Planning On Filing Bankrupt? Read This First!
Filing for bankruptcy is a stressful decision. It's also not something that should be taken lightly, and it has to be done right and for the right reason or you could end up in worse shape than before. Bankruptcy can offer relief but not without all of the potential negative consequences associated with filing bankruptcy. If you are planning to file due to an outstanding amount of federal tax debt that may seem impossible to pay off, you may be a better alternative to resolve your back taxes without suffering the drawbacks of filing bankruptcy.
The Time Consuming Process
The process of bankruptcy can be described as anything but simple and straightforward. As for the many people who have already filed for bankruptcy, they can tell you how long and tedious the process is. You will need to fill out a petition, gather your financial information, come up with an estimate of how much you think the bankruptcy should cost (filing fees), and have it approved by a judge. A chapter 7 Bankruptcy will take an average of 4-6 months whereas a Chapter 13 bankruptcy will take anywhere from three to five years. The process is so time-consuming and can only add more stress and strain on top of the loads of tax debt you're facing.
It Will Ruin Your Credit Score
Upon being approved for bankruptcy, the negative effects also stem in the long run. Bankruptcy can minimize or eliminate debts, protect your house, and put bill collectors at great distances in some conditions, but it also has severe repercussions, including long-term harm to your credit score. This, in turn, can impair your capability to borrow in the future, boost your insurance premiums, and even make it harder to find work.
The IRS Fresh Start Program
If the benefits seem to greatly outweigh the consequences of filing bankruptcy, then, by all means, apply for it. But there is an alternative that may not require you to sacrifice for relief. The IRS Fresh Start Program.
This tax relief program is catered to not just retired Americans, but to all ages with outstanding tax debt. Our clients are referred to our Fresh Start Program in order to avoid bankruptcy, acquire debt relief, and settle their debts in a quick manner. Let us give you a helping hand today!
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