Bankruptcy is stressful, but it can provide financial relief. Be prepared to go through your finances with a fine toothed comb and share the information with lots of unfamiliar people. However, when your bankruptcy is over, you can re-establish your finances and no longer need to tolerate bill collectors. The following are some useful ideas for facilitating a smooth bankruptcy.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. In a lot of places, the debt cannot be discharged, and you may still owe money to the IRS. Transferring the debt to another medium (e.g. a credit card) won’t magically make a tax debt discharagable, either. So, there’s no reason to make use of a credit cards if it will not be discharged in bankruptcy.
When it soaks in that filing for personal bankruptcy, don’t use all of your retirement funds, or all of your savings to resolve insolvency or pay creditors. You should never touch your retirement accounts, unless you have absolutely no choice. Though you may have to break into your savings, keep some available for difficult times. You will be glad you did.
Do not hesitate to remind your lawyer of any details regarding your case. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If this happens to you, think about applying for a couple of secured credit cards. By doing this, you will be letting people know that you want to fix your credit score. Then, in time, it may be possible for you to obtain an unsecured credit card.
Reconsider your thoughts on filing for bankruptcy, there still is hope. It’s a good thing if you are able to buy a little time for yourself. That said, this only makes sense if you are making progress in solving your financial problems. At this point, you can begin making plans and preparing yourself for your future.