Personal Bankruptcy: To File or Not To File?

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The economy is still weak today. Because of the state of the economy, a lot of people have been let go from their jobs and have acquired debt. For a lot of people, filing for bankruptcy is the only logical solution. Continue reading this article for information about bankruptcy and whether it is the right choice.
 
If you are considering paying your taxes with credit cards and turning around and filing bankruptcy–they are on to you. In most states, you will still owe money to the IRS and have to take care of the interest of your credit cards. One thing that you should remember is that if your tax is dischargeable, your debt will also be dischargeable. So, there is no reason to use your credit card if it will be discharged in the bankruptcy.
 
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. All information submitted to the court with your signature needs to be double checked.
 
Before you decide to file bankruptcy proceedings, determine which assets will be safe. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. It is important to be aware of this list so you will know what assets are saved. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
 
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. Being honest is both the right thing to do and, moreover, it is required by law.
 
There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Make sure you know what each entails so you can make the right choice. Every one of your debts will be gone if you decide to go with Chapter 7. All creditor relationships will be severed. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. Both options have advantages and drawbacks, so do your research before deciding.
 
Bankruptcy can be a good time to spend time with people you love. Bankruptcy proceedings can be extremely harsh. It is long, full of stress and leaves individuals having feelings of shame and guilt. A lot of folks decide to hide themselves from the world around them until the end of the process. Self-imposed isolation can make you feel worse about it and can cause depression. Spend time with your family, talk about your problems and find things that relax you.
 
While some new jobs are beginning to pop up, many people are struggling to find decent income; in fact, many people searching for any job. That said, it is possible to avoid bankruptcy even if you are having cash flow problems. Now you know all the options available to avoid bankruptcy, if at all possible. Good luck.

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