Frequently Asked Questions

Yes, there are different kinds of bankruptcy and you may qualify for more than one kind. Our firm handles Chapter 7 and Chapter 13 bankruptcies. For more information, please see our Services page or give us a call today for a free consultation at 501-760-0882.

The cost of a bankruptcy will vary depending on what type of bankruptcy you file.

For a Chapter 7 Bankruptcy, our price starts at $1,200.00 for non-business cases. This amount includes all costs associated with your bankruptcy: court fees, required classes, credit reports, and attorney fees. The Chapter 7 fee can be paid all at once or paid out over time prior to filing.

For a Chapter 13 Bankruptcy, attorney fees are paid through a monthly payment to a trustee. However, filing costs typically range from $400.00 to $450.00. This includes court fees, required classes, credit reports, and tax transcripts. Typically, we can file a case for as little as $100.00 down.

Typically, no. In both kinds of bankruptcy, you will simply meet with a trustee near the start of your case, who will ask you some questions under oath. The trustee is just another attorney, not a judge. Your attorney will be present with you during this meeting and can help you in case you need help answering a question or providing information to the trustee.

No, but it is highly recommended that you hire an attorney to guide you through the process and prepare the paperwork for you. Even the Federal Judiciary recommends that you hire an attorney:

“Individuals can file bankruptcy without an attorney, which is called filing pro se. However, seeking the advice of a qualified attorney is strongly recommended because bankruptcy has long-term financial and legal outcomes.”

Administrative Office of the U.S. Courts on behalf of the Federal Judiciary https://www.uscourts.gov/services-forms/bankruptcy/filing-without-attorney

If you are experiencing any financial problems, we suggest talking to an attorney before making any decisions. We provide free consultations so that you can fully understand your options before deciding to file.

Call us for a free consultation.

During your consultation, we will ask for some basic information (regarding your income, expenses, property, and debts) and from that we will be able to tell you what kind of bankruptcy you qualify for, what kind of bankruptcy we recommend for you, and how much it will cost.

We are offering same day or next day appointments to best fit your schedule.

We recommend that you bring a few recent pay stubs with you. If you have any particular bills or other items that you are concerned about, feel free to bring those as well.

If your initial consultation is taking place over the phone, you may submit your documents by email to info@klplawfirm.net or fax to 501-267-5435.

We accept cash (in office only), debit cards, checks, and money orders. We can take debit card payments over the phone and you can schedule recurring payments if you wish.

We cannot accept a credit card payment from you if you are preparing to file bankruptcy. However, if a friend or relative who is not in bankruptcy is paying your fee, they can use a credit card.

We can usually have a case ready to file within a few days. If there is an emergency, then we will try to get the case filed within 24 hours.

Yes! A Chapter 13 Bankruptcy can help you keep a vehicle even if you are behind on payments. Once your case is filed, your vehicle will be protected from repossession.

Yes! Filing for bankruptcy can stop a pending repossession, but we will need to move quickly to make sure your vehicle isn’t picked up.

If your vehicle was recently repossessed, we may be able to get it back by filing for bankruptcy. Call our office ASAP because we only have a short time to get the vehicle back. If it is too late to get it back, bankruptcy will help you get out of any remaining debt owed on the vehicle. Usually when a vehicle is repossessed, it is resold and then you can be sued for any remaining debt, but bankruptcy can help you avoid that.

Yes! Chapter 13 Bankruptcy can give you the time you need to catch up on your mortgage payments, without the looming threat of foreclosure.

Yes! Chapter 13 Bankruptcy can stop a foreclosure from going forward. Call our office and we will help you come up with a Chapter 13 payment plan to catch up the mortgage payments.

Yes, but you should contact our office ASAP because we will need to prepare and file your paperwork with enough time to notify the mortgage company before the sale date.

Yes! Typically, if you are being sued for a prior debt, the creditor can get a judgment against you and start to garnish your wages or bank account or put a lien on your home. Filing for bankruptcy can stop the lawsuit in its tracks.

Yes! Filing bankruptcy will stop a garnishment before it starts. You can’t be garnished during bankruptcy and completing your bankruptcy will permanently remove the garnishment, so you don’t have to worry about it anymore.

Yes! Even if the garnishment is already active, filing for bankruptcy can stop the garnishment from taking any more of your hard-earned money. Call us ASAP so we make sure your next paycheck is protected!

Yes, it can! Credit card debt is one of the primary reasons many people file for bankruptcy. In most cases, bankruptcy will clear away credit card debt. Even when some or all of the debt will be repaid, bankruptcy allows for more affordable and manageable payments.

Yes! It is required that you list all of your debts when filing for bankruptcy. But not all debts have to be treated the same in bankruptcy. That is something that you can discuss with your attorney during your free consultation.

Yes! Illness and lack of insurance coverage leave many people with overwhelming medical debt, but bankruptcy can wipe out that debt and allow you to start over.

Yes! Bankruptcy can help with tax debt. While not all tax debt is dischargeable, filing for bankruptcy can stop a lawsuit or garnishment from tax debt. It can also provide a more affordable payment plan than the state or the IRS may be willing to offer. Our experienced attorneys can go over this information and how it will apply to your situation during your free consultation.

You can still retain us to prepare a bankruptcy filing for you, but you will need to file your taxes ASAP. A bankruptcy can be dismissed (i.e. kicked out) for unfiled taxes. We will help you come up with a plan to get the taxes filed and still get relief from your debts.

Yes! Once you file for bankruptcy, your creditors will receive notice of your bankruptcy, and they will not be allowed to contact you anymore.

Yes! Filing bankruptcy will eliminate your debts or reduce your debt payments, which will free up income to pay your everyday living expenses.

Yes! Minimum payments are probably not even covering the interest, so it is unlikely the debt will ever be repaid. Bankruptcy allows you to break the cycle of never-ending interest and either eliminate the debt or pay it back with no more interest added.

No! There are exemptions in the bankruptcy code that allow us to protect your property. Without bankruptcy, creditors can put liens on your property and try to collect. We can help you protect your property while getting help with your debts. We will review how to do this during your free consultation.

No, credit can be rebuilt after a bankruptcy filing. It is true that bankruptcy will have a temporary impact on your credit but, with a little time and responsible credit habits, you can get your credit score back into good standing.

Typically, yes. While many lending decisions will involve other factors, such as your current income, many of our clients qualify for vehicle loans and other loans after they complete their bankruptcies. Many even qualify for home loans.

First, report your discharge to the credit reporting bureaus. Then, check your credit report to make sure it is updated. After that, make sure to stay current on your payments and do not use more credit than you need. There are lots of good articles online on how to manage credit and improve your credit score and these apply whether you have filed bankruptcy or not.

In most cases, debtors can get financing for a replacement vehicle while they are in bankruptcy if their current vehicle breaks down or is totaled. This will require court approval, but our attorneys can walk you through that process.

Typically, you will keep your refund during bankruptcy. However, there are some exceptions where the IRS, state, or child support office may offset your refunds. If you have any concerns, then your attorney can discuss how it works.

It depends. Our firm focuses on Chapter 7 and Chapter 13 bankruptcies. These chapters are commonly filed by individuals with primarily consumer debts. There are eligibility requirements for each kind of bankruptcy and there are many reasons why one chapter may be more appropriate for your situation than the other. Therefore, it is important to discuss your options with an attorney prior to filing. An attorney should be able to review your information, discuss your options, answer your questions, and quote you a price so that you can make an informed decision about what will be in your best interest.

Student loans are generally considered to be nondischargeable in bankruptcy, which means that they are not eliminated and are still owed, plus any interest or fees that may have accrued during the bankruptcy, after the bankruptcy is over. There are limited circumstances in which courts have reduced or discharged a debtor’s student loans, but these typically require exceptional circumstances and involve significant and expensive litigation in addition to the bankruptcy filing itself.

Not necessarily. There are certain kinds of debts that are nondischargeable, including most taxes, fines, and penalties owed to governmental units, student loans, domestic support obligations, any debt that was incurred through fraud, debts that are reaffirmed in Chapter 7, debts that are maintained and cured in Chapter 13, and debts that are not listed in your bankruptcy paperwork. Bankruptcy will typically discharge debts such as credit cards, medical bills, personal loans, secured debts (typically mortgages or auto loans) for which the property is given back to or taken back by the creditor.

It depends. For Chapter 7 bankruptcy, the fees and costs may be higher or lower based on things like your income, property, and the complexity of your situation. For Chapter 13 bankruptcy, the fees and costs are generally set by the court. Your attorney should be able to quote both the fees and any applicable costs that would be required to file your case after reviewing your information with you.

Typically, your filing fee is due by noon on the date of your meeting with the trustee. If you cannot pay it by this time, please contact our office immediately.

Typically, your payments will start the month after you file for bankruptcy. You should receive an Order to Pay from the trustee that has your payment amount. Your payment is due by the 22nd of every month so that the trustee has time to process it before the end of the month. This does not mean that you must wait until the 22nd, however. You can make the payment any time between the 1st of the month and the 22nd of the month.

You will receive a letter, shortly after your case is filed, that includes the name of the trustee assigned to your case and the date and time of your meeting.

You will receive a letter, shortly after your case is filed, with the time and date of the meeting. Right now, due to the Covid-19 Pandemic, meetings are being held by phone and your letter will include that telephone number and access code.

Your meeting with the trustee will usually consist of a few standard questions under oath with your attorney present. Most meetings only take a few minutes. Most trustees require a few basic documents regarding identification and income prior to the meeting. We will help you get these documents to the trustee.

For a Ch. 7 bankruptcy, generally after you attend your meeting, you are just waiting for your discharge. This is typically a few months after the meeting. In rare cases, the trustee may require additional information after the meeting, and we will contact you to discuss this.

For a Chapter 13 bankruptcy, once you have attended your meeting, the trustee may confirm (i.e. approve) your plan after about a month if no objections are filed. If the trustee or a creditor files an objection, we will help you get the objection resolved.

If you miss your first trustee meeting, it will automatically be rescheduled for the following month. If you miss more than one meeting, your case can be dismissed. If you know you are unable to attend your meeting, please contact us ASAP.

When you file bankruptcy, your creditors are notified via mail and they are supposed to stop contacting you. If you have only recently filed, creditors may have not yet updated their system to stop contacting you. However, if this continues, please let us know so that we can contact the creditor and get it stopped.

There are two classes that must be completed in every bankruptcy case. One is done before your case is filed and one is done after. If you have only done one class, then you still have a second class that must be done. Contact us if you need information on your second class.

If you have filed for bankruptcy with us, then you will have already paid for your second course when you paid your filing fee, so there is no need to pay any other company for the same thing. If you did not file with us but have retained us to represent you, please contact our office before paying for any other courses as ours may be cheaper.

You must complete your second class before you receive a discharge. Ideally, you should complete this as soon after your case is filed as you can. If you have forgotten or lost the information, call us and we will work with you to make sure you are able to complete the course before you get your discharge.

A reaffirmation agreement is paperwork from one of your creditors that allows you to keep debts like home mortgages and vehicle loans in a Chapter 7 bankruptcy. We will work with you and your creditors to make sure that any reaffirmation agreements are complete and filed with the court.

The second course must be completed before you can receive your discharge. We recommend taking the second course as soon as you can after your case is filed to make sure that it is done on time.

Yes, any bills that were owed before you filed may be added in a Chapter 7 bankruptcy. However, the courts charge a small fee to add bills after the petition is filed. We will work with you to make sure that any missing bills are added while trying to minimize the cost to you.

If your case was only recently filed, it is likely that the creditor may not have received notice yet. However, if it continues, please let us know so that we can contact the creditor and put a stop to it.

If your refund was taken before you filed, then no. If your refund was taken after you filed, then we may be able to get it back, but this is something you will want to discuss with us.

The first thing that happens is that an “automatic stay” goes into effect which prevents most collection attempts from continuing - this includes foreclosures, garnishments, lawsuits, and repossessions. Your creditors will be notified of the bankruptcy as well. The next thing that happens is that you will have to attend a “meeting of creditors.” What happens after that depends on what kind of bankruptcy is filed. In Chapter 7, you will typically receive a discharge about 60 days after your meeting of creditors unless someone objects to you receiving a discharge. In Chapter 13, you will have to get your payment proposal confirmed (accepted) and complete your payments to the trustee before you receive a discharge.

While you can file without an attorney, we strongly recommend that you consult with an attorney who is familiar with the bankruptcy process before you file. A successful bankruptcy filing requires an understanding of the law and rules, including dischargeability of different kinds of debt, eligibility to be a debtor and receive a discharge, exemptions, and income. An attorney who is familiar with the bankruptcy code and rules should be able to advise you on the cost, effect, and requirements of filing for bankruptcy so that you can make an informed decision on whether that is something you should do and, if so, how to go about it.

A Chapter 13 bankruptcy is a payment plan in which you propose to pay some or all of your debts through a trustee. A requirement of Chapter 13 is that the debtor have regular income with which to make payments to a trustee. Chapter 13 bankruptcies are often filed when a debtor is ineligible for Chapter 7, can afford to pay some or all of their debts, or is trying to keep and pay for specific property (a home or vehicle for instance). Chapter 13 payment plans are usually for 3 to 5 years.

A Chapter 7 bankruptcy is usually a fairly short and simple bankruptcy. However, there are both income and property limitations in Chapter 7 and therefore it is very important to consult with an attorney before filing.

A Chapter 7 will stay on your credit report for 10 years. A Chapter 13 will stay on your credit report for 7 years. You are not prohibited from applying for or receiving credit during that time but rather it will impact the terms under which you can borrow (interest rates, down payments, payment terms, etc.). You may rebuild your credit during the 7-10 years and there are many free and useful websites and articles on how to responsibly improve your credit score.

If you are behind on your vehicle payments, then a Chapter 13 payment plan can catch up the payments and pay off the vehicle. If you are current on your vehicle payments, then you can usually reaffirm (keep) the debt and vehicle in Chapter 7 or propose that the vehicle be paid off through a Chapter 13 payment plan. If your vehicle is paid for, then you will be allowed to keep it in Chapter 7 depending on how much it is worth and will be allowed to keep it in Chapter 13 regardless of how much it is worth.

It will vary depending on the requirements of the lender and things like your income, credit score, debts, and other non-bankruptcy factors. While we cannot guarantee that anyone will qualify for a mortgage, in our experience, debtors may qualify for a mortgage 2-4 years after a Chapter 7 has been filed (again, depending on lender requirements, income, credit score, etc.). Debtors may qualify for a mortgage during or after a Chapter 13 bankruptcy (again, depending on lender requirements, income, credit score, etc.).

It depends. Our firm focuses on Chapter 7 and Chapter 13 bankruptcies. These chapters are commonly filed by individuals with primarily consumer debts. There are eligibility requirements for each kind of bankruptcy and there are many reasons why one chapter may be more appropriate for your situation than the other. Therefore, it is important to discuss your options with an attorney prior to filing. An attorney should be able to review your information, discuss your options, answer your questions, and quote you a price so that you can make an informed decision about what will be in your best interest.

Bankruptcy will not necessarily ruin your credit, especially in the long run. A bankruptcy filing will be reported on your credit history for seven (7) to ten (10) years. Its impact, while generally negative, will depend on a few factors, including the time frame (short vs long term), how high or low your credit score was when you filed, whether you receive a discharge in your bankruptcy, and what you do to rebuild your credit after you receive your discharge.
In the short term, a bankruptcy filing will have a more negative impact on your credit than in the long term, especially after the bankruptcy is no longer reported on your credit history.

• If your credit score is higher when you file, then your score will probably fall much farther than if your score is lower when you file.
• If you do not receive your discharge for some reason, then none of your debts will be eliminated and they will still be owed despite your bankruptcy filing.
• Furthermore, the bankruptcy filing will still be reported on your credit, so this is not a good outcome.
• There are a variety of things you can do to rebuild your credit after you receive your bankruptcy discharge and there are many free and easily accessible websites that specialize in credit and financial advice.

Call our office ASAP. Our attorneys may be able to temporarily lower your payments or there may be other options that we can discuss with you.

Yes! You will receive a lot of important information regarding your bankruptcy via mail, so we need to have your current address. Once you notify us, we will let the court and the trustee know so that all mail is directed to your new address. We also need to be able to get ahold of you by phone.

Yes! We will need to update your budget to reflect any changes to your income. If you are on payroll-deduction, we will also need to update your employer with the court and the trustee so an order to pay can be sent to your new employer.

We may be able to reduce or even stop bankruptcy payments while you search for a new job or wait for unemployment payments. However, we can’t do this until you let us know so be sure to call us ASAP if you’ve lost your job.

Yes, but you will need to discuss options with us. Sometimes, paperwork must be filed with the court before you can get a replacement vehicle. We are happy to guide you through this process.

It depends on your case. Please call us and we can discuss your options with you.

Sometimes yes, sometimes no. Call us and we can let you know if it is a bill that can be added or if we need to notify your creditor of the bankruptcy.

Let us know right away. There is usually paperwork that needs to be filed before things like homes, land, or vehicles (even if you own them outright) can be sold and we can help you with that process.

Yes, but there are some limitations on it. If you think you will have enough money to pay off your bankruptcy, let us know right away so that we can get a payoff from the trustee.

 If you receive a letter about your bankruptcy and are concerned or have questions, give us a call and our paralegal or one of the attorneys can review it with you. Please make sure you have a copy of the letter with you when you call.

Usually, it does not mean that you are dismissed right away but rather that there is a problem that needs to be fixed. Call us at your earliest convenience and we can help you fix the problem.

The second course must be completed before you can receive your discharge. We recommend taking the second course as soon as you can after your case is filed to make sure that it is done on time.

If your case was only recently filed, it is likely that the creditor may not have received notice yet. However, if it continues, please let us know so that we can contact the creditor and put a stop to it.

You can register with the National Data Center (National Data Center Debtor Registration) to view the trustee’s information on your case, including payments to and from the trustee. We can also review your case information with you.

Feel free to call us and we can find out for you.

If your refund was taken before you filed, then no. If your refund was taken after you filed, then we may be able to get it back, but this is something you will want to discuss with us.

The second course must be completed before you can receive your discharge. If you are about to finish your payments and still have not completed your class, then you need to do it ASAP. If you need any help or information, please call us.

If a creditor is still contacting you after you have received your discharge, you should let us know immediately. It may be a mistake, or it may be a more serious matter that requires further action on our part. You should not be harassed by any creditors after you have received your discharge.

Once you make your final payment, the trustee will send out a DSO form for you to complete and return to our office. Watch for this form and if you have any questions on how to complete it, call our office and we will help you.

DSO really is referring to child support or alimony (Domestic Support Obligation). Once you have made your final bankruptcy payment, you will get a DSO form in the mail asking if you owe child support and/or alimony, and if so, if you are current on those payments. All you must do is mark the correct option, sign it, and mail it back to our office.

If your mortgage is being paid by the trustee, then in most cases the trustee will file a Notice of Final Cure which lets you know that the mortgage has been brought current and lets you know when you need to make the next payment. Call us if you have any questions about this process.

For Chapter 7 bankruptcy, this is usually about 60 days after your meeting with the trustee. For Chapter 13 bankruptcy, this is after you have made your final payment and completed your DSO form.

Immediately after you get your discharge, you should send a copy of your discharge order to the three (3) credit reporting agencies: Experian, TransUnion, and Equifax. After about six (6) months, you should get a copy of your free credit report (www.annualcreditreport.com) to make sure your discharge was reported, and all accounts have been updated. If necessary, follow up with the credit agencies on your own to make sure any mistakes are fixed. If you find that a creditor is failing to honor the discharge or otherwise is causing problems, let us know so that we may discuss your options.

Bankruptcy is a legal means to financial relief. It is designed to help people that have fallen on hard times whether they are behind on payments or just struggling to make their payments each month.