Lexington Bankruptcy Law Firm Urges Debtors to Spend Tax Refunds on a Fresh Start

    LEXINGTON, KY, March 03, 2017 /24-7PressRelease/ -- With income tax season upon us, leading Kentucky bankruptcy law firm Bunch & Brock, Attorneys at Law, are advising those burdened with debt to use their tax refund to purchase a clean slate. "Oftentimes, people who are strapped for money view a tax refund as the opportunity to buy something they couldn't otherwise afford," said managing partner W. Thomas Bunch II. "Unfortunately, that is often a frivolous item that does nothing to really improve their station in life." Instead, Bunch & Brock urges debtors to use that tax refund to begin the bankruptcy process and improve their prospects for a secure financial future.

When a person files for bankruptcy, Bunch explained, all assets become part of a bankruptcy estate. In most instances, this would include a tax refund that has been received but not spent, which becomes eligible for collection by creditors.

On the other hand, if those who are considering bankruptcy use their tax refund to commence the bankruptcy proceeding, it will not be available to collectors and will actually function to jump-start the process of wiping out old debt and clearing the way for a brighter future.

The bankruptcy attorneys of Bunch & Brock caution that the decision to file for bankruptcy should never be taken lightly. The reasons to make the decision can be numerous: unemployment, underemployment, divorce, foreclosure, overextension or even, as is most recently the case, because of a financial crisis such as the one that affected the entire housing industry. "It is especially important for people to examine what life will be like afterwards," Bunch said, "and to think through all aspects before making the decision. In many cases, however, life after bankruptcy is drastically improved: gone are the constant stress, the threatening phone calls and the worry about what will happen tomorrow. You can focus again on living your life the way you choose to."

Bunch & Brock has served the Central Ky. area for more than 35 years. Staffed by local attorneys, they pride themselves on catering to the specific financial needs of the people in this area. The firm offers a free consultation for those considering bankruptcy, in which they examine all the options and explain the differences between Chapter 7, Chapter 11 and Chapter 12 bankruptcy to help debtors find the best avenue for beginning a fresh start. Those who are wondering whether bankruptcy might be their best option may contact Bunch and Brock for a free consultation at (859) 254-5522 or go to www.bunchandbrocklaw.com.

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