Are you financially insolvent with bankruptcy looking like the only way out? Fear not, you are in good company. There are a lot of people who have turned to bankruptcy as the solution to their financial problems. This article contains advice on bankruptcy that can help you go through the process as smoothly as possible.
People generally mostly feel the need to get a bankruptcy filed for when they have more money owed than they can get. If this is happening to you, then learn about the laws where you live. When it comes to bankruptcy, states have varying laws. Your home is safe in some states, but in others it’s not. Familiarize yourself with the bankruptcy laws of your state prior to filing.
Do not attempt to pay your taxes with your credit cards and subsequently file for bankruptcy. Most states do not look at this debt as chargeable, and you could end up owing money to the IRS. Should the tax be dischargeable, the debt is often dischargeable as well. So as you can see, in this situation there is no need to use the card when the debt will be discharged when you file for bankruptcy.
Be sure you’re doing what’s right before you file for bankruptcy. Avail yourself of other options, including consumer credit counseling, if they are appropriate for your situation. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Being honest is both the right thing to do and, moreover, it is required by law.
As you know by now, many other people have had to file for bankruptcy before you. But since reading this article, you now have information that others don’t have. Use the above tips to make sure the bankruptcy process goes smoothly.
Source Reference: Houston Bankruptcy Lawyer