Many people look down on people who have to file for bankruptcy, and then find themselves in the same situation. Situations like a job loss or a divorce can bring you to a situation where the only solution is bankruptcy. No matter how you found yourself looking at bankruptcy as an option, continue reading so that you can learn how to move forward.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Remember that if you can discharge the tax you can discharge the debt. It is pointless to use credit cards if they can be discharged.
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. You should make every effort to leave your retirement accounts untouched until your retire. 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.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. It is important that you are completely transparent, showing everything financial that needs to be known. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, if your debt is small, try a type of consumer counseling program. You may have luck negotiating lower payments by dealing directly with creditors, but be sure to document any get and new agreement terms in writing from each creditor.
Now that you’ve reached the end of this article, you should see that bankruptcy doesn’t mean leading an unhappy life. At first it can be difficult, but personal bankruptcy can be overcome. Stick with the information presented here and over time you will be able to slowly crawl out from under the mountain of debt you have accumulated.
