Handy Tips On When You Should File For Bankruptcy
Posted at by PConran on category BankruptcyThere are quite a number of people who have been affected by the economy, and now find themselves buried in debt. Filing chapter 7 or 11 can be the last option for many people. If this description applies to you, you may wish to think about filing for personal bankruptcy. Continue reading to learn more about whether you need to file for bankruptcy or not.
Knowledge is power when you’re considering bankrupcy; there are many websites available to help you. The United States Department of Justice and American Bankruptcy Institute are two such places to look. The more knowledgeable you are, the more you can be sure that you are making the right decision and that you are taking the right steps to ensure your personal bankruptcy goes as smoothly as possible.
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. Bear this in mind; if the tax can be discharged, then the debt can be as well. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
If you are feeling like you are seriously going to have to file for bankruptcy then do not clear out your savings. Avoid ever touching retirement funds until you have no other choice. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
Do not hesitate to remind your lawyer of any details regarding your case. Just because you have told him something of importance that he will remember it. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
Stay up to date with any new bankruptcy filing laws. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
Protect your house. Filing for bankruptcy does not mean you have to lose your home. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. Otherwise, there is a homestead exemption you should look into, as it might let you stay in your house.
Hopefully, you now understand that there are many options open to you when you are giving a personal bankruptcy filing serious thought. If you open your mind to this process and think clearly, it can lead to better financial situation and leave you in a much better position than before.