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Don't File Your Taxes Before You Read This

Leading up to the April 18th filing deadline, as you assess your financial situation and prepare your tax return, you may come to the realization that your debt has grown out of control.

It may be credit card debt or lingering medical bills. Perhaps it is overdue mortgage or car payments. It may even be tax debt. Whatever the case may be, the time has come to eliminate your debt and regain control of your finances. That is what bankruptcy is for.

Should You File Your Taxes Before Or After Filing Bankruptcy?

Timing your bankruptcy correctly can make a big difference in the outcome. When to file bankruptcy in relation to filing your taxes will depend on a variety of factors. Are you expecting a tax refund? Will you have to pay taxes? What type of bankruptcy are you filing, Chapter 7 or Chapter 13?

A tax refund is considered part of the bankruptcy estate in Alabama. In a Chapter 7 bankruptcy, it may be used to pay off your creditors. However, you may be able to keep the tax refund if you are filing Chapter 13 and creating a debt repayment plan.

Tax debt is typically not dischargeable in bankruptcy, except in certain circumstances. The age of the tax debt plays a role in whether or not it is dischargeable, which is why close attention must be paid to the timing of bankruptcy filing.

With the help of an experienced attorney, you can carefully plan your bankruptcy. At Russo White & Keller P.C., we will review your situation and recommend the type of bankruptcy and the most appropriate timing to effectively eliminate your debt and get you onto solid financial ground.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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