Bankruptcy is very common in today’s economic climate. The general state of the economy is at least partially to blame. Before deciding to seek bankruptcy, you need to know the right information and what to expect; that way, you will make better decisions. Keep reading for the knowledge you need.
If you are considering using credit cards to pay your taxes and then file for bankruptcy, you may want to rethink that. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. If the tax can be discharged, so can the debt. This means using a credit card is not necessary, when it will just be discharged.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If you are in this situation, applying for a secured card may be the answer. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. After some time passes they may be willing to offer you unsecured credit.
It should go without saying, but refrain from lying in your bankruptcy filings. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
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 you find that to be the situation, consider requesting secured cards. By doing this, you will be letting people know that you want to fix your credit score. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
When it comes to filing for bankruptcy, there are both positives and negatives. No matter why or what put you in this situation, the best thing you can do right now is educate yourself on the bankruptcy process. The suggestions you are about to see, will make your bankruptcy easier. If you use these tips, you can file for bankruptcy with the confidence that only information can instill.
