Law Office of Timothy P Thomas LLC

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Bankruptcy FAQ

Bankruptcy FAQ

Bankruptcy can be an intimidating process, but an experienced attorney can assist you in completing and filing the necessary documents. As in all legal matters, the advice of an attorney with experience in the legal complications that can arise will avoid unnecessary expense and the chance that the bankruptcy will be dismissed for failing to meet a deadline or provide the correct documents.

I am happy to meet with you for a free consultation to discuss how bankruptcy works and how it would apply to you situation. Please call the office to set up an appointment to meet in the office, at your home, or at a convenient location near you.

How long does a bankruptcy case take?
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 that lasts from 3-5 years. Chapter 11 is more complex and involves developing a plan with your creditors over several months to create a business plan that benefits all parties, and makes your business profitable again.

What is involved in filing bankruptcy ?

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 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.

Can I declare bankruptcy on a small business?
Many small businesses fail and bankruptcy is not alway 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 bad decisions.

How much does filing bankruptcy cost?
The bankruptcy court requires the payment of a filing fee to file bankruptcy. The amount varies depending on the type of bankruptcy. Obtaining a credit report is also useful to include as many creditors as possible. The attorney will need to prepare the documents and appear at court on your behalf. Additionally, the creditors may file objections that need to be addressed as well as addressing questions from the trustee's office. Fees will vary from case-to-case but a flat fee can usually be arranged as well as payment terms to avoid any surprised after you file. Total fees will be discussed at the beginning of the case during the free consultation to help you determine how to obtain maximum debt relief for minimum cost.

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