Here we are again, the beginning of a new year and tax season. Everyone is getting their finances together and ready to file their taxes. The question always comes up: Is this a good time to file bankruptcy? Bankruptcy and tax season go hand in hand. You MAY use your tax refund to pay for a bankruptcy attorney. There are a few other expenses that are permitted when you need to use your refund and file bankruptcy around the same time. You cannot use your refund to go on that last vacation and then expect to file bankruptcy and not surrender what you received as a refund. The trustee will likely make you pay back those funds as part of the bankruptcy estate.
If you are having financial struggles and you need information to determine if bankruptcy is right for you and your family either now, or in the immediate future, do not guess at what you can and cannot do with your tax refund, or other income you may receive. Speak with a licensed bankruptcy attorney to learn your rights. Engage in pre-bankruptcy planning and get the financial peace that you need to make 2021 a better economic year for you and your family. Schwam-Wilcox & Associates is here to help. “When you’re going through your worst, we are at our best!”