Options When You are Considering Personal Bankruptcy

Options When You are Considering Personal Bankruptcy

  • by Melinda Spencer |
  • Comments off

If you are considering filing for bankruptcy, you know it is a very serious decision. To help you make the best decision for your situation, we will provide you with tips and suggestions in this article. Set aside some uninterrupted time to read this article to help you better prepare for filing bankruptcy.

When you are filing bankruptcy, always be honest on the petition. It is vital to be open and honest and to disclose all the necessary information about your income and assets. This will help you avoid delays and penalties. If you are dishonest, the court may bar you from any future filing.

If you are filing for bankruptcy, remember that you will still need to pay the taxes on all your debts. Many people fail to realize that even after their debts are discharged through the bankruptcy, the IRS still wants their money. Though the IRS typically will not forgive your debts, they may allow you to create a payment plan. Be sure to fully understand what all your bankruptcy covers and what it doesn’t.

If you are paying on a student loan debt and want to have it discharged, you will need to prove that paying it will create an undue hardship on you. Get together all your financial documents then create two budgets, one that includes paying your student loan and one without it. Doing so will help you show more easily how having your student loan forgiven will help you on the road to financial recovery.

Keep in mind that not all debts will be forgiven even if you are able to file for bankruptcy. For example, you will still be responsible for unpaid taxes, any divorce settlement agreements, spousal or child support, and student loans. Also, when providing documents for the court, make certain not to forget any of your debts on the list because you will not be able to add them on later.

Now that you have read through this article, you should be better prepared to make an informed decision on whether to move forward with a personal bankruptcy or not. Use the advice and tips provided to help you through the process if you decide to move forward so you are not blindsided later.

About Post Author

Melinda Spencer