Tax Refunds are being Held Up in Atlanta
Last weekend lines at the downtown IRS location in Atlanta, GA were exceptionally long due to a hold up on people receiving their tax refunds. These long lines were due to many receiving a request from the IRS to verify their identities in person. The people in the lines shared exasperated and frustrated sentiments about the situation. Many were upset that they did not receive their refund when their turn finally came.
If you are part of the 41% of Americans who planned on using your tax refunds to pay down debt, you may be in a pinch due to these delays. Luckily, bankruptcy may be an option for you to ease the pain of overwhelming debts.
How Bankruptcy Can Help
Filing for bankruptcy does not expedite the IRS’s refund process, but it can help to alleviate some of your concerns about outstanding debts. By filing for bankruptcy, you can discharge liabilities like credit card debt, medical bills, and auto loans. It also has the potential to prevent foreclosure on your home or repossession of your car.
What Happens to Tax Refunds in Bankruptcy?
In most cases your tax refunds can be protected through something called a wildcard exemption. They give you a combined wildcard exemption of $11,200.00 in Georgia, which means that the vast majority of those who file will have their tax refunds exempted from their bankruptcy.
In the event that your tax refund exceeds $11,200.00, you may be required to turnover the amount over and above the exemption of $11,200.00. The Trustee only does this is the amount you’d be turning over is considerable, i.e., “worth their time”. The Trustee then uses the money turned over to pay a portion of the debt you’re discharging in the bankruptcy.
Got Questions?
If you live in Atlanta and your delayed tax refund is keeping you from paying off debt, let bankruptcy help you. Call us at the Atlanta Bankruptcy Law Offices of Dax J. Miller today to see how we can help you pay off your debts.
