Bankruptcy FAQ
FAQ
TRUSTWORTHY GUIDANCE FROM AN EXPERIENCED LAS VEGAS BANKRUPTCY ATTORNEY
Bankruptcy can be a complicated process but the Law Office of Timothy P. Thomas, LLC can assist you in completing and filing the necessary documents early, so that you are well-prepared and informed. Our Las Vegas bankruptcy lawyer can make sure that you stay up to date with every step of the process. That is why we have provided helpful answers to some frequently asked questions.
We are happy to meet with you to discuss how bankruptcy could apply to your situation. Get in touch with us today!
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A chapter 7 bankruptcy case takes approximately 90 days to complete after the petition has been filed. Chapter 13 cases take additional time to confirm a repayment plan, which can last from 3-5 years. Chapter 11 is more complex and involves developing a plan with your creditors over several months to create a business model that benefits all parties and can make your business profitable again.
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Federal law requires a person filing bankruptcy to complete a credit counseling course. Once the course is completed, a bankruptcy petition is filed that lists all assets and debts as well as a financial history of the debtor. There is a hearing before the bankruptcy Trustee to review the petition and provide copies of tax returns and bank statements. Prior to the discharge of the debt, a budgeting class must be completed as well. A chapter 13 case also involves the filing and confirmation of a repayment plan based upon your available cash flow each month.
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It depends on the case at hand. Typically, bankruptcy does eliminate many types of debt, but does not wipe out all of your financial obligations. For example, bankruptcy can eliminate:
Credit balances
Personal loans (excludes student loans)
Medical bills
Overdue bills
Mortgage or car loans (if the client returns the property to the bank)
Specific lease contracts
Tax debt over 3 years old
Bankruptcy cannot discharge certain types of debt, including:
Recent tax debt under 3 years old
Secured loans
Student loans
Because every case is different, there is never a promised list of debts that can be eliminated by filing for bankruptcy. Luckily, our Las Vegas bankruptcy attorney shows his compassion for clients by aggressively working to help pull them out of debt. Contact the Law Office of Timothy P. Thomas, LLC to find out what Timothy P. Thomas can do for you.
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Many small businesses fail and bankruptcy is not always necessary to close a business. However, most owners of small businesses sign personal guarantees of the business debts and accounts that will impact their personal credit. The bankruptcy code allows a corporation or LLC to file bankruptcy as well as individuals. If your business has the ability to generate enough cash flow, a bankruptcy can eliminate the burden of prior debt.
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It is important to be as prepared as possible before filing for bankruptcy so you can avoid confusion and costly legal headaches down the road. By starting with all the necessary documentation, you give your attorney the tools they need to achieve the best possible outcome for your case.
When filing for bankruptcy, please compile:
6 months of pay stubs
3 years' worth of tax returns
6 months of bank statements
A prepared monthly budget
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The cost of filing for bankruptcy will vary based on the details of your case, including the type of bankruptcy you are filing for. The complexity of your case will also play a role, as cases involving a large amount of assets and/or creditors will require much more work than a simpler case. Fees will vary from case-to-case but a flat fee can usually be arranged as well as payment terms to avoid any surprises after you file. Total fees will be discussed at the beginning of the case during the initial consultation to help you determine how to obtain maximum debt relief for minimum cost.
Contact us for any other questions you may have. Our experienced Las Vegas bankruptcy attorney is trusted by many clients.