Struggling financially is no easy burden to bear. However, it is an issue that affects numerous individuals in Louisiana and across the country. As a result, when this time of year rolls around and parties begin awaiting their tax refunds, they may not have plans of dream vacations in mind. In fact, some individuals may be waiting to use their refunds to begin Chapter 7 bankruptcy.
The idea of using a tax refund to start bankruptcy proceedings may not have crossed the minds of many people. Bankruptcy does come with fees and other costs, so individuals who are already struggling with overwhelming debt may not immediately have the means to begin the process toward financial freedom. As a result, recent years have seen an uptick in bankruptcy filings around the time tax refunds are issued.
Even if individuals do not use their refunds to file for bankruptcy, few use those funds on fun-filled activities. More likely, parties are using their refunds to catch up on medical expenses and other daily necessities. One report stated that only 16 percent of individuals who participated in a poll relating to refund use indicated that they would use the money to treat themselves or make a significant purchase.
For many people, a tax refund can offer a saving grace in times of financial hardship. Of course, numerous Louisiana residents may still continue to struggle with their overwhelming debt even if they put extra funds toward paying off balances. If individuals in this type of situation are interested in finding out more information on taking a major step toward addressing their debt, they may wish to talk with experienced attorneys about Chapter 7 bankruptcy.
Source: nerdwallet.com, "Why Tax Refunds Aren't Fun Anymore", Liz Weston, March 1, 2018