The North Carolina Bankruptcy Information Blog

We know what you’re thinking.

Another stressful tax season has officially come and gone, and you’re either expecting a well-deserved refund or you owe an obligatory amount to the Internal Revenue Service.

Regardless, we understand you’d rather not think about (or, at least read about) anything regarding taxes, tax time, or the financial implications of this taxing period. But, trust us, it’s worth taking a gander at the following, as the end of tax season means the beginning of many a tax scam that might cost you more money (and time) than any IRS tab.

The Internal Revenue Service has now issued a statement warning average Americans just like you about how to spot and solve identity theft issues that stem from your recent tax filing.…

‘Tis the season for tax returns…and for many, tax refunds. So, if you’re one of the lucky Americans who is expecting money back from the Internal Revenue Service this year, you may also be aware of refund anticipation loans (also known as RALs). These tax time advances are being offered by some tax-preparation services as part of their seasonal packages.  And while getting what’s yours as soon as you can, especially from the IRS in tough economic times, can be appealing, there are various pitfalls to these refund anticipation checks, and reasons the federal government is trying to help you avoid them.…

With the holidays long gone and another New Year in full swing, ‘tis the season for 2010 tax filings, full of important tax changes for personal filers.  Here a few reminders of things to look out for as you work to get your returns in order:

(1) Payroll Tax Holiday
2011 is the year of the “payroll tax holiday.” This means that taxpayers subject to Federal Income Contributions Act tax (or FICA) for Social Security and Medicare will see a tax break of 2% in their paychecks up to the Social Security cap during the year, which is $106,800 for 2011.…

Before the deservedly unpopular 2005 reforms to the Bankruptcy Code, it was rare that an innocent mistake could cause your discharge to be denied or revoked. It used to be that trustees and the courts reserved this harsh measure for those situations where it was clear that a person filing for bankruptcy had engaged in serious, persistent and intentional misbehavior. Now, in the aftermath of the reforms, it is even more important than ever to hire a competent bankruptcy attorney to help you navigate a bankruptcy filing, not just because the reforms made declaring bankruptcy much more complicated, but also because a mistake could cause your discharge to be revoked or denied.…

The decision to file bankruptcy is more often than not driven by your willingness to accept the fact that you need help. Chances are, you are fully aware of the practical reasons: late bills, consistent calls by creditors, job loss, unseen medical expenses, stress, denied credit. However, getting over the psychological barriers can be the most difficult corner to turn in a person’s road to financial recovery.

Don’t worry, you are not alone.

Almost everyone has the same fear before going into bankruptcy. The idea that you will never again be able to own a home, buy a car or get reasonable credit can be overwhelming.…

The bankruptcy system, from the federal chapter designations to helpful attorneys, to the courts, is designed to assist people and businesses in handling an overwhelming fiscal dilemma.

Still, there are alternatives to bankruptcy. And while seeking legal guidance for bankruptcy has proven to be a very beneficial course of action, credit counseling can also be a viable route toward financial stability in less severe situations.

It’s important though, that you give serious consideration to choosing the right counseling organization because unfortunately, a person’s financial frustrations have proven to be fertile ground on which less than upstanding groups can farm opportunities. Desperation can lead to poor decisions, so look for the following when choosing counseling over bankruptcy:

Seek out organizations that are connected professionally to a national effort or foundation that has a track record of supporting people facing economic trouble.…