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Hoping for just a little change, 200, 000 bankruptcy filers are paying with their tax refunds
coachisright.com ^ | April 17, 2012 | Kevin "Coach" Collins

Posted on 04/17/2012 7:59:28 AM PDT by jmaroneps37

Bled white and destroyed by Barack Obama’s “hope and change” hundreds of thousands of Americans have been forced to use tax refunds to pay the filing costs of their bankruptcies.

The National Bureau of Economic Research (NBER) reports that bankruptcy lawyers have seen an increase in personal bankruptcies filings which follow this pattern: many clients are filing bankruptcy soon after receiving their tax refunds.

This has been especially true since a law passed in 2005 made bankruptcy more costly and more difficult.

For some people, in Barack Obama’s upside down America as fast as money comes in it goes to buy a bankruptcy file number. There are no plans for vacations or buying a new car for many people.

As one bankruptcy lawyer explained the situation, “If people are expecting a big refund, they go as fast as they can to a tax preparer. They need the money so they can afford to file for bankruptcy.”

Filing costs that averaged around $ 921.00 before the law now cost most filers $1477 and more. Of course as usual the big winners from this law are lawyers who get to charge higher fees based on more time spent to verify the facts presented by the individual seeking relief.

The changes in the law were made to combat fraud which is a worthy goal, but raising the filing fees has resulted in punishing many legitimate people who only want to have their debts cancelled so they can go on with their lives.

The NBER report’s author argues “…. if you want to curtail abuse, raising the cost is not a good way to do it. The people who really need bankruptcy are the ones who will be unable to pay for the fees.”…..

(Excerpt) Read more at coachisright.com ...


TOPICS: Government; Politics; Society
KEYWORDS: bankruptcies
They beat us down from every direction.
1 posted on 04/17/2012 7:59:38 AM PDT by jmaroneps37
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To: jmaroneps37

I’ve been there.. To poor to file a case saying I am to poor to pay.

Somehow I managed to get back on my feet however.


2 posted on 04/17/2012 8:03:50 AM PDT by cableguymn (Good thing I am a conservative. Otherwise I would have to support Mittens like Republicans do.)
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To: jmaroneps37

Filing Pro Se isn’t difficult. There are books and websites devoted to the subject.


3 posted on 04/17/2012 8:10:48 AM PDT by Psycho_Bunny (Burning the Quran is a waste of perfectly good fire.)
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To: jmaroneps37

And so the lawyers make out again.

Laws made by lawyers for the benefit of lawyers.


4 posted on 04/17/2012 8:32:48 AM PDT by Venturer
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To: Psycho_Bunny
"Filing Pro Se isn’t difficult. There are books and websites devoted to the subject."

Well, at least if something goes wrong, you'll know just who to blame. The biggest problem I see with pro se filers is that they do not know how to exempt their assets correctly. The rules for exemption vary from state to state, and each court and division with the same district has their own rules and customs. The books and Internet articles cannot cover the practices in each court. Get it wrong and you'll be turning something over to the trustee, something you could have kept had you done it right .Worse still, credit card companies tend focus on pro se filers and file adversaries for the purpose of forcing a settlement. File pro se if you like, there's plenty of work to go around otherwise these days and your business won't be missed, but it about as foolish as trying to take out your own gall bladder.

5 posted on 04/17/2012 8:54:13 AM PDT by PUGACHEV
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