Did you manage to make it through the holidays, but now you’re not sure how you’ll get on top of your bills? According to research, you’re not alone if you’re in this situation. You might need to file for bankruptcy as soon as possible, and April and May are already popular months in which to do it.
Federal statistics indicate that the months people are most likely to receive their federal tax refund are also associated with a spike in personal bankruptcy filings. Chapter 7 bankruptcy filings for total liquidation are the kind that most consumers usually file.
These go over the monthly average expected during March and April. Chapter 7 filings in March between 2013 and 2016 indicated that the number of people looking for a fresh start was up to 34% higher than the usual monthly average.
April’s filings were up to 25% higher. Chapter 7 filings can cost as much as $1500 or more, an expense that few people can come up with in a tight financial situation until they receive their tax refunds. Tax refunds have become a life line for plenty of Americans dealing with unexpected expenses and incomes, according to experts at the Center for Financial Services Innovation.
Variable bills and erratic incomes leave people scrambling at times and many people begin to juggle their bill payments in November as the holidays approach and as their heating bills increase. It is not until the tax refund time that a person in this precarious financial situation can become whole. These financial circumstances may cause you to set aside time to schedule a consultation directly with an experienced bankruptcy lawyer. A lawyer can help you prepare for what to anticipate when you need support during this difficult time.
Filing for bankruptcy doesn’t have to be a process you go through alone. The paperwork can be confusing and you want to ensure that everything is submitted properly the first time around. That’s just one reason why you should consider working with a lawyer who knows the laws and the rules.