Sadly, bankruptcy is now a household word. The recession has hit many people very hard. However, before selecting this option make sure you know everything you need to know before you head too far down the path. This article will provide you with that information.
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. The United States Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. By being well armed with the correct knowledge, you can be certain of the decision that you have made. Additionally, you will understand the processes necessary to conduct your personal bankruptcy matters in a smooth manner.
Dischargeable Debt
Once the bankruptcy is complete, you may find it difficult to receive unsecured credit. Secured cards can be a great way to get started if this happens to you. This will show other people that you’re serious when it comes to having your credit record in order. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. In most cases, you can use the adage that “a dischargeable tax is a dischargeable debt.” Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Before you file for bankruptcy, carefully consider if it is the right option for you. Other available options include consumer credit counseling. Bankruptcy is a permanent part of your credit, so before you make such a big decision, you might want to explore all other choices so that your credit history is affected as minimally as possible.
Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. You may find yourself unpleasantly surprised when the things you value the most are taken from you without warning. This is why it is very important the familiarize yourself with this list.
If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
As said previously, bankruptcy is a popular topic due to the declining economy. With the advice you have learned from this article, you will be better prepared to deal with bankruptcy, should you have to do so.
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