Instead of Gadgets, Many Spend Tax Refund on Filing Personal Bankruptcy in Indiana

May 3, 2012 10:51 am Published by

“Some Americans spend their tax refunds on high-tech gadgets and long-awaited vacations.  Others use the cash to file for bankruptcy protection,” writes columnist Tammy Bruce.

The National Bureau of Economic Research confirms Bruce’s observation.  Of course, as a longtime debt consolidation lawyer offering Indiana bankruptcy help, I could have told Tammy Bruce that fact myself!

Zero calls the situation “another sad reflection on the state of the economy”, citing a USAToday report showing “more than 200,000 households will use their tax refunds this year to pay for a bankruptcy filing and associated legal fees.”

For 2012, the tie between 2011 tax refunds and bankruptcy in Indiana is already evident at all four Zuckerberg bankruptcy law offices.  In fact, as one of our Columbus bankruptcy lawyers reminds me, although people come to us needing help for different problems, including:

One thing those people say prevented them from coming in earlier is that they hadn’t saved enough money to pay the bankruptcy filing fees.  It seems that reality holds true for bankruptcy Chapter 7 in Indiana cases as well as for those filing under Chapter 13 bankruptcy law, and even for filers of small business bankruptcy in Indiana.

It hurts me to think of debtors as walking on a narrow plank over a river – equally afraid of falling off on either the left or right side.  On the one hand, you need to turn off all the harassing collection calls, along with the rising late penalties and interest charges.  On the other side, you simply don’t have the money, you think, to cover the legal costs of filing individual bankruptcy in Indiana.  What are those costs?  Several thousand dollars for Chapter 13, several hundred for Chapter 7.

By now, I hope you’ve already filed your 2011 tax returns (or filed for an extension). No matter which, I’m going to urge you not to wait.  Visiting with an experienced Indiana lawyer for bankruptcy is the first step to take in order to explore your options and get a plan into place.  The good news is, you don’t need cash or a tax refund to do that!


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This post was written by Mark Zuckerberg

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