As a year ends, the tax filing for the next year begins. According to Federal laws employers need to provide their employees with W2s before January end so that federal income taxes can be filed till April 18th. According to a survey conducted, 30% of people who received tax refund used it to lower their debts. Most of these people would use it to file for bankruptcy (Chapter 7 or 13). According to Dallas based bankruptcy law firm, https://recoverylawgroup.com/ using the tax refund to file for bankruptcy not only provides the best use of money but also protects it from your creditors.
Bankruptcy attorneys can help you with not just filing of papers but also when would be the best time to file them. Filing for bankruptcy at the end of a year provides you fresh financial beginnings in the next year. You can consult with experienced bankruptcy attorneys at 888-297-6023 to find out when bankruptcy filing would be ideal. Using tax refunds for filing bankruptcy is using it in an essential and reasonable manner, thereby making it unavailable for your bankruptcy estate. Since attorney fees are also considered a necessary expense, it is worth waiting for your tax refund to file bankruptcy. this way you don’t end up losing it and use it for your benefit.
Many times, people who are contemplating bankruptcy often do not have the money required to pay the attorney fees as well as the bankruptcy filing fee. Waiting for your tax refunds and utilizing it for this purpose is ideal. in case the tax refund is more than enough to cover your bankruptcy filing as well as attorney fees, then you can use it for necessary expenses like mortgage payments, food, clothing, medical expenses, etc. If you are not using on luxury items and can justify the expenses, you won’t have any issues during your bankruptcy case.
Timing of bankruptcy filing does not depend on just tax refunds but also on numerous other factors. It is therefore important that you consult with experienced bankruptcy lawyers to find the best course of action when it comes to bankruptcy.