Jump to Navigation
When you've done all you can you may be able to get A Fresh Start

Consumers waiting on tax refund to file Chapter 7 bankruptcy

Many Florida residents and others around the country are excited to learn that they will be receiving a refund after they submit their tax returns. Financial experts have a litany of suggestions about how people should put their tax returns to good use. However, many consumers are still struggling financially. Research shows that some families are waiting for their tax returns so that they will be able to afford filing for Chapter 7 bankruptcy.

While advisers recommend that people should use their refunds to save for retirement or pay off debt, they fail to realize some families have difficulty just making ends meet. A survey conducted last year showed that almost a quarter of those anticipating a tax refund would use it for everyday expenses. Very few had plans to splurge on a special item or major purchase.

In several instances, refunds were used for medical costs. Consumers that had been forced to delay treatments were able to pursue them after they received their tax refunds. Studies actually revealed a 60 percent increase in health care spending immediately after refunds were received.

Chapter 7 bankruptcy filings also increase significantly after taxpayers receive their refunds. Federal statistics show anywhere from a 15 to 34 percent uptick in filings in March and April. Since filing for bankruptcy can cost at least $1,500, many consumers have to wait to receive their refunds to have sufficient money to file.

Filing for Chapter 7 bankruptcy is just one option for Florida residents who may be dealing with financial difficulties. A knowledgeable bankruptcy lawyer can review someone's situation, help them understand all the options available to them and recommend the best course of action. A trusted attorney will work with clients to get their financial situation headed in the right direction.

Source: crescent-news.com, "Liz Weston: When a tax refund is a lifeline, not a windfall", Liz Weston, Feb. 27, 2018

No Comments

Leave a comment
Comment Information
Do You Have A Case?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

A Member of the FindLaw Network
Paul Urich
Orlando Office

Law Office of Paul L. Urich, P.A.
1510 East Colonial Drive
Suite 204
Orlando, FL 32803
Phone: 407-982-3763
Fax: 407-896-3041

Get directions