Can I file for bankruptcy to repair my credit and license? 15 Answers as of February 26, 2014

How soon after I file will I be able to get back my license? Also how long is the bankruptcy process? Will I be able to receive my taxes will in bankruptcy, if not how many years will they be taken?

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GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
The BK process takes about 4 months from the date of filing to the date of discharge. In Colorado, you can get your driver's license reinstated relatively quickly after your file. You will need to take copies of all your BK schedules to the Motor Vehicle Department showing that you filed, and showing that the accident victim was listed as a creditor. Some states (I hear) require that you show the Discharge Order. In terms of income tax refunds, the Trustee will only be concerned with any refunds received for tax year 2013 (assuming timely filed tax returns for all prior years). Your case will be closed approximately four months after you file.
Answer Applies to: Colorado
Replied: 2/26/2014
Law Offices of Linda Rose Fessler | Linda Fessler
I assume your license was taken away because of back child support. Bankruptcy will not discharge back child support.
Answer Applies to: California
Replied: 2/25/2014
Stephens Gourley & Bywater | David A. Stephens
How soon you can get your license back depends on why it was suspended. In some instances bankruptcy will not even help the suspension. The process takes 90 to 120 days for chapter 7 if no one objects. In a chapter 7 the trustee can only take one year of taxes although depending on the size of the refund, the trustee may not take it at all.
Answer Applies to: Nevada
Replied: 2/25/2014
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
I'm not sure about you question.... Getting your license back will depend on why you lost it. If it is for child support, bankruptcy will n to help you. If it was for a driving offense, it might help depending on why you lost it - if that is a part of your probation, it will not help at all. A chapter 7 takes about 4 months, maybe 5 depending on your jurisdiction.
Answer Applies to: California
Replied: 2/24/2014
A Fresh Start
A Fresh Start | Dorothy G Bunce
Whether or not a bankruptcy discharge will restore your driver's license (I assume that is what you mean by license, although there are many kinds of licenses) depends on the exact reason you lost the license. How long the bankruptcy process may take depends on many factors that you have not described. Whether you will be eligible to keep your tax refund & how many years you may be required to surrender it will also depend on many factors that you haven't described. If you want good answers, you need to provide more details & limit your question to one per post.
Answer Applies to: Nevada
Replied: 2/24/2014
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    Impossible to adequately answer these Qs without a full consultation. Many attys, including me, offer free initial consults. If you are referring to a NYS drivers license, I need to know why it was taken/suspended. It is possible to have your drivers license reinstated within about 3 or 4 months. With regard to the tax refunds and how long the process is, the answer depends on whether you file a chapter 7 or 13, whether you are paying creditors in full or not and other factors. You may be able to keep all your refunds (chapter 7). Chapter 7 may only take 4 months and a chapter 13 up to 5 years. Go to www.abiworld.org for general info on bkry.
    Answer Applies to: New York
    Replied: 2/24/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Bankruptcy does not repair your license but will remove unsecured debts and late payments from your credit. The process for a chapter 7 is about 90 days. You can keep your tax returns if it is exempt, but you should discuss this with your attorney.
    Answer Applies to: New York
    Replied: 2/24/2014
    Meister & McCracken Law Firm, PLLC | Joanne M. McCracken
    You need to sit with a bankruptcy attorney and have her or him evaluate your situation. There are so many facts missing that all I can advise is that you talk with an attorney.
    Answer Applies to: Arkansas
    Replied: 2/24/2014
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    Yes. Oftentimes the quickest way to fix your credit is by starting over with a Bankruptcy discharge. The filing of the petition (provided you get a discharge) also will allow you to get your license back if it has been taken away to collect a debt (though you have to know who to contact to get it back). The length of the process varies by chapter. There are several chapters for bankruptcy relief, 7, 9, 11, 12, 13 and 15. Human beings, unless they are fishermen or farmers (in which case chapter 12 is an option), usually qualify for chapters 7, 11 and 13. The most common and fastest chapter is Chapter 7. However, you must qualify for it; otherwise, you may belong in a Chapter 13 case. A Chapter 7 case when done right takes about 4 months from filing to the receipt of a discharge while a Chapter 13 usually requires from 3 to 5 years for you to receive your discharge. If you are not lucky enough to require a Chapter 13 (that is, because your income is so great or you own so much property that you must file a 13 or an 11), you usually belong in a Chapter 7 case. In the end, there are bankruptcy attorneys whose rate is up to and over $1,000 per hour. The reason for the high rate is not that the bankruptcy laws are simple. Thus, contrary to what the local paralegal or inexperienced attorney tells you, you should consult a reputable and experienced bankruptcy attorney to figure out what chapter is best for you. You will find that we usually do not charge more than charlatans and you are more secure in your knowledge that you will obtain your discharge. And, by the way, in a Chapter 13 case, you will usually pledge your tax refund into the plan, but there is a way to prevent that with proper planning, while in a Chapter 7 case, you may have to turn over your pre-petition tax refund if you cannot exempt it, but tax refunds for post-petition periods are not reachable by the Chapter 7 trustee. Again, a good bankruptcy attorney can tell you how to attempt to prevent that your refund be taken away.
    Answer Applies to: California
    Replied: 2/24/2014
    Barr, Jones & Associates LLP
    Barr, Jones & Associates LLP | Andrew Brasse
    If you file for bankruptcy, you will be able to go to the DMV as soon as the case is filed to get your license all cleared up. As for the duration of the process, it generally takes about 2.5-3 months from the filing of the case to the final discharge. The court may take part of your tax refund, but they only take it for the year you file the bankruptcy.
    Answer Applies to: Ohio
    Replied: 2/24/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    There are a lot of variables that would impact how quickly you can get your license back, but in the right circumstances, a bankruptcy can get it back right away. The length of time you are in bankruptcy also depends on a lot of factors, but typically a Chapter 7 is 3 months from filing date to discharge. If it turns out that you need to file Chapter 13 instead of Chapter 7, that is usually a minimum of 3 years unless you can pay off 100% of your debt in less than 3 years. The ability to keep your tax refunds depends upon whether you file a 7 or a 13 and on the state or federal exemptions you can use to protect the refunds in bankruptcy. The odds are pretty good for keeping a tax refund in Chapter 7 but less good in a Chapter 13 which usually requires turning over your tax refunds every year that you're in a Chapter 13 plan.
    Answer Applies to: Oregon
    Replied: 2/24/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    It sounds as though you are trying to do this on your own without an attorney. That may be a really bad idea. You do not state why your license was revoked. Without knowing that it is impossible to guess whether a bankruptcy will solve the problem or not. Your question about tax refunds depends upon where you live, when you file your taxes, when you file your bankruptcy, how much of a refund you are talking about, and what sort of refund it is. Again, none of this is plain, or easy to explain or understand. Do yourself a big favor and hire a lawyer to help you. What you gain from having competent and experienced counsel will be well worth the cost you pay in attorney's fees.
    Answer Applies to: Colorado
    Replied: 2/24/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    Bankruptcy won't repair your credit but it is usually the lowest point for your credit score. Once your bankruptcy is discharged, you will be able to rebuild your credit. If you have a vehicle loan or mortgage that you reaffirm through your bankruptcy, your credit will likely improve quicker than if you rely on secured credit cards or unsecured credit to rebuild it. If your license was suspended for failure to satisfy a judgment as a result of an accident in which you did not have insurance, then you bankruptcy filing should lift any suspension for the judgment only so long as you included the creditor on your bankruptcy, notified the local court that holds the judgment, and notified the BMV of your bankruptcy filing. If the suspension is for not having insurance then your bankruptcy filing will not resolve that suspension. In Chapter 7 bankruptcy, tax refunds received but not spent or next year's return may be an asset of the bankruptcy to be administered to your creditors. For example, if you file your bankruptcy on June 30, 2014, then 1/2 of your 2014 tax refunds could be subject to turnover but not for future years. The later in the year that you file the more likely your tax refund will be subject to turnover. The larger the refund the more likely it could be an asset. Each state has exemptions that you may be able to claim against next year's tax refund so you need to find out what your state allows you to claim as an exemption. In Chapter 13 bankruptcy, your tax refunds may be subject to turnover each year that you are in an active bankruptcy repayment plan but that will depend on the repayment plan.
    Answer Applies to: Indiana
    Replied: 2/24/2014
    Patrick W. Currin, Attorney at Law | Patrick Currin
    Bankruptcy will lower your credit score. It does not affect licensing. Tax refunds may be exempted in bankruptcy depending on your situation.
    Answer Applies to: California
    Replied: 2/24/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    If you are eligible for a chapter 7 it takes about 90-120 days. I'm not sure what license you are referring to. Normally licenses are not taken from a debtor upon filing bk. Your credit begins to improve after the 120 day mark as long as you pay your bills timely.
    Answer Applies to: Nevada
    Replied: 2/24/2014
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