Expert Advice About Declaring A Personal Bankruptcy

A lot of people are in debt right now. The hate answering the phone because many debt collectors call daily, and every trip to the mailbox means another stressful bill. If this is happening to you, then you might want to think about personal bankruptcy. To learn more about the process and what it means for you, check out the information provided below.

Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The U.S. Justice Department, the ABI (American Bankruptcy Institute), as well as the NABCA (National Assoc. Consumer Bankruptcy Attorneys) are excellent sources of information. 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.

If you are thinking about paying off your tax obligations with a credit card and then filing bankruptcy, think again. You will find few states that discharge this kind of debt. You may also wind up owing a lot of money to the IRS. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.

Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.

Safeguard your home. Filing for bankruptcy does not mean you have to lose your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.

Now you should be aware that there is plenty of available help when thinking about filing for bankruptcy. If you deal with your stress in a positive way and make level-headed decisions, your bankruptcy filing will be a step in the right direction for a renewed financial future.