A lot of people in this day and age are deeply into the debt trap. They are harassed by collection calls and they have trouble paying their bills. If this sounds a lot like your personal situation, then personal bankruptcy may be for you. Continue reading this article below to see if this is something you should do.
Don’t use credit cards to pay off your taxes before filing for bankruptcy. In many parts of the country, this debt won’t be discharged, and you could be left owing a significant amount to the IRS. This makes using a credit care irrelevant, when it will just be discharged.
Always be honest when it comes to your bankruptcy petition.
The Bankruptcy Code contains a list of various assets that are exempt from bankruptcy. If you don’t heed that advice, you could have nasty surprises pop up later due to your prized possessions being seized.
Stay abreast of new bankruptcy filing laws. Bankruptcy laws are always changing, you need to know what you are getting yourself into. Your state’s legislative offices or website will have the information about these changes.
Before you decide to declare bankruptcy, be sure you have considered alternative options. For example, if your debt is small, you might be better off if you went through consumer credit counseling. You can also talk to creditors and ask them to lower payments, but be sure to document any get and new agreement terms in writing from each creditor.
Don’t file bankruptcy if you get is bigger than your debts. Bankruptcy may seem to be the easy way out, but it will devastate your credit for the next ten years.
Know the rights when filing for bankruptcy. Some bill collectors will try to tell you that your debt with them …