Making The Right Decisions When Filing Bankruptcy.

imagesIt can be challenging to face the prospect of bankruptcy. The number of options available to those with financial problems can be small. Filing for bankruptcy doesn’t mean you are permanently barred for owning things that require large loans, such as an automobile or a house. Read these tips to find out more.

Don’t use a credit card to pay off your taxes before filing for bankruptcy. Most of the time, you won’t be able to discharge this debt, and you could make things worse with the IRS. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. Therefore, you have no reason for use of a credit card, if the amount is to be discharged in due process of the bankruptcy.

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. Unless there are no other options, your retirement funds should never be touched. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.

Never shirk on the truth in your petition for bankruptcy. 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.

Research what assets are exempt from seizure before you decide to declare bankruptcy. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. You may find yourself unpleasantly surprised when the things you value the most are taken from you without warning. This is why it is very important the familiarize yourself with this list.

You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. Don’t withhold information, and create a smart way of coping with the reality of the situation.

Do not despair, as it’s not the end of the world. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Talk to a lawyer for help with the petition filing process.

Although you have already filed for personal bankruptcy, don’t make the mistake of thinking that you’re now marked for life. Through the saving of money and striving to reestablish your credit, creditors will take this to heart. Save as much as you can and you will see the difference when you walk in for a new loan for a car or a home.

Related posts:

Leave a Reply

Your email address will not be published. Required fields are marked *