Posted on Tuesday, March 27th, 2012 at 5:40 pm
A new study by researchers at Columbia University, Washington University in St. Louis, and the University of Chicago found that people typically file for bankruptcy after they receive their tax refunds because they are able to pay filing fees.
The Bankruptcy Abuse Prevention and Consumer Protection Act, passed in 2005, increased administrative and legal fees by 60 percent in order to prevent people from abusing the bankruptcy filing system. The average $921 to file jumped to today’s $1,477.
According to the study, the high price to declare for bankruptcy has actually hurt people who would benefit the most from it. About 3.8 percent of filers would not be able to declare bankruptcy without their tax returns.
If you or someone you know could benefit from bankruptcy, contact the bankruptcy lawyers of the Law Office of Russell Van Beustring, P.C. at 713-973-6650.