Do not use a credit card to pay income taxes and then file for bankruptcy. The fact is that the credit card debt will be ineligible for discharge, and your tax debt may increase. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. This makes using a credit care irrelevant, since bankruptcy will discharge it.
After filing for bankruptcy, you may have difficulty getting approved for unsecured credit. Secured cards can be a great way to get started if this happens to you. By doing this, you will be letting people know that you want to fix your credit score. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
Don't wait too long to file for bankruptcy. So many people suffer with debts, and sleepless nights for years. They could have filed for bankruptcy, and been in the clear by now. If you are thinking about filing for bankruptcy, time is of the essence. Make the decision so you can move on that much quicker.
Don't think of bankruptcy as the ruination of your financial future. Once your bankruptcy has been discharged, you can begin to work on re-building your credit right away. By continuing to make timely monthly payments and not applying for new credit, you can significantly raise your credit score within 6 months. And, if you maintain good credit for that amount of time, you may find it possible to get approval for loans to make large purchases, such as a home or car.
Preparing yourself for a negative outcome can go a long way toward making you feel good about how your bankruptcy is going. The information in this article should make the bankruptcy process less rage-inducing and more productive overall.