Personal Bankruptcy Tips #6
Paying Creditors After You File
Many people are tempted to omit certain debts from their bankruptcy paperwork so they can repay those debts outside of bankruptcy in order to stay on the good side of someone.
If you
promise to pay someone outside of bankruptcy they will of course be happy to
hear of your intentions but they will also know that your promise is not
legally enforceable.
Income Taxes and Personal Bankruptcy
Before you even think about going after bankruptcy relief get your tax returns in order. Before you can file for a chapter 13 bankruptcy you’ll have to prove that you’ve filed your tax returns and paid your taxes in full for the previous four years.
If
you’re behind on your taxes or failed to file during one or more of the past
four years, contact a tax accountant or tax attorney immediately and set
things right with the IRS or you’ll run into problems when filing your bankruptcy.
Worthless Assets
You might think it’s reasonable to exclude assets you have that seem to have lost their value. Be sure to list all your assets on Schedule B including your 8 track tape player and your green lava lamp. The form has a space for you to explain why this particular asset isn’t worth anything and that will be taken into account.
If the court determines that you’ve left off anything significant you could land in real trouble so it’s best to include even the worthless junk you have lying around. It also indicates to the court your sincerity and eagerness to comply fully with the law.
