Filing for personal bankruptcy is quite a complicated process. There are multiple ways you can file for bankruptcy, and the one that best fits you will depend on your financial situation and what you owe. You need to know all you can about bankruptcy before you decide to file your petition. The below advice can assist you in beginning.
When bankruptcy seem inevitable it is important not to use your retirement funds or emergency savings to pay creditors. Retirement accounts should never be accessed unless all other options have been exhausted. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
Do not use a credit card to pay income taxes and then file for bankruptcy. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. This makes using a credit care irrelevant, since bankruptcy will discharge it.
Don’t try to hide anything if you are filing for bankruptcy, as this will 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.
Bankruptcy should be your last resort. Keep in mind that a number of debt consolidation services aren’t legit, and will only worsen your debt. Keep the advice from this article in mind in order to make ideal financial decisions and stay away from debt.
