Tax time is here again and this is also the time of year that people struggling with debt consider bankruptcy. It is important to understand the interrelationship between taxes and Bankruptcy.
First, filing and collecting your tax refund can give you the money you need to hire an attorney to file your bankruptcy. So consider this if you are plagued with debts before you spend your refund check.
Second, if you are thinking about filing bankruptcy, it is usually best to have already filed your taxes and collected any tax refunds due to you before you file.
To avoid becoming a scam victimregard any call or email that asks any personal, business or financial information including a request to verify information as a possible scam!
Any legitimate callers or emailers will be willing to assist you in verifying that their calls or emails are legitimate. If they are pushy, anxious, evasive, or demanding when you ask questions or don't want to help you verify their identity or business legitimacy - they are scammers!
Here are the steps you need to take right from the start.
Some really good news for Oregon Debtors facing bankruptcy. Governor Kitzhaber has signed SB396 into law and
Oregon debtors now have the opportunity to elect federal exemptions or
Oregon exemptions when filing bankruptcy. SB396 reversed the 30 year
ban on use of federal exemptions in Oregon bankruptcy cases. The bill
can be used in all
bankruptcy cases filed after July 1, 2013.
In addition, there has been added to the already existing Oregon exemptions a new exemption for
Health Savings Accounts in an unlimited amount.
As 2011 draws to a close some of you are still stunned by the lack of recovery of our economy. Maybe you finally found a new job but it's for lower pay or less hours. You remain buried in debt. This might be a good time to consider getting rid of the debt that piled up during a long period of unemployment or during an extended illness or other calamity that put you behind.
There are limits to the amount of income you can earn and still completely discharge your debt in a chapter 7 bankruptcy so filing when your income is still relatively low may be your best chance to wipe out debt for a fresh start.