not have jobs or decent wages. You can avoid bankruptcy even with no steady source of income. You hopefully have more knowledge now on how you can avoid bankruptcy. Godspeed.
