The decision to file for bankruptcy is very serious and should not be taken lightly. Digest the information contained herein, so that you are aware of what you can expect and you know what actions to take prior to making that critical decision. Take the time to do learn everything you can before filing.
Individuals often seek to file for personal bankruptcy protection if their debts exceed their ability to repay them. If this applies to you, be sure that you know what the laws of your state are. Every state is different when it comes to dealing with bankruptcy. In certain states if you file for bankruptcy your home remains protected, but the laws vary depending on where you reside. Be sure you educate yourself on local laws prior to filing.
Think twice if you have struck upon the idea of paying off your taxes by credit card and subsequently filing for personal 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. If the tax has the ability to be eliminated, the debt can be too. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Safeguard your most valuable asset–your home. You don’t have to lose your home just because you are filing for bankruptcy. There are mitigating factors, such as lose of value, or multiple mortgages. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
Before filling for bankruptcy, determine which assets will be exempted from seizure. Bankruptcy exemptions are properties may not be seized during bankruptcy. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you don’t heed that advice, you might find yourself getting surprised when your favorite things are repossessed.
Now after reading the above article, you should be aware of the many options that can help you once you file for bankruptcy. You may have found yourself being fearful when you began thinking of bankruptcy, but once you get through it, you will find it’s not the end of the world. Making use of the tips you found here will allow you to heal your financial situation.
