Tax Season 2021
Tax Refunds and Bankruptcy
How will you use your Tax Refund?
Tax season will be upon us in a few short weeks. I know many have already filed. Many households anxiously await their 2021 federal and state tax refunds. (some have already received theirs!)
Some filers hope to purchase necessities or make a luxury purchase they could not afford without receiving the refund. Others will decide their refunds will be best spent by catching up on their credit card or medical debt or attempt to lower their balances.
If you are struggling with your debt, a tax refund could be the answer to your debt struggles. Most people are unable to eliminate all their unsecured debt with their tax refunds, those debtors will continue to struggle with their monthly payments even after sending their creditors their tax refund. If you are unable to eliminate all your debt with your tax refund, bankruptcy is an option for you to consider this tax season.
Do not throw away your refund, instead use the refund to have a debt free 2022.
Debtors are allowed to pay their bankruptcy attorney fees and filing fee with their refunds prior to filing for bankruptcy.
Let your 2021 tax refund wipe out:
- credit card debt
- medical debt
- pay day loans
- repossessions
- foreclosures
- garnishments
- collection judgments
Don’t wait until the last minute to determine if bankruptcy is a good choice for your family. Have a plan of action for when your refund arrives.