A lot of folks in modern times are deep in debt. Debt continues to mount while collection phone calls continue to rise. If you find yourself in this type of financial trouble, you may want to think about filing for bankruptcy. The bankruptcy laws vary in each state, so educate yourself on the laws in your state.
Do not consider paying off tax debt with credit cards and filing for bankruptcy afterward. It won’t work. In most states, this is not dischargeable debt. Therefore, you will end up owing the IRS a lot of money. The rule here is that if you can get the tax discharged then you can get the debt discharged. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. The United States Some valuable resources include the U.S. Dept of Justice and American Bankruptcy Institute. The more you know, the more you’ll knwo that you’ve made a wise decision and the you’re making sure your bankruptcy goes as smooth as possible.
You may still have trouble receiving any unsecured credit after a bankruptcy. If this happens to you, think about applying for a couple of secured credit cards. This will demonstrate that you’re seriously trying to restore your credit. After some time passes they may be willing to offer you unsecured credit.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
In conclusion, most circumstance that lead to bankruptcy are not positive. However, what happens to your life after bankruptcy can have a happy beginning. Actually, by using the advice you’ve learned here, your story of hardship could have a happy ending after all!
