Attorneys fees used toward bankruptcy are exempt from distribution. In most cases, your entire tax refund can be protected in bankruptcy. But if you are considering filing for bankruptcy, you should also consider how much it will cost to file. If you are ready to start rebuilding your credit and need a fresh start, you should use your tax refund to file bankruptcy.
You get a tax refund when you over-withhold taxes in your paycheck. Many of our clients use this as a form of non-interest-bearing savings account. The most prudent use of savings is that which puts you in a better position to save even more.
Use Your Tax Refund to File Bankruptcy
If you qualify for a Chapter 7 bankruptcy and want to start rebuilding your credit, then you should use your tax refund to file bankruptcy. This may just be the one time of year that you can make a choice about how you want to spend your money. If you need to make a break from your financial past, call Lee Legal to discuss your financial future.
This year, you might not have to give your whole tax refund away to bills. Instead, you could discharge your creditors and keep your tax refund. If that logic fits your situation, then use your tax refund to file bankruptcy.