Just thinking about bankruptcy is a scary thought for many people. It is only natural that people are afraid of skyrocketing debt that causes hardship for themselves and their family members. If you are haunted by these terrible thoughts, or are about to go through with this, this article will help you in the process.
Do not try to get clever by paying your taxes via credit card before you declare bankruptcy in an effort to dodge your tax burden. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. If the tax has the ability to be eliminated, the debt can be too. So it does not help you to put the tax bill on your charge card if you know the debt will be discharged anyway.
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. Most of the time, you cannot discharge this debt. As a result, you will owe the IRS a lot of money. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
Think through your decision to file for bankruptcy carefully before going ahead with it. There are plenty of other options open to you, like consumer credit counseling. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.
If bankruptcy is an option for you, secure the services of an attorney. It is unlikely that you will be able to comprehend all the various rules and regulations involved in bankruptcy law. Choose an attorney versed in personal bankruptcy to make sure you don’t make mistakes.
Sometimes declaring bankruptcy is simply the only viable option, even though it’s one that nobody wants to take. Now that you’ve come to the end of this piece, you have some ideas about how the process works. You will feel more relaxed about your own path when you learn from people who traveled it before you did.
