Stretching Your Tax Refund

Stretching Your Tax Refund

For most people, January means that it is time to file your taxes. Your tax refund is likely the largest sum of money you will receive all year long and it should be used wisely! The question is, “How will you spend your tax refund?” Will you use it to just catch up on a few bills? Or will you use it to get rid of ALL of your bills? Resolve to make 2013 the year that you become debt free by calling and setting up a Free Consultation with Knoxville’s Real Debt Relief attorneys, Brackett & Strunk, PLLC. We’re here to help you understand and take control of your finances. We help people dispute debts, negotiate settlements, and if all else fails, file for bankruptcy relief.

Here are some tips for getting the most bang for your tax refund buck:

Get Out of Debt and Stay That Way

Make 2013 the year that you finally get out of debt! Using your tax refund wisely may give you an opportunity to do just that. You could even have some money left over to start your new savings account so you can stay out of debt in the future. Brackett&Strunk can assist you in developing a plan to financial freedom and show you how to save a lot of money in the process.

If you don’t know where to start to eliminate your debt, contact Brackett&Strunk, PLLC. They are experienced debt relief attorneys. They help people dispute debts, negotiate settlements, file for bankruptcy relief, and can even assist you in suing harassing debt collectors!

Make the most of your tax refund. As Knoxville lawyers specializing in debt relief, we will explain how to resolve your debts for the lowest cost possible. We offer you a Free Consultation! We will answer all of your questions and explain the paths to financial freedom.

Dispute Old Accounts and Have Them Removed From Your Credit

Before you just start settling accounts because a debt collector is calling you or the debt shows up on your credit report, speak with a debt defense attorney who can explain the applicable statute of limitations and advise you on other possible defenses. For example, most people don’t know that the statute of limitations on a cell phone bill is only two years. So if you haven’t paid on your cell phone bill in over two years, then you probably don’t owe it! This is only one of many possible defenses that only a skilled debt defense attorney can explain.

Know your rights before you speak to your creditors. This may give you a position of power that will enable you to pay significantly less than what you owe, or maybe even get rid of the debt for no payment at all. Brackett&Strunk offers a free hour long consultation to discuss your outstanding accounts and explain your rights and options. So the real question is: Can you afford not to speak with an attorney first? Where else can you get a free consultation to spend an hour with, and get your financial questions answered by, a licensed attorney?! Take control. We can help.

Pay Off High Interest Credit Cards or Personal Loans

As interest accrues, the debt grows and grows. Only paying the minimum payments on a balance will do little to reduce your debt. Instead, you should use your tax refund to negotiate a lump sum payoff of the account, which may cut the balance in half or better. Remember that you don’t get what you don’t ask for, so don’t be afraid to ask for a very low settlement amount and you might be surprised by their response. We urge you to make sure all the terms are in writing and signed by a representative of the credit card or loan company before you send the payment.

If you can’t afford a lump sum payment that your creditor will agree to, you should still ask for a reduction in your interest rate, or better yet, ask that your creditor close the account and stop all accruing interest while you pay off the outstanding balance through a payment plan that you can afford. Either way, you should set up a payoff plan with your creditors and stick with it.

File for Bankruptcy Relief

Are you overwhelmed with credit card, personal loan, or medical debt? Are you being harassed by debt collectors? Are you behind on your mortgage or auto loan but your tax refund isn’t enough to pay the account entirely current? You might not have enough to pay your debts in full, but you probably do have enough of a tax refund to file for bankruptcy relief. Bankruptcy could eliminate many or all of your debts for a fraction of the cost and Chapter 13 is helping millions of people get current with their auto loans or mortgages while keeping the car or home.

USA Today reported in April 2012 that more than 200,000 American households were expected to use a portion of their 2011 tax refund checks to pay for bankruptcy filings. Although we have not yet seen any projections for this coming tax season, we expect to see a similar result in 2013.