Is Bankruptcy Right for Me?

Learn the facts – call a Topeka Bankruptcy Lawyer at (888) 253-4526.

We know that a weak economy has put many families through hard times. If you have questions about whether or not you may be a good candidate for bankruptcy, call us anytime. We can help you make informed decisions about your situation.

Examples of When Bankruptcy Might Be Right for You

Bankruptcy may be right for you if:

• You are behind on your car, mortgage, and/or medical bill payments and can't get caught up
• Your interest rates have gone up significantly on credit card debt
• You have been borrowing from credit cards to pay other credit cards or bills
• You are unable to increase your monthly income or sales assets
• Your creditors are unwilling to settle on a monthly payment plan that you can afford
• You owe back taxes
• You are only able to make the minimum payment on your credit cards
• You have lost your job and/or a significant portion of your regular monthly income

Worried that you may lose your home or car after filing for bankruptcy? You may be surprised to find out that bankruptcy can actually allow you to keep your property. Learn more by speaking with our Topeka bankruptcy lawyer.

Ready for a Fresh Start? Call tel:(888) 253-4526 today for a free consultation. Our team at Garrett Law LLC is here to help you explore your bankruptcy options.

Types of Bankruptcy: Chapter 7 vs. Chapter 13

Chapter 7 Bankruptcy:

• Chapter 7 is often called "liquidation" bankruptcy.
• In this process, your non-exempt assets (property that isn't protected by state or federal exemptions) may be sold to pay off your creditors.
• Most unsecured debts like credit card balances, medical bills, and personal loans can be discharged, meaning you are no longer legally responsible for paying them.
• This option is usually quicker, often completed within a few months.

Chapter 13 Bankruptcy:

• Chapter 13 is a “reorganization” bankruptcy.
• Instead of liquidating assets, you propose a repayment plan to pay off part or all of your debt over 3 to 5 years.
• This plan is designed to be affordable, based on your income and living expenses, and you can often keep your property, like your home or car.
• It is ideal for those who have a steady income and want to avoid losing their assets.

Which Type is Right for You?

• The choice between Chapter 7 and Chapter 13 depends on several factors:
  • Income: If your income is too high to qualify for Chapter 7, Chapter 13 might be your best option.
  • Assets: If you own valuable assets (e.g., a home or car) that you want to keep, Chapter 13 may allow you to restructure your debt without liquidating your property.
  • Debt Type: Chapter 13 may be more beneficial if you have debts that can’t be discharged in Chapter 7, like student loans or child support.

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.