taAs the deadline to file tax returns approaches, many Americans will use their refunds to pay for their personal bankruptcy filing. In fact, a study by the National Bureau of Economic Research (“NBER”) revealed that over 200,000 households will use their tax refund to pay for the administrative and legal fees associated with a bankruptcy. The NBER study also revealed that there is a significant increase in the first half of the year when citizens receive their tax refunds.
In 2005, the bankruptcy laws were amended in order to prohibit individuals from abusing the bankruptcy process by discharging debt that they could actually afford to pay. The amendments to the law also resulted in an increase the cost of filing a bankruptcy case.
If you are overwhelmed by debt, the longer you postpone your bankruptcy filing the more it may cost you. Of course, it also costs money to seek bankruptcy protection. Thus, using a tax refund to cover your filing fees and legal fees can allow you to obtain the financial relief you need. It may be the only time you have the cash, so take advantage of it.
If you are considering paying for your Chapter 7 or Chapter 13 case with your tax refund, contact us to schedule an initial consultation. We can provide you with reliable advice and outstanding legal representation at an affordable price.
Contact The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office, LLC. DeLadurantey Law Office focuses on Chapter 7 and 13 bankruptcy, debtor’s rights, debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense. A “defender of the little guy, “DeLadurantey Law Office serves the following location – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County. We can be contacted by phone: (414) 377-0518 and can be found on the Internet and on Facebook.