Anything that leads you to declaring or filing for bankruptcy is probably not a happy story, but that does not mean that your life after bankruptcy cannot be better. The whole point is to wipe the slate clean and have a new chance at life. Keep reading to handle the bankruptcy process in a way that is a rebirth and not a financial Armageddon.
It is simple math; when you owe more than you are able to pay off, a bankruptcy is the likely solution. If you have unmanageable debt, you need to familiarize yourself with regional bankruptcy laws. Each state has its own set of rules regarding bankruptcy. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. Know what the laws are in your state before filing.
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. In some places the debt can not be discharged, and you may still need to pay the IRS afterward. One thing that you should remember is that if your tax is dischargable, your debt will also be dischargeable. Just because your credit card could be discharged in bankruptcy does not mean you should use it.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. Debt advisors are one of the many other avenues you can consider. Your credit score will be forever effected by bankruptcy, which is why you should do everything else in your power to resolve matters first.
Learn from the mistakes you made that sent you to bankruptcy court. But, just because you ended up in this dark place does not mean that the sun cannot shine once more. By embracing the information that has been provided here to you, you can take the negative connotation that surrounds bankruptcy and change it to a positive one.