NJ.com: Parsippany's Jackson Hewitt Files for Bankruptcy
The tax preparation company anticipates being free from court protection in 60 days.
Parsippany-based Jackson Hewitt Tax Service Inc. has filed for Chapter 11 bankruptcy, according to NJ.com. The tax preparation firm is under scrutiny by U.S. regulators over the company's participation in tax refund anticipation loans. Jackson Hewitt reported having $500 million assets and debts and said it has made an arrangement with secured lenders that will let the firm exit court protection within 60 days. A Chapter 11 bankruptcy code permits financially troubled businesses to reorganize and continue operating.
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Josela
12:53 am on Tuesday, May 31, 2011
Tax preparation service Jackson Hewitt recently filed for Chapter 11 bankruptcy protections. The company is using a prearranged bankruptcy restructuring plan, so it will be a quick bankruptcy. New regulations made it extremely hard to secure financing for tax refund loans, making it really hard on Hewitt and other tax preparation firms. Refund anticipation loans are frequent targets of certain customer advocacy groups. The loan product is often grouped together with personal loans as being exploitative of the poor. Many states have created laws on [url=http://personalmoneystore.com/payday-loans]payday loan[/url] interest rates that can be charged, but tax refund loans have had little or no regulation until now.