March, April see uptick in Chapter 7 filings | The Colpitts Law Firm
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Bankruptcy May Be Your Option

March, April see uptick in Chapter 7 filings

For those in Oklahoma who have not filed their taxes yet, they likely plan to do so soon. While many people are planning how to blow their return, others are considering ways to use their return to provide future financial security. For some, this means using their return to pay for fees associated with filing for Chapter 7 bankruptcy.

Statistics indicate that significantly more people file for bankruptcy in March and April than any other time of the year. Some professionals speculate that this uptick occurs because many people are receiving their tax refunds. While there are fees associated with seeking such protection, the average tax refund -- $2,860, according to the IRS -- will more than cover the costs.

Such a step allows filers to wipe clean much of their debt related to credit cards and medical bills, among others. While it may be difficult for some people to decide if filing for bankruptcy is the right path for them, certain scenarios may be indicators that it is the best option. For example, filing for bankruptcy might be a good choice for someone whose debt is more than 50 percent of his or her annual income or if he or she feels it is not possible to pay off the debt in five years.

Some people who are struggling with debt may be reluctant to seek Chapter 7 protection because of their concerns of the impact on their credit score. While a bankruptcy filing will stay on their record for 10 years, many people see significant rebounds in their credit scores within six months of filing. Because people in Oklahoma may be unsure of the best option for their situation, they seek guidance from an experienced attorney who can help them understand their options and guide them through the complicated bankruptcy process.

Source:, "When a tax refund means bankruptcy", Sean Pyles, March 30, 2017

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