Individuals who are in debt will sometimes look forward to tax season because they know they will receive refunds when they file. Unscrupulous debt collectors might claim that they are going to have your federal return intercepted or garnished. This isn't possible in most cases because the Internal Revenue Service doesn't seize tax refunds to settle private debts.
Can private creditors take tax returns?
Out-of-pocket medical expenses can lead to bankruptcy
Medical bills are one of the leading causes of bankruptcy in this country. Some people might think that this problem only affects the underinsured or uninsured. This isn't at all the case. When you are reviewing your medical insurance policy, there is one major component you should check — the catastrophic coverage out-of-pocket expenses that you have to pay before your plan picks up the charges.
Be careful what you do with your tax return before bankruptcy
Every tax season, millions of Americans rely on their tax returns to help them catch up on bills and find a little extra for special purchases.
