The tax deadline is just a few weeks away and many debtors are expecting at least a few thousand dollars in their tax refund check. But what should debtors do with that money? Buy a car, TV, pay off credit card debt? Well if you're drowning in debt, like many debtors, you should probably use that tax refund to file bankruptcy if:
- If you are unemployed and have been unemployed for at least a few months you should probably use your tax refund to file for bankruptcy. Being unemployed is the number one reason for filing bankruptcy and it is a very good reason. Your tax refund offers the perfect opportunity to work with a competent bankruptcy attorney who can help you file bankruptcy and discharge your debts.
- If you are delinquent on your credit card debt and are unable to make even the minimum payment you should probably use your tax refund to file for bankruptcy. Credit card companies tend to move quickly to file lawsuits on delinquent debtors especially during this economy. Don't give them a chance to win a judgment that will allow them to seize your assets, file bankruptcy now while you have the money to do so.
- If you are facing creditor lawsuits, then you should probably use your tax refund to file for bankruptcy. Creditor lawsuits are powerful weapons used by lenders to not only seize the assets you have today; but to seize any assets you may have in the future. Many creditors will "wait it out" and pounce on a debtor once they are back on their feet. But once you file bankruptcy, creditor lawsuits are neutralized, allowing you to get a fresh financial start and protect your present and future assets.
Don't make the mistake that other debtors make and use your tax refund to just pay down credit cards and other bills. Unless your tax refund can pay off all of your debts you may be better off using your tax refund to file bankruptcy which will discharge those debts and put you on the road to financial recovery.