Filing taxes can be complicated enough without the added weight of dealing with bankruptcy and financial complications. However, if you’re considering filing for bankruptcy, it is important to understand how that affects your taxes and vice-versa. This blog will provide a general overview of what to remember as tax season approaches.
Is It Better to File Before or After Tax Season?
There is no clear answer to this question, as it depends on your individual circumstances and the type of bankruptcy filing you are considering. Generally, if you are filing for Chapter 7 bankruptcy, it would be better to file before tax season so that any potential refund can help pay off debts rather than being included in your list of assets. On the other hand, if you are filing for Chapter 13 bankruptcy, it may be more beneficial to file after tax season so that your refund can help pay off creditors.
What Should You Consider Before Filing?
Before filing for bankruptcy or taxes, there are a few things to consider. First, make sure you understand all of the rules and regulations associated with bankruptcy and tax filing. It is also a good idea to consult a financial or legal professional to make sure that you are taking the right steps in managing your debt and taxes. Finally, consider if filing for bankruptcy will help you stay on top of your debts or if there are other options that may suit your needs better, such as negotiating with creditors or debt consolidation.
How Can an Attorney Help Me?
If you are considering filing for bankruptcy, it is important to consult an attorney who specializes in bankruptcy law. An experienced lawyer can provide valuable advice and assistance with the process of filing for bankruptcy before or after filing taxes. They will be able to review your case and help you make the best decision for your situation.
The team at The Law Offices Of Mayer & Newton has helped over 50,000 people navigate bankruptcy and can help you understand this process. Schedule a free consultation with our firm today by calling (865) 328-7993.