Tax time is an ideal time to file bankruptcy. Anyone considering bankruptcy should talk to an attorney now about their options. Using your tax refund to file bankruptcy has its advantages.
Preserving bankruptcy exemptions – Each state has its own laws regarding what property may be protected from bankruptcy. Assets, including money in bank accounts and anticipated tax return money, may be protected using the exemption system, but the value of exempted property is not unlimited. Using your tax return money to pay for bankruptcy filing fees and attorney fees will help you preserve your bankruptcy exemptions for other assets. It is important to note that you should always discuss how to spend tax money with your attorney first if you are considering filing bankruptcy.
Paying attorney fees – Attorney fees for Chapter 7 bankruptcy must be paid before a case can be file. This is due to the fact that bankruptcy eliminates unsecured debt obligations. Paying attorney fees can be a challenge for individuals. Often they are paid over a period of time. Using your tax return money to pay attorney fees can help you cover the cost of filing bankruptcy, bringing you to financial freedom that much quicker.
If you have questions about whether bankruptcy is right for you, get answers from an experienced bankruptcy attorney at our law office. We can explain to you the difference between Chapter 7 and Chapter 13 bankruptcy and can advise you on which type of bankruptcy would be most appropriate for your individual situation.
