There are many reasons why people may file for bankruptcy. Some people may have amassed a large amount of debt that they are unable to pay off, while others may have experienced a significant financial setback such as a job loss or medical emergency.
Whatever the reason, filing for bankruptcy can provide relief from creditors and help individuals get back on their feet fina
Generally speaking, declaring bankruptcy has no tax repercussions. However, a bankruptcy trustee may withhold any tax refund you are anticipating in order to pay creditors. In Chapter 7, this can only occur once, however it can occur every year of your repayment plan in Chapter 13.