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Toms River Bankruptcy And Tax Law Blog

What to do if you owe the IRS money

Taxes are probably something you would rather not think about. As frustrating as it might be to file federal and New Jersey tax returns, it is essential. However, it can quickly become more stressful if you find out you owe the Internal Revenue Service (IRS).

It is only natural to feel sudden anxiety and panic if you find you cannot pay the amount you owe. Thankfully, there are steps you can take in this situation to avoid penalties.

How can bankruptcy affect my credit score?

When you accumulate so much debt that it becomes unmanageable, bankruptcy is a viable option to help you get control of your finances. But often times, bankruptcy is a concept that instills fear and shame in people. You might worry about how it will affect your financial standing in the years to come.

One of those fears relates to how bankruptcy will tank your credit score. However, while it’s important to note that your credit will take a hit, the effects of bankruptcy don’t last forever.

It’s not too early to think about tax season

The calendar hasn’t reached the holidays yet but that doesn’t mean it’s too early to think about your taxes. Chances are that you fall into one of two camps: you’re either excited to file your taxes because you’re expecting a refund or it’s just another annual chore.

No matter where you fall, you don’t want to receive an audit notice from the IRS. Each taxpayer has this in common. Fortunately, there are ways for you to decrease your chances of receiving an audit.

Why debt consolidation is not always the best option

If you feel like your debt has gotten out of control, you may be considering all your options to remedy the problem. Debt consolidation is an appealing option to many people because it allows them to take all their debts and combine them into one payment. Also, the debt consolidation loan may have a lower interest rate than some of the original debts had.

However, debt consolidation is not always the best way to manage debt. Although debt consolidation may mean you have lower monthly payments. This is often because the debt consolidation loan has a longer repayment period, but a longer repayment period could result in you paying more money in the long run.

Getting out from under credit card debt

Credit card debt continues to grow in the United States, with balances reaching $900 billion by the end of 2018, according to the Consumer Financial Protection Bureau. The agency’s latest report says 28% of people with credit card debt have been turned over to debt collectors.

Statistics show the average U.S. household has $15,000 in credit card debt, including at least one card with a balance of $5,700, the highest amount in a decade. Card balances have been at historic lows after the 2009 recession but have now surpassed pre-recession levels.

Discharging medical debt through bankruptcy

In the last decade, more and more Americans have struggled to pay for rising health care costs. In fact, health care has become one of the biggest expenses Americans face, with $2.4 trillion spent on medical care in 2017.

As a result, those with ongoing health conditions often find themselves overwhelmed by medical debt, and they end up filing bankruptcy. In fact, in 2015, the Kaiser Family Foundation noted that mounting medical bills pushed 1 million adults to file bankruptcy.

Preventing foreclosure with bankruptcy

You may be one of many people struggling to keep up with their mortgages. Your mortgage can often be one of your largest monthly bills. With all the other bills you must pay, you may not always have enough for your mortgage.

When your financial situation threatens your home, you may need a way to slow things down so you can get your finances under control. Depending on your situation, a bankruptcy may be able to slow or stop a foreclosure.

Top reasons most Americans file for bankruptcy

In the United States, debt citizens face continues to grow. According to the Federal Reserve, nearly 80% of Americans are in debt or have been in debt at some point in their lives. Are American’s simply overspending or is there more to the debt crisis?

Here are the most common debts causing Americans to file for bankruptcy.

IRS reports tax refund amounts down from a year ago

Did you receive a tax return this year? If so, how did it compare to last year? You’re not alone if you saw a reduced tax refund this year. Millions of Americans felt the same disappointment as you did preparing your tax return this spring.

The IRS reported paying out over $260 billion in tax refunds this year and while that’s a lot of money, it’s $5 billion less than a year ago. From the week of April 19, 2018, to April 19 of this year, return amounts were down 2 percent.

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