You’ve heard it before and you’ll hear it again–the economy is in rough shape. A poor economy means more people than ever have debt and are losing their jobs. Rising personal debt leads, in many cases, to increased bankruptcy filings. If you, a friend, or a loved one is in financial trouble, this article could help decide if bankruptcy is the right option.
One you realize you are in financial trouble and have decided to file for personal bankruptcy you should move quickly. Waiting to the last minute to file bankruptcy can cause a number of issues. You may face negative repercussions such as wage or bank account garnishment or foreclosure on your home. You can also not leave time enough for a thorough review of your financial situation, which will limit your available options.
Be sure you’re doing what’s right before you file for bankruptcy. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
Seriously consider if bankruptcy is the right choice for you. If you do not owe too much in credit card debt and medical bills, you might be able to handle the debts yourself with credit counselors and payment arrangements. Bankruptcy can be a serious financial choice, so make sure you consider all your options carefully.
Include all financial information when filing for bankruptcy. Things that may not seem significant to you may be very important. Include all assets like: vehicles, every cent of income, retirement account, stocks and anything else that has value. Furthermore, include any lawsuits that are pending against you or other parties.
Before you file, make sure you understand current bankruptcy laws. Laws are subject to change, and it’s important that you’re educating yourself about current code only. If you are not sure about the current laws all you have to do is look into what laws have been passed.
Filing for bankruptcy does not wipe out all of your debts. It does not stop you from having to pay alimony, child support, student loans, tax debt and most types of secured credit. You will not be allowed to file if these are the only types of debt that you have on record.
Look into proper timing. You can keep your tax refund even when filing bankruptcy. You have to time it just right to do so. Wait until after your tax form has been processed, and you have received your tax return. One of the sneakiest things that a trustee does is to take an income tax return that debtors rely on. Waiting can keep that money in your pocket.
The economic recovery has bypassed many people, leaving their finances in disarray. You can avoid bankruptcy even with no steady source of income. Hopefully, the information in this article has provided you with useful information that can help you stay out of bankruptcy. We wish you well.
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