FREQUENTLY ASKED QUESTIONS
Q. What types of debts can be eliminated through bankruptcy?
A. Almost all types of debt Bankruptcy can be eliminated in bankruptcy. The typical bankruptcy case has a mixture of debts¼credit cards, car repo charges, court judgments, medical bills, loans, including “payday loans,” and from failed business.
Q. What types of debts cannot be eliminated through bankruptcy?
A. You cannot eliminate debt for alimony, child support, student loans, (except in exceptional circumstances); debt related to crimes, debt recently made, and obtained by making false statements. Tax debt can be eliminated depending on the several factors. Most creditors must take legal action in bankruptcy court within a short time to prevent the elimination of debt in bankruptcy. Realistically, creditors seldom have any reason to object to a debt being eliminated in bankruptcy.
A. Precise and complex rules determine if tax debt can be wiped out in bankruptcy. These rules consider factors such as the type of tax debt, whether the returns were filed on time or not, what the government has done to collect on the tax, and the age of the tax.
Q. What about leaving out debts I want to keep, such as my car loan, home mortgage, or other bills tied to the purchase of property?
A. If you have debts because you purchased a vehicle, financed real estate with a mortgage or deed of trust, or financed furniture or appliances and want to keep the property, you still must list these debts in your bankruptcy. But including debts in a bankruptcy does not mean you have to surrender the property. There are procedures in place to let you keep the important things you own and are continuing to pay on the original or perhaps better terms.
Q. What is the difference between the services that A Fresh Start Law provides from other bankruptcy attorneys in Las Vegas?
A. Attorney Dorothy Bunce explains all the paths that are available to solve your debt problem. You only work with Dorothy Bunce, an attorney with over 35 years of bankruptcy experience. When the case is over, your relationship does not end. You will receive the information and forms you will need to help you rebuild your credit. The future can be brighter then the past.
Q. What property will I lose if I file for bankruptcy?
A, You are typically only at risk of losing one thing¼your upcoming income tax refund. You are not allowed to have lots of cash lying around, and there are limits to the value of what you can keep. For example, you can keep your car, but not if is paid for and is worth more than $15,000. You can keep your household furniture and belongings, but not if it is worth more than $12,000 (or $24,000 if you are married and file bankruptcy with your spouse).
Q. What other property can I keep if I file for bankruptcy?
A. Whether you can keep property depends on two things. #1. Where you have lived during the past two years, which establishes what laws are available to protect your property. #2. What type of property you have and its value.
Q. How long does bankruptcy take?
A. There are two types of bankruptcy programs and each takes a different amount of time to complete.
#1. A Chapter 7, or regular bankruptcy, once it is filed, without any complications, usually takes less than 4 months to complete.
#2. A Chapter 13 Bankruptcy, also called a “wage earner’s plan,” can take between 3 to 5 years to complete. During the 3 to 5 years of a Chapter 13, you are required to make monthly payments to all your debts.
Q. Do I make too much money to file for bankruptcy?
A. Even more affluent or upper middle-income people live above their means. In many instances people with a large income are spending more then they make and have debt problems or have had a business fail. They can obtain help in bankruptcy court, but may have fewer choices than someone earning much less. For specific answers, just ask Attorney Dorothy Bunce.
Q. Besides bankruptcy, what other ways can I eliminate my debts?
A. If a creditor is unable to easily collect the money you owe, they may be willing to settle for less then the full amount owed. Creditors will not make “deals” on easy payment terms. They will not settle an account that is in good standing or where they are receiving regular payments. However, a creditor will settle for a lump sum of cash, if the time is right. This is where representation by an attorney could get you a better offer then you can do on your own. This is the perfect situation to use the experience of Dorothy Bunce to settle your debts.
Or¼you may just need to be pointed in the right direction to be declared as “judgment proof” meaning that even a creditor with a court judgment is unable to collect from you.
Q. If I filed bankruptcy with another lawyer, can you help rebuild my credit ?
A. We thank our “A Fresh Start” clients by providing them with all the information they need to help rebuild their credit after bankruptcy or debt settlement. We cannot provide non-clients with advice that has been exclusively provided to our clients.