And it goes without saying that whatever brought you to bankruptcy was probably an unhappy experience; nonetheless, when your bankruptcy proceedings are over, you can move on to have a happier life. The bankruptcy option was created to give you another chance to live a financially responsible life. The following article will give you advice to help make process of filing go smoothly.
Do not use a credit card to pay income taxes and then file for bankruptcy. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. The rule here is that if you can get the tax discharged then you can get the debt discharged. Because of this, transferring the debt to your credit card is pointless.
Research what assets are exempt from seizure before you decide to declare bankruptcy. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
It is important to list all your assets and liabilities during the bankruptcy proceeding. Failure to do so will only cause you problems in the end. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. Be completely honest in your paperwork to avoid a situation that may end in severe punishment.
Stay positive. There may still be way to get repossessed items back after you file for bankruptcy. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Consult with a lawyer who is able to assist you in the filing of your petition.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
As stated in the above article, anytime someone is forced into bankruptcy is never a happy situation. But, just because you ended up in this dark place does not mean that the sun cannot shine once more. As a matter of fact, if you put the ideas in this article into play, you can let bankruptcy proceedings a pivotal moment in your existence towards a brighter future.