Filing for personal bankruptcy is an important step, which should be thought through carefully. Go over the advice in the following paragraphs to get an idea of what you’re in for, and to learn what you should know before you decide whether or not to file. Find out all the information you can before filing for bankruptcy.
Don’t use a credit card to pay off your taxes before filing for bankruptcy. Most places will not consider the debt dischargeable, meaning you will have to pay the IRS a lot of money. A common rule is that dischargeable tax means dischargeable debt. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
Credit History
Before you file for bankruptcy, carefully consider if it is the right option for you. You have better options. For example, you could try credit counseling. Bankruptcy leaves a permanent mark on your credit history, so before you take such a large step, you want to exhaust all other options so that the future effects on your credit history are as minimal as possible.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. You can lose the right to file bankruptcy now or in the future if you try to withhold information about your assets and income. So it is critical that you disclose everything honestly to to avoid that and any other penalties the trustee might impose if he discovered your attempt to hide information from the court.
Bankruptcy is not a something that simply happens, as this article has proven to you. There are quite a few things you you need to do and do correctly. When you implement the suggestions in this article, you can feel confident that you have covered all the bases with regard to bankruptcy filing.
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