If you have more debt than you could ever hope to pay off, you might feel like your life is over. Sometimes, it just snowballs from having a little bit of a financial issue to losing complete control in a short amount of time. You may realize that your options at this point are limited. Read on to find tips, insight, and valuable information for clearing your debt and getting a firm grasp on your finances.

You don't need to be ashamed that you are filing for bankruptcy. Often, people become depressed because of their failures in finances. If you have soberly thought about this topic and feel that is the best choice, look at it as a step toward success.

Be careful on how you pay your debts before you file a personal bankruptcy. Bankruptcy laws generally prohibit certain creditors from being paid back 90 days before filing and family can be around a year! Before making important decisions in regards to your finances, be sure you understand the laws.

Make sure your debts are dischargeable in bankruptcy before you file. Certain classes of debt, including taxes, child support, and student loans, are not eligible for bankruptcy. Rather than sending a student loan through the bankruptcy process, you should consult with a credit counseling agency to see if the payment can be lowered.

Consider filing using chapter 13 bankruptcy. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.

You don't necessarily have to forfeit all your assets when you file for bankruptcy. When you file for bankruptcy, you are allowed to keep personal property. Whether jewelry, furnishings, electronics and even clothes - these items can be protected. Exactly what assets you can hang onto will depend on the applicable laws in your state, your filing status, and your personal finances.

If you will get hit hard when it comes to your taxes, don't assume that bankruptcy will get you out of it. Some filers pay the taxes that they owe with credit cards and then they file for bankruptcy. For some reason people think that they are not paying taxes when they use a credit card. Unfortunately, the bankruptcy code doesn't allow this, so that portion of the credit card debt won't be discharged, and they'll be forced to pay the high interest rate that entails.

Make sure that bankruptcy is the best choice to avoid damaging your credit history. Many companies can settle all your debt for a smaller amount, or they can help you come up with an affordable payment plan. This can elevate your credit score, and in the end it will save you money. Also, prior to filing, looking into debt consolidation loans.

It's a good idea to contact the three major credit bureaus and get fresh copies of the credit reports they have on you once your bankruptcy is a few months behind you. You should double-check all the information on those reports to ensure their accuracy. Follow up on any discrepancies right away, so that you can begin repairing your credit.

Sometimes you get overwhelmed with life and you feel as if there's nothing that you can do about it. When you're ready to proceed with filing, the above tips should provide a few solid guidelines to follow. Make sure that you don't take them for granted. Use the advice that you have been given to make some changes in your life.