As tax season approaches, it is time to take a hard look at your finances. If you are struggling to pay your bills and you need relief from your debt, consider using your tax refund to pay for a personal bankruptcy filing.
According to a study conducted by the National Bureau of Economic Research (“NBER”) more than 200,000 households will use their tax refund to pay for the administrative and legal fees associated with a bankruptcy. The NBER study also found that there is a significant increase in bankruptcy filings during the first half of the year when individuals receive their tax refunds.
The cost of filing a bankruptcy case depends on a variety of factors. Currently, a Chapter 7 filing fee is $335 and a Chapter 13 filing fee is $310. You must also pay your attorney fees and costs. For most people, the tax refund provides the money they might not otherwise have to afford these expenses.
While you may be reluctant to use your refund, you should consider how much money you will ultimately save by filing for bankruptcy protection. Not only will the automatic stay immediately stop all collection efforts against you, but you will also be able to discharge or eliminate a large amount of your debt (if not all of it!). If you think about cancelling your liability to pay your credit cards or medical bills, it could save you thousands of dollars.
If you are overwhelmed by your debt and you are considering using your tax refund to pay for a personal bankruptcy filing, contact us to schedule an initial consultation. The longer you postpone your Chapter 7 or Chapter 13 filing, the more it could cost you. Let us help you obtain the financial relief you need. Take advantage of having the funds you need to obtain a fresh financial start.
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.