It is really scary to be way over your head in debt. Sometimes, financial issues just get out of control quickly. The problem now is that it becomes much tougher to fix. In some situations, filing for bankruptcy might be the best option.
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. If the tax can be discharged, so can the debt. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Do not use a credit card to pay income taxes and then file for bankruptcy. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. Should the tax be dischargeable, the debt is often dischargeable as well. It is pointless to use credit cards if they can be discharged.
It is important to understand your rights when filing bankruptcy. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Consult with a lawyer who can advise you on what you need to do to file a petition.
Before you file, make sure you understand current bankruptcy laws. Bankruptcy law evolves constantly, and it’s important to stay up-to-date to ensure that you file properly. Review the state legislature web site or contact the state legislature office to keep abreast of changes in the law.
Even the economy is gradually getting better, many people still do not have a job. If you lack a steady job, you still may be able to prevent the need for a bankruptcy filing. With any luck, you now see that options exist to help you steer clear of bankruptcy. We wish you well.
