5 Do’s and 5 Don’ts
If you are considering filing for personal bankruptcy relief, be sure to read these helpful tips before spending your 2020 income tax refunds.
- Keep receipts of any purchases made over $250.00
- OK to spend money on current necessities, such as important car repairs.
- OK to save and protect a certain amount, up to $1,825.00 (ask about exemptions)
- OK to catch up on mortgages and car payments
- OK to pay mounting tax debt
- Vacations on the eve of personal bankruptcy are considered unfair to creditors.
- Avoid purchasing unnecessary luxury items, such as expensive jewelry or electronics
- Avoid loan repayments to family and friends (insiders)
- Avoid paying ahead on monthly installments such as rent and car
- Hide the money. Be honest and transparent about your income tax refund.