Bankruptcy Filings See an Increase During Tax Season

With tax season at hand, many individuals in Ohio and elsewhere may be wondering how best to use their refund. For some, this amount may go into a savings or investment account, while others may wish to use their refund to catch up on financial obligations. For individuals who are going through prolonged periods of monetary concern, some may wish to explore the potential benefits of using their return to seek relief through bankruptcy.

According to financial advisers, the best way to use a tax refund may be to place the amount into a savings account or to pay down on debts. While this may be the decision for many individuals, some of those who took part in a recent survey admitted they plan to use their refund to assist with the costs of everyday living. With the high costs of medical care, some have also advised they will use their refund to seek attention for an existing medical condition.

Experts also suggest that bankruptcy filings tend to see a significant increase around tax season. Individuals who are experiencing substantial monetary troubles may generally be unable to afford to file for bankruptcy, and they may see this as an opportunity to pursue some much-needed relief. However, simply obtaining the money to file may only be a part of the process, and with numerous crucial aspects to consider, seeking guidance is generally advisable.

Those who suffer significantly due to overwhelming amounts of debt may wish to use their tax refund to pursue long-term financial relief. However, bankruptcy is a major financial decision, and one who is considering it as a viable option may find it beneficial to consult with an attorney before making a decision. An attorney in Ohio can examine a client’s financial circumstances and provide guidance on how to pursue relief from debts through the necessary channels.

Source: crescent-news.com, “When a tax refund is a lifeline, not a windfall”, Liz Weston, Accessed on March 21, 2018