You’ve heard it before and you’ll hear it again–the economy is in rough shape. The cycle of a tough economy leads to people losing jobs and going into debt. The unfortunate result of this is that more and more people are filing for personal bankruptcy. This article can help you or someone you care about if bankruptcy is a consideration.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The US There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. The rule here is that if you can get the tax discharged then you can get the debt discharged. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. Look into getting a secured credit card in order to get back on your feet with building credit. This will show people that you are serious about getting your credit record back in order. After a while, you may be able to get unsecured credit again.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. Never hide anything, and make sure you come up with a well devised plan for dealing with bankruptcy.
While personal bankruptcy is a valid option, you should consider the other options available to you before making your final decision. Keep in mind that many scam debt-consolidation services have sprung up since the increase in bankruptcies, so do your homework before choosing one. The tips you have found here can help you to make the choices that are right for you, and help you steer clear of debt in the future.
