Your Tax return and Bankruptcy

by Alison C Briggs on Apr. 22, 2020

Bankruptcy & Debt Credit & Debt Bankruptcy & Debt  Bankruptcy   General Practice 

Summary: It’s the most wonderful time of the year. Time for your tax return and to get back some of your hard earned money. The beginning of the year is usually the toughest time for a lot of people, the bills and credit card debt of Christmas still ringing fresh. Though the holidays are over, the majority of folks have overspent. The holidays are over, and most have overspent. People in an already bad financial situation have usually made their situation worse during the holidays. A lot of times it’s the holidays and the spending at Christmas that make people realize they should consider bankruptcy or some other form of debt relief.

One of the most wonderful times of the yeat is when you get your tax return.  Another wonderful time is immediately after you get your bankruptcy discharge, you are debt free and have a "Fresh Start" in your pocket.  However, both of these wonderful times must be correctly done or it will create problems and your fresh start will be in jeopardy.

Tax returns come at the beginning of the year.  The overspending debts of Christmas still are crisp in the air.  These debts coupled with the beginning of a new year lead many to consider bankruptcy and start a financial life fresh with the fresh start of the New Year.

Here's the problem, if you file bankruptcy before you file and spend your income tax return, you will lose your tax return to the bankruptcy trustee.  How should you handle things if you are wanting to file a chapter 7 bankruptcy or chapter 13 bankruptcy and have a substntial tax return coming to you?  You should consult an experienced bankruptcy attorney in PhoenixPhoenix Bankruptcy lawyers deal with these same issues every year.  

Thus, you don't have to lose your tax return to a bankruptcy trustee.  There are several options available to you.  Stop and get a professionals opinion.  Find an attorney for bankruptcy that offers free consultations and get guidance on how to best deal with your tax return before you declare bankruptcy.

An experienced bankruptcy lawyer can advise you on the various types of debt relief that are available to you.  Some of the many options that should be offered besides a free debt evaluation or consultation include:  Chapter 7 bankruptcy, Chapter 11 bankruptcy, Chapter 13 bankruptcy, Bankruptcy by phone, bankruptcy at home, Zero Down bankruptcy, putting a stop to wage garnishments, stopping foreclosures, and debt settlement.  Chances are, one of these options is the best for you and will allow you to get a true "Clean Slate" as you enjoy your full tax refund while ridding yourself of debt and creditor harassment.

Seek out a debt relief attorney before you make a mistake that could really cost you.  Additionally, to assure that you don't lose a personal injury settlement or a Government Stimulus check, it is important to seek a law firm that is versed in more than just bankruptcy.  Finding a Mesa law firm that practices other faucets of the law such as family law, divorce law, injury law, accident lawyers, DUI law, and even criminal defense attorneys may be essential to protecting your assets.

 

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