The economy has been in good shape. The cycle of a tough economy leads to people are losing their jobs and going into uncontrollable debt. Debts can lead to bankruptcy, which can seem to be a terrible thing.
Don’t use credit card to pay your taxes if you’re going to file bankruptcy. In some places the debt can not be discharged, you will still owe money to the IRS and have to take care of the interest of your credit cards. This makes using a credit care irrelevant, when it will just be discharged.
Don’t be reluctant to remind your attorney a heads-up about something she has missed. You cannot expect your lawyer will remember every important detail without a reminder. This is your bankruptcy case, so never be nervous about speaking your mind.
Learn of new laws before you file for bankruptcy. Bankruptcy laws are in constant flux, you need to know what you are getting yourself into. Your state’s website will have up-to-date information about these changes.
Be sure you can differentiate between Chapter 7 and Chapter 13 differ.Chapter 7 is the elimination of all of your debt. This includes creditors and your relationship with creditors. Chapter 13 bankruptcy allows for a payment plan that takes 60 months to work with until the debts go away.
Filing bankruptcy doesn’t automatically involve losing your house. Depending on if your home’s value has gone down or if it has a second mortgage, you may end up keeping it. You are still going to want to check into homestead exemption because it may allow you to keep your home.