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Good Advice On Why You Should Avoid Bankruptcy
Although unhappy circumstances in your life might have led you to file for bankruptcy, your life post-
bankruptcy can be much better. With a clean slate, it is possible to start over both financially and
personally. Learn how to make bankruptcy work for you, instead of allowing it to devastate your life.
Filing for bankruptcy is something many people are forced to do when there debts become too much
of a burden, and they can no longer afford to pay them. Study the laws in you state to learn what you
need to do and what your options are. Laws differ from one state to the other. You may find your
home is safeguarded in one state, while in another it isn't. It is important to be cognizant of the laws
in your state before filing for bankruptcy.
If you are thinking about paying off your tax obligations with a credit card and then filing
bankruptcy, think again. Most places will not consider the debt dischargeable, meaning you will
have to pay the IRS a lot of money. A common rule is that dischargeable tax means dischargeable
debt. So, there's no reason to make use of a credit cards if it will not be discharged in bankruptcy.
When it appears likely that you will file a petition, do not start spending your last remaining funds on
debt repayment. Avoid ever touching retirement funds until you have no other choice. Dipping into
savings may need to happen, just don't totally wipe it out, or you might not have much financial
As stated earlier, anything that leads
someone to bankruptcy is not a good
story. However, the story that gets
written after bankruptcy does not have
to be depressing too. Actually, your life
can become much better by following
the advice presented here and moving
forward past bankruptcy.
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