Most Common Questions about Bankruptcy and Income Tax Debt

Financial experts actually have good things to say about
bankruptcy. While filings increased greatly during the recession in 2008, the sudden
surge of filers during this time was scrutinized by some experts as an
unacceptable way for people to get rid of outstanding debt. But, if you
are truly in a situation in which you can no longer afford to pay what
you owe; bankruptcy may be the solution you need to help you get a fresh start.

In the last few years, bankruptcy filing rates have gone up, down, then
back up again. Just over 1 million people filed for protection in 2008
and close to 1.5 million filed in 2012. But this year, the filings have
been closer to the number of filings during the recession. During this
time period filings jumped roughly over 30 percent.

While many consumers have heard negative things about bankruptcy or have
been geared toward not filing, there are reputable financial experts that
recommend you file, especially if you qualify. Failing behind or not being
able to pay toward obligations such as a car loan, mortgage or credit
cards is not something anyone plans to do.

Financial experts that are for consumers filing protection pose a question
to naysayers: What is a consumer supposed to do when they just can’t
afford to pay anymore? If you decide not to file for protection your situation
could get worse such as a lawsuits, garnishments or liens being placed
on your assets. Bankruptcy can be a legal way out of debt that tells creditors
you can’t pay anymore. Discuss your situation with an experienced
Dallas bankruptcy attorney.