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Americans Can't Wait For Their Tax Refunds... To Immediately File For Bankruptcy

Tyler Durden's picture


In yet another sad reflection on the state of the Schrodinger-economy, USA Today notes that  over 200,000 households will use their tax rebate this year to pay for (drum roll please) a bankruptcy filing and associated legal fees. The NBER research confirms a little known fact (outside of bankruptcy lawyer circles) that 'at the first part of the year, when Americans receive their tax refunds, there almost always is a spike in personal bankruptcy filings.' but this has been especially true since the cost of bankruptcy soared (from $921 in 2005 to $1477 two years later according to the US GAO) after law changes in 2005. The bulk of the fees go to the lawyers of course but the fact that the law was changed to prevent bankruotcy abuse as it was thought too many people who could afford to pay their debts were taking advantage of the system. The sadder truth, according to the USA Today article, is that the drop in bankruptcy filings doesn't necessarily mean that the change has curtailed abuse of the system. "It just means that financially distressed people are not necessarily getting the help they need," Last year's average tax refund was $2913 - enough for many Americans to file for bankruptcy. So we wonder what impact this will have on AAPL's earnings as bankruptcy fees outweigh iPad purchases from this year's rebates. Brilliant!


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Fri, 04/13/2012 - 13:35 | Link to Comment Mongo
Mongo's picture

Just love the picture that came with this post


Fri, 04/13/2012 - 13:38 | Link to Comment Ahmeexnal
Ahmeexnal's picture

I wonder if the "Fearless Golfer" is one of those who will use his tax returns to file for chapter 11.

Fri, 04/13/2012 - 23:01 | Link to Comment markmotive
markmotive's picture

And why the hell not.

Take what you can while you can:

Fri, 04/13/2012 - 14:07 | Link to Comment docj
docj's picture

It would only be more perfect if instead it said "BULLISH!!"

Fri, 04/13/2012 - 14:16 | Link to Comment battle axe
battle axe's picture

The American Dream Baby!!!

Fri, 04/13/2012 - 15:26 | Link to Comment Arius
Arius's picture

Buy the Powerball?

Fri, 04/13/2012 - 15:39 | Link to Comment Freddie
Freddie's picture

Hope & Change rolls on.

Fri, 04/13/2012 - 23:19 | Link to Comment Alexandre Stavisky
Alexandre Stavisky's picture

All the grand masters of this chess game must realize that their entire board lies within just one square of a greater realm.

Fiat is dead.  Because it is the absolute final denominator of the global financial DNA and is perfectly corrupt, the body is declared stage 4.

Matter of time.  Matter of time.

For a mental exercise, list the 50 largest great projects and accomplishments of civilized man.  Research its cost.  Sum them.  Once summed, compare them to one week of USA debt.

It does not exceed it!  And are there any such projects of monumental futurative wealth productive potential?  No.  Instead, we feed the indolent, overstuff the gov't jobbers with unearned munificence, keep the elderly (who have surpassed their prior contributions even when factored with stellar interest) running on ponzi pensions, allow the docs to believe that their supreme accomplishments will stave off death and its various attendants (by way of astonishing expenditure), keep a large hostile group offshores fighting interesting "bogieys" and patrolling empire.

Overheard was a quote wherein it was stated that, "once the open criminality of bond fraud and currency creation with its consort of international swaps of all sorts was made open knowledge, only audacity was a constraint".  Indeed!  Indeed!  Only the size of the number, the scale of the dilution, the hubris of counterfeit will sway.   What is a number?  And WHAT PRICE HONOR?  There is no more.  There is no more accountability or accounting or knowable quantity.  It is destroyed in quantitative easing, in currency creation, in expansion of the money supply, in panickingly, hopefully creating more units of account to mask the undeniable atrophy of the the REAL economy.

If fiat is held steady, all the industries which factor upon it DIE.  For there is no more expansion, no more growth, but CONTRACTION.  Therefore, financial gimmicks and play of number expansion must fill the gap.  Since the real economy is dying, the markets and gov'ts and other parasitical players which exist upon it cannot admit death.   They cannot admit checkmate and resign the game.  Instead they expand the phoney money in hopes of masking the contraction of the underlying physical world.  Look at the money and the charts denominated in money, not the reality.   All of F.I. RE. is dead.

Keep the lights on the the upper tiers, while the lower quarters subside into the water, and the beam strains to break.  It is all going down.

Money pumps shall feel wonderful.  Until the reality that they have peeled away from their essential purpose which is to perfectly reflect the values within society.  Since stripped and defiled, no one knows true value, nor that it is all over.

Just a matter of time!

Fri, 04/13/2012 - 13:36 | Link to Comment e_goldstein
e_goldstein's picture

Winning :-/

Fri, 04/13/2012 - 13:38 | Link to Comment hungarianboy
hungarianboy's picture

And gold plunged :D Gold is dooooooomed.

Fri, 04/13/2012 - 13:39 | Link to Comment mayhem_korner
mayhem_korner's picture



Do you habitually post and up-arrow yourself simultaneously, Jethro?

Sat, 04/14/2012 - 09:54 | Link to Comment engineertheeconomy
engineertheeconomy's picture



Fri, 04/13/2012 - 13:40 | Link to Comment Ahmeexnal
Ahmeexnal's picture

as opposed to....?

Fri, 04/13/2012 - 23:40 | Link to Comment Alexandre Stavisky
Alexandre Stavisky's picture

Also and another.  The Simpson-Bowles group.  They recommend the prudent.  Reduce debt etc. etc.

However, this money system, like a blood supply, cannot admit significant reduction.  Paying off debt kills money supply.  This body economic like a physical biological entity needs every corpuscle, every red & white cell, to convey the every day needs.  Never will debt be repaid, never can defict be reduced. Because the global market basket of nations having surplus cannot (were every note applied) purchase the necessary daily debt to continue the habituated needs of the money user.  Neither can deficit reduce, let alone be paid in surplus to bring deficit to surplus.   It is a physical impossiblity because to do so would exsanguinate the body government, body politic, body financial and mean instant death.  Financial infarction.  It is FIRE AND ICE.  Were this economy tied to any commodity based unit of account exchangeable for the universal currency, IT WOULD BE DEAD.  THE BANK RUN WOULD HAVE ALREADY BROUGHT IT TO ITS FINAL, PHYSICAL ENDPOINT!  However, fiat allows the endgame to run much longer but with more ruinous result.

Once everyman realizes it, it is hyperinflation.  Gov't shall not renege on its promises, but it shall ever print to cover its absence of revenue.  Systemically, structurally, inevitably it will require exponentially more units of account which must be FABRICATED.  It can never (having passed the point of no return) regain a faith over time in the currency. Print or pretend to print (via bond purchases) and scatter the dollar, but free enterprise and freedom of economy is no more.

Fri, 04/13/2012 - 13:46 | Link to Comment hungarianboy
hungarianboy's picture

Look at the dislikes. LOL bunch of bag holders. S&P could zoom from here again and gold probably dumped.

Bernanke is up :-)

Fri, 04/13/2012 - 13:50 | Link to Comment SilverIsKing
SilverIsKing's picture

Sounds to me like you are 'up' thinking about Bernanke.

Whatever floats your boat.

Fri, 04/13/2012 - 13:51 | Link to Comment brewing
brewing's picture

i never thought mdb would change his handle...

Fri, 04/13/2012 - 14:47 | Link to Comment Jedi Longsabre
Jedi Longsabre's picture

No, MBD is actually clever and funny


Fri, 04/13/2012 - 16:29 | Link to Comment Pool Shark
Pool Shark's picture



Robo? Is that you?...

Fri, 04/13/2012 - 13:53 | Link to Comment Lost Wages
Lost Wages's picture

Obviously hungarianboy is George Soros.

Fri, 04/13/2012 - 14:00 | Link to Comment hungarianboy
hungarianboy's picture

What's even funnier is that Tyler ALWAYS bullish on gold even when gold is crashing.

Wonder when ZH readers accept that gold was just another bubble. When gold is sub 1000?

Is that enough pain?

Fri, 04/13/2012 - 14:09 | Link to Comment SheepDog-One
SheepDog-One's picture

Your act is stale and dry.

Sat, 04/14/2012 - 10:05 | Link to Comment engineertheeconomy
engineertheeconomy's picture

The powers that be can only manipulate Gold down for so long... once it begins to leave the shelves you will not be able to get an ounce of Gold for any amount of paper. Paper rots and burns, the wind just blows and it's gone. Paper  loses it's value every minute of every day.

Fri, 04/13/2012 - 14:14 | Link to Comment Hangfire
Hangfire's picture

Dammit you're right!  I'm selling all my PM's and going all in on GM.   

Fri, 04/13/2012 - 14:14 | Link to Comment Ahmeexnal
Ahmeexnal's picture

Nice try, but....NO. JPM is about to die due to it's PM manipulation scheme. JPM needs to deliver gold and silver and is pulling it's ass hairs off trying to secure the physical required. So once again...NO, you aints shaking no PMs from nobody here.

So please, just FOAD!

Fri, 04/13/2012 - 14:17 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Sounds exactly like Spaulding Smailes. Welcome back douchebag.

Fri, 04/13/2012 - 14:26 | Link to Comment Chump
Chump's picture

If gold went <$1000 I'd jump for fucking joy.  I'd finally be able to buy a whole ounce instead of paying premiums for fractional amounts.

And silver under $10?  Be still my beating heart...

Fri, 04/13/2012 - 14:28 | Link to Comment n8dawg84
n8dawg84's picture

If gold goes below $1,000 then I will continue to buy.  In fact, I'll be able to pick up more ounces for my dollars than I can now.  Good bang for my buck and all that.  No pain

Fri, 04/13/2012 - 15:02 | Link to Comment NotApplicable
NotApplicable's picture

Gawd, I just love reading "gold is a bubble" ignorance.

You'd be much better served if you tried to understand just what money is before publicly flaunting your complete lack of understanding on the subject.

Here's a start. IOUs (a.k.a. "currencies") are not money, but a substitute for it in the form of an issued credit. While all valuations in life are subjective, they are based on physical properties such as scarcity and utility. Properties which change slowly enough in a stable environment that one can plan for the future accordingly (if they are also wise enough to plan). In a fractional-reserve fiat environment though, these measures can all drastically change in the time it takes Benron to hit CTRL-P (in other words, the Fed's stability mandate is complete BS). In this scenario, even wise people cannot plan anything other than trying to front-run Benron.

You might think of yourself as a smart troll, messing with the "gold bugs." Most of the rest of us though, well, we recognize you as just another uninformed sheeple. Then we start doing the math at how much gold will have to rise to counter this mass ignorance.

In other words, you make our very case. Because see, the idea that one man's liabilities are another's assets is not a system of wealth generation, but enslavement. In order for your system to work, complete enslavement is necessary.

Also, if gold is a "bubble," why are the Chinese trading their dollar stash for it at current prices? Do you really think they are that dumb? (Remember, they run their country with engineers, while the Western world uses lawyers.)

Fri, 04/13/2012 - 15:40 | Link to Comment tahoebumsmith
tahoebumsmith's picture

Lets see....If I had used the same amount of money to buy stocks back in Sept of 2007 that I used to buy gold, lets just see where I would be today. Using a round number lets use 100,000 as an example. After the crash of the stock market in late 08 and 2009 I was left with $34526.00 in my investment account. Since then the market has rebounded and brought my stock investments back up to $86,852.. Feeling kinda good because I got almost 90% of my money BACK. Now lets look at the same money I used to buy gold... Gold was selling for $758 an ounce so I was able to purchase 132 ozs of pure gold. Today the price of gold is $1628 an oz. so if I cash in the shiny stuff it looks like I could pocket roughly about $214,896.00 fiat dollars. If you look at the stock market return of $86,852, which by the way is a roughly a $13000.00 loss since 2007 or the $115,000.00 gain with gold during the same period, are you really going to try and convince me to go back to the Casino? Wake up and see the big picture... I'm sure there are people out there that have ridden the coattails of the ALGO bots and done better in the markets however the average Joe who is sitting in an IRA or 401k has simply been mindfucked and has been rewarded by giving them most of their money back that the CRONIES used to steal roughly 5 TRILLION dollars by pretending the world was going to end...BAWAHAHAHA

Fri, 04/13/2012 - 15:41 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture


You may want to look at the last chart in this post. If you have the capacity, you'll understand that the rally in gold is being driven by supply (fiat debasement/printing) and demand (fiat exchanged for gold to preserve wealth.) Gold will remain in the long-term upward channel until the printing ends or the ponzi unravels.

Fri, 04/13/2012 - 16:07 | Link to Comment OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

OOh, the pain. Long since $400. Now selling after the London morning fixing and buying on the Asia open. Match that, goulash-boy

Fri, 04/13/2012 - 14:11 | Link to Comment TWSceptic
TWSceptic's picture

Do not confuse short term correction with secular bull market, we already have someone for that (Gartman).

Fri, 04/13/2012 - 13:39 | Link to Comment mayhem_korner
mayhem_korner's picture



Yes, but are the bankruptcy filing fees tax deductible for 2012?  :D

Fri, 04/13/2012 - 16:33 | Link to Comment Pool Shark
Pool Shark's picture



Only deductible if you have an income to deduct them against...


Fri, 04/13/2012 - 13:40 | Link to Comment Doubleguns
Doubleguns's picture

The filing fee is obviously to cheap. 200,000 filings!!!!



Fri, 04/13/2012 - 13:41 | Link to Comment q99x2
q99x2's picture

I don't get a tax refund. I don't pay taxes. I'm waiting until bankruptcy covers student loans again. After graduation I'll wait in Costa Rica.

Sat, 04/14/2012 - 07:49 | Link to Comment Bendromeda Strain
Bendromeda Strain's picture

say "hi" to Jim Willie for us...

Fri, 04/13/2012 - 13:42 | Link to Comment SheepDog-One
SheepDog-One's picture

WOW more great news for Obummers supposed re-election....everyone broke and filing for bankruptcy! I guess what we need is more QE to pump stocks to impress these people, and $7 gas to boot! Hooray.

BTW, Ive got 3 friends who all tell me they have not gotten their tax return checks, the feds are holding it....anyone else seeing the same thing? 

Fri, 04/13/2012 - 13:49 | Link to Comment chunga
chunga's picture

We made less this year than last year.

Somehow, instead of a "refund", this year we have to cut a check.

I'm waiting until Tuesday to send it return/receipt.

Fri, 04/13/2012 - 14:27 | Link to Comment MachoMan
MachoMan's picture

Same thing here chunga...  had to pay in a little bit last year...  and by preliminary calculations we'll be paying in again this year...  they can get it on the last day then.

Fri, 04/13/2012 - 15:04 | Link to Comment chunga
chunga's picture


I had that money ear-marked to tax!

No change in deductions at all; just lower income.


Fri, 04/13/2012 - 14:24 | Link to Comment Agent P
Agent P's picture

I e-filed in early March, and the direct deposit only took four days after the IRS accepted the return.  Still waiting on State of Illinois though...shocking, I know.

Fri, 04/13/2012 - 15:32 | Link to Comment NotApplicable
NotApplicable's picture

You won't see that money until the day after Uncle Sugar bails them out.

Unless that is, you want to go to Chicago and take it directly from the mafia.

Fri, 04/13/2012 - 16:13 | Link to Comment Born-Again Bankster
Born-Again Bankster's picture

I'm in that boat.  Been waiting 6 weeks already.  When you owe, you have to pay interest, but when they owe you it's just a glitch in their system.

Fri, 04/13/2012 - 16:22 | Link to Comment Gift Whores
Gift Whores's picture

I feel better when I owe the govt and am holding their money.

Average refund $2900??? WTF???  

I won't be funding their ponzi schemes and green energy bottomless pits.

Besides, I'm saving up for unicorns and pixi dust.

Fri, 04/13/2012 - 16:55 | Link to Comment Freddie
Freddie's picture

My car "don't need" gas - I can get an iPad app that makes it run on Hopium.

Fri, 04/13/2012 - 19:53 | Link to Comment SurferNate
SurferNate's picture

Happened to me for about 3 weeks after filling.  Usually we pay ~$2K a year, put started a farm and received a refund.  IRS held it until they received my late 1099-MISC filing in Kansas City (The funds were placed in the bank the same day the late filling fee for the 1099 was withdrawn.)

Fri, 04/13/2012 - 13:42 | Link to Comment yogibear
yogibear's picture

Then the country declares bankruptcy. Bernanke and the Fed's default through devaluing the dollar to zero.



Fri, 04/13/2012 - 13:44 | Link to Comment SheepDog-One
SheepDog-One's picture

So then really everything from 2008 has been for most its just a cat and mouse entertainment for the FED. 

Fri, 04/13/2012 - 14:34 | Link to Comment john39
john39's picture

not exactly for nothing...  they got several more years to trade paper money for real assets, and use the U.S. military to further their dreams of one world government...

Fri, 04/13/2012 - 15:35 | Link to Comment NotApplicable
NotApplicable's picture

Yep. The "nothing" is what we get out of the deal. They get title to everything else as they bide their time, shaking first this tree, then that one while watching the assets pass from weak hands to theirs.


Fri, 04/13/2012 - 13:45 | Link to Comment KandiRaverHipster
KandiRaverHipster's picture

you have to pay a fee to file for personal bankruptcy?  just like you have to declare income from accepting bribes, selling kilos, recieving stolen bikes and from WoW gold mining.  this country, i love it, i love it!

Fri, 04/13/2012 - 13:45 | Link to Comment tempo
tempo's picture

What a recovery...Copper closes at 3 month low, NG breaks $2, China's growth (if its real) is reported below expectations, India's Industrial production drastically revised downward. Remember "Its not fair" means...To each to their own ability; to each to their own need. Takes from those that work hard and have ability to give to those O wants to help. Carl Marx and O.

Fri, 04/13/2012 - 13:45 | Link to Comment Gringo Viejo
Gringo Viejo's picture

Last night, the cockroaches ate my foodstamps. Where do I sign?

Fri, 04/13/2012 - 13:47 | Link to Comment SheepDog-One
SheepDog-One's picture

The way I look at bankruptcy is, even if I needed to go that route, why pay someone else for it? Things will be so shitty soon what difference does it make if you legally registered that youre now broke...hell with em if they want to come try to take stuff from me then let em and we'll see how that all works out for them.

Fri, 04/13/2012 - 13:53 | Link to Comment SwingForce
SwingForce's picture

No need for a lawyer, really, they are only glorified form fillers. Seriously, I did it myself last year AND had the court filing fees waived becuz' I was so poor. BK didn't cost me a penny!  Go to 

and find your district. STAY ON THE GOVT SITES, they tell all you need to know, plus they have the latest version of the forms you need to file. Its not rocket science, you can do it too. Just don't forget to bring a USB drive with the names & addresses of all your creditors so they can make a copy (or burn a cd). WARNING: Don't lie, and don't hide anything.

PS- After my name was published in the BK Register, I was named 1% owner of foreclosed properties in Nevada & Arizona. Filing BK puts a stay on foreclosure procedures, and even though I had proof of fraudulent notaries, nobody in Maricopa or Clark counties cared.

Fri, 04/13/2012 - 13:55 | Link to Comment Lost Wages
Lost Wages's picture

I had a lawyer fill out the forms. I had to give them about a million corrections before we could file. If you get a lawyer, make sure it's one you can get in contact with and not just a bankruptcy mill where you'll never get through by phone.

Fri, 04/13/2012 - 13:51 | Link to Comment vegas
vegas's picture

The average tax refund was $2913? This just proves how utterly fucking stupid the "average" Amerikan really is; they loan the ponzi regime of C. Hussein Soetero [C. is for Chalky Gully] money, interest free over the course of the year,  and then act like they are getting money from da guberment. There is Nooooooo hope; go John Galt.

Fri, 04/13/2012 - 14:14 | Link to Comment geekgrrl
geekgrrl's picture

Yea, that's pretty dumb. What's even dumber is states that let corporations keep the state taxes deducted from employee paychecks. As if the states are running surpluses. Crazy.

Fri, 04/13/2012 - 15:47 | Link to Comment NotApplicable
NotApplicable's picture

I'd like to say that this is unbelievable, but sadly, I should've expected it.

Oh, and vegas, the average return is that high due to the addition of tax credits. While I agree there are many wage-slave idiots who use withholdings as a form of savings, credits have turned the event into a net payout for some. This is why tax places do so well in poor neighborhoods. For those people, it's like going to a bank and withdrawing funds.

Fri, 04/13/2012 - 14:16 | Link to Comment pods
pods's picture

I will admit, I am starting to warm up to the term "Chalky."

Just shifty sounding enough for a guy from Chicago.

Fri, 04/13/2012 - 15:52 | Link to Comment NotApplicable
NotApplicable's picture


That's raciscist! (perhaps even racisciscist)

Fri, 04/13/2012 - 14:28 | Link to Comment donsluck
donsluck's picture

Kinda like daylight "savings" time.

Fri, 04/13/2012 - 14:38 | Link to Comment Agent P
Agent P's picture

Ever hear of refundable tax credits (EITC, etc.)?  I have no source to point to that states how these credits influence the average refund, but when 50% of the population is paying no federal taxes and there are refundable credits worth thousands of dollars, I have to think a lot of that refund money isn't the return of a loan to the ponzi, but just another form of government welfare.

Fri, 04/13/2012 - 16:05 | Link to Comment Miffed Microbio...
Miffed Microbiologist's picture

I have a work associate who, every year, gets around.$5000 in tax refund. Literally beaming this time of year, salivating over the coming " April xmas" (her term). She and her husband buy Igagets, vacations ( the canned versions: cruises,tours etc). They burn through it quickly. I have (pathetically yes) pointed out the obvious idiocy of this scenario. Why not shoot for even on your taxes, save money each month and not allow the government free use of your money? " Thats no fun...besides no one can save that kind of money." was the response I got. I used to bang my head on the wall after these encounters. Now I find it's a lot more therapeutic taking my Glock to the shooting range and burning through a few boxes of ammo. There truly are people who REALLY don't want to be unplugged from the matrix no matter how hard you try and get them to see things differently. So sad.

Miffed :-)

Fri, 04/13/2012 - 13:51 | Link to Comment Scalaris
Scalaris's picture

If it affects AAPL's earnings as bankruptcy fees outweigh iPad purchases, won't this affects Bank of Israel's AAPL holdings, and if so, will said action be technically considered as anti-semitic?

Fri, 04/13/2012 - 13:52 | Link to Comment Sudden Debt
Sudden Debt's picture

It's not even funny.... 200.000.... Thats one big ass army of people who will end on the streets...

Fri, 04/13/2012 - 14:12 | Link to Comment goldfreak
goldfreak's picture

streets? nah, in a couple of weeks they  get a new credit card and start charging again

Fri, 04/13/2012 - 14:41 | Link to Comment Hangfire
Hangfire's picture

Hooverville here we come!

Fri, 04/13/2012 - 13:54 | Link to Comment thismonkeydoesn...
thismonkeydoesnotdance's picture

wow. and the great shit-circle of modern americana continues. what a hustle. can they robo-sign bankruptcy documents? hmmmmm.....

Fri, 04/13/2012 - 13:57 | Link to Comment Jack Burton
Jack Burton's picture

Bankruptcy is the myth behind consumer deleveraging. When people go BK their liabilities go away. This is the ONLY consumer deleveraging going on. Those who can borrow, are still borrowing! Lever up until you go BK, it is the American way!

Fri, 04/13/2012 - 14:01 | Link to Comment LouisDega
LouisDega's picture

I got mine and bought Columbo, Seasons 1&2 on DVD . Love that Peter Falk

Fri, 04/13/2012 - 14:47 | Link to Comment Ahmeexnal
Ahmeexnal's picture

no bluray version yet?

Fri, 04/13/2012 - 14:53 | Link to Comment LouisDega
LouisDega's picture

No. IMH, That would ruin that whole dated look. Its perfect just the way it is.

Fri, 04/13/2012 - 14:02 | Link to Comment mholzman
mholzman's picture

No. There will be plenty of jobs very soon. They will be in dismantling the Internet. Out of the Whitehouse, the new proposal to protect copyrights is through a law: embedding or linking to any copyrighted material is a felony.

My investment strategy is now focused on bail bond companies and manufacturers of orange jumpsuits.

Expect a larger deficit due to court and prison costs. Sort of resolves the issue of medical care because we are all going to jail (hence free med) unless there is a grandfather clause.

Fri, 04/13/2012 - 15:48 | Link to Comment Not Too Important
Not Too Important's picture

Pink jumpsuits. Go Sheriff Joe!

Fri, 04/13/2012 - 14:04 | Link to Comment fadgadget
fadgadget's picture

i'd file in a heartbeat if student loans weren't exempt from discharge.

Fri, 04/13/2012 - 14:51 | Link to Comment Ahmeexnal
Ahmeexnal's picture

You can always ask for a full refund.  The services provided by the "university" you hired did not live up to your expectations. You can sue them for false advertising.

Fri, 04/13/2012 - 14:08 | Link to Comment mendigo
mendigo's picture

Isn't there an app for that?

Fri, 04/13/2012 - 14:10 | Link to Comment PoliticalRefuge...
PoliticalRefugeefromCalif.'s picture

Surprised the team hasn't passed law to seize all income tax refunds due bankrupt pending taxpayers to fund the regime... 

But I suppose then all of us could fall under it's eventually expanded guidelines...

(ten hail marys and sin no more- I know, I know...)

might call it the community reinvestment act or something similar... oh wait that has already been used- about CRA-II?... Or Community Reinvestment Act Palliation Strategem.. 

C.R.A.P.S. for short..

tell me I'm not a team player!!

Fri, 04/13/2012 - 14:13 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Why seize income tax refunds when 401ks are so much larger and easier to re-hypothicate?

Fri, 04/13/2012 - 14:15 | Link to Comment PoliticalRefuge...
PoliticalRefugeefromCalif.'s picture

You have a point, but who says the regime can't whistle and dance at the same time?- plenty of opportunity to steal from both tables...


Fri, 04/13/2012 - 14:11 | Link to Comment LawsofPhysics
LawsofPhysics's picture

So people will start doing what banks, corporate america, and politicians have been doing all along - taking the money and running!


Fri, 04/13/2012 - 14:21 | Link to Comment Hangfire
Hangfire's picture

With my tax return I am either A. getting a dental implant (with bone graft) that I have been putting off for 3 years  or B. Getting laser surgery on my right eye (shooting eye).  Any suggestions on who should get my money, either the Persian tooth doctor or the Viet eye doctor.     

Fri, 04/13/2012 - 23:17 | Link to Comment Yes_Questions
Yes_Questions's picture



Well, there's always Hannibal Chew:

Fri, 04/13/2012 - 14:21 | Link to Comment vic and blood
vic and blood's picture

I was too broke to file on account of punitive child support. I kept a low profile and waited for relief from the statute of limitations. Of course, I get dunned by a lot of zombie creditors since I raised my profile a bit, but they can't do anything. I recommend filing for bankruptcy, if you can afford it. If not, then move and don't forward your mail. Plan on paying cash for about 7 years.

Fri, 04/13/2012 - 14:49 | Link to Comment flacorps
flacorps's picture

Professors Dawsey & Ausubel refer to your plan as "Informal Bankruptcy" and another academic writer even rails against "Opportunistic Informal Bankruptcy" where people who would have something to lose in bankruptcy (like the moneys that might be paid into a required Chapter 13 plan where they make too much to do a Chapter 7) omit to file so that they don't lose it.

Fri, 04/13/2012 - 16:12 | Link to Comment vic and blood
vic and blood's picture

Informal bankruptcy. Thank you for the term.

I wasn't one of those with anything to lose. I am not proud of what I did, but I had to survive. Once, I took a third job making pizzas because I was so sick of boiled potatoes. Child support had me down to 600 a month take home. I lived in flophouses and did yard work for some food, gas, and medicine money. But I never leached off of relatives or the government. I never went to a food bank or begged off of a church. My kids are paid for now and I am driving a late model American made automobile and own heaps of guns, ammo, and a modest stack of silver. My teeth aside, punitive child support was good to me. It kept me slim!!

Fri, 04/13/2012 - 16:37 | Link to Comment vic and blood
vic and blood's picture

Oh, and thanks for the link. I need that book!

Fri, 04/13/2012 - 23:36 | Link to Comment Yes_Questions
Yes_Questions's picture





"Informal Bankruptcy" may be what our good professors may call it, but its better named "STARVE THE PARASITES".

If having a bundle of tapeworms in your gullet makes for a better credit experience for ya, go ahead, leverage up and feed the clutch. 

Just always protect your real wealth.  These parasites have limited resilience, fortunately.


Fri, 04/13/2012 - 14:24 | Link to Comment benjamin_1114
benjamin_1114's picture


Fri, 04/13/2012 - 14:41 | Link to Comment DaveA
DaveA's picture

When my boss, after some bad investments in rental property, was going through bankruptcy in the 90s, he was expecting a $5000 tax refund. But he'd never see that money; he had to declare it as an asset and sign it over to creditors. He should have waited for his refund check, cashed it, spent it improving his primary residence (which he kept), and then filed for bankruptcy.

All you're seeing now is other people not making the same mistake.

Fri, 04/13/2012 - 14:46 | Link to Comment docj
docj's picture

Best... Recovery... EVAH!!

Fri, 04/13/2012 - 16:19 | Link to Comment Freddie
Freddie's picture

This sh*t makes RINO other elite/other saudi stooge Bush look like heaven. 

Fri, 04/13/2012 - 14:54 | Link to Comment unclebill
unclebill's picture

Too late.... I already used it

Fri, 04/13/2012 - 15:51 | Link to Comment anonnn
anonnn's picture

Dear Tyler,

Use of "Schridinger-economy" is an error. The economy you speak of contains massive fraud as well as contradictions that stem largely from that fraud.

Ernst Schrodinger's Cat Paradox is so named for its apparent contradictions based an observer's point of view. There has never been any fraud connected with it. Not even a hint of fraud.

Schrodinger produced astounding work that allowed prediction of electronic orbital energies via Quantum Mechanics, which was not possible with classical [Newtonian] mechanics. That got a Nobel Prize in Physics.

 His "simple" Schrodinger Equation for wavefunction* was not rigorously derived with arcane or advanced mathematics [so typical of modern economists' nomericalflim-flam and flim-flam results], but was an intuitive leap that proved true by actual experiments whose results agreed with the predictions of his Schrodinger Equation[ whose "simplicity" could overwhelm a computer].

A Schrodinger-economy, either as his Cat Paradox or his Wavefunction, might have puzzling, misunderstood, and unpredictable qualities but it would NOT BE A FRAUD.

Please honor the integrity of Schrodinger. Find a more workable analogy, such as, Flim-flam economy.

Or, perhaps you  could try a pun like shell-game economy [but that would only be understood by chemists or physicists and their lowly ilk.

*wavefunctions define and predict electron energy and behavior  within and between their shells [probable densities] of existence.

Fri, 04/13/2012 - 16:42 | Link to Comment GernB
GernB's picture

The economy is a little like Schrodinger's cat, in that according to visible evidence and prevailing economic theory it is in a state of paradox, being both recovering and somehwat healthy and doomed at the same time. An argument can be made that it is not so much a paradox as it is that central bank interference has broken the economic models used to describe how the economy behaves.

To say that the economy contains massive fraud is difficult to support since the fact you perceive the fraud indicates that at the very least it is a completely ineffectual ftraud since people such as yourself can see right throught it. Better adjectives might be politicized, manipulated, propagandized, etc.

Fri, 04/13/2012 - 16:52 | Link to Comment Freddie
Freddie's picture

The Hoipe & Change economy is so bad that people may start eating Schrodinger f*****g Cat.

Fri, 04/13/2012 - 16:00 | Link to Comment wonderatitall
wonderatitall's picture

damn what a great idea. to bad i had to use mine to buy a gallon of gas. next year bankruptcy uber alles

Fri, 04/13/2012 - 16:34 | Link to Comment mootsman
mootsman's picture

Didn't BofA just let go 200,000 employees?


Fri, 04/13/2012 - 16:43 | Link to Comment sessinpo
sessinpo's picture

From Article:

"So we wonder what impact this will have on AAPL's earnings as bankruptcy fees outweigh iPad purchases from this year's rebates. Brilliant!"



Tyler presents questions so easily answered.

Law offices of Dewey, Screwem and Howe, bankrupcty specialist.

File bankrupcty with us and we'll give you a free Ipad or Iphone.



Fri, 04/13/2012 - 16:51 | Link to Comment Bunga Bunga
Bunga Bunga's picture

The question is who files for bankruptcy first?

A tax refund might be a risky investment these days.

Fri, 04/13/2012 - 17:06 | Link to Comment GernB
GernB's picture

It just means that financially distressed people are not necessarily getting the help they need

The assumption is that the bankruptcy process isn't the help bankrupt people need. The idea of bankruptcy is to allow you to setlle your debts, come out largely debt free, and move on with your life with a clean slate. How is having a legal avenue to do so and meet your oblilgations to the best of your ability not helpful? A bailout most likely will perpetuate the financial stress the person is in. It is when politicians act like they are being noble to help people avoid bankruptcy that people really start to get hurt. Look what's happening in Greece, they got a bail out and crushing austerity. Can anyone honestly say they wouldn't have been better off with an outright bankruptcy which allowed them to move on without austerity being forced upon them by those wishing to bail them out?

Fri, 04/13/2012 - 17:18 | Link to Comment headless blogger
headless blogger's picture

you can file for bankrupsy for just the court fee around $300 (in our state) and the purchase of the paperwork for about $40 at any bookstore. You just have to be careful so you don't screw up your paper work.

Fri, 04/13/2012 - 23:20 | Link to Comment Yen Cross
Yen Cross's picture

Last resort? Use the " Get Out of Jail"  Welfare card!

Fri, 04/13/2012 - 23:25 | Link to Comment non_anon
non_anon's picture

yep, the end is finally in sight

Fri, 04/13/2012 - 23:40 | Link to Comment Atomizer
Atomizer's picture

Allow me to present another angle to this tax story. I have a friend in the upright hillbilly pool business. Our US Government just granted him new subsidies to build new hillbilly pools. His Sales forecast has doubled from last year. Why? The Government didn’t hand out 2011 taxpayer subsidies to build new upright hillbilly pools.


This was the 2011 top of the line swimming pool without US Government intervention. Click  

How does green energy mingle with manufacturing an enclosure to hold water? Grab your popcorn.. 



Fri, 04/13/2012 - 23:47 | Link to Comment lenitivelea
lenitivelea's picture

Problem: people with money gaming the bankrupcy system

Solution: make bankruptcy cost more

...seriously world?

Fri, 04/13/2012 - 23:56 | Link to Comment Atomizer
Atomizer's picture

Very true. I reminded my friend about my Solyndra experience. Was very fortunate by not receiving a new PO to start building new product to resume a fake Sales demand. :)

Sat, 04/14/2012 - 04:16 | Link to Comment onebir
onebir's picture

Even 'you don't have enough money to file for bankruptcy' is a catch-22...

Fri, 04/13/2012 - 23:54 | Link to Comment Yes_Questions
Yes_Questions's picture



Waiting for one's tax $ystem dole to be able to afford a BK filing.




Conjured money needed to slay, conjured money?


What a fucking farcical fucking joke this all is.


Ever noticed the faces of those around you on your way to work?  The Revolution will arrive on a dying horse with a dull blade and water soaked torch.


The pitchfork won't even be suited for mac and cheese.


What good is a used up world and how could it be worth having.


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