Are you so far in debt that you may have to file for bankruptcy? If so, you have come to the right place. On the Internet lives plenty of information on how you can avoid bankruptcy. Check out the advice from this article to see what you can do so you do not have to file for bankruptcy.
Do not even think about paying your taxes with credit and petitioning for bankruptcy right after. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
When it soaks in that filing for personal bankruptcy, don’t use all of your retirement funds, or all of your savings to resolve insolvency or pay creditors. Retirement accounts should never be touched if it can be helped. Though you may have to break into your savings, keep some available for difficult times. You will be glad you did.
Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. A great way to rebuild your credit is to apply for a prepaid credit card. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. After some time passes they may be willing to offer you unsecured credit.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. This will ensure that you do not have any surprises once you have filed bankruptcy.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
Planning right can help you make the right decision. Just try and buy yourself a little time and see if you can get your finances back in order. Just be sure that you are doing your best to avoid filing. So put pen to paper and come up with a plan that will put your future back on track.