Bankruptcy & Tax Refunds Each year, many people receive substantial tax refunds.  If they are facing a lot of debt, they must decide whether using the tax refund to pay creditors will help them out of debt.  If a debtor has one major creditor and can negotiate a payoff with the tax refund, this may be a good option.  However, when a debtor has multiple creditors and paying one will not ease the debt burden, bankruptcy may be a better option. Some important factors when considering … [Read more...]