When filing for bankruptcy, it is best not take the process lightly! You should know all that you can about how it works. Apply the advice from this article to go down the right path. No matter which decision you make, knowledge is essential.
Do not use a credit card to pay income taxes and then file for bankruptcy. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. Remember that if you can discharge the tax you can discharge the debt. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Never shirk on the truth in your petition for bankruptcy. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you"re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
Take advantage of free consultations with lawyers and the ability to sift through and find the right one. Talk to the lawyer and not his assistant, who may not be legally able to help you. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Safeguard your most valuable asset–your home. Just because you"re going bankrupt doesn"t mean that you also have to be homeless! For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. You may also want to check out the homestead exemption because it may allow you to keep your home.
Ensure that you bankruptcy is your best choice. You might be better off consolidating your debt or availing yourself of some other remedy. Filling for bankruptcy is a lengthy, stressful process. It will certainly affect the credit rating that you have in the future. Because of this, you should be sure that bankruptcy is your only option before you file.
As seen in this guide, there are lots of ways on how you can file for personal bankruptcy. Don"t stress about the amount of information before you. Take the time you need to think clearly and analyze the information. This makes it more likely that you will make rational decisions that will have long-term financial benefit.