Is Bankruptcy Right for Me?

The Bankruptcy Process Step-by-Step

• What to Expect:
  • The process begins with filing a petition and several forms with the bankruptcy court.
  • You’ll need to provide a detailed list of assets, debts, income, and expenses.
• Documents Needed to File:
  • Proof of income (pay stubs, tax returns).
  • A list of your debts and assets.
  • Bank statements and recent bills.
  • A credit counseling certificate, which is required before filing.
• Timeline:
  • Chapter 7 typically takes 3-6 months.
  • Chapter 13 takes 3-5 years, depending on the repayment plan.
• Role of the Bankruptcy Trustee:
  • A trustee is appointed to review your case.
  • In Chapter 7, the trustee may liquidate assets to repay creditors.
  • In Chapter 13, the trustee ensures that your repayment plan is followed.

Common Myths About Bankruptcy

• Myth 1: You’ll lose everything if you file for bankruptcy.
  • Fact: Bankruptcy allows you to keep many of your essential assets through exemptions.
• Myth 2: Bankruptcy will ruin your credit forever.
  • Fact: Bankruptcy can stay on your credit report for 7-10 years, but it can help you eliminate debt and start rebuilding your credit faster than continuing to struggle with unpaid bills.
• Myth 3: You can only file for bankruptcy once in your lifetime.
  • Fact: You can file for bankruptcy multiple times, but there are time limits on how often you can file.

How Bankruptcy Affects Your Credit

• Impact on Credit Score:
  • Bankruptcy will cause a significant drop in your credit score, but this is often temporary compared to the long-term effects of carrying unmanageable debt.
• Rebuilding Your Credit:
  • After bankruptcy, you can rebuild your credit by making timely payments, using a secured credit card, and keeping your credit utilization low.
• Long-term Benefits:
  • Bankruptcy provides a fresh financial start, reducing or eliminating overwhelming debt. This can improve your financial stability and provide opportunities to save and invest in the future.

Why Garrett Law LLC is Your Trusted Topeka Bankruptcy Firm

As a small bankruptcy practice with an office in Topeka, we serve communities throughout the heartland, focusing on consumer bankruptcies. Most of our clients are middle and working-class families who make a living with their hands, such as subcontractors or small business owners. 

Even if you are in retirement or on disability and are trying to scrape by on a fixed income, we have experience handling families in all situations. No matter what your circumstances are, we are here to serve you with compassionate and understanding care. If you are in need of financial relief, our team at Garrett Law LLC is here to help. With more than 10 years of experience in bankruptcy law, including filing for Chapter 7 and Chapter 13, we want to give you the fresh start that you deserve. We love what we do because we can change people's lives for the better.

Frequently Asked Questions About Bankruptcy

• Can I file for bankruptcy if I have a job?
  Yes, having a job does not disqualify you from filing for bankruptcy. Whether you qualify for Chapter 7 or Chapter 13 will depend on your income and other factors, but many people with jobs file for bankruptcy to regain control of their finances.
• Will filing for bankruptcy stop creditor harassment?
  Yes, once you file for bankruptcy, an automatic stay is put into effect. This means creditors are legally prohibited from contacting you, suing you, or trying to collect debts during the bankruptcy process.
• Can bankruptcy help me with medical bills?
  Yes, medical bills are considered unsecured debt and can often be discharged in bankruptcy, particularly under Chapter 7. Bankruptcy can provide relief from overwhelming medical expenses and prevent wage garnishment or collection actions.
• How does bankruptcy affect my co-signers?
  If you have co-signers on any loans, they may still be held responsible for the debt after your bankruptcy discharge. This is especially true in Chapter 7 bankruptcy. If you're filing for Chapter 13, the repayment plan may protect co-signers to some extent.
• Will I be able to rent a home after filing for bankruptcy?
  While bankruptcy can impact your ability to rent, it doesn’t prevent you from doing so. Landlords may check your credit, but many will still rent to you after bankruptcy if you demonstrate a stable income and financial responsibility.
• How much debt do I need to have to file for bankruptcy?
  There is no minimum amount of debt required to file for bankruptcy, but it’s generally recommended to consider bankruptcy if your debts have become unmanageable and you cannot pay them off within a reasonable time.