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Do Not File Your Tax Return If You Are In Default on Your Federal Student Loans: File an Extension and Cure the Default First

Are you expecting a large tax refund this year?

If so, and you have had some financial difficulties this year, do NOT file your tax return if you are in default on your federal student loans OR about to file bankruptcy.

Instead, some pre-planning is in order.  For federal students loans, cure the default before you file your taxes.  File an extension if you must to gain some additional time.

If you owe a significant amount of unsecured debt like credit cards, medical debt etc., and your tax refund isn’t enough to pay it all back, consider filing your tax return, waiting till the refund hits your account, and then use it to file bankruptcy.

These simple steps will save your tax refund.  For more information about reducing student loan debt or filing bankruptcy, please contact us at christiearkovich.com.

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